Bill > S2901

Introduced Session

This bill restructures the law regarding ticket sales and resales in New Jersey, introduces transparency into the ticket issuing and selling industry, establishes consumer protections for purchasers of resold tickets, and protects and reaffirms the right of ticket purchasers to resell their tickets without technological restrictions. This bill introduces transparency into the ticket selling process by requiring ticket issuers to provide advance public notice of their ticket policies, including the total number of tickets to be issued; the number of tickets to be offered to the general public and the number of holdback tickets; the number of public tickets for each class, tier or level of admission; any service charge, premium or other fee applicable to the sale of tickets; and the time at which ticket sales for an event will commence. Under the bill, all advertisements for the initial sale of tickets, and the tickets themselves, would have to be marked with the initial price of the tickets, including itemized listings of any taxes, service charges and fees. The advance public notice would be required to be published at least 15 days prior to the initial sale of tickets at any place the tickets are sold and on any website where tickets are sold by a ticket issuer or an owner or operator of a place of entertainment. This bill also prohibits ticket issuers from issuing "paperless tickets" in an electronic form that is not readily transferable to a subsequent purchaser or that conditions entry into an event on the presenting of documentation, such as the original purchasers credit card, that cannot be readily transferred to a subsequent purchaser. This bill further protects a ticket purchasers right to resell a ticket by prohibiting a ticket issuer from imposing any terms or taking any legal action or imposing any penalty that would restrict the sale of a ticket. Current statute limits the price at which certain tickets can be resold. The bill removes price limits on the resale of all tickets and at the same time enhances consumer protections. These protections, which would be required of ticket issuers, resellers and online marketplaces, include a full refund by the seller, reseller or facilitator of a sale or resale if the event is cancelled, the ticket does not grant entry to the event, or the ticket does not match its advertised description. The bill prohibits owners or operators of a place of entertainment or of an entertainment event, or their agents, from making initial ticket sales to themselves or their affiliates. In addition, they would be barred from advertising, selling, or offering to sell, tickets not previously sold through an initial sale. An "insider," as defined in the bill, would also be prohibited from selling tickets to an event prior to their release for initial sale to the public. In addition, operators of places of entertainment would be required by the bill to code tickets, so that they can be traced back to the original sale, and to keep records of ticket sales for five years. Under the bill, ticket brokers would no longer have special privileges or be separately regulated. As such, they would no longer have to register with the Division of Consumer Affairs and the sections of law concerning registration of ticket brokers are repealed by the bill. For tickets sold at auction through the owner or operator of a place of entertainment or their agents, the auction price must be the final auction price. Under the bill, all advertisements for the resale of tickets would have to disclose the number of tickets offered for sale. The bill prohibits giving or receiving anything of value, other than the price printed on the ticket, in exchange for special treatment with respect to obtaining tickets and the use of any means designed to circumvent or disable controls or systems intended to limit the number of tickets purchased by one buyer or to ensure the equitable distribution of tickets. The bill also prohibits the resale of tickets not in ones possession or control unless that policy is disclosed in advance, and a full refund is made within ten days if the reseller is unsuccessfully in securing tickets. The disclosure must include an approximate delivery date, the number of tickets guaranteed together, and the zone or section number of the tickets. The resale of tickets not originally purchased for ones personal use in an area owned by, adjacent to or in the vicinity of a place of entertainment would continue to be prohibited, except that the bill permits the sale or resale of tickets from a business, located in a physical structure, operating prior to the effective date of the bill. The bill specifies that a violation would be both an unlawful practice under the consumer fraud act and a crime of the fourth degree. An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, an unlawful practice violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured. A crime in the fourth degree is punishable by up to 18 months imprisonment, a fine of $10,000 or both.

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Raymond Lesniak (D)*,  Bob Singer (R)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 05/23/2011)

Official Document