S. 5278: Guaranteeing Honest Ownership in Secondary Ticketing Act

This bill would make it illegal for a ticket reseller to sell, offer to sell, or advertise an event ticket unless the reseller already has actual possession of that ticket. In plain terms, it targets speculative ticket sales—situations where someone tries to sell tickets before actually having them.

What counts as possession

The bill says a reseller must have physical or virtual possession of the ticket issued by the original ticket seller before listing it for resale. “Reseller” means someone reselling tickets rather than the original ticket issuer.

How it would be enforced

The Federal Trade Commission (FTC) would enforce the law. A violation would be treated like an unfair or deceptive trade practice under the FTC Act. The FTC would have authority to make rules needed to carry out the law and could bring civil cases in federal court.

Penalties

Someone who violates the law could face:

• a civil penalty of at least $15,000 per day that the violation continues;
• an additional penalty of the greater of $1,000 per ticket involved, or five times the total ticket price for the tickets involved;
• an extra penalty of at least $10,000 per ticket for intentional violations.

State enforcement

State attorneys general would also be able to sue in federal court on behalf of state residents if they believe the law has been violated. State consumer protection officials with proper authority could also bring these cases. They could seek injunctions, compliance, damages, restitution, or other compensation for affected residents.

Complaint website and reporting

The FTC would have to create a public website within 180 days of enactment where people can report violations of this law and the earlier Better Online Ticket Sales Act of 2016. The FTC would share reports with state attorneys general as appropriate.

Reporting to Congress

The FTC would have to report to Congress within 180 days of enactment and then every year after that on enforcement activity and how effective the law is.

When it would take effect

The law would begin 60 days after it is enacted.

Relevant Companies

• LYV - Live Nation Entertainment could be indirectly affected because the law would change how secondary ticket sales are advertised and completed, which may affect the resale market around major events.
• TSG - The Trade Desk is not directly tied to ticketing, but if ad-supported ticket resale platforms reduce speculative listings or change advertising practices, related digital ad activity could be affected.
• EBAY - eBay may be indirectly affected if ticket resale activity on its marketplace changes, since the bill would restrict selling tickets before the reseller actually possesses them.