HF4250

Purpose

• The bill aims to protect Minnesota consumers who buy resale tickets by requiring clear disclosures, limiting price increases, and giving people a legal way to seek damages if rules are violated.
• It targets ticket resellers and online marketplaces to improve transparency around the true cost of tickets and the terms of sale.

Key definitions (selected terms used in the bill)

• Broadway show or Broadway touring engagement: live theatrical productions with variable or market-based ticket pricing.
• Online ticket marketplace: a website or platform that sells tickets or helps sell tickets.
• Ticket reseller: a person or business that offers or sells tickets for resale after the original sale.
• Place of entertainment: the venue where performances or events occur (excludes movie theaters).
• Price components: total cost, service charge, other fees or surcharges, original purchase price, and any markup.
• Proof of purchase: information about the event and ticket details provided within 24 hours of purchase.

Main provisions and what they require

• Disclosures during listing and purchase
  • Operators, resellers, and online marketplaces must clearly disclose in dollars:
  • The total cost to purchase the ticket (including all fees and surcharges).
  • The portion of the price that is a service charge and any other fees.
  • They must also disclose:
  • The original purchase price and the percentage markup above that price.
  • Any subtotals and fees in a way that is not false or misleading.
  • The fact that some components can be displayed in a way that lets buyers hide or minimize items.
  • They must disclose on the site that resale prices may be higher or lower than the original price.
  • They must tell buyers to check with the place of entertainment for changes or cancellations and disclose the resale site’s refund policy.
  • A buyer must confirm they have read these disclosures before completing the purchase.
  • The seller must provide a proof of purchase within 24 hours of the purchase, including event details and refund information.
• Branding and restrictions
  • Online marketplaces cannot use branding or designs that are confusingly similar to a place of entertainment without written permission (with some allowed exceptions, like using the event name to describe location or identify the seat).
• Thresholds and exemptions
  • The disclosure requirements apply to entities with annual aggregate transactions below 5,000; those above this threshold have limited or no applicability of certain provisions.
• Price limitations
  • A ticket reseller or online marketplace may not resell a ticket for more than 115% of the original purchase price (including fees and surcharges).
  • Exceptions to the cap: professional or collegiate sporting events and Broadway shows or Broadway touring engagements.

Private right of action and remedies

• Individuals harmed by violations can sue for:
  • Actual, incidental, and consequential damages.
  • Statutory damages of at least $500 per violation.
  • Costs, disbursements, and reasonable attorney fees.
  • Injunctive relief to stop ongoing violations.
• Remedies are cumulative and can be used alongside other laws.

Reporting and enforcement

• By January 15, 2028, the commissioner of commerce, with the attorney general, must report to leaders of the relevant legislative committees on enforcement activity under this section, using existing resources.

What changes this bill makes to existing law

• Adds a comprehensive set of consumer disclosures for ticket resale platforms.
• Introduces a price cap on resale tickets (with broad exceptions) to prevent excessive markups.
• Creates a private right of action for consumers, enabling damages and legal remedies for violations.
• Establishes a framework for enforcement reporting and ongoing monitoring.

Potential impacts

• Increased transparency for buyers about total costs and resale markups.
• Encourages more consistent refund policies and access to purchase information.
• Adds legal leverage for consumers against deceptive pricing practices in ticket resales.
• Broadway shows and certain professional sports events receive specific protections through price cap exemptions.

Relevant Terms - total cost, fees, surcharges, service charge - original purchase price, markup, percentage markup - resale ticket, ticket reseller, online ticket marketplace - Broadway show, Broadway touring engagement - place of entertainment - easily readable and conspicuous disclosures - refund policy, proof of purchase - annual aggregate transactions, 5,000 - 115 percent price cap - private right of action, actual damages, statutory damages, injunctive relief - attorney fees, costs, disbursements - enforcement report, commissioner of commerce, attorney general