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15 U.S.C. § 45cUnfair and deceptive acts and practices relating to circumvention of ticket access control measures

submitted 10 years ago by Pub. L. 114-274 to r/title-15-COMMERCE-AND-TRADE · 1,008 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law bans bypassing a ticket seller's purchase-limit security controls. It also bans knowingly reselling tickets obtained that way. Security researchers are exempted, and the FTC and states can enforce it.

(a) Conduct prohibited (1) In general: It is unlawful for a person to: bypass a security measure, access control system, or other technological control on a website or online service that a ticket issuer uses to enforce posted purchase limits or protect its posted ticket ordering rules; or sell or offer to sell, across state lines, an event ticket obtained through such a bypass — if the seller either participated in or could control that bypass, or knew or should have known the ticket was obtained that way. (2) Exception: It is not unlawful to create or use computer software or a system to investigate or help enforce or defend against an alleged violation of this section or another law, or to research and analyze flaws and vulnerabilities in these ticket-purchasing security systems, as long as that research is aimed at advancing knowledge of computer system security or helping develop computer security products. (b) Enforcement by the Federal Trade Commission (1) Unfair or deceptive acts or practices: A violation of subsection (a) is treated as violating a Federal Trade Commission Act rule against unfair or deceptive acts or practices. (2) Powers of Commission: The Commission enforces this section with the same jurisdiction, powers, and procedures it has under the Federal Trade Commission Act, as if that Act's provisions were written directly into this section. Anyone who violates subsection (a) faces the same penalties, and gets the same privileges and protections, as under the Federal Trade Commission Act. This does not limit the Commission's authority under any other law. (c) Enforcement by States (1) In general: If a state attorney general has reason to believe residents of that state have been or are being harmed by a violation of subsection (a), the attorney general may sue on the residents' behalf ("as parens patriae") in an appropriate federal district court, to stop further violations, force compliance, and recover damages, restitution, or other compensation for residents. (2) Rights of Federal Trade Commission: The state attorney general must generally notify the Commission in writing, with a copy of the complaint, at least 10 days before filing suit — unless that isn't feasible, in which case notice must go out immediately after filing. The Commission may intervene in the state's case, be heard on everything in it, and appeal any decision. (3) Investigatory powers: Nothing here limits a state attorney general's normal state-law powers to investigate, administer oaths, or compel witnesses and evidence. (4) Preemptive action by Federal Trade Commission: If the Commission already brought a civil or administrative case over a given violation, the state cannot sue the same defendant over that same violation while the Commission's case is still pending. (5) Venue; service of process: A state's lawsuit may be filed in the proper federal district under the normal venue rules, or in another court with jurisdiction. The defendant may be served wherever they live or can be found. (6) Actions by other State officials: Other authorized state consumer-protection officials, not just the attorney general, may also bring these lawsuits, under the same rules. This does not stop a state official from starting or continuing a case under the state's own civil or criminal law.
the actual law source: uscode.house.gov ↗public domain
(a) Conduct prohibited
(1) In general

Except as provided in paragraph (2), it shall be unlawful for any person

(A)

to circumvent a security measure, access control system, or other technological control or measure on an Internet website or online service that is used by the ticket issuer to enforce posted event ticket purchasing limits or to maintain the integrity of posted online ticket purchasing order rules; or

(B)

to sell or offer to sell any event ticket in interstate commerce obtained in violation of subparagraph (A) if the person selling or offering to sell the ticket either—

(i)

participated directly in or had the ability to control the conduct in violation of subparagraph (A); or

(ii)

knew or should have known that the event ticket was acquired in violation of subparagraph (A).

(2) Exception

It shall not be unlawful under this section for a person to create or use any computer software or system—

(A)

to investigate, or further the enforcement or defense, of any alleged violation of this section or other statute or regulation; or

(B)

to engage in research necessary to identify and analyze flaws and vulnerabilities of measures, systems, or controls described in paragraph (1)(A), if these research activities are conducted to advance the state of knowledge in the field of computer system security or to assist in the development of computer security product.

(b) Enforcement by the Federal Trade Commission
(1) Unfair or deceptive acts or practices

A violation of subsection (a) shall be treated as a violation of a rule defining an unfair or a deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

(2) Powers of Commission
(A) In general

The Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section.

(B) Privileges and immunities

Any person who violates subsection (a) shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.).

(C) Authority preserved

Nothing in this section shall be construed to limit the authority of the Federal Trade Commission under any other provision of law.

(c) Enforcement by States
(1) In general

In any case in which the attorney general of a State has reason to believe that an interest of the residents of the State has been or is threatened or adversely affected by the engagement of any person subject to subsection (a) in a practice that violates such subsection, the attorney general of the State may, as parens patriae, bring a civil action on behalf of the residents of the State in an appropriate district court of the United States—

(A)

to enjoin further violation of such subsection by such person;

(B)

to compel compliance with such subsection; and

(C)

to obtain damages, restitution, or other compensation on behalf of such residents.

(2) Rights of Federal Trade Commission
(A) Notice to Federal Trade Commission
(i) In general

Except as provided in clause (iii), the attorney general of a State shall notify the Commission in writing that the attorney general intends to bring a civil action under paragraph (1) not later than 10 days before initiating the civil action.

(ii) Contents

The notification required by clause (i) with respect to a civil action shall include a copy of the complaint to be filed to initiate the civil action.

(iii) Exception

If it is not feasible for the attorney general of a State to provide the notification required by clause (i) before initiating a civil action under paragraph (1), the attorney general shall notify the Commission immediately upon instituting the civil action.

(B) Intervention by Federal Trade Commission

The Commission may—

(i)

intervene in any civil action brought by the attorney general of a State under paragraph (1); and

(ii)

upon intervening—

(I)

be heard on all matters arising in the civil action; and

(II)

file petitions for appeal of a decision in the civil action.

(3) Investigatory powers

Nothing in this subsection may be construed to prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of the State to conduct investigations, to administer oaths or affirmations, or to compel the attendance of witnesses or the production of documentary or other evidence.

(4) Preemptive action by Federal Trade Commission

If the Commission institutes a civil action or an administrative action with respect to a violation of subsection (a), the attorney general of a State may not, during the pendency of such action, bring a civil action under paragraph (1) against any defendant named in the complaint of the Commission for the violation with respect to which the Commission instituted such action.

(5) Venue; service of process
(A) Venue

Any action brought under paragraph (1) may be brought in—

(i)

the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28; or

(ii)

another court of competent jurisdiction.

(B) Service of process

In an action brought under paragraph (1), process may be served in any district in which the defendant—

(i)

is an inhabitant; or

(ii)

may be found.

(6) Actions by other State officials
(A) In general

In addition to civil actions brought by attorneys general under paragraph (1), any other consumer protection officer of a State who is authorized by the State to do so may bring a civil action under paragraph (1), subject to the same requirements and limitations that apply under this subsection to civil actions brought by attorneys general.

(B) Savings provision

Nothing in this subsection may be construed to prohibit an authorized official of a State from initiating or continuing any proceeding in a court of the State for a violation of any civil or criminal law of the State.

Source credit: (Pub. L. 114–274, § 2, Dec. 14, 2016, 130 Stat. 1401.)

history & why it existsrecord from the source credit
  • 2016Enacted · Pub. L. 114-274 · 130 Stat. 1401

A history note hasn’t been published yet. The record shows enactment by Pub. L. 114-274 on 2016-12-14.

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