The U.S. live event ticketing system is in need of an overhaul, according to federal legislators, advocacy groups and trade associations.

A bipartisan group of legislators led by U.S. Sen. Amy Klobuchar, a Democrat from Minnesota, and including Sen. Ben Ray Luján, a New Mexico Democrat, introduced the Fans First Act. The legislation aims to increase transparency on fees related to ticket sales, protect consumers from fake or overpriced tickets and hold illegal ticket sellers accountable.

“Millions of Americans enjoy live entertainment each year, but the current ticketing system makes it difficult – if not impossible – for folks to find affordable tickets,” Luján said in a statement to the NM Political Report. “From computer bots to bad actors and deceptive pricing, too many consumers are being left in the lurch. New Mexico is home to some of the country’s best and most historic venues, where we showcase our music and culture. I introduced the bipartisan Fans First Act to put New Mexico consumers and fans first.”

One of the bill’s proponents is trade association National Independent Venue Association Executive Director Stephen Parker. 

NIVA began working with Klobuchar and Corbyn’s offices in July 2022 to draft legislation to control speculative ticketing, or when people buy tickets and attempt to resell them at a markup, and address ticket sales transparency.

“At the same time, we were working in earnest with (Klobuchar and Corbyn) about three or four months after, there was the Ticketmaster/Taylor Swift debacle,” Parker said. “And that’s what really caught Congress’s attention and made them want to do something on ticketing.”

Many fans of Swift were disappointed with a chaotic and expensive process for tickets to her ongoing Eras Tour that toured major cities in the United States and in other areas of the world. Tickets have not yet gone on sale for the second United States leg of her tour, which will include just nine shows in three cities.

NIVA was established during the COVID-19 pandemic to help pass Save Our Stages Act which became the Shuttered Venue Operators Grant program through the Small Business Association which helps venues from live theaters to libraries to aquariums affected by the COVID-19 business closures.

Using the contacts set up through Save Our Stages, NIVA set up Fix the Tix.

NIVA set up the Fix the Tix Coalition to “spearhead the legislation against speculative ticketing,” Parker said.

Members of Fix the Tix include the Recording Academy, Universal Music Group and the Recording Industry Association of America.

If enacted, the Fans First Act will help address the following areas of reform in the current ticketing system:

Ticket Sales Transparency:

• Requires all live event ticket sellers and resellers to disclose:
  
  • The total cost of the ticket, including fees, when the fan initially selects a ticket for purchase;
    
  • A breakdown of the ticket cost;
    
  • Clear terms and conditions of purchase;
    
  • Which seat or section they are selling in to avoid ticket misrepresentation;
    
  • And whether or not they are the original seller.  

Consumer Protection:

• Strengthens the Better Online Ticket Sales (BOTS) Act, signed into law in 2016, to further prohibit the use of bots to purchase tickets online.
  
• Requires sellers and resellers to provide proof of purchase to consumers within 24 hours of purchase.
  
• Requires sellers and resellers to refund consumers the full cost of the ticket when events are canceled.
  
• Requires a Government Accountability Office (GAO) study to further study the marketplace and make recommendations.

Stopping Bad Actors: 

• Imposes civil penalties on resellers engaging in illegal ticket sale practices, creates a reporting website for fans to file complaints, and tasks the Federal Trade Commission (FTC) and state attorneys general with enforcement.
  
• Prohibits the sale of a ticket that the reseller represents they possess but actually do not, known as a speculative or “spec” ticket.
  
• Prevents the use of deceptive websites and bad actors masquerading as legitimate sellers.
  
• Requires reporting of BOTS Act violations from ticketing companies to the FTC and requires the FBI to share ticketing violations with them.  

Klobuchar and Sen. John Cornyn, R-Texas, introduced the Fans First Act. Other co-sponsors include Senators Marsha Blackburn, a Republican from Tennessee, Roger Wicker, a Republican from Mississippi  and Peter Welch, a Democrat from Vermont.

A number of industry groups have endorsed the legislation, including the Recording Academy, Recording Industry Association of America, National Independent Talent Organization, Eventbrite, Performing Arts Alliance, International Association of Venue Managers, Songwriters of North America, Americans for the Arts, Americans for the Arts Action Fund, Future of Music Coalition, Artists Rights Alliance, Music Managers Forum, Screen Actors Guild-American Federation of Television and Radio Artists, and Association of Performing Arts Professionals.