This bill would require the operator of a place of entertainment or its agent to disclose service fees, along with the price of a ticket on advertising and promotional materials. Further, the bill would require operators or agents to disclose what portion of the total ticket price the service fee represents. Currently, operators or agents regularly conceal these fees until the final stages of a transaction. By requiring early disclosure, this bill would allow consumers to make more informed decisions before beginning a transaction.
- Laid Over in Committee
Int. No. 930
By Council Members Brannan, Espinal, Menchaca, Cornegy, Levine, Powers, Yeger, Van Bramer, Holden, Lancman and Rivera
A Local Law to amend the administrative code of the city of New York, in relation to the disclosure of service fee charges associated with tickets to entertainment events in New York city
Be it enacted by the Council as follows:
Section 1. Chapter 5 of title 20 of the administrative code of the city of New York is amended by adding a new subchapter 20 to read as follows:
DISCLOSURE OF TICKET SERVICE FEES
§ 20-828 Definitions.
§ 20-829 Service fee disclosure.
§ 20-830 Penalties.
§ 20-828 Definitions. As used in this subchapter, the following terms have the following meanings:
Event. The term “event” means all forms of entertainment at places of entertainment, including, but not limited to, musical performances, concerts and sporting or athletic events that take place in the city.
Operator. The term “operator” means any person or agent of a person who owns, leases, operates or controls a place of entertainment or who promotes or produces an event to be held at a place of entertainment in the city.
Place of entertainment. The term “place of entertainment” means any privately or publicly owned, leased or operated location in the city, including, but not limited to, a theater, stadium, arena, racetrack, museum, amusement park or other place where a performance, concert, athletic game or contest is held and for which an entry fee is charged.
Service fee. The term “service fee” means all dollar amounts, except taxes, added to the price of a ticket by an operator at the time of sale, including, but not limited to, fees for processing transactions, maintaining facilities, reselling tickets and delivering tickets.
Ticket. The term “ticket” means a license, issued by an operator, for admission to a place of entertainment at the date and time specified thereon, subject to the terms and conditions the operator specifies, which is offered for sale to the general public.
Total ticket price. The term “total ticket price” means the price of a ticket inclusive of all taxes and service fees.
§ 20-829 Service fee disclosure. a. Where an operator includes ticket prices in advertising or promotional materials, the operator shall conspicuously disclose the total ticket price and what portion of the total ticket price, stated in a dollar amount, the service fee represents.
b. Where an operator has designated a range of total ticket prices for a particular event, the operator shall conspicuously disclose what portion of each total ticket price, stated in a dollar amount, the service fee represents.
§ 20-830 Penalties. Any person who violates any provision of this subchapter or any rule promulgated thereunder is liable for a civil penalty not to exceed $5,000.
§ 2. This local law takes effect 120 days after it becomes law, except that the commissioner for the department of consumer affairs may take all actions necessary for its implementation, including the promulgation of rules, before such effective date.
4/25/18, 3:45 pm