HB 4262 — Summary: Enforcement and Penalties for the Event Online Ticket Sales Act (EOTSA)
Status and procedural posture
- Bill number: HB 4262 (introduced Mar 18, 2025; filed Mar 10, 2025).
- Passed the Michigan House on June 24, 2025 (Roll Call #159: Yeas 104, Nays 1). Referred to the Senate Committee on Finance, Insurance, and Consumer Protection (June 26, 2025).
- Tie-bar: HB 4262 does not take effect unless companion bill HB 4263 (which creates the Event Online Ticket Sales Act’s substantive prohibitions and definitions) or an equivalent Senate bill is also enacted.
Purpose and intent
- HB 4262 establishes enforcement authority, civil penalties, and remedies to implement the Event Online Ticket Sales Act (EOTSA). It empowers the Michigan Attorney General (AG) to investigate alleged violations and to seek civil relief in state court. The combined bills aim to curb ticket-buying practices that use automated tools or other means to circumvent online ticket-sale controls (an approach similar to the federal BOTS Act).
Key provisions (what the bill does)
- Investigation: Sec. 3 — the Attorney General may investigate claims that a person has violated EOTSA.
- Civil fines: Sec. 5 — a person who violates EOTSA is subject to a civil fine of up to $5,000.00. Each ticket acquired in violation counts as a separate violation for fine assessment.
- Civil actions/remedies: Sec. 7 — if the AG finds an imminent or ongoing violation, the AG may bring an action to restrain or enjoin the conduct. If a violation occurred, the AG may bring suit to obtain injunctions, collect fines, and recover restitution.
- Enforcement of court orders: Violating a court order or injunction issued under the act can result in a civil fine of up to $5,000.
- Costs and fees: Sec. 9 — courts may permit the AG to recover reasonable costs and attorney fees in actions resulting in imposition of a civil fine.
- Revenue: Fines collected are deposited in the state general fund. (Committee analysis notes an indeterminate fiscal impact; under state law $10 of certain civil fines may be directed to the Justice System Fund.)
Definitions and scope (from companion HB 4263)
- HB 4263 defines prohibited conduct such as circumventing or disabling security measures, access controls, queues, presale codes, or validation systems used to enforce ticket purchase limits, prevent fraud, or manage online sale volume. Covered events include concerts, theatrical performances, sporting events, exhibitions and similar scheduled activities held in Michigan that are open to the public and charge admission.
Who is affected
- Likely affected parties include scalpers, automated “bot” operators, resale brokers, secondary marketplaces, ticketing platforms, event promoters/venues, and consumers. The AG’s civil enforcement targets any “person” (individual or legal entity) who violates the act. The law creates state-level remedies supplementing the federal BOTS Act.
Potential impacts and considerations
- Intended to deter automated circumvention of online ticket controls, reduce unfair bulk purchases, and protect consumer access to tickets.
- Fiscal impact is indeterminate: fine revenue would flow to the general fund, but the number of violations is unknown. The AG’s office is expected to administer enforcement with existing resources; local courts may see variable caseload effects.
- Enforcement is civil (not criminal) and provides for injunctions, restitution, and recovery of enforcement costs.
Relation to federal law and legislative history
- HB 4262/HB 4263 closely mirror the federal Better Online Ticket Sales (BOTS) Act. These bills are reintroductions of earlier measures (HBs 5661/5662 from the 2023–24 session). Support/positions noted in committee filings included Live Nation (support) and StubHub (neutral).
