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Bill

S 5278

GHOST Act

119th Congress

The GHOST Act bans resellers from selling tickets they don’t physically or virtually possess, tightening enforcement to curb speculative secondary-ticketing.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 5278

Overview

The GHOST Act (Guaranteeing Honest Ownership in Secondary Ticketing Act) would prohibit speculative ticketing practices by resellers and give the Federal Trade Commission (FTC) and state attorneys general new tools to enforce against unlawful secondary-ticket sales.

main purpose and intent

  • To curb the speculative resale of event tickets by ensuring resellers actually possess the tickets before selling, offering a clearer path to consumer protection and honest ownership in the secondary market.
  • To create enhanced enforcement mechanisms and penalties for violations, leveraging federal and state authorities.

Key provisions and changes

  • Definitions (Sec. 2)

    • Actual possession: A ticket must be physically or virtually possessed by the reseller before sale.
    • Commission: Federal Trade Commission (FTC).
    • Event, event ticket, ticket issuer: As defined by the Better Online Ticket Sales Act of 2016 (BOTS Act).
    • Reseller: Any non-issuer entity engaged in resale of event tickets.

  • Prohibition on speculative ticketing (Sec. 3)

    • It is unlawful for a reseller to sell, offer for sale, or advertise for sale an event ticket unless the reseller has actual possession of the ticket.

  • Enforcement (Sec. 4)

    • FTC enforcement
    • Violations are treated as unfair or deceptive practices under the FTC Act.
    • FTC has general enforcement authority consistent with the FTC Act, including penalties, rules, and processes.
    • Civil action option: FTC can file in federal district court for relief, including equitable relief.
    • Civil penalties:
      • Baseline civil penalty of at least $15,000 per day of violation.
      • Additional penalty: greater of $1,000 per ticket sold/advertised or 5% of the total ticket sale price (sum of ticket prices times 5).
      • Enhanced penalties for intentional violations: at least $10,000 per ticket.
    • Complaint website: Within 180 days after enactment, FTC must create a publicly accessible site for reporting violations and coordinate with state Attorneys General.
    • Annual Congress reporting: FTC must report enforcement metrics and effectiveness to Congress starting 180 days after enactment and annually thereafter.
    • State enforcement
    • State attorneys general may bring civil actions (parens patriae) to:
      • Enjoin violations, compel compliance, and seek damages or restitution for residents.
    • States may use usual investigative powers and sue in federal court or other courts of competent jurisdiction.
    • Other state consumer protection officials may bring similar actions, subject to same requirements.
    • Venue and service of process provisions align with standard federal court rules and state procedures.

  • Effective date (Sec. 5)

    • The Act would take effect 60 days after enactment.

Who would be affected

  • Primary: Resellers in the secondary ticketing market who sell event tickets they do not physically possess.
  • Consumers: Event attendees and buyers who rely on secondary markets for tickets.
  • Regulators: FTC and state attorneys general; potential collaboration between federal and state authorities.
  • Ticket issuers and event organizers: Indirectly affected by reduced speculative sales and increased transparency in the secondary market.

Timeline and procedural notes

  • Introduced in the Senate on August 6, 2026, and referred to the Committee on Commerce, Science, and Transportation.
  • If enacted, the act would take effect 60 days after enactment.
  • FTC to establish a reporting website within 180 days after enactment and begin annual enforcement reporting to Congress within 180 days and annually thereafter.

Potential impact

  • Trade practice: Strong shift against unverified resale by requiring actual possession before sale.
  • Deterrence: Significant civil penalties, including per-ticket and per-day penalties, may deter noncompliant resellers.
  • Enforcement reach: Combines federal FTC authority with state-level protections to address consumer harms in the secondary market.
  • Operational effects: Resellers may need better ticket inventory management to demonstrate possession; potential reduction in last-minute or speculative listings.

Compiled from official sources — confirm details with the bill’s official record.

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