Ticketmaster Responds to FTC Lawsuit with New Policies Against Scalpers
Live Nation Responds to FTC Accusations
Live Nation has rejected the claims made by the Federal Trade Commission (FTC) that it collaborated with scalpers to profit from resale tickets. However, the company has announced plans for Ticketmaster to introduce new measures aimed at addressing concerns raised in the FTC lawsuit.
Ticketmaster’s New Measures
In a letter dated October 17, Live Nation’s Executive Vice President, Daniel M. Wall, informed Senators Marsha Blackburn (R-Tenn.) and Ben Ray Luján (D-N.M.) that Ticketmaster would enforce a ban on both fans and brokers operating multiple accounts. Furthermore, ticket brokers will be required to provide their Social Security numbers when using Ticketmaster’s resale platform.
Wall indicated that Ticketmaster would discontinue TradeDesk, a controversial inventory management tool designed for brokers to manage ticket listings across various platforms. The FTC contended that by offering this tool, Ticketmaster effectively provided “technological support” to scalpers who exceeded ticket purchase limits.
Allegations in the FTC Lawsuit
The FTC’s lawsuit, filed in September, alleges that Live Nation and Ticketmaster engaged in practices detrimental to both artists and consumers. It is claimed that these actions led to inflated ticket prices and unfair market advantages for the company. Key allegations include concealing fees until checkout and allowing ticket brokers to bypass purchase limits set by artists.
A significant concern highlighted by the FTC is Ticketmaster’s alleged violation of the BOTS Act. This law aims to prevent ticket scalping by prohibiting the use of bots to purchase large quantities of tickets. The complaint suggests that Ticketmaster facilitated brokers in using multiple accounts to circumvent security measures, which resulted in millions of tickets being resold at inflated prices.
Live Nation’s Defense
In response to these accusations, Wall strongly denied any wrongdoing, describing the FTC’s view as a flawed interpretation of the facts. He emphasized that the existence of multiple accounts among ticket brokers is not a conspiracy, but rather a longstanding practice, pre-dating digital ticketing.
Nonetheless, Wall reinforced that Ticketmaster will enforce stricter regulations moving forward. Resellers will now be limited to a single verified account, and resale accounts will also require unique taxpayer identification. Plans are underway for Ticketmaster to improve its ability to identify duplicate accounts and implement measures to thwart bot activity during ticket sales.
What are your thoughts on these developments regarding Ticketmaster and ticket sales practices?
