Ticketmaster Faces FTC Probe Over Ticket Resale Bots
Ticketmaster, the marketing mammoth possessed by Live Nation, is under the microscope of the US Federal Trade Commission( FTC) over contended failures to stop bots from reselling tickets immorally.
The inquiry centres on Ticketmaster’s adherence to the BOTS Act, a 2016 law designed to check automated ticket scalping.
Sources familiar with the matter say the disquisition is in its advanced stages, with a decision on an implicit case conceivably weeks down.
A settlement remains on the table. But should the FTC proceed and win, Live Nation could face billions in fines, as the law allows penalties of up to $53,000 per infraction.
In a statement, Ticketmaster said: “Ticketmaster has invested more to stop scalpers than the rest of the industry combined.
We believe the FTC has a fundamental misunderstanding of Ticketmaster’s policies, and is taking an excessively expansionist view of the BOTS Act.”
The company added it would “vigorously defend any such claims” but expressed a preference to collaborate with regulators to enhance industry policies.
The BOTS Act empowers the FTC to police automated ticket sales that bypass per-person purchase limits, preventing scalping of popular events.
The scrutiny has intensified under the Trump administration following an executive order directing federal agencies to prioritise enforcement of the law, with a compliance report due by the end of September.
Ticketmaster’s dominance in the ticketing industry has long drawn criticism from fans, artists, and regulators.
Back in the 1990s, Pearl Jam famously attempted to bypass the service. Fast forward to 2022, and fans of Taylor Swift’s Eras Tour were left frustrated when ticket orders repeatedly failed.
Sources say that the incident accelerated the FTC probe, with investigators examining whether Ticketmaster has a financial incentive to let resellers flout its rules.
The FTC probe adds to a growing stack of legal challenges for Ticketmaster. The Department of Justice and several state attorneys general have filed a lawsuit seeking to break up Live Nation and Ticketmaster, with a trial slated for March.
There’s also an ongoing criminal antitrust investigation into the company’s refund practices during the pandemic.
Ticketmaster maintains it has been a victim of bots and cyberattacks, including issues around Swift’s tour.
The platform has implemented features to prevent ticket mark-ups, allowing fans to resell tickets only at face value.
In a related move, the FTC sued Key Investment Group, a Maryland ticket broker, over violations of the BOTS Act involving Swift tickets.
Key responded by filing a preemptive lawsuit, claiming Ticketmaster approved its operations and that both companies were compliant with the law.
Ticketmaster added: “Under the FTC’s interpretation of the BOTS Act, anyone with multiple accounts on any ticketing platform could be held liable under the law.”
The FTC declined to comment.
