Ticketmaster Implements Measures to Combat Scalping Amid FTC Lawsuit

Ticketmaster has introduced new measures aimed at curbing ticket scalping, including prohibiting users and brokers from creating multiple accounts, requiring taxpayer ID verification for resellers, and employing AI tools to swiftly identify and cancel bot-purchased tickets. This initiative comes as the Federal Trade Commission (FTC) pursues a lawsuit alleging that Ticketmaster collaborated with resellers to inflate ticket prices.

In a letter to Congress, Dan Wall, Ticketmaster's Executive Vice President, stated that the company is committed to increasing the percentage of tickets sold directly to genuine fans. The letter also emphasized that Ticketmaster does more than any other entity to combat bots and ensure tickets reach real fans.

As part of these efforts, Ticketmaster will discontinue TradeDesk, a tool that allowed resellers to manage ticket sales. While the company denied that TradeDesk was used to mislead customers, it acknowledged the need for changes in its resale practices.

The FTC's lawsuit accuses Ticketmaster and its parent company, Live Nation, of enabling brokers to bypass ticket purchase limits, profiting from inflated resale prices, and engaging in deceptive pricing practices by hiding mandatory fees until the final stages of purchase.

In response to Ticketmaster's announcement, the National Independent Venue Association criticized the company's actions as insufficient and overdue, stating that they appear to be an attempt to repair a damaged public image following the FTC's case. The association called for a voluntary cap on resale tickets at no more than the face value of the original ticket.

Similarly, the National Independent Talent Association expressed that Ticketmaster and other platforms should not engage in reselling tickets above face value, emphasizing that such practices harm both artists and fans. The association noted encouragement that the FTC's efforts have led to Ticketmaster reforming its systems by canceling multiple broker accounts and improving its efforts regarding bot sweeps.