Ticketmaster Rejects FTC Allegations of Collaborating with Scalpers
In response to ongoing scrutiny over its ticket sales practices, Ticketmaster has introduced new measures aimed at combating scalpers. This follows a lawsuit filed by the Federal Trade Commission (FTC), which accuses the platform of colluding with ticket resellers to inflate prices.
Ticketmaster’s New Anti-Scalping Measures
Ticketmaster’s recent initiatives include stringent restrictions on account creation. Users caught managing multiple accounts will face bans. The company will also enforce verification through taxpayer IDs for resellers. These steps aim to increase the number of tickets reaching genuine fans.
To enhance the effectiveness of these initiatives, Ticketmaster plans to deploy AI tools. These technologies will assist in quickly assessing and canceling tickets bought by bots. Company executives assert their commitment to fighting ticket scalping with these updates.
Details from the FTC Lawsuit
The FTC’s lawsuit, initiated last month, claims that Ticketmaster collaborates with resellers, contributing to higher ticket prices. In a detailed response, Ticketmaster’s Executive Vice President, Dan Wall, stated that the company takes significant measures against bots. However, this assertion has faced skepticism.
- Ticketmaster will prohibit brokers from exceeding established ticket resale limits.
- The company plans to discontinue TradeDesk, a tool enabling resellers to monitor sales.
- Ticketmaster denies any wrongdoing and asserts compliance with the Better Online Ticket Sales Act (BOTS Act).
Responses from Industry Groups
Reactions to Ticketmaster’s letter have been swift, particularly from independent venue and touring organizations. The National Independent Venue Association criticized the measures as insufficient and overdue, claiming they reflect a betrayal of customer trust.
The association stated, “They apparently got caught opening their systems to predatory resellers.” Furthermore, they urge Ticketmaster to impose a cap on resale prices at the original ticket face value to repair their reputation.
Likewise, the National Independent Talent Association voiced its concerns, emphasizing the negative impact of reselling tickets above face value. They expressed optimism that the FTC’s actions would push Ticketmaster toward meaningful reforms in ticket sales.
As the situation evolves, El-Balad will continue to cover developments closely. Stakeholders in the live entertainment industry are keenly watching how Ticketmaster’s initiatives will unfold and address widespread allegations of scalping.
