Ticketmaster Bans Multiple Accounts Following FTC Lawsuit
Ticketmaster is implementing a significant policy change by limiting all users to a single account. This decision arises amid a lawsuit filed by the Federal Trade Commission (FTC) asserting that Ticketmaster and its parent company, Live Nation, have improperly engaged with ticket scalpers.
Background of the FTC Lawsuit
The FTC’s lawsuit claims that Ticketmaster has allowed scalpers to unlawfully purchase tickets in bulk from the primary market, which in turn enables more substantial profits in the secondary market. Executives from Live Nation, including Daniel M. Wall, have publicly criticized this portrayal, arguing it misrepresents the company’s practices and compliance with the Better Online Ticket Sales (BOTS) Act.
Key Policy Updates from Ticketmaster
- All users must now maintain only one account.
- Excess accounts will be canceled in due course.
- Ticket brokers need a unique taxpayer identification number to post tickets for resale.
- Limitations will be applied to the number of tickets brokers can list for resale.
Measures Against Scalping
Wall acknowledged the challenges posed by scalpers. He mentioned that Ticketmaster will utilize advanced AI tools and identity verification technologies to combat this issue effectively. Despite the potential backlash, he believes that these measures are necessary to protect artists and their fans.
Historical Context of Broker Accounts
According to Wall, brokers have operated multiple accounts for many years, even before Ticketmaster expanded into the secondary ticketing space in 2014. He emphasized that the company has not facilitated unauthorized ticket sales or relaxed enforcement for financial gain.
Investment in Technology
Wall highlighted that Ticketmaster has invested over $1 billion in ticketing technology aimed at enhancing security and preventing fraud. He stated that secondary ticketing accounts for merely 3% of Live Nation’s revenue. Furthermore, the fees collected from concert ticket resales contribute less than 2% to the overall revenue, indicating that Ticketmaster’s influence in this domain is relatively limited.
Conclusion
As Ticketmaster enforces new account limitations, it seeks to quell accusations from the FTC and redefine its role in the ticketing industry. The company’s focus on innovation and compliance is aimed at ensuring a fair marketplace for both fans and artists alike.
