Ticketmaster has announced significant changes in response to a recent Federal Trade Commission (FTC) lawsuit. These adjustments include barring fans and brokers from using multiple accounts and discontinuing its controversial TradeDesk ticket uploading application.
Details of the Policy Change
In a letter dated October 17, 2023, from Live Nation’s executive vice president, Daniel M. Wall, the company outlined its new approach to ticket sales. This letter was addressed to Senators Marsha Blackburn (R-Tenn.) and Ben Ray Luján (D-N.M.) in response to concerns raised by the FTC regarding anti-competitive behavior and violations of the Better Online Ticket Sales (BOTS) Act. Live Nation stated that the FTC’s claims are based on misleading interpretations of the law.
- Ticketmaster will now limit every entity, including professional resellers, to a single verified account.
- Each resale account will require a unique taxpayer ID.
- Excess accounts will be canceled.
Additionally, Ticketmaster will improve its identity verification processes to identify and eliminate duplicate or fake accounts. Current measures block over 99% of daily sign-up attempts, and new anti-bot systems will extend blocking to approximately 200 million attempts each day.
TradeDesk Controversy and Its Implications
The company also plans to discontinue TradeDesk, which has faced scrutiny for allegedly enabling ticket harvesting. Wall argued that TradeDesk functions merely as a tool for brokers to manage their listings across platforms, rather than a system for purchasing tickets unlawfully.
Despite acknowledging the potential reputational damage, Live Nation’s decision to remove TradeDesk’s functionality shows a commitment to addressing public concerns. Wall maintains that allowing brokers to have multiple accounts is a longstanding industry practice rather than a conspiratorial act, hence the changes might signify a shift in Ticketmaster’s operational framework.
Ticketmaster’s Position on Bot Activity
In his communication, Wall emphasized that accusations of Ticketmaster profiting from scalpers due to ease of access for bots are unfounded. He pointed out that resale revenue constitutes less than 2% of Live Nation’s total revenue. Wall contends that the primary incentive for the company is to support artists and fans.
Interpreting the BOTS Act
Central to the ongoing dispute is the interpretation of the BOTS Act. While the FTC asserts that Ticketmaster violated the law by enabling brokers to bypass ticket limits, Live Nation argues that the act was never constructed to criminalize multiple account ownership. The focus should be on combating the technological means that enable ticket fraud.
Live Nation has expressed support for legislative measures aimed at enhancing the BOTS Act and curtailing automated ticket buying. However, the company cautions against overwhelming reporting obligations that could obscure enforcement efforts against those who utilize ticket harvesting technologies.
Conclusion
Ticketmaster’s recent policy shifts are a strategic response to the FTC lawsuit. While they aim to enhance consumer protection and address perceptions of wrongdoing, the broader implications of the BOTS Act and its enforcement will remain a pivotal point in the ongoing discussion about online ticket sales and regulation.
