Ticketmaster has announced a significant policy change barring users from maintaining multiple accounts on its platform. This decision follows a lawsuit filed by the Federal Trade Commission (FTC) last month. The FTC’s lawsuit accuses Ticketmaster and its parent company, Live Nation Entertainment, of collaborating with scalpers and violating the Better Online Ticket Sales (BOTS) Act.
New Account Policy Implementation
In a letter dated October 17, addressed to Senators Marsha Blackburn and Ben Ray Luján, Ticketmaster outlined its new policy. The change is part of a response to concerns raised by lawmakers about the ongoing FTC lawsuit. Ticketmaster also confirmed the closure of TradeDesk, its platform that allows brokers to manage ticket sales across various websites.
Response from Live Nation
Dan Wall, executive VP of corporate and regulatory affairs at Live Nation, emphasized the company’s commitment to supporting artists and fans. In his letter, he criticized the FTC’s allegations as misleading and unfounded. Wall expressed a desire to collaborate with the FTC to address challenges in the live event industry rather than engage in litigation.
FTC Allegations
- The FTC’s complaint claims that Ticketmaster allows ticket brokers to bypass purchase limits, enabling substantial markups on the secondary market.
- According to the FTC, multiple Ticketmaster accounts and TradeDesk facilitate scalping, disadvantaging fans.
Company’s Defense
Wall has categorically denied the FTC’s claims, labeling them as a conspiracy. He noted that Live Nation captures only 3% of its revenue from secondary ticket sales, with even less from associated fees. Wall acknowledged the reality of ticket brokers using multiple accounts but pointed out that this practice has been a norm in the ticket industry for years.
Steps to Enforce the New Policy
With a new president appointed last week, Ticketmaster will implement measures to enforce the single account policy. Wall indicated that the company will employ AI and identity verification to ensure compliance. All tickets listed for resale will now require a taxpayer identification number. Existing excess accounts will be phased out over time.
Closure of TradeDesk
TradeDesk allowed brokers to optimize their ticket sales. However, Wall stated that the reputational damage associated with defending TradeDesk’s practices outweighed its benefits. The company asserts that the platform was not used to engage in unlawful ticket harvesting.
Ongoing Legal Challenges
This lawsuit is not isolated, as Live Nation faces ongoing scrutiny. The Department of Justice filed an antitrust lawsuit against the company last year, alleging monopoly practices involving Ticketmaster. Despite repeated denials of wrongdoing, criticism from various industry stakeholders continues.
Criticism from Industry Groups
The National Independent Venue Association (NIVA) expressed skepticism regarding Ticketmaster’s actions. They argue that the recent policy changes appear to be an attempt to restore public trust. NIVA has called for Live Nation to consider capping resale ticket prices to ensure fairness for fans and artists.
As Ticketmaster navigates these challenges, the company remains focused on its new policies and reinforcing its commitment to the live entertainment ecosystem.
