Amid an ongoing lawsuit from the Federal Trade Commission (FTC), Ticketmaster has unveiled new measures aimed at curbing ticket scalping practices. These changes are part of a broader effort to ensure that more tickets are available to genuine fans rather than resellers.
New Measures to Combat Ticket Scalping
Ticketmaster’s latest policy adjustments include significant restrictions on user accounts. The platform will limit users and brokers to a single account, implementing verification based on Social Security numbers or other taxpayer ID methods.
Additionally, advanced AI technology will be employed to expedite the identification and cancellation of accounts linked to scalpers. According to Live Nation executive vice president Daniel M. Wall, this initiative is designed to combat ticket reselling, which the FTC has previously criticized Ticketmaster for failing to regulate adequately.
Termination of TradeDesk Tool
Another notable change is the discontinuation of TradeDesk. This inventory management tool was originally designed for resellers to monitor their ticket sales. However, the FTC accused it of facilitating scalping practices, prompting Ticketmaster to shut it down to preserve its reputation, despite Live Nation’s denial of the allegations.
FTC Lawsuit Against Ticketmaster
In September, the FTC, along with seven states, filed a lawsuit against Ticketmaster and its parent company, Live Nation. The lawsuit claims that these companies have been misleading customers and artists by enabling mass ticket purchases that are then resold at inflated prices.
- Live Nation and Ticketmaster charged $16.4 billion in fees between 2019 and 2024.
- Of this amount, $3.7 billion is attributed to fees on resold tickets.
The FTC’s legal action stems from claims that these companies not only profit from initial ticket sales but also accumulate revenue from resold tickets, effectively allowing them to “triple dip” on fees.
Reactions and Historical Context
The scrutiny of Ticketmaster’s practices has intensified, especially after incidents like the 2022 ticket sale for Taylor Swift’s Eras Tour. This event, which resulted in a server crash, left many fans unable to purchase tickets at reasonable prices.
Lawmakers, including Senators Marsha Blackburn and Ben Ray Luján, have expressed concerns about these practices. They have reached out to Live Nation for clarification on the serious allegations made by the FTC.
Conclusion
As Ticketmaster and Live Nation navigate this complex legal landscape, their commitment to reducing scalping through new policies will be closely monitored. Ensuring fair access to tickets for all fans remains a significant challenge for the ticketing giant.
