Ticketmaster Defends Its Practices Amid FTC Lawsuit, Claims to Prioritize Real Fans
In a lengthy letter to Congress, Ticketmaster's executive vice president Dan Wall defended the company's practices amid an ongoing Federal Trade Commission (FTC) lawsuit. The letter claims that Ticketmaster does more than anyone else to combat ticket bots and get tickets into the hands of real fans.
According to the letter, Ticketmaster has implemented new measures to prevent scalpers from exploiting its platform. These include barring users and ticket brokers from making multiple accounts, requiring resellers to use taxpayer ID verification, and using AI tools for faster assessment and cancellation of bot-purchased tickets. The company asserts that these efforts demonstrate its commitment to protecting genuine fans.
However, the National Independent Venue Association (NIVA) and the National Independent Talent Organization (NITO) do not agree with Ticketmaster's claims. "These measures are too little, too late," said a spokesperson for NIVA. "Ticketmaster has been aware of the problem for years, but it has only taken action now because of the FTC lawsuit."
The FTC lawsuit, filed last month, accuses Ticketmaster of working with resellers to artificially inflate ticket prices. The complaint alleges that the company's practices have led to widespread price gouging and denied genuine fans access to tickets.
Ticketmaster's use of AI tools is a key aspect of its defense. According to Wall, these tools enable faster assessment and cancellation of bot-purchased tickets, reducing the likelihood of scalpers exploiting the system. However, experts question the effectiveness of this approach. "AI can be used to detect bots, but it can also be used by scalpers to evade detection," said Dr. Rachel Kim, a computer science expert at Stanford University.
The implications of Ticketmaster's practices extend beyond the music industry. The company's use of AI and data analytics has raised concerns about consumer protection and fair competition. "As we increasingly rely on digital platforms for entertainment, it's essential that companies like Ticketmaster prioritize transparency and fairness," said Senator Amy Klobuchar (D-MN), a co-sponsor of the bill.
The current status of the FTC lawsuit remains uncertain. The agency has not commented on the letter or the new measures implemented by Ticketmaster. However, the company's efforts to defend its practices are likely to continue in the coming weeks and months.
Background:
Ticketmaster is one of the largest ticketing companies in the world, handling millions of tickets for concerts, sports events, and other performances each year. The FTC lawsuit alleges that the company has engaged in anticompetitive practices, including working with resellers to artificially inflate ticket prices.
Additional Perspectives:
"We welcome any efforts by Ticketmaster to address the issue of ticket bots," said a spokesperson for Live Nation Entertainment, a rival ticketing company.
"The real question is whether these measures are enough to prevent price gouging and ensure that genuine fans have access to tickets," said Senator Richard Blumenthal (D-CT), another co-sponsor of the bill.
Next Developments:
The FTC lawsuit is ongoing, with a trial date expected in the coming months. Ticketmaster's efforts to defend its practices are likely to continue, with the company facing increased scrutiny from lawmakers and regulators.
*Reporting by Variety.*