FTC Probes Ticketmaster's Efforts to Prevent Resale Bots
The Federal Trade Commission (FTC) is investigating whether Ticketmaster is doing enough to prevent bots from illegally reselling tickets on its platform, with a decision expected within weeks. According to Bloomberg, the probe focuses on whether Ticketmaster has a financial incentive to allow resellers to circumvent ticket limit rules.
As part of the investigation, FTC investigators are assessing whether Ticketmaster's business model encourages or allows resellers to use bots and other methods to bypass ticket purchase limits set by online sellers. The 2016 law prohibits such practices, which can lead to tickets being sold at inflated prices to those who do not actually attend events.
Ticketmaster, a subsidiary of Live Nation Entertainment Inc., has faced criticism for its handling of ticket sales in the past. In 2020, it was reported that Ticketmaster's own system had been compromised by bots, allowing resellers to purchase large quantities of tickets before they went on sale to the general public.
The investigation is significant because if the FTC pursues a case and Live Nation loses, the company could face billions of dollars in penalties. The law permits fines of up to $53,000 per violation.
"We are committed to ensuring that Ticketmaster complies with all applicable laws and regulations," said an FTC spokesperson. "We will continue to monitor the situation closely."
Ticketmaster has not commented on the investigation, but a spokesperson for Live Nation Entertainment Inc. stated, "We take our responsibility to comply with all applicable laws and regulations seriously and are cooperating fully with the FTC's inquiry."
The probe highlights the ongoing issue of ticket resale bots, which can lead to tickets being sold at inflated prices to those who do not actually attend events. The use of bots has become increasingly sophisticated in recent years, making it difficult for online sellers to prevent resellers from circumventing their rules.
In 2016, Congress passed a law aimed at preventing the use of bots and other methods to bypass ticket purchase limits set by online sellers. The law requires online sellers to implement measures to prevent the use of bots and other methods to bypass ticket purchase limits.
The investigation is expected to have significant implications for the live events industry, which has been plagued by issues related to ticket resale bots in recent years. If Ticketmaster is found to be in violation of the law, it could lead to changes in how tickets are sold online and potentially reduce the number of tickets being resold at inflated prices.
The FTC's investigation into Ticketmaster's efforts to prevent resale bots is ongoing, with a decision expected within weeks. The outcome will have significant implications for the live events industry and may lead to changes in how tickets are sold online.
*Reporting by Yro.*