TL;DR
- The U.S. Federal Trade Commission (FTC) is conducting an advanced probe into whether Ticketmaster (Live Nation) has done enough to stop bots from buying and illegally reselling tickets.
- The investigation centers on Ticketmaster’s compliance with the Better Online Ticket Sales (BOTS) Act of 2016, which bans use of bots that bypass purchase limits.
- Ticketmaster claims it blocks ≈200 million bots daily, denies violating law, and says the FTC misunderstands its policies.
- If found in violation, Ticketmaster (Live Nation) could face substantial penalties: up to $53,000 per violation under the BOTS Act.
What the Investigation Involves
The FTC’s probe is looking into whether Ticketmaster has sufficiently prevented automated software (“bots”) from bypassing purchase limits set by ticket sellers, and then enabling resellers to resell tickets at inflated prices.
Key areas under scrutiny include:
- Whether Ticketmaster’s systems are robust enough to catch and block bots before they buy tickets in bulk.
- Whether Ticketmaster has any financial incentive—directly or indirectly—that might encourage or fail to deter resellers from circumventing purchase limits.
- Whether Ticketmaster’s current policies and practices align with the requirements of the BOTS Act, which forbids using bots to bypass purchase caps.
Ticketmaster’s Response
Ticketmaster has publicly denied violating the law. Their statements include:
- They believe they haven’t violated the BOTS Act and intend to defend any claims vigorously.
- They claim to block around 200 million bots per day, a much higher rate than in past years (five times more than in 2019).
- They argue the FTC may have a misinterpretation or misunderstanding of how their anti-bot policies and detection systems work.
Potential Implications
If the FTC finds Ticketmaster in violation, the consequences could be significant:
- Legal penalties under the BOTS Act (financial fines per violation).
- Potential for settlement or regulatory orders forcing Ticketmaster to strengthen anti-bot enforcement.
- More scrutiny longer-term of the live event ticketing industry, including resale practices and whether companies are doing enough to protect consumers.
Background: BOTS Act & Related Actions
The Better Online Ticket Sales Act (BOTS Act) was passed in 2016 to prevent the unfair practice of using bots to buy tickets en masse, evading purchase limits. The law allows for penalties when someone uses bots, or uses methods to circumvent purchase limits. The FTC has recently used this law in cases such as suing Key Investment Group for allegedly evading purchase limits using fake or multiple accounts.
For concertgoers, sports fans, theater lovers—anyone who’s tried buying tickets online—this issue hits close to home. If bots and unfair resale practices are allowed unchecked, many fans miss out or pay inflated prices. An FTC action could shift the balance back toward fairness, affordability, and access.
FAQs
The Better Online Ticket Sales Act of 2016 is U.S. federal law that prohibits using automated ticket-purchasing software (bots) to bypass purchase limits set by ticket sellers. Violations can incur significant fines.
Regulators want to know if Ticketmaster is sufficiently preventing resale bots from exploiting the system, especially given ongoing complaints about ticket availability, high resale prices, and possible financial incentives that might favor resellers.
The FTC could impose financial penalties, require changes to Ticketmaster’s policies or systems, force compliance with stricter oversight, or reach a settlement.
Ticketmaster asserts it blocks hundreds of millions of bots each day, denies violating the BOTS Act, and claims the FTC has misunderstood their policies.
If successful, the investigation could lead to fairer access to tickets, fewer inflated resale prices, and increased transparency in ticketing practices. It may also deter resale marketplaces from abusing loopholes.
