The Federal Trade Commission is being urged to investigate tech companies that create tools for scalpers that violate existing laws and increase the price of concert tickets.
A letter signed by the president of the National Independent Talent Organization issues warning and call to action Jack Randall and executive director Nathaniel Marrowtargeting the World Ticketing Summit. The annual conference in Nashville earlier this month was organized by the National Association of Ticket Brokers, the nation’s largest membership organization for professional ticket dealers and individuals who list and resell tickets on sites like StubHub and SeatGeek.
At this year’s summit, NITO members, who represent independent artist agencies and management companies including Arrival Artists, High Road Touring, Paladin Artists, Q Prime, Red Light Management and TKO, “saw a sold-out showroom packed with by selling and marketing products designed to circumvent ticket purchase security measures, in direct violation of the BOTS Act,” September 9 letter to the Chairman of the Federal Trade Commission Lina Khan read.
This technology includes web browser extensions that set up multiple tabs to block users’ IP addresses, proxy services that allow users to log into multiple ticketing accounts from one location, and virtual credit card services that bypass geographic restrictions on ticket sales. to ensure fair participation from local fans.
According to the letter, using such technology to purchase concert tickets violates the Better Online Ticket Sales (BOTS) Act of 2016, which prohibits scalpers from using technology to circumvent “security measures, access control systems, or other measures.” technology. Technical measure used to enforce ticket purchase limits for events with more than 200 attendees.
More simply, most ticketing companies place caps on the number of tickets fans can purchase for a concert, and using automated bots, proxy servers, VPNs, and virtual credit cards to exceed purchase limits violates the BOTS Act.
“The presence of these vendors at a conference specifically for ticket brokers strongly indicates that a significant portion of attendees are either currently using these services or may be using these services in the near future,” the letter reads. “This could The widespread use and apparent demand for tools to circumvent ticket purchase restrictions suggests that many, if not most, scalpers operate in violation of the federal BOTS Act.”
NATB Executive Director Gary Adler A lengthy statement was issued in response to NITO’s letter, which read: “The vast majority of technology exhibitors at the conference use inventory management systems to help ticketing companies organize tickets, offer them for resale and help with pricing.”
“There are many friction points in ticketing,” Adler continued, “with players in the system trying to monopolize every dollar spent on ticketing through high-tech means and prevent ticket resale. For more than half of the events, Level 2 There are lower-cost options on the market, and some in the primary market don’t like seeing their previously sold tickets resold at deep discounts. Artists, venues and major ticket sellers abuse technology every day to create false scarcity. , and deceive consumers into paying higher prices, when in reality they secretly reserve tickets and slowly increase sales over time to deceive and fool fans. This is most likely done by artists, venues, and majors. The FTC should immediately investigate the illegal, deceptive marketing and advertising practices promoted by ticketing companies.
Adler noted that NATB “advocated for the passage of the BOTS Act in 2016 because we fully support banning bots. There is no place in the system for illegal bots. We advocate for resale to be done the right way and through strong laws.” Protecting fans and competition throughout the ticketing industry. If any exhibitors offer technology that violates the BOTS Act, we want to know because they will not be welcomed.
Since its passage in 2017, the BOT Act has only been enforced once, in 2021, when three New York ticket brokers were charged with violating the law. Government’s enforcement of BOTS bill a ‘complete failure’, songwriter and music industry analyst writes Chris Castlepointed to StubHub’s planned IPO this fall as a clear sign that the BOTS Act is “poorly implemented.”
“Let’s face it — without robots and boiler room operations, StubHub probably wouldn’t have much business,” Castle wrote. legislators include Senator Marsha Blackburn (R-Tennessee) has introduced legislation such as the (Major) Event Ticketing Mitigation Automated Internet Networks Act of 2023, which would force ticketing companies to be more proactive in reporting BOT usage, but those efforts have largely stalled in Congress.
NITO’s letter, which includes eight recommendations to rights holders and the FTC, calls on regulators to subpoena customer lists of “companies that provide services that fall into categories that may facilitate the BOTS Act” and step up enforcement actions, prioritizing “large businesses.” Conduct an investigation.” – Large-scale ticket resale operations, focusing on those that use a variety of techniques to circumvent purchase restrictions. ”
The letter explains that by implementing these recommendations, “rights holders and the FTC can take significant steps to curb BOTS law violations and ensure more equitable access to event tickets for consumers.”
