FTC Lawsuit Prompts Ticketmaster to Ban Multiple Accounts and Close TradeDesk
In response to recent scrutiny from the Federal Trade Commission (FTC), Ticketmaster has announced significant changes to its policies regarding ticket sales. This comes following the FTC’s lawsuit, which claims that Ticketmaster and its parent company, Live Nation, have engaged in anti-competitive practices.
Ticketmaster Bans Multiple Accounts
One of the primary changes involves prohibiting fans and ticket brokers from maintaining multiple accounts on Ticketmaster’s platform. The company will also close its TradeDesk ticket uploading application, which has faced criticism for allegedly facilitating ticket harvesting.
New Requirements for Ticket Brokers
As part of the new policies, Ticketmaster will require ticket brokers to provide their Social Security numbers to sell tickets on the resale platform. This measure is aimed at enhancing accountability and transparency within the ticket sales process.
Responses to the FTC Complaint
Live Nation’s executive vice president, Daniel M. Wall, addressed these issues in a letter to Senators Marsha Blackburn and Ben Ray Luján, dated October 17. He contends that the FTC’s lawsuit misrepresents the facts and misinterprets the Better Online Ticket Sales (BOTS) Act.
Allegations of Collusion
One of the FTC’s significant allegations suggests that Ticketmaster colluded with ticket brokers. Wall firmly denied this claim, stating it is categorically false and a misunderstanding of industry practices. He emphasized that maintaining multiple accounts is standard in the ticketing industry, not an illegal conspiracy.
Changes in TradeDesk
The FTC’s concerns also included Ticketmaster’s TradeDesk platform. Wall responded that TradeDesk serves merely as an inventory management tool for brokers and does not engage in ticket purchasing or support bot functionality. However, to mitigate the negative perception, Live Nation will remove the concert ticket management features of TradeDesk.
Restrictions on Account Creation
Effective August 2025, Ticketmaster will change its account policies. The company will limit each entity, including professional resellers, to a single verified account that requires a unique taxpayer ID. Existing accounts that do not comply will be canceled.
Enhanced Fraud Prevention Measures
Ticketmaster is committed to improving its fraud detection systems. The company currently blocks 99% of the 25 million daily sign-up attempts, and it plans to expand its anti-bot systems that currently block 200 million bot attempts each day.
Live Nation’s Position on the BOTS Act
The BOTS Act, co-sponsored by Senator Blackburn, is central to the FTC’s lawsuit allegations. While the FTC asserts that Ticketmaster violated the act by allowing the circumvention of ticket limits, Live Nation argues that the law is meant to target technological circumvention, and not the possession of multiple accounts.
Future Plans for Compliance
Live Nation supports the bipartisan MAIN Event Ticketing Act, which seeks to expand the BOTS Act. However, Wall cautioned that demanding companies report every instance of circumvention could lead to an overwhelming situation, and emphasized a focus on enforcement against the sources of ticket harvesting technologies.
- Ticketmaster will enforce strict policies limiting user accounts.
- TradeDesk functionality related to concert ticket management will be removed.
- Brokerage transparency will increase with the new Social Security requirement.
- Strengthened fraud prevention tools will block more bot activity.
As Live Nation navigates this challenging landscape, its actions reflect a recognition of the growing political pressure and public scrutiny surrounding ticket sales and scalping practices. The company asserts its commitment to protecting artists and fans, positioning itself as a defender against fraudulent activities in the ticketing industry.
