Ticketmaster Closes TradeDesk and Bans Multiple Accounts Amid FTC Allegations Dispute
Ticketmaster is initiating significant changes in response to ongoing allegations from the Federal Trade Commission (FTC) regarding ticket resale practices. The company plans to close its TradeDesk ticketing system and enforce a policy that bans the use of multiple accounts.
Background on FTC Allegations
The FTC has filed a lawsuit against Live Nation and Ticketmaster, highlighting accusations of illegal ticket resale tactics and violations of the BOTS Act. This legislation aims to prevent the circumvention of ticket purchase limits by scalpers.
Response to Allegations
In a letter dated October 17, Dan Wall, the Executive Vice President of Corporate and Regulatory Affairs at Live Nation, defended the company’s practices. He emphasized a disagreement with the FTC’s interpretation of the BOTS Act, arguing it misrepresents the law’s intent.
Details of the New Policies
- TradeDesk Closure: Ticketmaster will shut down its TradeDesk inventory system, which was designed to assist ticket resellers.
- Single Account Policy: All users, including brokers, will now be limited to a single account.
- Identification Requirements: Any account posting tickets for resale must have a unique Taxpayer Identification Number.
Wall justified the closure of TradeDesk despite its value, citing reputational concerns and ongoing criticism. He noted that the move aligns Ticketmaster’s operations with the FTC’s concerns regarding multiple accounts used for ticket scalping.
Technological Improvements
Advancements in artificial intelligence will assist Ticketmaster in identifying and eliminating accounts that violate the new policies. Wall stated that Ticketmaster successfully prevented around 6 billion fake accounts this year, but acknowledged the ongoing struggles against digital scalping.
Industry Reactions and Future Outlook
The National Independent Venue Association expressed skepticism about Ticketmaster’s new policies, claiming they are a superficial attempt to restore a tarnished public image amid serious allegations. They also suggested that meaningful reforms should involve capping resale prices at original ticket values.
As Ticketmaster and Live Nation fight the FTC’s claims, they continue to emphasize their commitment to supporting artists and fans while striving to maintain a fair ticketing system.
