Ticketmaster, the leading online ticket platform, has announced a significant initiative to combat ticket scalping. This decision addresses the growing concern over scalpers using multiple fake accounts to hoard tickets for concerts, theater, and sporting events.
Background and Lawsuit
The move follows a lawsuit filed by the U.S. Federal Trade Commission (FTC) in September 2023. The FTC accuses Ticketmaster and its parent company, Live Nation, of employing illegal resale tactics. The allegations include misleading artists and consumers about ticket pricing and purchase limits.
Scalpers’ Use of Fake Accounts
For years, fans have struggled to purchase tickets directly from Ticketmaster. Many have faced difficulties while scalpers exploit the system by purchasing large quantities of tickets. These scalpers then resell tickets on secondary markets at inflated prices.
Internal documents from the FTC revealed that five ticket brokers controlled over 6,300 Ticketmaster accounts, amassing nearly 250,000 tickets across thousands of events in 2018. The situation escalated as scalpers began using automated tools to create multiple Ticketmaster accounts.
New Measures to Limit Scalping
- As of October 17, 2023, Ticketmaster will limit each user to a single account, including brokers.
- The company plans to introduce advanced artificial intelligence screening to identify fraudulent accounts.
- Excess accounts will be eliminated gradually.
Changes to TradeDesk Platform
Ticketmaster has also decided to discontinue part of its TradeDesk platform, which was previously used for managing ticket resales. This decision aims to restrict the mass resale of concert tickets, although sales for sports and theater events may still be permitted.
Previous Investigations
An investigation in 2018 by CBC News and the Toronto Star brought to light how Ticketmaster enabled scalpers. Undercover reporters posed as ticket brokers and discovered that Ticketmaster staff openly recruited scalpers at industry events. They promoted TradeDesk while disregarding the use of fake accounts.
Industry Response
Live Nation’s executive vicepresident acknowledged the problem, stating, “It’s unfair to artists and fans and it is time to do something about it.” The company’s shift comes amid pressure from lawmakers aiming for fairer ticket sales in the United States.
As Ticketmaster takes these steps to address scalping, both consumers and artists hope for a fairer system in the ticket marketplace.