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Ticketmaster Promises Overhaul—Crackdown Targets Scalpers
Forbes· 2025-10-20 15:55
Core Points - Ticketmaster is implementing measures to limit users and ticket brokers to one account, requiring taxpayer ID verification and utilizing AI tools to combat bot purchases amid a Federal Trade Commission (FTC) lawsuit alleging price manipulation with resellers [1][2] - The FTC lawsuit claims that Ticketmaster and Live Nation have been deceiving customers and artists by allowing mass ticket purchases for resale at inflated prices, leading to excessive fees collected from both initial sales and resales [7] Group 1 - Ticketmaster will enforce a one-account limit for users and brokers through Social Security number or taxpayer ID verification, aiming to increase ticket access for genuine fans [2] - The company will not allow ticket brokers to exceed resale limits, a policy the FTC claims Ticketmaster has failed to enforce [3] - Ticketmaster plans to shut down TradeDesk, a tool for resellers, to mitigate reputational damage despite denying it was used to facilitate scalping [4] Group 2 - Live Nation disputes the FTC's allegations of collusion with resellers, stating that ticket resales account for only 3% of its revenue, making such practices economically illogical [5] - The company has invested over $1 billion in bot prevention measures, blocking 8.7 billion bots in April 2025, countering claims of violating the Better Online Ticket Sales Act [6] - The FTC lawsuit highlights that Ticketmaster and Live Nation charged $16.4 billion in fees from 2019 to 2024, with $3.7 billion from resale ticket fees alone [7] Group 3 - Ticketmaster's pricing practices have faced scrutiny following incidents like the Taylor Swift Eras Tour ticket sales, which resulted in server crashes and high prices for fans [8] - The Justice Department has previously investigated Live Nation for potential monopolistic practices in the ticketing industry [9]