Ticketmaster Owner Live Nation Denies Collusion with Scalpers Amid FTC Lawsuit, Announces Platform Changes
Live Nation, the parent company of Ticketmaster, has denied allegations of colluding with scalpers and violating anti-bot laws aimed at driving up ticket revenue. In response to growing consumer concerns and a recent lawsuit by the Federal Trade Commission (FTC), the company announced plans to implement significant changes to its ticket resale platform.
According to a letter obtained by Forbes, Live Nation intends to restrict users—including ticket brokers—from operating multiple accounts on its platform. The company also plans to limit the functionality of TradeDesk, an inventory database used by ticket resellers to track their sales.
The letter was sent by Dan Wall, Live Nation’s Executive Vice President for Corporate and Regulatory Affairs, to U.S. Senators Marsha Blackburn (R-Tennessee) and Ben Ray Luján (D-New Mexico). Wall’s response followed a letter from the senators dated September 30, in which they expressed “grave concern” over the FTC’s recent lawsuit against Live Nation.
### FTC’s Allegations Against Live Nation and Ticketmaster
Last month, the FTC filed a complaint in federal court in California accusing Live Nation and Ticketmaster of failing to enforce their own ticket purchase limits. This lapse allegedly allowed ticket resellers to buy large batches of concert tickets and resell them to fans at inflated prices.
The FTC’s complaint also charged that Ticketmaster engaged in “triple dipping” on ticketing fees—collecting fees from brokers at the initial purchase, again when brokers relist tickets on Ticketmaster’s secondary platform, and finally from fans buying the resold tickets.
Moreover, the complaint accused Live Nation and Ticketmaster of violating the BOTS Act, a 2016 law co-sponsored by Senator Blackburn. The act prohibits the use of automated bots to purchase tickets during online sales, a practice that unfairly disadvantages fans looking to buy tickets at face value.
### Live Nation’s Response and Planned Reforms
In his letter, Dan Wall categorically denied that Live Nation colluded with scalpers, calling the accusation “categorically false” and “no economic sense.” He noted that ticket resales account for only 3% of Live Nation’s revenue, according to Forbes.
Wall also rejected claims that Ticketmaster has ignored bad actors violating the BOTS Act, pointing to more than $1 billion invested in bot prevention measures. In April alone, Ticketmaster reportedly blocked 8.7 billion bot access attempts.
“Our incentives are plainly to favor artists and fans,” Wall emphasized, as quoted by Billboard.
Live Nation has historically supported the BOTS Act and is backing the MAIN Event Ticketing Act—a proposed law introduced in the U.S. House of Representatives earlier this year. This legislation aims to strengthen the BOTS Act by requiring ticket sellers to report successful bot attacks to the FTC and establishing a database for consumer complaints related to ticket sales.
Wall argued that the FTC’s current case is based on “a fundamentally novel and expansionist view of the BOTS Act,” clarifying that the law prohibits the use of bot technology to bulk buy tickets but does not ban ticket sellers from operating multiple accounts.
### Specific Platform Changes Planned
Despite disputing the allegations, Live Nation announced several measures to improve transparency and customer trust:
– **Removal of TradeDesk Functionality:** The company will eliminate TradeDesk’s concert ticket management features from the market to avoid reputational harm.
– **Account Limitations:** Every user, including professional resellers, will be limited to a single account verified via a unique tax ID number or Social Security Number.
– **AI-Driven Account Monitoring:** Ticketmaster plans to deploy artificial intelligence tools to detect and remove fake or duplicate accounts and unauthorized users.
Wall highlighted that Ticketmaster already blocks 99% of the 25 million daily signup attempts on its platform, reinforcing ongoing efforts to maintain system integrity.
Additionally, Live Nation plans to introduce a new tool enabling artists to conduct “post-onsale ticket sweeps.” This will help identify fraudulent purchases after ticket sales conclude and allow cancellation of those tickets.
### Ongoing Commitment and Concerns
Concluding his letter, Dan Wall reiterated Live Nation’s support for the MAIN Event Ticketing Act but cautioned against potential challenges. He warned that the act’s requirement for ticketing companies to report every attempted bot circumvention could overwhelm sellers, noting that “attempted circumvention happens constantly and at enormous scale.”
As this legal and regulatory saga unfolds, Live Nation seeks a balance between protecting consumers, supporting artists, and adapting to the evolving landscape of online ticket sales.
*Source: Music Business Worldwide*
https://www.musicbusinessworldwide.com/live-nations-ticketmaster-bans-multiple-ticket-seller-accounts-denies-ftcs-claims-of-profiting-from-scalpers/
