Ticketmaster, the largest online ticket vendor, has announced a commitment to combat ticket scalping practices, particularly those involving the use of fake accounts to purchase tickets in bulk. This initiative follows a lawsuit filed by the U.S. Federal Trade Commission (FTC) in September, which alleges that Ticketmaster and its parent company, Live Nation, engaged in illegal resale tactics and misled both artists and consumers regarding ticket pricing and availability limits.
This announcement comes after years of frustration from fans who have struggled to purchase tickets at face value due to scalpers purchasing tickets en masse, often reselling them at inflated prices. The FTC's lawsuit was, in part, inspired by a 2018 investigative report by CBC News and the Toronto Star, which uncovered Ticketmaster's collaboration with scalpers, including the use of numerous fake accounts to bypass purchasing limits.
In response to the allegations, Ticketmaster has outlined several measures aimed at limiting scalper operations. These include restricting all users, including brokers, to a single Ticketmaster account and implementing advanced artificial intelligence to detect fraudulent activities. The company has also decided to discontinue certain functionalities of its TradeDesk platform, which facilitated mass reselling of tickets, although it may still allow mass reselling for sports and theater events.
Despite acknowledging the challenges posed by automated tools used by scalpers, Ticketmaster has countered the FTC's claims, describing them as a "distorted view" of its practices. The company plans to challenge the lawsuit in court while emphasizing its intent to improve the integrity of ticket sales. As the situation develops, Ticketmaster's promise of reform may be closely watched by both regulators and consumers.