The Department of Justice (DOJ) and the Federal Trade Commission (FTC) have launched an official inquiry into the event ticketing business at the urging of President Donald Trump, the agencies announced Wednesday (May 7).
As part of the inquiry, “the agencies invite members of the public to submit comments and information on harmful practices and on potential regulation or legislation to protect consumers in the industry,” according to a press release. Anyone “impacted by anticompetitive practices in the live concert and entertainment industry” will have 60 days to submit comments to Regulations.gov, with the comment period concluding on July 7.
After the comment period closes, the agencies state they will “use the information in their preparation of the report and recommendations directed by President Trump” in his Executive Order 14254, also known as Combating Unfair Practices in the Live Entertainment Market. Signed by the president during a March 31 meeting in the Oval Office with musician Kid Rock in attendance, the order directed the Attorney General, along with the Secretary of the Treasury and the chairman of the FTC, to submit a report identifying “recommendations for regulations or legislation necessary to protect consumers” in the industry, including by enforcing the Better Online Tickets Sales (BOTS) Act.
Passed in 2016, the BOTS Act gives both the DOJ and the FTC broad power to crack down on scalpers who illegally use automated technology to skirt the restrictions placed on high-demand ticket sales and prevents scalpers from buying up the best seats to flip for profit. Yet since its passage in 2016, the BOTS Act has only been used once to prosecute scalpers who knowingly break the rules put in place to make ticket buying fairer and more equitable.
“Competitive live entertainment markets should deliver value to artists and fans alike,” said Assistant Attorney General Abigail Slater of the DOJ’s Antitrust Division in a statement. “We will continue to closely examine this market and look for opportunities where vigorous enforcement of the antitrust laws can lead to increased competition that makes tickets more affordable for fans while offering fairer compensation for artists.”
Added FTC Chairman Andrew N. Ferguson, “Many Americans feel like they are being priced out of live entertainment by scalpers, bots, and other unfair and deceptive practices. Now their voices are being heard. President Trump has sent a clear message that bad actors who exploit fans and distort the marketplace will not be tolerated. The FTC is proud to help deliver on that promise and restore fair and competitive markets that benefit ordinary Americans.”
The inquiry comes as several ticketing bills work their way through Congress, most notably the TICKET ACT, which passed the House of Representatives on April 29 and also includes language calling for the enforcement of BOTS Act.
“Illegal bot use runs rampant in the ticketing industry because the FTC has only brought one enforcement action since the use of bots was banned in 2016,” read a statement from Stephen Parker, executive director of National Independent Venue Association (NIVA), shortly after the April 29 passage of the TICKET ACT in the House. He added, “We hope Congress does not miss the opportunity to ensure these laws are actually enforced in the future.”
