Trump’s Executive Order Aims to Combat Ticket Scalping
On Monday, President Donald Trump took a significant step to address the rampant issues of ticket scalping and price gouging in the secondary market by signing a new executive order. This initiative is designed to enhance regulatory action against unscrupulous ticket sales practices.
Strengthening the BOTS Act
A key component of this executive order is the directive for the Federal Trade Commission (FTC) to bolster enforcement of the BOTS Act, legislation introduced in 2016 that prohibits the use of bots to purchase large quantities of tickets. Despite the potential impact of this law, enforcement has been alarmingly sparse, with only one instance of action taken against violators since its inception.
Calls for Transparency and Accountability
The order also emphasizes the need for price transparency throughout the ticket purchasing process, particularly in the secondary ticketing market. Furthermore, it urges the FTC to assess and potentially take enforcement actions against unfair, deceptive, and anti-competitive behaviors within the industry. This lack of clarity regarding certain aspects of the order leaves room for further interpretation and action.
Future Reports and Recommendations
In an effort to address these issues comprehensively, the executive order requires the FTC, Department of Justice (DOJ), and Department of the Treasury to compile a report within six months. This document will summarize efforts taken to tackle unfair practices in the live concert and entertainment sectors and propose additional legislation to rectify these challenges.
The Support of Celebrities in Industry Reform
This initiative comes amid broader discussions surrounding ticket sales, with high-profile figures like country rock artist Kid Rock voicing their support. In a recent video featuring Trump, Kid Rock expressed gratitude for the new order, highlighting its importance in mitigating ticket resale inflation. Known for his candid views, he advocated for a price cap on ticket resales, a notion that threatens the profit margins of scalpers and resale platforms.
Public Sentiment and Political Pressure
The ticketing industry has seen increased scrutiny from politicians as music enthusiasts express their frustration over elevated prices, excessive service fees, and the prevalence of scalpers. Notably, the Biden administration has also attempted to combat deceptive pricing, focusing on eliminating “junk fees” that obscure final ticket costs. Meetings between President Biden and key stakeholders, including Live Nation and SeatGeek, in 2023 have led to commitments for more transparent all-in ticketing practices.
Antitrust Concerns in the Industry
Last year, the Biden-era DOJ took legal action against Live Nation, citing monopoly concerns and advocating for the separation of the concert promoter from Ticketmaster, its ticketing counterpart. This case remains active, with Live Nation denying the allegations.
Industry Reactions
In response to the executive order, Live Nation expressed its support, emphasizing that scalpers and automated bots hinder fans from accessing tickets at fair prices set by artists. “We thank President Trump for taking them head-on,”the company stated, reiterating its commitment to enforce existing laws and support further reforms, including resale price caps.