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ticket scalping prohibited

Cracking Down on Ticket Scalping

icon favorite Apr 01, 2025
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ticket scalping prohibited
Cracking Down on Ticket Scalping

Executive Order on Live Event Ticketing

Date Signed: March 31, 2025

Signed by: President Donald Trump

 

Why it Matters:

The end may be nigh for the secondary market and high fees associated with live event ticketing. Consumers have complained about the price of secondary market tickets, whether from resellers price increases or for fees associated with the acquisition of those tickets on the secondary market.

 

Executive Summary:

This executive order addresses harmful practices in the live event ticketing industry, particularly focusing on ticket scalping, lack of price transparency, and market manipulation. The order instructs federal agencies to use their existing authority to enforce fair practices, ensure compliance with consumer protection and tax laws, and collaborate with state authorities. The ultimate aim is to protect fans and artists from unfair costs and exploitative practices in both primary and secondary ticket markets.

 

Key Provisions:

  • Section 2: Implementation
    • Enforcement of Competition Laws:
      The Attorney General and the Federal Trade Commission (FTC) are directed to ensure that competition laws are properly enforced in the live entertainment industry. This includes oversight of venues, ticketing agents, or combinations that may harm fans or artists (Sec. 2(a)).
    • Enforcement of Better Online Ticket Sales Act:
      The FTC must enforce the Better Online Ticket Sales (BOTS) Act, which targets the use of automated bots for ticket purchases. The FTC should also work with state attorneys general and consumer protection officials by sharing information to help them enforce this law (Sec. 2(b)).
    • Mandate for Price Transparency:
      The FTC is directed to ensure that all ticket pricing, including secondary market transactions, is clear and transparent throughout the purchase process. If necessary, the FTC may propose new regulations to meet this goal (Sec. 2(c)).
    • Monitoring of Secondary Market Conduct:
      The FTC must assess the secondary ticket market and take enforcement action if there are unfair, deceptive, or anti-competitive practices (Sec. 2(d)).
    • Compliance with Tax Laws:
      The Secretary of the Treasury and the Attorney General are tasked with ensuring that ticket scalpers are fully complying with federal tax laws and other applicable regulations (Sec. 2(e)).
  • Section 3: Report
    • Within 180 days of the order’s signing, the Secretary of the Treasury, Attorney General, and FTC Chairman must submit a joint report. This report should detail what actions have been taken to implement the order and provide any regulatory or legislative recommendations to better protect consumers in the live entertainment sector (Sec. 3).

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