Executive Order to Make Ticket Prices Fairer and Hinder Resellers
President Donald Trump signed an executive order on Monday to combat unfair practices in the live entertainment market. The order also aims to ensure ticket buyers have a fairer chance at getting the tickets they want.
“Combating Unfair Practices in the Live Entertainment Market” is specifically designed to hinder the unfair tactics of scalpers and resellers who escalate ticket prices beyond retail value. This is done after purchasing them, often in large numbers, for face value and then putting them on the market for a much higher price, so they can make a considerable profit. This makes it costlier for event-goers to purchase affordable tickets in their desired seating.
One of the tactics used by resellers and scalpers, which has grown more prominent in recent years, is the strategic use of bots to purchase multiple tickets at retail, and at a much faster pace than the average buyer.
The fact sheet further states the following about scalping techniques:
“Ticket scalpers use bots and other unfair means to acquire large quantities of face-value tickets, then re-sell them at an enormous markup on the secondary market, price-gouging consumers and depriving fans of the opportunity to see their favorite artists without incurring extraordinary expenses.”
The order further requires, “The Attorney General and the Federal Trade Commission (FTC)” to “ensure that competition laws are appropriately enforced in the concert and entertainment industry, including where venues, ticketing agents, or combinations thereof operate to the detriment of artists and fans[.]”
Moreover, the FTC will “take appropriate action, including proposing regulations if necessary,” to make sure prices are transparent during every stage of ticket purchasing.
Scalpers will also be demanded to operate in full compliance with the Internal Revenue Code and other applicable laws.
The fact sheet also describes what some fans pay to get a ticket for an event.
“By some reports, fans have paid as much as 70 times the face value of a ticket price to obtain a ticket.”
President Trump said the ticket issue was brought to him by the musician Kid Rock, who visited the White House on Monday. The President said of Kid Rock and ticket prices, “I’ve spoken to him over the years about it and it bothers him. It bothers a lot of other artists. They go out with a $100 ticket, and it sells for $2,000 the following night.”
