FTC investigating Ticketmaster and how it battles bots

The Federal Trade Commission (FTC) is investigating Ticketmaster and how it battles ticket buying bots. Reportedly in its late stages, the investigation of Live Nation’s Ticketmaster is looking at whether the company has violated the federal BOTS Act.

The 2016 Better Online Ticket Sales (BOTS) Act aimed to curb the use of automated software to scoop up concert and sports tickets. The law prohibits tools that bypass purchase limits or other security measures, practices that have long fueled the secondary ticket market.

Live Nation stock fell almost 3% after the markets opened Tuesday. The probe and its broader impact on ticket resales could also put pressure on StubHub‘s upcoming $9 billion IPO.

FTC investigating Ticketmaster and how it battles bots

Key Takeaways

• The FTC is in the late stages of investigating Ticketmaster for possible BOTS Act violations.
• At issue: whether it does enough to stop bots — or profits from resales on its own platform.
• Ticketmaster denies wrongdoing, claiming it blocks 200M bot attempts daily and supports a 20% resale cap.
• The outcome could reshape ticketing and mean fairer access for fans and artists.

At the center of the FTC probe is a simple but loaded question: is Live Nation owned Ticketmaster doing enough to stop bots?

The FTC is examining not only the effectiveness of the company’s BOTS safeguards, according to Bloomberg, but also whether it has financial incentives to look the other way.

Ticketmaster denies violating the law and said in a statement that it would “vigorously defend any such claims,” and would prefer to work with the FTC to improve overall ticketing industry policies. Live Nation has also proposed a 20% cap on resold tickets.

Ticketmaster insists that it aggressively fights bots blocking 200 million automated attempts daily – five times more than just a few years ago. The company argues it has robust detection and security systems and warns that regulators may be stretching the definition of what the BOTS Act actually forbids.

The FTC appears unconvinced, and its recent lawsuit against a separate ticket reseller shows it is ready to test the law in court.

With this new probe the FTC could decide whether to bring a case within weeks, though according to sources, a settlement is still possible.

The stakes are high. If regulators can prove that Ticketmaster failed to enforce protections, the financial hit could be enormous with fines of up to $53,088 per violation. Beyond fines, the company faces reputational damage in a climate where consumer trust is already fragile.

How this BOTS investigation plays into the broader DoJ lawsuit against Live Nation and Ticketmaster scheduled to go to trial in March is also unclear.

Reshape Ticketing For Artists & Fans

The case could also reshape the ticketing landscape for both fans and artists. Stronger enforcement would mean more equitable access, fewer inflated resale prices, and a fairer shot at seeing a favorite performer without resorting to secondary markets.

Yet challenges remain. Defining what counts as a bot, and distinguishing between fraud and overzealous fans using multiple devices, is complex. Overly strict measures could create new headaches for genuine ticket buyers and in limited cases resales can be a useful option.

Still, the FTC’s probe signals a turning point.

After years of mounting frustration – from the Taylor Swift ticket debacle to countless sold-out tours — regulators are taking aim at systemic problems in live event ticketing.

Bruce Houghton is Founder & Editor of Hypebot, Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of Skyline Artists.

“FTC investigating Ticketmaster and how it battles bots” first appeared on Hypebot.com.