I guess we’ll see if this actually changes anything… colour me skeptical.
It’s one reason Blue Jays World Series tickets cost so much — and something Ticketmaster’s parent company is looking to changeIn a letter to U.S. senators, Live Nation said it would no longer allow people to hold multiple Ticketmaster accounts and would shut down its TradeDesk platform.
By Marco Chown Oved, Climate Change Reporter
Even for those who logged in seconds after World Series tickets went on sale, the virtual lineup at Ticketmaster often stretched to more than 100,000 people.
It’s no secret that many of those “people” in line are actually bots — automated computer programs — that can click far faster than any human.
By the time many Blue Jays fans got through to the actual box office, tickets with a face value of $494 were going for at least $1,895 because they had already been purchased and were being offered up for resale. And that’s the absolute low end — there were tickets available for five times that price as well.
What was once touted as a way to help people get rid of seats to concerts and sporting events they couldn’t attend has become big business, with technologically adept scalpers employing banks of computers to gobble up hundreds of thousands of tickets and sell them for big profits.
Ticketmaster, which has faced public ire, class-action lawsuits and investigations by the Canadian Competition Bureau and the U.S. Federal Trade Commission for facilitating the secondary resale market, now says it will put an end to this activity.
Not because it’s illegal or wrong. But because it’s causing “reputational harm.”
Some ticket brokers today “simply have too many accounts,” Live Nation, Ticketmaster’s parent company, said in a letter sent to U.S. Senators Marsha Blackburn and Ben Ray Luján last week.
“It doesn’t matter whether that’s lawful or unlawful. What started as a reasonable and acceptable level of behaviour has been abused, and today it is growing exponentially through digitally exploited means. It’s unfair to artists and fans, and it is time to do something about it,” stated the letter, which was obtained by several U.S. media outlets.
The Star has not seen the letter. Ticketmaster and Live Nation did not respond to questions for this story.
According to media accounts, the letter says Ticketmaster will ban all users from having multiple accounts by forcing ticket resellers to divulge their Social Security numbers or Taxpayer ID numbers. It will also discontinue its TradeDesk platform, a specialized program developed to help scalpers manage their inventory of tickets purchased through multiple different Ticketmaster accounts.
“I think that Ticketmaster is concerned about the ongoing legal battles that have become both costly and a distraction,” said Richard Powers, an associate professor at the University of Toronto’s Rotman School of Management who studies sports marketing. Live Nation has claimed in the past that revenues from the resellers program is small, he added, “it just may no longer be worth the hassle.”
The TradeDesk platform was revealed publicly more than seven years ago, when reporters from the Star and CBC went undercover to pose as scalpers while Ticketmaster employees offered to help them break the rules to obtain tickets and resell them.
Public outrage ensued, and class action lawsuits were filed on both sides of the border, although a quick investigation by the Canadian Competition Bureau cleared Ticketmaster of wrongdoing, finding TradeDesk did not breach federal law. An unrelated complaint centred on Ticketmaster’s hidden fees was settled earlier this year for $6 million. The class actions remain ongoing.
For years, the issue of exorbitant ticket prices has continued to rear its head as fans, finding it nearly impossible to obtain tickets from the box office, instead resort to paying five or even 10 times more for resale tickets on StubHub or Ticketmaster.
Despite staging six shows in Toronto last fall, Taylor Swift was unable to get tickets straight into the hands of her fans, who had no choice but to pay up to $33,000 to see her live.
Things came to a head last month, when Live Nation found itself in the crosshairs of a Federal Trade Commission lawsuit in the United States. The federal complaint alleged Ticketmaster facilitated the growth of the secondary ticket market by turning a blind eye to “brokers” who used multiple accounts and bots to harvest hundreds of thousands of tickets to concerts and sporting events. Ticketmaster then helped these brokers sell their tickets and profited when it got another fee on the second sale. This was not only a breach of federal law, the FTC complaint, which extensively cited the Star/CBC investigation, alleges, it ultimately cost consumers billions of dollars.
In response, Dan Wall, Live Nation’s executive vice president and chief regulatory counsel, penned the letter, stating much of the FTC lawsuit is “plainly false.”
The FTC’s allegations provide “a distorted view of the facts and the law,” Wall wrote, claiming Ticketmaster has done “more than anyone else in the industry to fight the bad actors” that exploit the ticket resale market.
“Ticketmaster is an industry leader in the fight against bots and ticket scalping,” he wrote. “Among its many initiatives, Ticketmaster has invested more than $1 billion in ticketing technology, including anti-bot technology, fraud detection and ticket security. Invented rotating barcodes and digital ticketing to stop screenshot resale. Pioneered SafeTix and the smart queue digital waiting rooms to get tickets in the hands of real fans rather than bad actors. Developed powerful new technologies designed to prevent inauthentic account creation and provide for ongoing account validation.”
In order to further crack down on brokers, Ticketmaster will require any account “that wishes to post tickets for resale on Ticketmaster have a unique Taxpayer Identification Number,” the letter stated.
The changes are supposed to be implemented immediately, according to the letter, dated Oct. 17.
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www.thestar.com]
