Trump Signs Executive Order Targeting Ticket Scalpers and Their Bots

Ticket scalping in the live entertainment industry is the target of an executive order signed Monday (March 31) by President Donald Trump.

The order directs the attorney general and the Federal Trade Commission (FTC) to ensure that competition laws are enforced in the concert and entertainment industry, the FTC “rigorously enforce” the Better Online Ticket Sales (BOTS) Act, the FTC take appropriate action to ensure price transparency at all stages of the ticket-purchase process, the FTC prevent “unfair, deceptive and anti-competitive conduct” in the secondary ticket market, and the secretary of the Treasury and attorney general ensure ticket scalpers are operating in full compliance with applicable law.

It also requires that within 180 days, the Treasury secretary, attorney general and FTC submit a report describing the actions they have taken to implement the order and identify any recommendations for relevant regulations or legislation.

Trump wrote in the executive order the order is meant to address “unscrupulous middlemen” who have become a blight on the live concert and entertainment industry by imposing “egregious fees while providing minimal value.”

He added that ticket scalers use bots and other “unscrupulous means” to acquire tickets at face value and then resell them on the secondary market. This has led fans to pay as much as 70 times the face value to obtain a ticket, while artists don’t receive that profit.

“My Administration is committed to making as accessible as possible the arts and entertainment that enrich Americans’ lives,” Trump wrote in the order. “The rent-seeking behaviors surrounding the ticketing industry are contrary to this goal. They are detrimental to consumers and capitalize on market distortions that must not be allowed to persist.”

The BOTS Act mentioned in the order aims to stop scalpers from using bots to purchase tickets, according to a fact sheet released in conjunction with the order. The act has been on the books for eight years, but the FTC has taken action to enforce it only once.

The BOTS Act was passed by Congress with support from both Republicans and Democrats, with the legislation’s proponents saying the use of bots by ticket scalpers pushed ticket prices out of the reach of everyday consumers. PYMNTS reported in December 2016.