Ticket Scalping Crackdown: Trump Takes Action

The Executive Order: A Crackdown on Ticket Scalping

President Donald Trump has signed an executive order aimed at combating high ticket prices and protecting consumers in the entertainment industry. The order, signed in the Oval Office, marks a significant move to combat the issue of ticket scalping, which has been a long-standing concern for fans and artists alike.

According to the White House, the executive order directs the Federal Trade Commission (FTC) to work with the Attorney General to ensure that competition laws are enforced in the concert and entertainment industry. The order also enforces the Better Online Ticket Sales (BOTS) Act and promotes its enforcement by state consumer protection authorities.

The order also ensures price transparency at all stages of the ticket-purchasing process, including through the secondary ticketing market. Furthermore, it will evaluate and, if appropriate, take enforcement action to prevent “unfair, deceptive, and anti-competitive conduct” in the secondary ticketing market.

As part of the order, the Treasury Department, DOJ, and the FTC will deliver a report within 180 days summarizing the actions taken to address the issue of unfair practices in live concert and entertainment industry and will recommend additional regulations or legislation needed to protect consumers.

The order comes after President Trump, on the campaign trail, vowed to work to combat high ticket prices. While campaigning, the president described the current system where fans are priced out as “very unfortunate.” A White House official told Gizmoposts24 that the president is “committed to making arts and entertainment that enrich Americans’ lives as accessible as possible.”

Key Provisions

The executive order includes several key provisions aimed at combating ticket scalping and protecting consumers. These include:

• Price transparency at all stages of the ticket-purchasing process
• Enforcement of the BOTS Act and promotion of its enforcement by state consumer protection authorities
• Evaluation and enforcement action to prevent “unfair, deceptive, and anti-competitive conduct” in the secondary ticketing market
• Compliance with the Internal Revenue Code and other laws for ticket scalpers

Kid Rock’s Involvement

Kid Rock, a well-known musician, was present at the signing ceremony of the executive order. He expressed his support for the move, stating that fans have been priced out of concerts due to the high ticket prices caused by ticket scalping.

“Anyone who’s bought a concert ticket in the last decade, maybe 20 years, no matter what your politics are, knows it is a conundrum,” Kid Rock said. “If you buy a ticket for 100 bucks by the time you check it out, it’s 170. You don’t know what you can charge for it, but more importantly, these bots you know, they come in to get all the good tickets to your favorite shows you want to go to, and then they’re relisted immediately for sometimes a 4 or 500% markup.”

Kid Rock emphasized that artists do not benefit from ticket scalping, as the profits go solely to the scalper and the ticketing agency.

The Impact on the Entertainment Industry

Economic Impact

The entertainment industry has a significant economic impact on the country, with a total nationwide economic impact of $132.6 billion and supporting 913,000 jobs.

However, the industry has been blighted by unscrupulous middle-men who impose egregious fees on fans with no benefit to artists.

Effects on Fans

Ticket scalping has a significant impact on fans, who are often priced out of concerts due to the high ticket prices caused by scalping.

According to the White House, fans have paid as much as 70 times the face value of a ticket price to obtain a ticket.

Artist Perspective

Ticket scalping also affects artists, who do not benefit from the profits generated by scalping.

As Kid Rock stated, “When this occurs, the artists ‘do not receive any additional profit—it goes solely to the scalper and the ticketing agency.”

The Role of Regulators and Law Enforcement

FTC’s Role

The Federal Trade Commission (FTC) will work with the Attorney General to enforce competition laws in the concert and entertainment industry.

The FTC will also promote the enforcement of the BOTS Act by state consumer protection authorities.

Enforcement Action

The Treasury Department, DOJ, and the FTC will deliver a report within 180 days summarizing the actions taken to address the issue of unfair practices in live concert and entertainment industry and will recommend additional regulations or legislation needed to protect consumers.

Treasury Department’s Involvement

The executive order signed by President Trump directs the Treasury Department to work closely with the Department of Justice and the Federal Trade Commission to ensure that ticket scalpers are operating in full compliance with the Internal Revenue Code and other laws. This involvement is crucial in preventing unfair and deceptive practices in the secondary ticketing market.

The Treasury Department will play a key role in promoting compliance with tax laws and regulations, which will help to prevent ticket scalpers from exploiting loopholes and evading taxes. By working together with other government agencies, the Treasury Department can help to create a fairer and more transparent ticketing market.

State Consumer Protection Authorities

The executive order also promotes the enforcement of the Better Online Ticket Sales (BOTS) Act by state consumer protection authorities. This act, which was signed into law in 2016, prohibits the use of software to circumvent security measures on ticketing websites and to unfairly obtain tickets.

State consumer protection authorities will play a key role in enforcing the BOTS Act and protecting consumers from unfair and deceptive practices. By working together with federal agencies, these authorities can help to create a more level playing field for consumers and prevent ticket scalpers from taking advantage of fans.

Implications and Analysis

Addressing Unfair Practices

The executive order signed by President Trump has the potential to curb ticket scalping and promote fairness in the industry. By targeting unfair and deceptive practices, the order can help to prevent ticket scalpers from exploiting fans and artists.

The order’s focus on promoting transparency and accountability in the ticketing market is a step in the right direction. By requiring ticket sellers to disclose all fees and charges upfront, the order can help to prevent fans from being surprised by hidden fees and charges.

Challenges Ahead

While the executive order is a positive step, it is only the first step in addressing the complex issue of ticket scalping. The issue is deeply entrenched, and it will require sustained effort and cooperation from all stakeholders to create meaningful change.

Further, the order’s success will depend on effective enforcement and regulation. The government agencies tasked with enforcing the order will need to work together to create a comprehensive and effective regulatory framework.

Consumer Benefits

The executive order has the potential to benefit consumers in several ways. By promoting transparency and accountability in the ticketing market, the order can help to prevent fans from being taken advantage of by ticket scalpers.

Further, the order’s focus on promoting competition in the ticketing market can help to drive down prices and create more affordable options for fans. By creating a more level playing field, the order can help to promote innovation and competition in the industry.

Practical Aspects and Next Steps

The 180-Day Report

The Treasury Department, DOJ, and FTC will deliver a report within 180 days summarizing the actions taken to address the issue of unfair practices in the live concert and entertainment industry. This report will provide valuable insights into the effectiveness of the executive order and identify areas for further improvement.

The report will also include recommendations for further regulation or legislation needed to protect consumers. This will provide a roadmap for policymakers and regulators to create a more comprehensive and effective regulatory framework.

Potential Legislation

The executive order may lead to new laws or regulations to protect consumers and the industry. Policymakers may consider introducing legislation to further regulate the ticketing market and prevent unfair and deceptive practices.

Such legislation could include measures to promote transparency and accountability in the ticketing market, such as requiring ticket sellers to disclose all fees and charges upfront. It could also include measures to prevent ticket scalpers from using bots and other unfair means to acquire large quantities of face-value tickets.

Industry Response

The executive order is likely to elicit a response from the industry, including ticketing companies and artists. Ticketing companies may need to adapt their business models to comply with the new regulations and requirements.

Artists may also need to adjust their ticketing strategies to ensure compliance with the executive order. This could include working with ticketing companies to promote transparency and accountability in the ticketing market.