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The FTC BOTS Act – Leveling the Ticketing Field
- President Trump signed executive order (EO 14254) titled 'Combating Unfair Practices in the Live Entertainment Market' on March 31, 2025, directing the FTC to enforce the BOTS Act to address unfair ticket scalping.
- The BOTS Act, enacted in 2016, aims to prevent ticket scalping by prohibiting the circumvention of access controls and security measures by entities reselling tickets at inflated prices.
- Violations of the BOTS Act are subject to fines up to $53,088 per violation under Section 5 of the FTC Act.
- Scalper bots, automated software programs, can rapidly purchase large quantities of tickets leading to inflated prices when resold, thus violating the BOTS Act.
- Enforcement actions under the BOTS Act led to fines against ticket brokers for using bots to acquire and resell event tickets at higher prices.
- State attorneys general can enforce the BOTS Act to protect residents from violations, and there have been bills introduced to enhance enforcement, such as the 'Taylor Swift bill' in Arizona.
- The FTC is instructed to rigorously enforce the BOTS Act under EO 14254, alongside efforts like the Junk Fees Rule to combat deceptive pricing tactics in the live entertainment industry.
- Members of Congress have introduced the MAIN Event Ticketing Act as a companion bill to enhance reporting requirements for online ticket sellers and consumer complaints shared with state attorneys general.
- Strong bipartisan support for live-event industry regulation is evident, with a focus on regulating ticket sales to combat scalping and unfair practices.
- The combined efforts of EO 14254, the FTC's Junk Fee Rule, and legislative initiatives like the MAIN Event Ticketing Act indicate an increased regulatory focus on the live entertainment industry and potential escalation of BOTS Act enforcement.
- Ticket scalpers may face heightened scrutiny and consequences as state and federal authorities take steps to address and prevent unfair ticket practices in the industry.
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