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Blackburn asks Ticketmaster to clarify whether it misled Congress regarding resale bots.

Blackburn asks Ticketmaster to clarify whether it misled Congress regarding resale bots.

Sen. Blackburn Questions Ticketmaster’s Handling of Bot Scalpers

Senator Marsha Blackburn (R-Tenn.) recently addressed Ticketmaster, seeking clarity on their understanding of Congress’ position regarding bot scalpers in 2023.

Last month, the FTC filed a lawsuit against Ticketmaster and its parent company, Live Nation, alleging they charge excessive fees for online sales. The lawsuit claims bots are illegally reselling millions of tickets and working with third-party brokers, circumventing ticket purchase restrictions.

In a pointed letter to Ticketmaster CFO Joe Berchtold, Blackburn expressed “serious concern” about these allegations and referenced his testimony from earlier this year.

“It’s pretty unbelievable to make such claims while also seemingly colluding with scalpers and others,” Blackburn noted in a letter co-signed by Senator Ben Ray Lujan (D-NM).

“Instead of holding other parties accountable, I’d suggest being transparent with Congress and the public about how you’re allowing bots to secure large quantities of tickets,” she added.

Ticketmaster and Live Nation have yet to respond to requests for comments.

The lawsuit poses a significant financial threat to Ticketmaster, according to reports.

The FTC is pursuing billions in penalties under the Better Online Ticket Sales Act, also known as the Bot Act.

“The total fines could be in the range of hundreds of millions,” a source familiar with the situation stated.

Blackburn and other lawmakers are increasing their scrutiny of Ticketmaster, particularly following the mismanagement during the sale of tickets for Taylor Swift’s “Eras Tour,” which led to backlash and numerous lawsuits from frustrated fans.

This scrutiny peaked during a 2023 Senate Judiciary Committee hearing, where Blackburn described Live Nation’s bot issues as “unbelievable” and inadequately addressed.

In her letter to Berchtold, she mentioned, “When you had to tackle cybersecurity issues, you said you invested over $1 billion to protect against bots.”

Republicans pointed to various points raised in the FTC lawsuit, including an internal email from a senior Ticketmaster executive who indicated the company turned a blind eye to the issue of brokers and bots acquiring ticket inventory.

Blackburn has requested that Ticketmaster submit written responses to several questions by October 14, including whether they maintain their previous assertions about not ignoring violations of the Bots Act amid the FTC’s allegations.

She also asked if Ticketmaster has ever intentionally laxed enforcement of ticket restrictions for particular buyers or brokers for financial gain, questioning why so many invest in anti-bot technology if the company is potentially collaborating with brokers to bypass these measures.

This lawsuit from the FTC was filed shortly after President Trump issued an executive order aimed at improving the BOTS Act and similar initiatives to protect consumers from predatory ticket sales practices. Trump had previously appeared with musician Kid Rock to advocate for these changes.

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