x

The latest industry news to your inbox.


I'd like to hear about marketing opportunities

    

I accept IQ Magazine's Terms and Conditions and Privacy Policy

news

Red Light, Q Prime back NITO resale complaint

The National Independent Talent Organization is calling on the FTC to investigate potential "widespread violations" by ticket resellers

By James Hanley on 20 Sep 2024


The National Independent Talent Organization (NITO) has filed a complaint with the US Federal Trade Commission (FTC), alleging widespread violations of the BOTS Act by ticket resellers.

The advocacy group, whose complaint is backed by dozens of signatories including Red Light Management, Q Prime, Arrival Artists, Ground Control Touring, Mint Talent Group and Paladin Artists, represents the interests of independent music booking agencies and managers in the United States.

Its filing sets out how multiple technology companies provide tools that enable touts to circumvent ticket purchasing limits, including sophisticated browser extensions, proxy services, and virtual credit card platforms designed to bypass security measures implemented by primary ticket sellers.

“NITO requests that the FTC investigate the widespread sale of technology used to violate the Better Online Ticket Sales (BOTS) Act,” says a letter from NITO addressed to FTC chair Lina Khan. “Our organisation recently attended the World Ticket Conference organised by the National Association of Ticket Brokers (NATB). At this event, we observed a sold-out exhibition hall filled with vendors selling and marketing products designed to bypass security measures for ticket purchases, in direct violation of the BOTS Act.

“Artists, promoters, venues, and primary ticketing systems set ticket purchase limits to increase accessibility and protect fans from large-scale resale for profit, especially for high-demand concerts. The BOTS Act aims to prevent the use of technology that circumvents these ticket purchase restrictions and to protect consumers from price gouging on the secondary market.

“However, despite these efforts, purchase limits are routinely bypassed. Our research shows that for a single concert, thousands of tickets often end up on secondary sites at an average markup of twice the original face value.”

“By implementing these recommendations, rights holders and the FTC can take significant steps towards curbing BOTS Act violations”

It adds that the prevalence of such technologies at major industry events indicates that many ticket brokers may be violating federal law by using these technologies.

“Multiple solutions exist for those seeking to bypass purchase limits, and most were being marketed and sold at the NATB Conference,” NITO continues. “We urge the FTC to investigate the practices and companies detailed.”

The letter was also shared with members of Congress, other Federal and State entities and the trade group’s partners in the Fix The Tix Coalition.

The complaint from NITO president Jack Randall and MD Nathaniel Marro concludes with actionable recommendations for rights holders and the Federal Trade Commission to combat these practices, including increased enforcement, legislative updates, and enhanced cooperation between stakeholders in the ticketing industry.

“By implementing these recommendations, rights holders and the FTC can take significant steps towards curbing BOTS Act violations and ensuring fairer access to event tickets for consumers,” it adds.

Other member companies to back the filing include Magnus Artists, Crossover Touring, Artisan Agency, New Frontier Touring, Ted Kurland Agency and Northstar Artists.

The BOTS Act was signed into law by then US president Barack Obama in 2016.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.