Trump’s Executive Order Against Ticket Scalping
US President Donald Trump signed an Executive order on March 31, focusing on combating ticket scalping and hidden fees in the live entertainment industry, with musicians like Kid Rock present in the Oval Office.
Response from Industry Stakeholders
The order directs Attorney General Pam Bondi and the Federal Trade Commission to ensure compliance with competition laws in concert and entertainment. It also instructs Bond and Treasury Secretary Scott immigrant to ensure IRS compliance among ticket intermediaries.
While speaking with journalists in the Oval Office, Kid Rock (real name Robert James Richie) commented, “I think that Bob (Richie) cares more about fans who shouldn’t have to pay outrageous prices.” Trump mentioned, “It bothers him, and many other artists, when they set ticket prices at 100 dollars, only to see them resold for 2000 dollars the next night.”
During the signing ceremony, Trump criticized ticket intermediaries, stating, “It seems surprising that they can also sweep up the best seats.” Kid Rock remarked that existing rules on ticket sales are limited, asserting that authorities only enforce the Bota Act infrequently.
The Bota Act, established in 2016, prohibits the use of automated software or bots to purchase large quantities of tickets for events, aiming to prevent resale at inflated prices.
“If Ticketmaster is selling a ticket and you buy it to go to the show, you are, in many respects, their worst client. They earn an extra 17% every time that ticket is resold, so they don’t necessarily want to combat bots because they make more money that way.”
Kid Rock
Kid Rock directed his criticism towards Ticketmaster and its subsidiary Live Nation Entertainment, highlighting how scalpers benefit at the expense of fans.
“If Ticketmaster sells a ticket and you attend the show, you become their undesirable customer. They profit every time tickets are resold, so they’re not inclined to enforce regulations that would cut into their revenue,” Kid Rock stated.
Kid Rock emphasized that his stance isn’t merely self-serving. “Artists don’t see any of those profits; I’m not advocating for more money for myself. I want fans to get fair ticket prices and enjoy various shows.”
The executive order specifically targets several practices in the ticketing industry. It compels federal agencies to ensure adherence to existing competition laws against scalping, advocates for greater transparency in pricing, and seeks to address what the Trump administration describes as “unfair, deceptive, and anti-competitive behaviors in the secondary ticket market.”
“Scalpers and bots prevent fans from obtaining tickets at face value, and we appreciate President Trump for taking a stand against them.”
Live Nation Entertainment
“The American concert and entertainment industry is the envy of the world, but it has been diminished by unscrupulous intermediaries that exploit the gap between artists and fans, imposing excessive fees while providing minimal value,” the executive order states.
“Ticket scalpers utilize bots and other unfair tactics to acquire vast quantities of tickets, then resell them at exorbitant markups in the secondary market, robbing consumers of fair pricing and denying fans the chance to see their favorite artists without unnecessary expenses,” the order continues.
Live Nation released a statement backing the order, asserting that “Scalpers and bots obstruct fans from securing tickets at set prices, and we thank President Trump for addressing this issue. We support significant reforms in resale practices, including tighter enforcement of the Bota Act and limitations on resale pricing.”
The company claims that Ticketmaster blocks 200 million bots daily—a number that continues to escalate. Additionally, they have implemented an all-in pricing strategy that allows online ticket buyers to see the total ticket price before purchase.
The applause from Live Nation comes amid ongoing legal challenges with the federal government. Almost a year prior, the US Department of Justice filed an antitrust lawsuit against Live Nation, alleging multiple violations of antitrust laws, including claims of “anti-competitive behavior.”
A federal judge recently dismissed Live Nation’s attempt to strike down two key components of the case. The Justice Department is joining forces with 40 states and district attorneys in the pursuit. District Judge of the United States Arun Subramanyan indicated in court documents on March 14 that the states are seeking damages on behalf of consumers.
Trump’s latest executive order mirrors directives previously issued by former President Joe Biden. During his administration, Biden directed the FTC to address “undesirable fees” across various industries, including additional ticket costs at the time of ordering.
“Studies indicate that, often unknowingly, people may pay up to 20% more due to hidden fees compared to if they had been aware of the full price upfront and had the opportunity to compare other options. This is unacceptable,” Biden stated in October 2023.
Trump has instructed federal agencies to report back to the White House in 180 days concerning their law enforcement actions and any suggestions for additional regulations.
With Kid Rock at his side, Trump signs executive order to curb ticket price gouging
