Battle of the Bots: How Legislators are Fighting Virtual Scalpers by Santana Browning

If you’ve ever anxiously awaited the sale date after your favorite artist announces a tour, the experience probably feels familiar: you set a reminder in your calendar, join the queue the moment tickets go live, and refresh endlessly in the hopes of getting decent seats, only to find the show completely sold out in seconds. Minutes later, the exact same seats appear on resale sites for hundreds, or even thousands, of dollars more. Sound familiar? “Scalpers,” or people who snatch up concert tickets within seconds only to resell them at a markup to make a profit, have taken over: the average price of concert tickets went up 41% from 2019 to 2024 [1]. Now, state legislatures and the FTC are looking to crack down on the use of bots and on excessive resale pricing that leaves consumers frustrated while artists and venues see none of the inflated profits. Wisconsin’s “SWIFTIE” Act aims to limit how much resellers can charge and crack down on using bots to buy tickets. [2]. New York has introduced a bill to allow artists to ban reselling tickets for a profit. [3]. Michigan has its own bill aiming to prevent deceitful ticket sellers from creating websites that mimic real entertainment venues to sell tickets at a profit. [4]. These measures are being introduced across states and with bipartisan support. It’s not just buyers that are feeling cheated: artists and venues don’t see any of the profits made by resellers. [5].  Joycelyn Fish, director of marketing and development at the Racine Theatre Guild, spoke to Wisconsin Public Radio about the negative effects, both financially and reputationally, of resellers that hike up prices. Tickets for its production of Legally Blonde: the Musical were being hiked up from the actual price of $22 to $635, damaging the reputation of the Guild as an “affordable place to bring your family.” [Id]. Scalpers aren’t only inflating prices for sold-out shows. Many create misleading websites that appear legitimate, pushing unsuspecting buyers toward overpriced tickets even when seats remain available at standard prices directly from the venue. Others use multiple accounts—and sometimes bots—to purchase large quantities of tickets within seconds, making events appear sold out and forcing consumers into the secondary market. On this issue, the Federal Trade Commission (“FTC”) is stepping in. The FTC has filed suit in California against Live Nation and Ticketmaster, alleging that they are profiting from allowing resellers and bots to buy out entire shows in violation of both the companies’ own rules on limiting the number of tickets purchased by a single buyer as well as the BOTS Act, a 2016 statute that banned the use of bots in ticket sales. Live Nation and Ticketmaster have denied the allegations. [6].  Nonetheless, it’s clear the issue continues to distort the ticketing industry, and we can expect additional state-level measures as lawmakers look for ways to protect consumers, artists, and venues from ongoing exploitation.