The Commission reduced the penalties by 88 percent due to inability to pay on January 22, 2021, 16:04 13 comments
In a nutshell: Three companies specializing in buying up event tickets and reselling them have settled with the FTC to pay a fraction of the $31 million in fines levied against them for violating the BOTS Act. It is the first time the Federal Trade Commission has applied the 2016 law.
On Friday, the Federal Trade Commission announced that it fined three scalping companies for using bots to acquire sports and concert tickets. The scalpers allegedly circumvented purchasing limits through software, which is a violation of the Better Online Ticket Sales (BOTS) Act.
FTC cracks down on ticket bots that leave you out in the cold
Alvaro Puig, Consumer Education Specialist, FTC
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For most of us, it’s been a long time since we’ve been able to attend a live event. Think back, if you can, to the last time you tried to buy tickets online to go to a concert, a game, or a play. Were you shut out because tickets sold out before you got yours? You’re not alone.
So what happened? Sometimes there just aren’t enough tickets available for everyone who wants to attend an event, especially if promoters save tickets for artists and other VIPs. Ticket bots may also be a factor. People may use software to buy tickets quicker than the average consumer.
FTC fines three ticket scalping companies for illegally using bots
The three will pay a total of $3.7 million
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Photo by Dave Simpson/WireImage
The Federal Trade Commission issued multimillion-dollar fines against three bot-powered ticket scalping operations. The FTC says these organizations bought over 150,000 event tickets over the past four years, nabbing them with automated tools that evaded online purchasing limits. After reselling these tickets for an estimated $26.1 million, they’ve been accused of breaking a 2016 anti-bot law the first time this law has been applied.
Regulators reached a proposed settlement with the ticket selling groups, including $31.6 million in fines. However, most of these fines were suspended because of an inability to pay. The three groups will pay a total of $3.7 million instead, and they’ll have to maintain records demonstrating their future compliance with the law. The settlement must still be approved by a judge.
Miscreants hit with $31m fines tho only pay what they can afford: $3.7m Share
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Three ticket resellers have agreed to settle US government charges that they unlawfully used software bots to obtain music, theater, and sporting event tickets for markup and resale.
On Friday, the Department of Justice and the Federal Trade Commission announced the first enforcement actions under the Better Online Ticket Sales (BOTS) Act, a law signed off in 2016 to prevent people from using automated systems to outcompete other would-be buyers of tickets to popular events. Those who violate the BOTS Act cheat fans by forcing them to pay inflated prices to attend concerts, theater performances and sporting events,” said Acting US Attorney Seth DuCharme for the Eastern District of New York, in a statement. This office will spare no effort in prohibiting deceptive practices that harm consumers.