WASHINGTON (AP) — President Donald Trump signed an executive order on Monday aimed at curbing ticket scalping and introducing “commonsense” changes to the pricing of live entertainment events. The order, designed to prevent price-gouging by middlemen, directs Attorney General Pam Bondi and Treasury Secretary Scott Bessent to ensure that scalpers selling tickets above their face value comply with all Internal Revenue Service rules, according to a fact sheet released by the White House. The order also instructs the Federal Trade Commission to promote price transparency throughout the ticket-purchasing process and to take enforcement action against unfair, deceptive, and anti-competitive practices in the secondary ticketing market. The Trump administration believes that these measures can help restore order and sensibility to the ticket market. According to the fact sheet, the live concert and entertainment industry in America has a total economic impact of $132.6 billion and supports 913,000 jobs. However, it has been marred by unscrupulous middlemen who impose excessive fees on fans without benefiting the artists. This move represents a rare instance of policy alignment between the Trump administration and that of Democratic President Joe Biden. The Biden administration had previously utilized the FTC to address “junk fees,” additional charges added at the end of the purchase process that can obscure the full price of items such as concert tickets, hotel rooms, and utility bills.
Under President Biden, the Justice Department also filed a lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, last year. The lawsuit alleged that they were operating an illegal monopoly in the live events industry, leading to limited competition and inflated prices for fans. The Justice Department sought to dismantle the system to promote fair competition.Ticket scalpers use bots and other unfair means to acquire large quantities of face-value tickets, then resell them at an enormous markup on the secondary market, price-gouging consumers and depriving fans of the opportunity to see their favorite artists without incurring extraordinary expenses,” the White House fact sheet said. It added, “According to some reports, fans have paid as much as 70 times the face value of a ticket to obtain admission.” The fact sheet also highlighted that the higher prices do not result in additional profits for artists but instead benefit only the scalper and the ticketing agency. In an effort to address these issues, Trump’s executive order instructs federal officials and the Federal Trade Commission (FTC) to present a report within six months summarizing the actions taken to combat unfair practices in the live concert and entertainment industry. The order also calls for recommendations on additional regulations or legislation necessary to protect consumers in this sector.
