President Trump recently issued an executive order targeted at alleged unfair pricing practices in the live entertainment ticketing industry, including “junk fees” and automated scalping. The order directs multiple federal agencies to examine and address concerns about pricing transparency, consumer protections, tax compliance, and potential anticompetitive conduct.
While federal and state enforcement authority over ticket sales has existed for years, scrutiny of practices used to acquire large quantities of tickets and resell them at marked-up prices has recently intensified. The order represents a formal federal response to growing public and legislative pressure around ticketing practices.
Key directives in the executive order
ENFORCEMENT OF THE BOTS ACT
The Federal Trade Commission (FTC) is tasked with enforcing the Better Online Ticket Sales (BOTS) Act, which prohibits the use of bots to purchase large quantities of tickets. The order encourages coordination between federal and state regulators to enhance enforcement across jurisdictions.
MANDATED PRICE TRANSPARENCY
The FTC is also directed to require clear and upfront disclosure of ticket prices, including all mandatory fees, for both primary and secondary sales platforms, during all stages of the purchasing process.
REVIEW OF COMPETITIVE PRACTICES
The Department of Justice (DOJ) and the FTC are instructed to examine whether companies in the ticketing ecosystem are engaging in anticompetitive behavior.
TAX COMPLIANCE OVERSIGHT
The Treasury Department and DOJ are directed to evaluate whether ticket resellers are complying with federal tax laws.
180-DAY LEGAL AND REGULATORY REVIEW
Federal agencies are given six months to assess whether current consumer protection and competition laws are adequate to address the identified concerns.
Who is impacted?
The executive order directly affects:
- Ticket sellers and resellers
- Live entertainment venues
- Promoters, artists, and event organizers
- Consumers purchasing tickets across primary and resale platforms
Broader implications
The order not only impacts the live entertainment sector but also reflects the federal government’s broader focus on “junk fees” and deceptive pricing practices. Other industries under scrutiny for fee transparency should also pay close attention to the timing, clarity, and prominence of their disclosures.
The evolution of live event ticketing reform
This executive order follows a wave of interest from lawmakers, industry stakeholders, and consumer advocates seeking reform in the live event ticketing space. One notable effort is the “Fix the Tix” initiative, launched in 2023 by the National Independent Venue Association (NIVA) and a coalition of other industry stakeholders, including independent promoters, venues, artists, and advocacy groups, to propose solutions for ticketing reform. The coalition has called for improvements in fee transparency, fair access to tickets, and stronger enforcement against bot-driven scalping.
Several states have also pursued legislation to regulate fees and require greater transparency from ticketing platforms. At the federal level, bipartisan bills addressing deceptive practices in ticket sales have been introduced in recent congressional sessions, reflecting growing consensus on the need for reform.
The executive order represents a formal federal response to these ongoing issues and signals potential regulatory changes for companies across the live entertainment and ticketing industries.
