Press Release: NATB Commends Today’s ‘Examining the BOTS Act of 2016' Subcommittee Hearing

BOTS Act is a Positive Step, but Legislation Can Go Farther to Protect Consumers

WASHINGTON, D.C. (September 13, 2016)– Gary Adler, Executive Director and Counsel of the National Association of Ticket Brokers (NATB), issued the following statement on the September 13, 2016 “Examining the Better Online Ticket Sales Act of 2016” hearing of the Senate Commerce Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security.

“When tickets go on sale, people should be competing with one another, and not ticket-hoarding software, to make a purchase. We commend Senator Moran and the Subcommittee for taking an interest in stopping practices that harm consumers and we hope today’s hearing on bots is just the beginning of a broader effort to examine the full set of harmful, anticompetitive issues at play in the overall ticketing system. Bots have gained lots of attention and as we have long advocated, lawmakers should work to crack down on them. We support this action, but it is important to appreciate that bots are merely one part of a bigger set of problems that begin in the primary ticket market controlled by teams, artists, venues, and large ticket issuers. To truly protect consumers, legislation should go beyond just addressing bots, and require greater transparency to protect the secondary resale system where ticketholders can buy, sell and transfer their tickets free of restrictions. The momentum behind the BOTS Act presents a unique opportunity for Congress to consider more fulsome and needed protections in the ticketing system, and we hope Congress doesn’t limit this opportunity.”

NATB’s Protect Ticket Rights initiative (www.ProtectTicketRights.org) draws attention to efforts underway in many different forms that restrict the purchase, sale and transfer of tickets. These include:

  • Restricting Transferability: Some performers, promoters and venues use paperless tickets which require the credit card holder who purchased them to show the card and ID at the door of the event. This means that only the original purchaser can use the tickets, essentially eliminating the ability for tickets to be transferred (shared, gifted or sold).
  • Ticket Cancellations / Non-Renewal of Season Tickets: Some sports teams are cancelling, threatening to cancel, or choosing not renew accounts of season ticket holders that they believe are reselling tickets, punishing the most vested fans in an effort to have even more control over the primary and secondary ticket markets. Few season ticket holders can attend every game, so it’s reasonable they may want to give away or sell some of their tickets. Others may need to resell a portion of their tickets as a means to afford their full ticket package.  It is never good for consumers in any industry where the market is controlled in this manner.
  • Ticket-Buying Software - “Bots”: The use of computer software commonly known as “bots” and auto-dialing programs to rapidly buy up event tickets before fans can access them is detrimental, manipulating demand and driving up prices significantly. NATB members oppose the use of bots and support efforts to crack down on their use. Protect Ticket Rights calls upon ticket issuers and exchanges (online marketplaces where fans and brokers resell their tickets) to do more to root out bot users, and to report the information to appropriate authorities.  
  • Resale Platform Exclusivity:  Some sports leagues, teams and primary ticket platforms are requiring ticket buyers to use a single designated resale ticket platform should they wish to resell their tickets with terms (such as minimum resale prices regardless of actual market value) set and controlled by the team. These price minimums regardless of actual market value and charge more fees despite fees already being paid in the initial sale. Recent reports indicate fees can average 21% of face values.
  • Ticket Holds: Event promoters and venues commonly place “holds” on large numbers of tickets before they go on sale to the public. Reports indicate that only 46% of tickets become available when tickets go on sale, leaving less than half to meet demand – which is the reason events sell out too quickly and lead to frustration over supply and market price.

NATB and its Protect Ticket Rights initiative defend the rights of ticket buyers and sellers through a stringent Code of Ethics, legislative advocacy and in the public arena. We do so according to the values outlined in NATB’s Ticket Owner Bill of Rights. NATB brokers are professional resellers that offer a 200% refund on guaranteed tickets.
 
Recent articles by NATB’s Gary Adler:
 
Sun-Sentinel:  Marlins, others need to play fair with ticket holders
Fox Business: Abusive Ticket Rules Hurt Consumers
The Hill:           Fans deserve protection in the ticket marketplace
 
 Learn more at www.ProtectTicketRights.org
 

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