BOTS Act compliance: Time for a refresher?

Fans want to know that when tickets to their favorite artist’s summer tour drop, they have a chance of getting good seats at face value. They don’t want to have to compete with people cheating the system by buying more tickets than allowed by the ticket seller. And they really don’t want to have to buy their tickets at seriously inflated prices from ticket resellers who cheated the system. That’s the problem Congress was trying to address with the Better Online Ticket Sales (BOTS) Act of 2016.

The BOTS Act prohibits people from circumventing a ticket issuer’s security measures or purchasing rules. For example, the Act makes it illegal to bypass maximum ticket purchasing limits through technological means or by buying tickets under fake identities. And it’s also illegal to sell any tickets that were bought in violation of the statute if you participated in or could control the circumvention, or knew or should have known the tickets were acquired that way.

A recent White House Executive Order called on the FTC to protect fans from exploitive ticket scalping by vigorously enforcing the BOTS Act. If you’re a ticket seller or reseller, it’s time to get your house in order. Here’s what to know.

Tickets to most events are covered. The BOTS Act applies to tickets to events of all sizes – as long as they are open to the public and take place in a venue with a seating or attendance capacity of more than 200 people. The Act covers any concert, theatrical performance, sporting event, show, or similarly scheduled activity that falls into this category.

Violations will cost you. If you violate the BOTS Act, the FTC can seek civil penalties and other relief. Enforcement is nothing new to the FTC. In 2021, the FTC brought three cases against ticket brokers it claimed violated the BOTS Act by using (1) automated ticket-buying software to search for and reserve tickets automatically, (2) software to conceal their IP addresses, and (3) hundreds of fictitious Ticketmaster accounts and credit cards to get around posted event ticket limits. To resolve the FTC’s allegations, these companies agreed to orders requiring them to pay $3.7 million in civil penalties.

State attorneys general also may enforce. The FTC’s not the only cop on the beat when it comes to the BOTS Act. The law also authorizes state attorneys general to seek monetary relief or take other enforcement action on behalf of their residents if they’ve been adversely affected by the illegal practices the Act covers.

Report problems to the FTC. If you see unfair or deceptive practices in live-event ticket sales, we want to hear about them. Help us monitor the marketplace by telling us what happened at ReportFraud.ftc.gov.