""Then we have a guy who creates 1,000 'fake' accounts and uses each [to] buy the ticket limit of 8, giving him 8,000 tickets to resell. We say the former is legit and call him a 'broker' while the latter is breaking the rules and is a 'scalper.' But from the fan perspective, we end up with one guy reselling 8,000 tickets!""
""But that warning, like others, was ignored by management, the FTC alleged. Leadership repeatedly declined to impose any tools \"to prevent brokers from bypassing posted ticket limits,\" the FTC claimed, after analysis showed Ticketmaster risked losing nearly $220 million in annual resale ticket revenue and $26 million in annual operating income. In fact, executives were more alarmed, the FTC alleged, when brokers complained about high-volume purchases being blocked, \"intentionally\" working to support their efforts to significantly raise secondary market ticket prices.""
Employees flagged broker abuse while Ticketmaster and Live Nation prioritized resale fee revenue over enforcement. An engineer described brokers hiring college students or creating fake accounts to each buy the eight-ticket limit, producing resellers holding thousands of tickets. Management repeatedly declined to implement tools or enforce posted ticket limits when enforcement threatened nearly $220 million in annual resale revenue and $26 million in operating income. Warnings about flagged brokers were ignored, and executives reacted more strongly to broker complaints about blocked high-volume purchases than to concerns about inflated secondary-market prices.
Read at Ars Technica
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