04-03-2025

Combating Unfair Practices in the Live Entertainment Market

Executive OrderView the Original .pdf

The 1-Minute Brief

What: Executive Order 14254, "Combating Unfair Practices in the Live Entertainment Market," directs federal agencies to crack down on anti-competitive practices in the ticketing industry. It targets issues like ticket scalping, the use of bots to buy up tickets, and hidden "junk fees" that inflate the final cost for consumers.

Money: The order itself does not appropriate new funds but directs existing agencies, like the Federal Trade Commission (FTC) and the Department of Justice (DOJ), to enforce current laws. This follows other government actions, such as the FTC's "Junk Fees Rule," which could impose civil penalties of up to $53,088 per violation for non-compliance.

Your Impact: You are more likely to see the full price of a concert or event ticket, including all fees, upfront. The order aims to make it harder for scalpers to buy large quantities of tickets and resell them at massive markups, potentially giving fans a better chance at purchasing tickets at face value.

Status: The Executive Order was signed on March 31, 2025. Federal agencies, including the DOJ and FTC, have been directed to take action and report on their progress within 180 days of this date. The DOJ has already filed a major antitrust lawsuit against Live Nation and Ticketmaster.


What's Actually in the Bill

Executive Order 14254 is a directive from the President to federal agencies to use their existing legal authority to address problems in the live entertainment ticketing market. It is not a new law passed by Congress but rather a command to enforce laws already on the books more aggressively.

Core Provisions:

  • Enforce Competition Laws: The Attorney General and the FTC are ordered to ensure competition laws are enforced against venues and ticketing agents to protect artists and fans.
  • Crack Down on Bots: The FTC is directed to rigorously enforce the Better Online Tickets Sales (BOTS) Act of 2016, which prohibits the use of software to bypass ticket purchasing limits.
  • Increase Price Transparency: The FTC is instructed to take action, including potentially creating new regulations, to ensure the full price of a ticket is clear from the start of the buying process.
  • Combat Unfair Practices: The FTC is to evaluate and prevent unfair, deceptive, and anti-competitive behavior in the secondary ticket market where tickets are resold.
  • Ensure Tax Compliance: The Treasury Secretary and Attorney General are to make sure ticket scalpers are complying with tax laws.

Stated Purpose (from the Sponsors):

The order states that the live entertainment industry is "blighted by unscrupulous middlemen who sit at the intersection between artists and fans and impose egregious fees while providing minimal value."

  1. To combat the use of bots and other unfair methods by ticket scalpers to acquire and resell tickets at enormous markups.
  2. To address "rent-seeking behaviors" and market distortions that harm consumers.
  3. To make arts and entertainment more accessible and affordable for all Americans.

Key Facts:

Affected Sectors: Entertainment, Technology, and Live Events (concerts, sports, theater).
Timeline: Agencies are required to submit a joint report on their actions within 180 days of the order's date (March 31, 2025).
Scope: The order has a nationwide scope, targeting practices across the entire live entertainment industry in the United States.


The Backstory: How We Got Here

Timeline of Events:

The Rise of a Ticketing Giant (1990s-2010s):

  • 1994: Rock band Pearl Jam files a complaint with the Department of Justice alleging Ticketmaster has a monopoly on the ticket market, bringing national attention to the issue.
  • 2010: The Department of Justice approves the merger of Live Nation, a major concert promoter, and Ticketmaster, the leading ticket seller, creating a vertically integrated giant in the live music industry. The approval comes with conditions meant to prevent anti-competitive behavior, but critics argue these were not effectively enforced.
  • 2016: Congress passes the Better Online Ticket Sales (BOTS) Act to combat the use of automated software ("bots") to scoop up large numbers of tickets for resale at inflated prices.

The Breaking Point (2020s):

  • November 2022: Massive demand for tickets to Taylor Swift's "Eras Tour" leads to a spectacular meltdown on Ticketmaster's website. Millions of fans are left frustrated by long queues, website crashes, and skyrocketing prices on the resale market, sparking widespread public outrage and intense scrutiny from lawmakers.
  • January 2023: The U.S. Senate Judiciary Committee holds a hearing on the state of the ticketing industry, with senators from both parties criticizing Live Nation and Ticketmaster for their market dominance and poor customer service.
  • May 2024: The Department of Justice, along with 30 state attorneys general, files a landmark antitrust lawsuit against Live Nation-Ticketmaster, accusing the company of running an illegal monopoly and seeking to break it up.

Why Now? The Political Calculus:

  • Public Outrage: The Taylor Swift ticket fiasco galvanized millions of fans, creating immense public pressure on elected officials to act. The incident made the abstract concepts of monopoly power and junk fees a concrete and frustrating experience for a huge number of voters.
  • Bipartisan Anger: Frustration with ticketing practices is one of the few issues that has drawn vocal criticism from both Democrats and Republicans, creating a rare window of opportunity for government action.
  • Broader Anti-Monopoly Push: The executive order and the DOJ lawsuit are part of a wider Biden administration effort to combat corporate consolidation and promote competition across various sectors of the economy.

Your Real-World Impact

The Direct Answer: This directly affects anyone who buys tickets for live concerts, sporting events, or theater shows.

What Could Change for You:

Potential Benefits:

  • All-In Pricing: Ticket websites will be required to show you the full price, including all service and processing fees, from the very beginning of your transaction, making it easier to compare prices and budget.
  • Fairer Access: By cracking down on bots, more tickets may be available for purchase by actual fans at face value, rather than instantly appearing on resale sites for hundreds or thousands of dollars more.
  • More Competition: If the DOJ lawsuit is successful in breaking up Live Nation and Ticketmaster, it could lead to more competition in the market, potentially resulting in lower fees and better service in the long run.

Possible Disruptions or Costs:

Short-term (6-18 months):

  • There are no direct costs to consumers from this Executive Order. The primary impact will be on the business practices of ticketing companies.

Long-term:

  • The primary long-term changes will be clearer pricing and potentially lower fees if enforcement actions and legal challenges lead to a more competitive market structure.

Who's Most Affected:

Primary Groups: Concert-goers, sports fans, and anyone who purchases tickets for live events.
Secondary Groups: Artists and performers (who may gain more control over their ticket prices), independent venue owners, and secondary ticket resellers (scalpers).
Regional Impact: The impact is national, affecting consumers and venues in all 50 states.

Bottom Line: This executive action aims to make the process of buying tickets for live events more transparent and fair, reducing the sticker shock from hidden fees and making it harder for scalpers to dominate the market.


Where the Parties Stand

Republican Position: "Promoting Transparency and Competition"

Core Stance: Republicans have expressed strong support for price transparency and cracking down on unfair practices like bot usage.

Their Arguments:

  • ✓ Support for "all-in" pricing, requiring sellers to display the total cost of a ticket upfront.
  • ✓ Strong enforcement of the BOTS Act to prevent scalpers from using technology to gain an unfair advantage.
  • ⚠️ Some conservatives may be wary of broad new regulatory powers for federal agencies, preferring market-based solutions or enforcement of existing laws.

Legislative Strategy: Key Republicans have co-sponsored the TICKET Act, which passed the House with overwhelming bipartisan support and focuses on mandating upfront, all-in pricing for tickets. President Trump signed the Executive Order to clamp down on scalping and hidden fees.

Democratic Position: "Protecting Consumers from Junk Fees and Monopolies"

Core Stance: Democrats have championed the effort to eliminate "junk fees" and have been highly critical of the market power held by Live Nation-Ticketmaster.

Their Arguments:

  • ✓ Support for eliminating hidden fees across multiple industries, including ticketing, through legislation like the Junk Fee Prevention Act.
  • ✓ Pushing for aggressive antitrust enforcement to break up monopolies that they argue harm consumers through higher prices and poor service.
  • ✓ Advocating for stronger consumer protection regulations to ensure fans are treated fairly.

Legislative Strategy: Democrats have introduced the Junk Fee Prevention Act and have been vocal supporters of the DOJ's antitrust lawsuit against Live Nation-Ticketmaster, framing it as a key battle against corporate greed.


Constitutional Check

The Verdict: ✓ Constitutional

Basis of Authority:

The federal government's authority to regulate the live entertainment and ticketing industry primarily stems from the Commerce Clause of the U.S. Constitution.

Article I, Section 8, Clause 3: "[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes."

Constitutional Implications:

Interstate Commerce: The Supreme Court has long held that "interstate commerce" includes any commercial transactions that cross state lines. Since concert tours, sporting events, and the online sale of tickets involve artists, teams, companies, and consumers in different states, it falls under federal jurisdiction.
Precedent: The courts have repeatedly upheld federal regulation of industries that affect interstate commerce, including telecommunications, transportation, and entertainment. The BOTS Act of 2016 was passed under this same authority.
Federalism: While states can and do pass their own consumer protection laws, federal law can set a national standard, particularly for transactions that are national in scope. This order does not prevent states from adding their own, more stringent protections.

Potential Legal Challenges:

The Executive Order itself is unlikely to face a successful legal challenge as it primarily directs agencies to enforce existing laws. The main legal battle is the DOJ's antitrust lawsuit against Live Nation-Ticketmaster. The company will argue that its business practices are not monopolistic and that the market is competitive. The outcome of that case will have a far greater long-term impact on the industry than the executive order itself.


Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support stronger regulation of the ticketing industry and legislative efforts like the TICKET Act to ensure fair and transparent ticket prices."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact your elected officials and the leaders of the Senate Commerce, Science, and Transportation Committee and the House Energy and Commerce Committee to express your support for the goals of Executive Order 14254 and related legislation.
  • Join an Organization: Groups like the National Consumers League and the Sports Fans Coalition advocate for more transparency and fairness in ticketing.

TO OPPOSE THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I am concerned about government overreach in the live entertainment market. I urge [Rep./Sen. Name] to oppose broad new regulations and instead focus on enforcing existing laws against fraud."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper arguing that market forces, not government intervention, are the best way to address issues in the ticketing industry.
  • Join an Organization: While few groups publicly oppose consumer-friendly measures like price transparency, organizations that advocate for limited government regulation and free-market principles may align with this viewpoint.