NITO Files Complaint With FTC Alleging Secondary Market BOTS Act Violations

The National Independent Talent Organization (NITO) has filed a complaint with the Federal Trade Commission (FTC) alleging potential widespread violations by the ticket resale industry of the Better Online Ticket Sales (BOTS) Act of 2016. The trade group asks the FTC to open a formal investigation.

In the complaint, NITO alleges multiple tech companies, many of which were exhibitors at the World Ticket Conference hosted by the the National Association of Ticket Brokers in Nashville July 24-26, provide tools to scalpers that enable them to circumvent ticket purchasing limits by way of sophisticated browser extensions, proxy services, and virtual credit card platforms designed to bypass security measures implemented by primary ticket sellers.

NITO identifies platforms offering virtual credit card services including Taekus, Blue Penguin, and intercash, which it says are providing tools that could potentially be used to circumvent ticket purchasing limits in violation of the BOTS Act.

It also identifies proxy services like Live Proxies, BartProxie, and Netnut as offering tools that mask a user’s true identity and location. NITO notes that while these services have legitimate uses, their marketing and use cases “strongly suggest they are being employed to circumvent ticket purchasing limits in violation of the BOTS Act.”

The letter, signed by 42 member companies representing thousands of artists, was also shared with members of Congress, other Federal and State entities and the trade group’s partners in the Fix The Tix Coalition.

In it, NITO details specific examples of potentially violating technologies, their capabilities, and how they contradict the BOTS Act. The complaint concludes with actionable recommendations for rights holders and the Federal Trade Commission to combat these practices, including increased enforcement, legislative updates, and enhanced cooperation between stakeholders in the ticketing industry.

The trade group says the “prevalence of these technologies at major industry events suggests that many, if not most, ticket brokers may be violating federal law by using these technologies.”

Among the recommendations offered by NITO to the FTC are subpoenas of customer lists from companies offering services that fall into the categories likely to facilitate BOTS Act violations. This includes browser extension developers, proxy service providers, and virtual credit card services marketed to ticket resellers. It also asks the FTC to increase enforcement actions, closer collaboration with ticketing platforms, and update legislation. 

NITO represents the interests of independent music booking agencies and managers in the United States.