United States Government Accountability Office
Highlights of GAO-18-347, a report to
congressional requesters
April 2018
EVENT TICKET SALES
Market Characteristics and Consumer Protection
What GAO Found
Ticket pricing, resale activity, and fees for events vary. Tickets to popular events
sold on the primary market sometimes are priced below the market price, partly
because performers want to make tickets affordable and maintain fans’ goodwill,
according to industry representatives. Tickets are often resold on the secondary
market at prices above face value. In a nongeneralizable sample of events GAO
reviewed, primary and secondary market ticketing companies charged total fees
averaging 27 percent and 31 percent, respectively, of the ticket’s price.
Consumer protection issues include difficulty buying tickets at face value and the
fees and marketing practices of some market participants.
• Professional resellers, or brokers, have a competitive advantage over
consumers in buying tickets as soon as they are released. Brokers can use
numerous staff and software (“bots”) to rapidly buy many tickets. As a result,
many consumers can buy tickets only on the resale market at a substantial
markup.
• Some ticket websites GAO reviewed did not clearly display fees or disclosed
them only after users entered payment information.
• “White-label” resale sites, which often appear as paid results of Internet
searches for venues and events, often charged higher fees than other ticket
websites—sometimes in excess of 40 percent of the ticket price—and used
marketing that might mislead users to think they were buying tickets from the
venue.
Selected approaches GAO reviewed, such as ticket resale restrictions and
disclosure requirements, would have varying effects on consumers and
businesses.
• Nontransferable tickets. At least three states restrict nontransferable
tickets—that is, tickets whose terms do not allow resale. Nontransferable
tickets allow more consumers to access tickets at a face-value price.
However, they also limit consumers’ ability to sell tickets they cannot use,
can create inconvenience by requiring identification at the venue, and
according to economists, prevent efficient allocation of tickets.
• Price caps. Several states cap the price at which tickets can be resold. But
according to some state government studies, the caps generally are not
effective because they are difficult to enforce.
• Disclosure requirements. Stakeholders and government research GAO
consulted generally supported measures to ensure clearer and earlier
disclosure of ticket fees, although views varied on the best approach (for
example, to include fees in an “all-in” price or disclose them separately).
Some market-based approaches are being used or explored that seek to
address concerns about secondary market activity. These approaches include
technological tools and ticket-buyer verification to better combat bots. In addition,
a major search engine recently required enhanced disclosures from ticket
resellers using its advertising platform. The disclosures are intended to protect
consumers from scams and prevent potential confusion about who is selling the
tickets.
View GAO-18-347. For more information,
contact
Michael Clements at (202) 512-8678
Why GAO Did This Study
Tickets for concerts, theater, and
sporting events can be purchased—
typically online—from the original seller
(primary market) or a reseller
(secondary market). Some state and
federal officials and others have raised
issues about ticketing fees, the effect
of the secondary market on ticket
prices, and the transparency and
business practices of some industry
participants. Event ticketing is not
federally regulated. However, federal
legislation enacted in 2016 restricts
bots (ticket-buying software). Also, the
Federal Trade Commission (FTC) has
taken two enforcement actions related
to deceptive marketing by ticket sellers
under its broad FTC Act authority.
GAO was asked to review issues
around online ticket sales. This report
examines (1) what is known about
online ticket sales, (2) consumer
protection issues related to such sales,
and (3) potential advantages and
disadvantages of selected approaches
to address these issues.
GAO focused on concert, theater, and
major league sporting events for which
there is a resale market. GAO
analyzed data on fees, ticket volume,
and resale prices from a variety of
sources; reviewed the largest ticket
sellers’ websites and purchase
processes; and reviewed federal and
state laws and relevant academic
literature. GAO also interviewed and
reviewed documentation from
government agencies; consumer
organizations; ticket sellers; venue
operators; promoters and managers;
sports leagues; and academics
(selected for their experience and to
provide a range of perspectives).