A September CBC News and Toronto Star investigation revealed that Ticketmaster was working in collaboration with ticket brokers, allowing a network of scalpers to acquire tickets in bulk and then re-sell them for a profit using their proprietary software; with the ticketing company collecting fees on both sales.
The undercover sting also determined that the ticketing giant was manipulating inventory to increase the perception of demand and then driving up the price of the remaining seats as actual inventory declined.
Ticketmaster denied the allegations that have since spawned a lawsuit, saying they’re “a technology platform that does not own the tickets sold nor does it have any control over ticket pricing – either in the initial sale or the resale. We also do not determine when tickets are available for purchase or how they are allocated.”
While certainly not an admission of guilt, the company has since decided to shutter 2 of its resale sites and introduce a new fan-to-fan exchange that caps the resale price to the face value of the ticket.
Following last week’s roll-out of the new ticket exchange, Managing Director of Ticketmaster UK Andrew Parsons said, “we know that fans are tired of seeing tickets being snapped up just to find them being resold for a profit on secondary websites, so we have taken action.”