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New York Criminalizes the Use Of Ticket-Buying Bots (engadget.com)

An anonymous reader writes: If you failed to get tickets for your favorite band, even though your finger was poised on the "buy" link the instant they went on sale, don't worry -- you never stood a chance. They were probably snapped up by bots that, in one case, bought 1,012 Madison Square Garden U2 tickets in less than a minute. The state of New York has declared that scalpers who use them could get fines and even jail time. "New Yorkers have been dealing with this frustrating ticket buying experience for too long," says state assembly member Marcos Crespie. Using such bots was illegal before, but only brought civil, not criminal sanctions. However, a three-year investigation by NY attorney general Eric. T. Schneiderman found that the practice was so widespread that the state had to take harsher measures. Ticketing outlets and credit card companies revealed that bots scoop up the best seats in seconds, which scalpers then resell at prices many times over face value. Scalpers who exploit such software could now face criminal, class A misdemeanor charges.

36 of 214 comments (clear)

  1. But will they pursue charges? by eepok · · Score: 2

    Investigations are expensive. Forensic IT is even more expensive than regular investigations. If anything, they should make the companies allowing bots share the liability that way those companies will just outright bring an end to facilitating the bot purchases.

    1. Re:But will they pursue charges? by Joe_Dragon · · Score: 2, Insightful

      And what if the sells / buys / servers / etc are not in ny? What about when ticketmaster is scalping its own tickets

    2. Re:But will they pursue charges? by Anonymous Coward · · Score: 2, Insightful

      And what if the sells / buys / servers / etc are not in ny? What about when ticketmaster is scalping its own tickets

      The one big thing here no one is mentioning so far: how do the scalpers have a market? If people are willing to pay "many times over face value" then the scalpers are just recognizing what the market will bear. These are tickets to shows, not necessities like food and water. If Ticketmaster or whoever really wants to solve this perceived problem, they can implement multiple captchas and call it a day. It's hard to justify having the government make this into a criminal matter when the entire event involves willing buyers and willing sellers all around.

    3. Re:But will they pursue charges? by Holi · · Score: 5, Interesting

      Says some one who has never bought tickets months in advance. Sometimes life happens.

      Granted this law will do nothing with the biggest offender. Credit card pre-sales. You know, those credit card rewards that guarantee you tickets before anyone else can get them. Or the fact bands themselves may scalp their own tickets.

      Your likely hood of getting tickets from the box office are basically nil for a popular show.
      Take the Jan 18 Bieber show. Out of 14000 seats, just over 1000 were available for general sale.
      6000 went to Amex presales
      3000 to Fan Club members
      2600 to promotions, guest lists and un-sell-able seats (due to visual obstruction)
      900 to other VIP programs
      and 500 were scalped by the biebs himself

      1001 were sold to the general public.

      So yeah, lets blame the scalpers.

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
    4. Re:But will they pursue charges? by Gojira+Shipi-Taro · · Score: 5, Insightful

      In that particular case, I would call that a public service.

      Otherwise, scalpers should be scalped.

      --
      "Oh my God. This is terrible. This is the end of my Presidency. I'm fucked."; ~ Donald J. Trump
    5. Re:But will they pursue charges? by bluefoxlucid · · Score: 2

      The one big thing here no one is mentioning so far: how do the scalpers have a market? If people are willing to pay "many times over face value" then the scalpers are just recognizing what the market will bear.

      That's called "economic rent". It has a few impacts.

      With the lessened consumer buying power, fewer jobs are available. Tickets become more expensive, and so your average consumer now has less money to spend. That money, when spent on goods, creates a need to produce those goods, which creates employment; when the cost-per-good increases, the proportion of all incomes spent on that good increases, and diverts away from other goods. Because income is both made and spent over time (e.g. per year), the enrichment of one person at the expense of ten others doesn't translate to that one person then creating ten more jobs.

      This effect is likely less-pronounced in specific markets because there's more of a spreading effect, e.g. a minimum-wage increase raises the cost of a great many goods (by a *tiny* individual amount--think paying 8 cents more at McDonalds for your whole order, not the Conservative apocalypse of a $20 hamburger or the Liberal utopia of businesses just paying the wages out of profits), and the wage recipients must pay that additional cost on almost everything they buy, thus there is a direct loss of buying power; by contrast, *most* of the income gained by ticket scalping is likely spent on a broad set of goods, concert tickets being a minimum proportion of that, and thus in isolation the scalpers are basically making *someone* poorer but not degrading the general buying power of the economy to as great a degree. It would be different if 40% of the income in the cycle of spending of those moved dollars went to buying scalped concert tickets.

      (The same basic argument applies to taxes: the people involved in making goods must get paid, and part of that pay goes to taxes; thus the consumer's take-home buying power is less than the total cost of his employment, and his ability to pay the proportional wages of anything he buys is diminished by as much. There is valid reasoning behind both taxes and minimum wages, although I continue to argue that minimum wages are outdated. This discussion of economic rent is a large stretch beyond my normal territory, and the same rules don't apply nearly as firmly.)

      In a more direct sense, those concerned with the concert may consider scalping as a form of theft. Concert-goers have less money, and so can't spend it on t-shirts, mugs, signed CDs, and other paraphernalia they'd normally buy. The concert's total revenue is reduced, and the scalper receives the proceeds.

    6. Re:But will they pursue charges? by KindMind · · Score: 3, Interesting

      Yes - the companies selling the tickets need to have a financial stake in stopping the bots. Without a financial motive, the ticket sellers will continue to have crappy code. Currently, the incentives are all wrong. The ticket sellers sell tickets quickly and get all their fees under the current system. The bulk scalpers are good business for them, and they have no reason to stop them.

      If anything, the ticket sellers should be required to have a system that prevents bulk scalping, with penalties for failing to do this.

      --
      Politicians complicate life - logic is sacrificed on the altar of political expediency.
    7. Re: But will they pursue charges? by Ol+Olsoc · · Score: 2

      They aren't priced at "what the market will bear" but are priced at "what the market will pay" -- there is a difference. Market-clearing price and all that...

      Looking at a homogenous sort of "What the market will pay" is a real loser. Because not everyone is going to have the same level of where they cut off. That inevitably leads to less attendance. Now if I have to pay 90 dollars a ticket, I'll think long and hard about what I will go to.

      An example - I used to travel to my favorite Hockey team's games many times a year. As the prices increased, I started to go to less and less. At first I spent around the same price on tickets in total. So a while back I might have gone to 10 games, then it went to 5, then to 2, and then I just got out of the habit.

      And as I started going to fewer games, I bought less and less food and promotional items. Now its zero.

      Less money for them, more for me.

      Another example that doesn't employ middlemen taking tickets is when the local university tried a tactic that they used for football and applied it to the BBall team. For the football team, a huge portion of the tickets are bought by corporations that then hand them out to visitors as a promo when they visit the corporations.

      So they tried it with the Basketball team. Didn't work at all because even when the corporations gave tickets away, so many games were in the middle of the week that the recipients didn't bother to drive to them. The results? 3/4 empty arena - because no one could buy the tickets the corporate customers bought, and 3/4 empty arenas don't translate into concession sales. Concession sales, by the way, make a metric shitload of money. Money thatwhen you don't make it, you lose money overall. Amazingly enough, the wome's team had more attendance than the mens, and made more money. Point is, attendance is important, and if some one or group makes ticket prices at the maximum th market will pay, the market won't pay any more, and other profit making items will not be sold.

      And since locals couldn't get tickets, they lost interest, and then the students lost interest, and they stayed away.

      Looking at this as a pure free market exercise fails, as that particular solution does not take all of the extractable money into account. It doesn't look a penny past the ticket sales and what a middleman can make from them.

      --
      The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
    8. Re:But will they pursue charges? by NotAPK · · Score: 3

      "Scalping is illegal. End-of."

      So? I think this is precisely the sort of thing that should never be "illegal" and is absolutely not a criminal matter.

      If the ticket seller has a "terms of service" that re-selling tickets is against their policy, then they can take appropriate civil action against those that break their policy.

      I thought the first sale doctrine was pretty strong in the US and most items could be resold without regard.

      What is different about ticket sales? Can someone explain it to me?

  2. easily exploitable software? by The-Ixian · · Score: 4, Insightful

    I am just trying to understand a little bit about this automated software.

    I mean, we have been dealing with automated bots in the online world for a long time.

    The general solution is stuff like CAPTCHAs.

    Do these types of systems not exist in the ticket buying world?

    It sounds like this is just legislation around lazy business practices.

    By all means, feel free to point out my logical fallacy.

    --
    My eyes reflect the stars and a smile lights up my face.
    1. Re:easily exploitable software? by wbr1 · · Score: 3, Interesting
      I go to quite a few concerts and have had to buy bot bought tickets to get to some shows.

      The big two, Live Nation and TicketMaster do have captchas, and they give them several times throughout the buying process. However, it is very easy to fake many of these systems. In addition, at least live nation now offers resale tickets on their own website. That means they are double dipping, the original sale+fees, plus commission+fees on resale tix. The have no incentive to stop this process.

      IMHO, that is where the problem lies, not the scalpers. The system as it is is broken, but it is allowed to be broken by the companies that sell tickets as the market operates in their favor.

      The only real fix I see to this is to associate a CC or ID with the ticket purchase and require it to be presented with the ticket for admission. This creates a whole host of other issues, such as inability to resale or gift easily, plus longer, slower lines at venues.

      --
      Silence is a state of mime.
    2. Re:easily exploitable software? by sjames · · Score: 3, Insightful

      Don't even present the captcha until the tickets go on sale. Don't sell a thousand tickets in a single transaction. Each transaction gets a new captcha.

    3. Re:easily exploitable software? by in10se · · Score: 4, Insightful

      The reason the bots work on these ticket sites is because they are faster than humans. If they had to wait for humans to enter CAPTCHAs, they would lose all their advantage.

      --
      Popisms.com - Connecting pop culture
    4. Re:easily exploitable software? by DarkOx · · Score: 2

      The only real fix I see to this is to associate a CC or ID with the ticket purchase

      Actually that would be pretty good solution. The airlines will have you swipe a CC and enter your destination airport to look up your e-ticket / reservation. Does not have to be the CC used to buy the ticket they are only using it to get your name. Reading mag strips is fast.

      For gifting simply supply the name of the recipient when you buy the tickets.

      When someone buys a ticket associate a pin with the name send them the pin on the receipt.

      So at the show, its swipe + pin. Now TM does not even have to print and mail physical tickets. Its all just data and tokens people already have. TM has just increased their margin.

      You can handle resales, online too, the original purchaser logs on and marks the ticket as resold to to person X and is given a new pin which they provide to person X, person X than logs on and buys the ticket with a credit or debit card in their name and enters the pin, TM issues a new final PIN. TM collects the funds, takes a percentage (of course) and finally credits the original purchasers card. This way they can close the scalping hole and double dip at the same time.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    5. Re:easily exploitable software? by wierd_w · · Score: 3, Interesting

      Limit the number of tickets you can buy per transaction.

      If you can purchase thousands of tickets on one captcha, it defeats the purpose of the captcha.

      Limit it to a max of 5 tickets per transaction, with each transaction requiring a new captcha, and a restriction on purchasing more than 20 tickets per credit card.

      That would make a big dent.

  3. Solution is SIMPLE. Sell ticket to a person. by Maxo-Texas · · Score: 4, Insightful

    Require tickets to be tied to a person (first name, last name) when sold. Require that person to have valid ID on arrival. And prosecute anyone caught using fake ID's.

    Airplane, boat, and train tickets require the ticket match the person. Any area subject to ticket scalping should require an ID too.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  4. Re:Gratuitous Admonishment by Z00L00K · · Score: 2

    Just make sure that re-sale is not valid, anyone showing up at concert with a ticket need to prove that they purchased it through a valid channel by also presenting the credit card used for the purchase.

    --
    If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
  5. Bad for individuals but by Archfeld · · Score: 3, Interesting

    This is bad for an individual to do but OK for the 2nd hand reselling companies that snap up 100's of prime seats and sell them online for ridiculous amounts. Reselling is OK if you don't do it on the street in front of the venue, where it is considered scalping in many places. I've been to shows where the first 3 or 4 rows were corporate owned seats that rarely fill up, and heard the performers complain about the empty seats and call for the fans to fill them up, stating it gives them energy to have true fans up close vs. wine sipping corporate douche bags sitting on their hands.

    https://seatgeek.com/tba/artic....

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
  6. Re:Gratuitous Admonishment by MightyMartian · · Score: 2

    When I went to AC/DC last September, I had to pick up the tickets at the venue, and show the credit card I'd used. When I went to Rush last September I had to bring along a print out of my receipt. The only concert last year that I could just bring my tickets to was King Crimson, but that was a small venue (3,000 seat) concert, with its own ticket sales so it wasn't through Ticketmaster.

    But really, even the scalpers are a small part of the problem. It's Ticketmaster, with its "affiliates" (read wholly-owned subsidiaries) which buy up large amounts of tickets. Essentially, face value of the ticket is meaningless, as scalpers who can't get rid of their tickets before the big show find out. At AC/DC I saw scalpers trying to hawk tickets that I know were about $90 for $50 or $60. In other words, they were taking a big hit.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  7. Why not a reverse auction instead? by swb · · Score: 5, Insightful

    Tickets get scalped because the price doesn't reflect demand. Instead of impossible to enforce regulations, why don't venues/artists instead change their pricing model?

    Something like a reverse auction -- start the ticket process extremely high, like $10,000 per ticket and keep cutting the ticket price by small amounts based on sales volume. If volume remains fairly constant, then the price stays constant. The ticket price will then reflect what people are truly willing to pay, and ticket brokers won't be able to arbitrage the low face price versus the actual demand price.

    Brokers can snap up all the $10,000 tickets they want on a day 1 of sales, but it will be both a huge capital outlay and they will not be able to sell many tickets for those prices plus their own profit premium.

    You will still run the risk that as volume flags and the price falls, the tickets will hit a threshold where brokers believe they can still bulk purchase tickets, but I'd guess that the risk of being stuck with tickets they can't sell at a high price would be a negative incentive.

    The bad thing would be -- well, tickets will be more expensive if you want to go, because you will be paying a higher price. But right now, the price is artificially low and acquiring tickets from the box office is more akin to a lottery than a marketplace.

    1. Re:Why not a reverse auction instead? by swb · · Score: 5, Informative

      Tickets get scalped because the price doesn't meet demand? What fantasyland do you live in?

      Tickets get scalped because someone got there first, bought all the tickets, and resells them.

      Tickets get scalped because demand exceeds supply and the demand price (what people are willing to pay to see the event) exceeds the face price.

      When was the last time you went to a concert for which there were expensive scalped tickets available but where the venue was half-empty? Probably never, because most scalped tickets get sold to people willing to pay the price to see the event. They may think they had to pay too much, but obviously they made a decision that they were willing to pay the price to see the event.

      The marketplace (the universe of ticket buyers and sellers) have decided that the price to see an in-demand concert is higher (in many cases, much higher) than the price printed on the ticket.

    2. Re:Why not a reverse auction instead? by Ichijo · · Score: 3, Insightful

      Scalpers will only do that if the price is below market equilibrium, because otherwise there's no profit to be made. So root cause of demand exceeding supply is the low, below-market-equilibrium price.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    3. Re:Why not a reverse auction instead? by GLMDesigns · · Score: 2

      Then how come you get tickets for less that than the printed price? (Sometimes).

      Especially if it's a cold rainy day AND the concert / game is about to start (or has started).

      I've bought many a Knick ticket at less than face value. I've bought some good concert tickets at below face value at numerous venues? Why? Because supply was greater than demand.

      There are many good solutions out there - from lottery, to auction to combinations of the two.

      --
      If you're scared of your govt then you need to further restrict its powers
      Vote 3rd Party in 2016 and beyond
  8. Legislation isn't the answer - economics is by Anonymous Coward · · Score: 5, Insightful

    Concert tickets are a luxury good, not a basic good to which citizens have some unalienable right.

    They should thus be treated like any other luxury good - i.e. let the vendor raise prices until demand reduces to match supply.

    If scalpers are able to resell tickets for "many times" their face value, then the original ticket vendor should have sold them at "many times" their face value. I'm sure the State would appreciate the extra tax revenue.

    But doesn't this mean only rich folk get to go to concerts? Yes, but only rich folk get to drive Ferraris or buy Rolex watches, and no-one complains.

    Or have a secret auction. Let everyone bid whatever amount they're prepared to pay, subject to a public minimum. The amount you bid is then deducted from your credit card, to discourage time-wasters When the auction closes, the winning x bids get allocated tickets, and the losing bids get refunded.

    But doesn't this mean I might end up paying more than the dude in the seat beside me? Yes, which is why you should only bid what you're prepared to pay, i.e. what you believe the concert to be worth.

    Scalpers won't be able to resell tickets in this system, since anyone prepared to pay an inflated price (higher than the scalper paid) would have had the opportunity to legitimately bid that higher amount during the auction, and in doing so would have been allocated a ticket ahead of the scalper.

    1. Re:Legislation isn't the answer - economics is by Holi · · Score: 4, Interesting

      The rich don't pay scalper prices. They get them from AMEX, who gets far more tickets then anyone else, far far more then the scalpers. No it's the poor and the middle class who get stuck paying scalper prices.

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  9. Re:Ticketmaster by danbert8 · · Score: 2

    They should be required to include all fees in the price of the ticket as well. It is outright fraud to advertise a ticket price that you cannot buy without fees tacked on. A mandatory fee is part of the cost of a ticket. A "convenience fee" is part of the cost of a ticket unless you can get it cheaper by being inconvenient.

    --
    Yes it's an anecdote! Were you expecting original research in a Slashdot comment?
  10. Re:Ticketmaster by ProzacPatient · · Score: 4, Informative

    They should be required to include all fees in the price of the ticket as well. It is outright fraud to advertise a ticket price that you cannot buy without fees tacked on. A mandatory fee is part of the cost of a ticket. A "convenience fee" is part of the cost of a ticket unless you can get it cheaper by being inconvenient.

    This right here. I recently went to a concert as a special treat and thought the ticket was advertised to be something like $45 for a seat it came out closer to $65 after Ticketmaster and the venue added all their outrageous fees, and if you're taking friends with you it adds up real fast.

  11. Re:Gratuitous Admonishment by I'm+New+Around+Here · · Score: 4, Funny

    At AC/DC I saw scalpers trying to hawk tickets that I know were about $90 for $50 or $60. In other words, they were taking a big hit.

    Well, sure, they lose $40 per ticket. But they make up for it in volume.

    --
    If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
  12. Re:Gratuitous Admonishment by Holi · · Score: 2

    Sounds like you used will call at the AC/DC and Rush concerts. If I have had tickets in hand I have never had to show an ID or a receipt. And no it's not Ticketmaster (they act as a box office agent, they don't actually buy the tickets and resell them), it starts with AMEX who gets up to 50% of the available tickets for their concierge program. Sometimes general ticket sales account for less then 10% of the overall ticket sales.

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  13. "High Frequency Trading" by Bugler412 · · Score: 5, Insightful

    So this bot driven scalping activity is illegal now in NY? How about they apply the same principal and block a similar practice by large Wall Street firms in our stock, commodities, futures, etc. markets? Bot driven trading has an identical effect in blocking out human participation, or making that participation less lucrative for human participants in the market. I guess if a large bank does it then it's ok then eh?

  14. Re:What's Next.... by Holi · · Score: 3, Interesting

    Considering HFT does nothing for the company who's stocks are being traded, I see no reason it shouldn't be.

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  15. About your sig... [OT] by mark-t · · Score: 4, Interesting

    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.

    Only if you presume that a teleporter reconstructs you out of subatomic material available at the destination. If instead, the your quantum wave function were to be directly manipulated so that the probability of the collection of particles that represents you is reduced at one location while being increased at another location (subject only to uncertainty principles that are unavoidable at quantum levels), then you are not killed at your old location at all, as the probability of you being at the original location drops to zero (while the probability of you being somewhere else is 1 minus that probability), you would quite literally cease to be there in any way, and would simultaneously materialize at your destination. The "you" at the destination is not a copy of you, any more than a particle that has experienced quantum tunnelling is a copy of what it was before it tunnelled. Of course, the practical limitation on distance that this is liable to ever be achieved over is small enough that it would probably always be more efficient to simply walk.

  16. Limit re-sales by davidwr · · Score: 3, Interesting

    If you really want to slow down wholesale scalpers, tie at least 1 ticket in each purchase to a real person and don't allow any one person to buy more than 10 tickets per purchase without registering as a "group purchase."

    The other tickets can have names assigned to them or not at the time of purchase as the buyer sees fit. The original purchaser can assign names to the unnamed tickets any time up to the event or they can be left un-assigned as "bearer tickets."

    However:

    * "Unnamed/bearer" tickets are not valid until at least one "named" ticket has entered the event.
    * Once a name is assigned to a ticket, the name can be only be changed with a time-consuming phone call, paper-mail, or in-person visit that would include some form of identity verification. The venue can (and probably will) limit the number of such changes to a few dozen per year per person to curb abuse.

    In exchange for making it somewhat harder for "Average Joe" ticket-buyers to re-sell their tickets, venues and authorized ticketing agents like Ticketmaster would promise to buy back tickets for a full refund for the ticket price and the convenience charge up to, say, a week before the event and refund the full price of the ticket up to a day before the event, subject to limits to prevent abuse.

    Tickets sold to registered groups would come under different rules.

    This system is NOT designed to stop or even put much of a road-block in the way of small-time scalpers or people who resell their season tickets. It's designed to increase the cost of doing business for organizations who buy and resell hundreds or thousands of tickets per year and who are determined to "beat the system" by
    * Forcing them to have lots of different "buyers" with lots of different credit card numbers so their high activity won't be flagged
    * Forcing them to assign a name to at least one out of every 10 tickets
    * Forcing them to make sure at least 1 of every 10 tickets is represented by a warm body who shows up at the event before the other 9 people in that "ticket group" do

    This will make large-scale scalping non-cost-effective for events where the secondary-price of the ticket isn't a whole lot more than the face value of the ticket. Since the non-mass-ticket-buying public can get a full refund, they won't have an incentive to sell tickets to scalpers at anything less than face value.

    Wholesale ticket-buying by scalpers will still be an issue for high-demand events. For those events, either a ticket lottery with every ticket having a name on it and a full refund may be the only way to ensure the general public can get tickets at reasonable prices. Alternatively, a dutch auction wouldn't save ticket-buyers any money but at least the ticket revenue would go back to the venue and those running the event rather than to scalpers.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  17. Re:Gratuitous Admonishment by magarity · · Score: 3, Insightful

    There's no need to do anything to prevent almost all resales other than to simply auction the tickets in the first place. When the highest bidder has bought the ticket there isn't much room left for increasing the price for a scalper's profit.

  18. Re:Ticket lottery system is needed by spacepimp · · Score: 2

    If the band is willing to sell the ticket for $30 so their fans can enjoy their show, then certainly the fan deserves that ticket for $30. If a bully was willing to punch the music fan in the gut and steal his ticket, by your simplistic logic, the fan, doesn't deserve the ticket. So let's extrapolate.

    So the music fan gets gut punched and has his ticket stolen. He then gets up kills the gut puncher and can go to the show, and deserves to go because he wanted it more.

  19. Re: Gratuitous Admonishment by thundercattt · · Score: 2

    I had to do the same for AC/DC. It was for the first 15 rows. They said at the time of purchase, once you purchase you cannot change the info for pickup. I had to show ID+CC to pick it up. Allowed me to get row 9.