Introduction to the Lawsuit
The Federal Trade Commission is suing Ticketmaster and its parent company, Live Nation, over allegations of illegal and deceptive business practices that it says has resulted in consumers paying "significantly more" than the face value of a ticket.
Allegations of Illicit Behavior
In a lawsuit filed in California District Court on Thursday, the FTC accuses the companies of multiple forms of illicit behavior. Seven other states — Colorado, Florida, Illinois, Nebraska, Tennessee, Utah and Virginia — joined the FTC’s suit. The companies "tacitly" coordinated with ticket brokers — middlemen who buy tickets when they first go on sale — by profiting off of the resold tickets in the secondary market, often at a substantial markup, the FTC wrote in its Thursday news release, which outlined details of the complaint.
Deceptive Practices
The federal agency claims that Live Nation and Ticketmaster deceived both artists and consumers by allowing ticket brokers to “routinely and substantially” exceed posted limits on the number of tickets that consumers can purchase for an event, as well as limits demanded by artists. It said "thousands of Ticketmaster accounts" have been owned by "a small handful of brokers who Defendants know or have reason to know routinely purchase tickets from Ticketmaster’s primary market in excess of Ticketmaster’s posted ticket limits."
Deceptive Pricing
And the FTC alleges that for years, both companies have engaged in deceptive pricing by obfuscating fee amounts on its ticket-purchasing screen. "American live entertainment is the best in the world and should be accessible to all of us," FTC Commissioner Andrew Ferguson said in a statement. "It should not cost an arm and a leg to take the family to a baseball game or attend your favorite musician’s show. The Trump-Vance FTC is working hard to ensure that fans have a shot at buying fair-priced tickets, and today’s lawsuit is a monumental step in that direction.”
Response from Live Nation
A Live Nation spokesperson did not immediately respond to a request for comment. Scrutiny of Ticketmaster and Live Nation reignited in 2022 after sales to Taylor Swift’s “Eras” Tour crashed its site, raising questions about the influence of automated purchasing software and coordinated-buying practices on its platform. The Justice Department under President Joe Biden sued the companies in 2024 for engaging in alleged monopolistic practices in violation of an earlier agreement.
Recent Developments
In March, Trump issued an executive order designed to protect U.S. consumers from unfair ticketing practices. Earlier this week, Bloomberg News reported the FTC had opened a probe into Ticketmaster and Live Nation’s compliance with laws designed to prevent bot sales. The probe had kicked off under former FTC Commissioner Lina Kahn’s tenure and had gained steam in recent months, Bloomberg reported. In a statement to Bloomberg at the time, a Live Nation spokesperson denied the allegations.
Antitrust Lawsuit
Last month, the FTC sued individuals running an enterprise it said was able to flood Ticketmaster with purchase requests and subsequently resold the tickets on the secondary market for millions. The group has denied any wrongdoing. U.S. Attorney General Merrick Garland announced Thursday that the Department of Justice had filed an antitrust lawsuit against Ticketmaster and its parent company Live Nation Entertainment for running an illegal monopoly over live events and driving up prices for fans.
Conclusion
The lawsuit against Ticketmaster and Live Nation is a significant step towards protecting consumers from unfair ticketing practices. The allegations of illicit behavior, deceptive practices, and deceptive pricing are serious and have resulted in consumers paying significantly more than the face value of a ticket. The outcome of the lawsuit will be closely watched, and it is expected to have a major impact on the live entertainment industry.
FAQs
Q: What is the lawsuit against Ticketmaster and Live Nation about?
A: The lawsuit is about allegations of illegal and deceptive business practices, including illicit behavior, deceptive practices, and deceptive pricing, which have resulted in consumers paying significantly more than the face value of a ticket.
Q: Who filed the lawsuit?
A: The Federal Trade Commission (FTC) filed the lawsuit, along with seven other states.
Q: What are the allegations against Ticketmaster and Live Nation?
A: The allegations include allowing ticket brokers to exceed posted limits on ticket purchases, engaging in deceptive pricing by obfuscating fee amounts, and running an illegal monopoly over live events.
Q: What is the expected outcome of the lawsuit?
A: The outcome of the lawsuit is expected to have a major impact on the live entertainment industry and will be closely watched.
Q: How will the lawsuit affect consumers?
A: The lawsuit is expected to protect consumers from unfair ticketing practices and ensure that they have access to fair-priced tickets.
