Ticketmaster and Live Nation, prominent event ticketing companies, accused of engaging in illicit ticket resale practices and deceptive pricing by the Federal Trade Commission, leading to a lawsuit.
The Federal Trade Commission (FTC) has filed a lawsuit against Ticketmaster and its parent company, Live Nation, over allegations of illegal and deceptive business practices. The lawsuit, which was filed in California District Court, accuses the companies of a range of misconduct, including coordinating with ticket brokers to exceed posted limits on ticket purchases and profiting off resold tickets in the secondary market.
The FTC's allegations come after a probe into Ticketmaster and Live Nation's practices, which gained steam in recent months. The probe was opened during the tenure of former FTC Commissioner Lina Khan. The FTC claims that these practices resulted in consumers paying 'significantly more' than the face value of a ticket.
In addition to the FTC, seven other states - Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia - have joined the lawsuit. The FTC alleges that thousands of Ticketmaster accounts have been owned by a small number of brokers who routinely purchase tickets in excess of Ticketmaster's posted limits.
The FTC also contends that Ticketmaster and Live Nation have engaged in deceptive pricing by obfuscating fee amounts on its ticket-purchasing screen. This practice, the FTC claims, makes it difficult for consumers to understand the true cost of a ticket.
In a statement to Bloomberg, a Live Nation spokesperson denied the allegations. As of the time of this article, Live Nation had not responded to a request for comment.
The lawsuit is a significant development in the ongoing efforts to address unfair ticketing practices. In March, President Trump issued an executive order designed to protect U.S. consumers from such practices. Commissioner Andrew Ferguson of the FTC stated that the lawsuit is a monumental step towards ensuring fair-priced tickets for fans.
The FTC's lawsuit is not the first time Ticketmaster has been under scrutiny. In 2022, Ticketmaster's sales for Taylor Swift's 'Eras' Tour crashed the site, raising questions about automated purchasing software and coordinated-buying practices.
The Justice Department under President Joe Biden sued Ticketmaster and Live Nation in 2024 for alleged monopolistic practices in violation of an earlier agreement. The lawsuit, which is still ongoing, alleges that the companies have stifled competition in the ticketing industry.
Despite the ongoing investigations and lawsuits, the group running the enterprise has denied any wrongdoing. It remains to be seen how these legal proceedings will unfold and what impact they will have on the ticketing industry.
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