FTC Takes Legal Action Against Ticketmaster
The Federal Trade Commission (FTC) has launched a significant lawsuit against Ticketmaster, claiming that the online ticketing giant is profiting off excessive fees while ignoring illegal ticket reselling by bots.
On Thursday, the FTC filed the lawsuit in a California federal court, alleging that Ticketmaster, a subsidiary of LiveNation, is in serious violation of the BOTS Act.
Central to the FTC’s complaint are three main issues related to Ticketmaster’s pricing. First, the company allegedly misleads customers by presenting low ticket prices initially, only to inflate them by as much as 30% or more at checkout. Secondly, although Ticketmaster asserts that certain restrictions are in place to maintain fair access to tickets, reports suggest that third-party brokers bypass these prohibitions, forcing consumers to pay inflated prices on the secondary market to attend desired events.
Lastly, the FTC argues that Ticketmaster benefits from allowing bot activities, as these bots generate additional fees when tickets are resold on the platform. The company reportedly has not taken adequate measures to fight against these bots.
The lawsuit seeks billions in penalties under the relevant bot-related laws, with fines of $53,000 per violation. Given the scale of the alleged infractions, the total penalties could potentially reach hundreds of millions, given that millions of tickets may be impacted. Moreover, if found liable, Ticketmaster may have to issue refunds to affected customers in the future.
This legal move follows an unsuccessful settlement discussion between the FTC and Ticketmaster officials last week. The lawsuit was triggered by an executive order from President Trump in March, which called for stricter enforcement of bot regulations. This order was notably signed during an event at the Oval Office, which included attendees like Kidlock, someone known for advocating against excessive ticket reselling.
According to the FTC, from 2019 to 2024, consumers spent over $82.6 billion on tickets sold by Ticketmaster. The company’s tactics have drawn bipartisan criticism from lawmakers who are urging action against its dominant and sometimes predatory market practices. It’s reported that Ticketmaster holds around 70-80% of the significant ticket sales market, making it a prime candidate for scrutiny.
