FTC Files Lawsuit Against Ticketmaster
The Federal Trade Commission (FTC) has initiated a significant lawsuit against Ticketmaster, alleging that the online ticket broker has profited from excessive fees and has turned a blind eye to bots, which are reportedly reselling millions of tickets illegally.
The FTC is pursuing potentially massive penalties under the bot law, which might amount to $53,000 for each violation. Allegations suggest that Ticketmaster has enabled these bots to sell tickets beyond the limits that were publicly established when bots were initially introduced.
This situation could lead to fines so high they might severely impact Ticketmaster. There’s also the possibility that if the lawsuit reduces future refunds or harms consumers, those consumers might miss out on compensation.
A source close to the issue has indicated that the overall fine could reach hundreds of millions of dollars.
The lawsuit was filed in a California federal court and accuses Ticketmaster, a subsidiary of LiveNation, of violating the Better Online Ticket Sales Act (BOTS Act). This 2016 law prohibits using bots for ticket purchases and restricts buying large quantities of tickets.
Complaints have been made against Ticketmaster for providing misleading pricing when users search for events on their website.
Moreover, the FTC claims that Ticketmaster has permitted bots to exceed ticket purchase limits, pushing customers toward secondary markets where prices are often inflated.
“Going to a baseball game or seeing your favorite artist should be accessible,” FTC President Andrew Ferguson remarked in a statement. “Our agency is committed to ensuring fans can buy tickets at fair prices, and this lawsuit is a pivotal step in that direction.”
Recently, no progress was made following a meeting between Ferguson’s office and Ticketmaster officials regarding a potential settlement.
The lawsuit arises directly from a Trump executive order in March, which instructed agencies to enforce bot laws more strictly. Trump signed this order during an event at the Oval Office with musician Kid Rock, aiming to tackle ticket sellers who inflate prices by outrageous percentages.
From 2019 to 2024, consumers are reported to have spent over $82.6 billion on tickets sold through Ticketmaster, according to the FTC.
The FTC asserts that Ticketmaster has a financial incentive to allow bots since it benefits from the fees and markups on resold tickets. Additionally, the company is accused of not implementing more effective technology to combat these bots.
“This situation arose from President Trump’s leadership,” said FTC spokesman Joe Simonson. “While other politicians may speak about assisting average Americans, this administration is taking action. Americans deserve fair ticket prices.”
Live Nation has expressed support for the administration’s efforts to curb high prices, emphasizing the need for reforms such as enforcing bot laws and implementing resale price caps.
In recent years, lawmakers from both parties have called for measures against Ticketmaster, spurred by concerns over rising ticket prices and alleged predatory practices. Experts suggest that Ticketmaster’s dominance—controlling as much as 70% to 80% of major ticket sales—is a primary factor in these discussions.
Criticism of Ticketmaster intensified after the blunders during the sale of tickets for Taylor Swift’s “ERAS Tour,” leading to numerous lawsuits from frustrated fans.
Last year, the Justice Department filed an antitrust lawsuit against Live Nation, accusing the company of illegal monopolistic practices and attempting to divide Ticketmaster’s control.
In August, the FTC also sued Key Investment Group, a ticket reseller that allegedly used bots to snatch up tickets for popular events, including concerts by Swift, then resold them at inflated prices. Key has denied any wrongdoing, asserting compliance with bot laws.
