FTC Files Lawsuit Against Ticketmaster
The Federal Trade Commission (FTC) has initiated legal action against Ticketmaster and its parent company, Live Nation. The allegations include misleading both artists and consumers regarding ticket prices and restrictions.
Adding to this, seven states have joined the FTC in its lawsuit, accusing Ticketmaster and Live Nation of colluding with ticket brokers. This supposed arrangement allowed brokers to hoard tickets and profit significantly in the open market.
The complaint asserts that Ticketmaster and Live Nation sold these acquired tickets at inflated prices, causing secondary market buyers to face steep markups compared to the original ticket prices.
The lawsuit claims that Ticketmaster misled consumers and artists by advertising lower ticket prices that were, in fact, not reflective of the actual purchase costs. They’ve also imposed rigid limits on the number of tickets a single consumer can buy, while misleadingly suggesting that brokers had access to millions of tickets for resale beyond what was available directly from the artists.
FTC Chairman Andrew Ferguson highlighted that the intent behind a recent executive order from former President Donald Trump was to ensure that Americans aren’t taken advantage of when buying tickets for live events. Ferguson stated, “American live entertainment is the best in the world and should be accessible to all. Families shouldn’t have to spend a fortune just to enjoy a game or concert.”
The lawsuit cites violations of the FTC Act, particularly regarding deceptive practices and the misuse of bots in ticket sales. The FTC is pursuing civil penalties as well as other financial repercussions for Ticketmaster.
Notably, Trump had signed an executive order in March aimed at curtailing deceptive price manipulations by ticket resellers. This directive instructed the FTC to enforce laws against bots and promote clearer ticket pricing while combating anti-competitive behaviors.
Previously, during the Biden administration, both the FTC and the Department of Justice had also sued Ticketmaster for alleged violations of anti-monopoly laws, claiming that Live Nation had monopolized ticket sales to live events, which could potentially lead to the divestiture of Ticketmaster.
The controversies surrounding Ticketmaster have been significant, especially highlighted by issues that arose during the pre-sale of tickets for Taylor Swift’s ERAS tour in November 2022. The website faced significant crashes, leading to scalpers acquiring numerous tickets that were then resold at much higher prices.
Fox Business has attempted to reach out to Live Nation and Ticketmaster for their comments regarding these ongoing issues.
