Live Nation and its subsidiary Ticketmaster are facing a new federal lawsuit filed by the Federal Trade Commission and a coalition of seven states over alleged illegal ticket resale and deceptive pricing practices. This new legal action is separate from the antitrust lawsuit filed against the companies by the Department of Justice, but it adds to the growing legal pressure on the entertainment giants. The complaint alleges that the companies have been knowingly allowing professional ticket brokers to circumvent ticket purchasing limits, leading to inflated prices for consumers and massive profits for the companies.
The lawsuit claims that Ticketmaster publicly states its opposition to brokers who routinely exceed ticket limits, but privately it acknowledges that its business model benefits from these practices. According to the complaint, the companies "turn a blind eye as a matter of policy" to the violations. An internal review cited in the lawsuit revealed that just a handful of brokers were able to control thousands of accounts and acquire hundreds of thousands of tickets to various events. The FTC claims that Ticketmaster also offers technological support to brokers through a software platform that makes it easier for them to manage and resell tickets acquired through illicit means.
In addition to the resale allegations, the lawsuit also accuses Ticketmaster of using a bait and switch approach with its pricing. The FTC alleges that the company advertises deceptively low ticket prices to consumers, only to add substantial and mandatory fees later in the checkout process. These fees, which can be as high as 44 percent of the ticket's list price, are often not clearly disclosed upfront. The lawsuit is seeking civil penalties and other monetary relief for consumers who have paid billions in fees from 2019 to 2024.
This new lawsuit comes after years of public outcry from fans and artists over high ticket prices and website failures. The botching of the Taylor Swift Eras Tour ticket sale brought the issue to national attention and spurred a wave of lawsuits and government investigations. The ongoing legal challenges against Live Nation and Ticketmaster represent a significant push by the US government to address what it sees as a monopolistic grip on the live entertainment industry, with the goal of fostering competition and protecting consumers from what they call unfair business practices.
