Ticketmaster and Live Nation targeted in price deception lawsuit by the Federal Trade Commission for questionable resale practices
In a move aimed at ensuring fairness and transparency in the ticketing industry, the Federal Trade Commission (FTC) and seven states have filed a lawsuit against Ticketmaster and Live Nation Entertainment. The lawsuit alleges that the companies have deceived artists and consumers through bait-and-switch pricing and enabled ticket brokers to buy large quantities of tickets and resell them at inflated prices.
According to the FTC, Ticketmaster, the leading provider of tickets for concerts, controls about 80% or more of major concert venues' primary ticketing. From 2019 to 2024, consumers spent over $82.6 billion purchasing tickets from Ticketmaster, with the company collecting $16 billion in fees during the same period.
The lawsuit claims that Ticketmaster has manipulated the ticket market by imposing limits on ticket purchases for fans, while ticket brokers regularly exceed these limits. The FTC also accuses Ticketmaster of hiding its fees, with consumers only discovering the extra costs at the end of the purchase.
Moreover, the FTC alleges that Ticketmaster and Live Nation have deceived consumers through bait-and-switch pricing, where advertised prices are higher than the actual cost. The companies are also accused of misleading pricing tactics, such as advertising lower ticket prices than were actually available and selling millions of tickets to brokers with significant markups despite artist restrictions.
President Donald Trump signed an executive order earlier this year, directing U.S. officials to ensure ticket resellers are complying with Internal Revenue Service rules. U.S. officials claim that Ticketmaster and Live Nation have not effectively addressed ticket resellers, leading consumers to pay more than the face value of tickets for popular events.
Joining the lawsuit were the attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia. The lawsuit was filed in the U.S. District Court for the Central District of California.
This is not the first time Ticketmaster has been in lawmakers' sights. The company has been under scrutiny since 2022, particularly regarding ticket sales for Taylor Swift's Eras Tour. The lawsuit against Ticketmaster is a response to concerns about ticket prices being inflated due to the practices of ticket resellers.
FTC Chairman Andrew Ferguson stated, "American live entertainment is the best in the world and should be accessible to all of us." He emphasized that the lawsuit is part of a broader effort to ensure fairness and transparency in the ticketing industry.
The lawsuit against Ticketmaster and Live Nation Entertainment comes as both companies have a growing share of ticket resales in the secondary market. The FTC points out that these practices have caused consumers to lose billions due to inflated ticket prices. The outcome of the lawsuit could have significant implications for the ticketing industry and the prices consumers pay for tickets to popular events.
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