FTC and Seven States File Lawsuit Against Ticketmaster’s Parent Company, Live Nation
The Federal Trade Commission (FTC), alongside seven state authorities, has initiated legal proceedings against Live Nation, the parent company of Ticketmaster. This lawsuit aims to address allegations that the company knowingly permitted ticket brokers to purchase tickets in bulk, which were then resold at exorbitant prices on Ticketmaster’s own secondary marketplace.
Allegations of Corporate Misconduct
The FTC asserts that Ticketmaster was fully aware of brokers who evaded its security protocols to secure tickets in large quantities. By allowing this practice, the company benefits financially in multiple ways: it collects fees during the initial ticket sale and then charges both the buyer and the seller additional fees when the tickets are resold. The FTC reports that Ticketmaster accumulated approximately $16.4 billion in fees from 2019 to 2024.
Profile of Corporate Practices
According to the FTC, the evidence points to a corporate culture steeped in greed. An internal review by Live Nation reportedly highlighted that five resellers managed to obtain an astounding 246,407 tickets across 2,594 events. Internal communications disclosed that Ticketmaster acknowledged its choice to "turn a blind eye" to these practices as a matter of policy.
Moreover, it is alleged that Ticketmaster provides technological assistance to brokers through its TradeDesk application, which is intended to streamline and manage ticket purchases across various Ticketmaster accounts.
Security Measures and Deceptive Pricing
The lawsuit claims that Ticketmaster neglected to implement third-party verification systems that could have curtailed the bulk ticket buying. The company allegedly reasoned that such measures would be "too effective" in preventing abuse. Additionally, the FTC has accused Ticketmaster of engaging in misleading pricing tactics, asserting that the company found customers were less likely to purchase tickets when presented with the full price upfront.
Legal Violations Cited
The FTC claims that Live Nation violated two significant laws: the prohibition against deceptive practices under the FTC Act and the BOTS Act, which was signed into law by President Obama in 2016. The BOTS Act specifically targets the use of bots and software that allow users to acquire tickets beyond the legal limit. Earlier in the year, an executive order issued by President Trump aimed to enhance the enforcement of this legislation.
Multistate Support for the Lawsuit
The complaint was lodged in the U.S. District Court for the Central District of California, with Virginia, Utah, Florida, Tennessee, Nebraska, Illinois, and Colorado collaborating with the FTC in this action.
This ongoing legal battle underscores significant concerns regarding ticketing practices and corporate accountability in the live entertainment industry. The outcome may have broad implications for both consumers and the ticketing market moving forward.
