US regulators have initiated a lawsuit against Ticketmaster and its parent company, Live Nation, alleging that the companies have engaged in unlawful ticket resale practices that have financially burdened consumers by millions of dollars. The Federal Trade Commission (FTC), in conjunction with seven states, claims that the entertainment powerhouse collaborated with ticket brokers to acquire concert tickets and resell them at significantly inflated prices, profiting from substantial resale fees in the process. The FTC contends that these practices breach consumer protection laws.
Over the years, Ticketmaster, which holds a commanding presence in the concert ticketing industry, has faced increasing criticism regarding its pricing policies. This lawsuit represents yet another challenge for the company. As of now, neither Ticketmaster nor Live Nation has responded to inquiries about the FTC’s allegations.
According to the FTC, while artists can impose restrictions on ticket purchases to curb scalping, Ticketmaster and Live Nation ignored instances where brokers—both individual resellers and companies—overstepped those limits. The lawsuit indicates that the two companies allowed these “illegally obtained” tickets to be sold on the Ticketmaster platform, generating an estimated $3.7 billion in resale fees from 2019 to 2024. Ticketmaster operates a popular resale option on its website and imposes fees on sellers for reselling tickets.
Regulators assert that Ticketmaster benefitted financially from these allegedly illicit arrangements and maintained a “tacit agreement” with brokers. FTC chair Andrew Ferguson emphasized the importance of accessibility in live entertainment, suggesting that attending events should not come with exorbitant costs.
The FTC also alleges that Ticketmaster has been misleading consumers by advertising lower ticket prices than what they actually end up paying, a tactic that further complicates its business practices. Dominating approximately 80% of ticket sales for major concert venues, Ticketmaster has been under intense scrutiny since it poorly managed ticket sales for Taylor Swift’s highly anticipated Eras Tour in 2022, leading to widespread frustration among fans.
Live Nation Entertainment emerged in 2010 from the merger of Live Nation, an events promoter, and Ticketmaster, a ticket distribution and sales company. This merger has led to increased scrutiny, with the US Department of Justice filing a separate lawsuit against Live Nation last year. The DOJ has accused the company of using illegal tactics to establish and maintain a monopoly in the live music sector, which has reportedly stifled competition and resulted in inflated ticket prices and degraded service quality for consumers. Former Attorney General Merrick Garland previously called for a breakup of the conglomerate, and a judge has since rejected Live Nation’s attempts to dismiss the antitrust claims, which the company has labeled as “absurd.”
Together with its subsidiary Ticketmaster, Live Nation plays multiple roles within the industry, including promoting concerts, selling tickets, and owning venues, and it has been portrayed by the DOJ as a “gatekeeper” in the live entertainment landscape.
