The Federal Trade Commission (FTC) has initiated a significant legal action against Ticketmaster and its parent company, Live Nation, accusing the companies of misleading consumers regarding ticket prices and collaborating with scalpers to inflate resale prices. This lawsuit, filed in the U.S. District Court for the Central District of California, identifies Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia as plaintiffs in the FTC’s complaint.
FTC Chairman Andrew N. Ferguson stated, “American live entertainment is the best in the world and should be accessible to all of us. It should not cost an arm and a leg to take the family to a baseball game or attend your favorite musician’s show.” The lawsuit outlines three primary illegal practices allegedly engaged in by Ticketmaster.
One of the key accusations is that Ticketmaster employs a “bait and switch” tactic by advertising deceptively low ticket prices that later increase by 30% or more due to added fees during the checkout process. The FTC claims that the company has amassed substantial profits by misrepresenting the total cost of tickets, leading consumers to pay billions of dollars annually in mandatory fees not disclosed at the outset.
Moreover, the lawsuit alleges that despite artists setting limits on ticket purchases to foster accessibility, Ticketmaster permits scalpers to exceed these limits. The complaint notes that scalpers, often operating as “brokers,” can acquire thousands of tickets to a single event and then resell them on Ticketmaster’s platform at much higher prices. According to the FTC, Ticketmaster knowingly facilitates this practice by allowing brokers to use multiple accounts to evade security measures, thereby violating the Better Online Ticket Sales Act.
The FTC asserts that Ticketmaster benefits from this arrangement by essentially “triple dipping” on fees: first when scalpers purchase tickets in the primary market, again when scalpers list them for resale, and finally when consumers buy these tickets at inflated prices. The commission estimates Ticketmaster has collected approximately $3.7 billion in fees from resale tickets between 2019 and 2024.
As of now, neither Live Nation nor Ticketmaster has responded to requests for comment regarding the FTC’s complaint. This lawsuit follows a separate antitrust action initiated by the Department of Justice, along with 30 states, in 2024 aimed at dismantling the perceived monopoly held by Ticketmaster and Live Nation over the ticketing, promotion, and venue management sectors, which critics argue has led to inflated prices for consumers.
In a statement earlier this year, Live Nation contended that the DOJ’s lawsuit would not resolve fans’ concerns about service fees or access to popular shows, insisting that the real issue lies in the secondary market where resellers drive up prices and exploit the industry, negatively impacting both artists and fans.
The scrutiny surrounding Ticketmaster extends beyond U.S. borders; last August, the United Kingdom’s Competition and Markets Authority commenced an investigation into the company’s dynamic pricing practices, specifically in relation to ticket sales for a potential Oasis reunion. Additionally, in 2022, a lawsuit was filed by fans of Taylor Swift against Ticketmaster and Live Nation, accusing the firms of price gouging for tickets to her Eras Tour.
