In a significant legal development, the Federal Trade Commission (FTC) and a bipartisan coalition of state attorneys general have filed a lawsuit against Ticketmaster and its parent company, Live Nation, citing a range of illegal practices that allegedly inflate ticket prices for consumers attending live events. The lawsuit, lodged in the U.S. District Court for the Central District of California, accuses the companies of misleading both artists and consumers regarding ticket availability and pricing.
According to the FTC, Ticketmaster has been advertising lower ticket prices while failing to transparently disclose the additional fees consumers must pay. The agency contends that consumers are often subjected to deceptive purchasing conditions, including claims of strict limits on ticket purchases that ticket brokers are able to circumvent. The FTC alleges that these brokers utilize fake accounts to acquire tickets in bulk, which are subsequently resold at inflated prices on Ticketmaster’s platform, allowing the company to profit from additional fees associated with these transactions.
The market analysis provided by the FTC indicates that Ticketmaster commands over 80% of the primary ticketing market for major concert venues across the United States. Notably, consumers are estimated to have spent more than $82.6 billion on tickets from Ticketmaster between 2019 and 2024. FTC Chairman Andrew Ferguson emphasized the importance of ensuring that live entertainment remains accessible, stating that it “should not cost an arm and a leg to take the family to a baseball game or attend your favorite musician’s show.”
Joining the FTC in the lawsuit are attorneys general from several states, including Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia. The legal action comes on the heels of intense scrutiny of Ticketmaster, particularly following its highly criticized ticket sales for Taylor Swift’s Eras Tour in late 2022. During that event, the company’s platform was overwhelmed, leading to a significant backlash from fans and legislators alike. A Senate hearing in 2023 further highlighted these concerns, questioning Live Nation’s business practices.
Despite pressure for reform in the ticketing industry, progress has been slow. In response to ongoing complaints and consumer frustration, the Biden administration has implemented new regulations aimed at curbing “junk fees,” mandating that Ticketmaster display the full price of a ticket from the outset of the purchasing process. This rule, which took effect in May, is intended to create greater transparency for consumers.
Former President Donald Trump also took measures regarding the ticketing industry during his administration. In March, he signed an executive order aimed at ensuring compliance among ticket resellers with rules set by the Internal Revenue Service, while also directing the FTC to address unfair and deceptive practices in the secondary ticketing market.
The lawsuit against Ticketmaster is part of a broader movement to ensure fairer practices in the ticketing industry, as consumers continue to voice their frustrations over rising prices and transparency issues. The outcome of this legal battle could have far-reaching implications for both the ticketing market and live entertainment access in the future.
