Virginia’s Attorney General Jason Miyares has announced a significant legal action against Live Nation Entertainment Inc. and its subsidiary Ticketmaster LLC, accusing them of violating consumer protection laws and engaging in price gouging within the state. This lawsuit is part of a broader initiative alongside the Federal Trade Commission (FTC) and a bipartisan coalition from seven states, emphasizing the need for fair pricing in the entertainment ticket market.
Miyares stated, “Virginians deserve access to tickets at reasonable prices. All too often, however, those tickets are snatched up by bots and brokers for resale, forcing Virginians to pay substantially higher prices for the entertainment they love.” He expressed disappointment that Ticketmaster, a key player in the ticket sales industry, has failed to effectively combat these malpractices and end the cycle of inflated ticket prices.
The lawsuit references the Better Online Ticket Sales Act (BOTS Act), which prohibits companies from circumventing online ticket sellers’ security measures and makes it illegal for sellers to market tickets if they knowingly allow or participate in the manipulation of sales processes. The Attorney General’s office claims that Ticketmaster turned a blind eye to brokers who exploit these vulnerabilities, allowing them to create numerous fake accounts to exceed ticket purchase limits, thereby reaping significant profits in the secondary market.
The allegations specify that brokers were able to acquire tickets through fraudulent means, often using thousands of fictitious accounts. This practice not only inflates ticket prices for consumers but also enriches Ticketmaster through its TradeDesk platform, which allows brokers to aggregate tickets purchased from various accounts.
As part of the legal action, Miyares is seeking a permanent injunction against the practices of ticket reselling that America’s consumers have found burdensome, along with restitution for those who have been subjected to price gouging. This isn’t Miyares’ first undertaking against Ticketmaster; he has previously pursued litigation against the company on anti-trust grounds to protect customer interests.
The coalition of states involved in the lawsuit includes Colorado, Florida, Illinois, Nebraska, Tennessee, and Utah, reflecting a growing concern among lawmakers about the integrity of online ticket sales and the protection of consumers from unfair pricing practices. The outcome of this lawsuit could have far-reaching implications for the ticketing industry, especially in terms of regulating the sale of entertainment tickets and ensuring fair access for consumers.
