Ticketmaster and Live Nation faced lawsuit by the Federal Trade Commission (FTC) over allegations of misleading pricing and resale practices.
In a significant move, the Federal Trade Commission (FTC) and seven states have filed a lawsuit against Ticketmaster and its parent company, Live Nation Entertainment. The lawsuit, which has been a topic of interest for lawmakers since 2022, alleges that the ticketing giant has been engaging in practices that disadvantage consumers.
The lawsuit, filed in the U.S. District Court for the Central District of California, centres around concerns about ticket sales, particularly for popular concerts and events. U.S. officials allege that Ticketmaster and Live Nation have failed to address ticket resellers causing consumers to pay more than the face value of tickets for these events.
Ticketmaster, the leading provider of tickets for concerts, controls about 80% or more of major concert venues' primary ticketing. From 2019 to 2024, consumers spent more than $82.6 billion purchasing tickets from Ticketmaster, as stated by officials. During the same period, Ticketmaster collected approximately $16 billion in fees.
The FTC revealed that Ticketmaster's fees are often hidden and not shown until the end of the purchase. The lawsuit alleges that Ticketmaster imposed limits on ticket purchases for fans while ticket brokers routinely exceeded those limits. Furthermore, the FTC alleges that Ticketmaster and Live Nation deceived artists and consumers by engaging in bait-and-switch pricing.
The lawsuit is not limited to primary ticket sales but also includes Ticketmaster's growing share of ticket resales in the secondary market. The FTC further alleges that Ticketmaster's business model benefits from brokers preventing ordinary Americans from purchasing tickets.
FTC Chairman Andrew 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 attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia joined the lawsuit. The search results do not provide the names of the directors of Ticketmaster and Live Nation Entertainment who are charged by the Federal Trade Commission and seven states.
This is not the first time that Ticketmaster has been under scrutiny for its ticket sales practices. The lawsuit against Ticketmaster has been ongoing since 2022, with concerns about ticket sales for Taylor Swift's Eras Tour. Customers often pay more than advertised prices, according to the FTC's complaint against Ticketmaster and Live Nation.
President Donald Trump signed an executive order earlier this year directing U.S. officials to ensure ticket resellers are complying with Internal Revenue Service rules. The ongoing lawsuit against Ticketmaster and Live Nation Entertainment will shed light on whether the companies are adhering to these rules and providing fair pricing for consumers.
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