On Thursday, the Federal Trade Commission (FTC) announced that it, along with a coalition of state attorneys general, has filed a lawsuit against Ticketmaster and its parent company, claiming that they manipulate prices and deceive fans when it comes to buying tickets for live events.
The FTC’s complaint highlights tactics where Live Nation and its subsidiary, Ticketmaster, advertise seemingly low ticket prices. However, consumers often end up paying significantly more, deemed misleading by the commission. There are also false statements about limits on how many tickets each consumer is allowed to purchase for any given event.
What’s more unsettling is that the FTC alleges that Ticketmaster actually collaborates with ticket brokers. These brokers reportedly exploit the supposed limits using fake accounts to scoop up a huge volume of tickets, which they then resell at much higher prices through Ticketmaster’s platform, enabling Ticketmaster to rake in more extra fees.
The Associated Press attempted to reach out for a statement from Live Nation Entertainment based in Beverly Hills, California, but so far, there has been no response.
According to the FTC, Ticketmaster monopolizes ticket sales, controlling around 80% of primary ticketing for major concert venues across the United States. The organization disclosed that from 2019 to 2024, consumers splurged over $82.6 billion on tickets from Ticketmaster.
“American live entertainment is second to none and should be accessible for everyone. It should not break the bank for a family to catch a baseball game or enjoy a concert from their favorite artists,” remarked Andrew Ferguson, the FTC Chairman, expressing the mission behind this legal challenge.
The lawsuit has been filed in the U.S. District Court for the Central District of California, supported by attorneys general from several states, including Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia.
Ticketmaster has been under scrutiny since 2022, primarily when they faced backlash for a chaotic ticketing process for Taylor Swift’s Eras Tour. Fans and automated bots overwhelmed the ticketing website, leading to a disastrous sales experience. Lawmakers conducted hearings in 2023 where Live Nation faced tough questioning.
While there have been calls for reform in the industry, changes have come slowly. The Biden administration attempted to tackle some of the concerns by implementing a new regulation to ban hidden charges, which requires Ticketmaster to display full ticket prices as soon as consumers start their purchase journey. This new guideline came into effect back in May.
Former President Donald Trump had also targeted the ticketing industry for unscrupulous practices. In March, he collaborated with musician Kid Rock at the Oval Office, launching an executive order compelling U.S. entities to ensure compliance from ticket resellers with IRS standards. This order also instructed the FTC to enforce regulations against any unfair, deceptive, or anti-competitive behaviors in the secondary ticket market.
Furthermore, in August, the FTC filed a lawsuit against a Maryland ticket brokerage named Key Investment Group for allegedly using countless fake Ticketmaster accounts to illegally obtain tickets, including those for Swift’s tour.
