The Federal Trade Commission (FTC) and seven states have filed a lawsuit against Live Nation and its subsidiary Ticketmaster, alleging the companies have engaged in illegal practices related to ticket resale. The lawsuit claims Live Nation and Ticketmaster have failed to adequately prevent large-scale ticket reselling by bots and scalpers, creating an environment where prices are artificially inflated and consumer access is restricted. This action underscores growing concerns about the dominance of Live Nation and Ticketmaster in the live entertainment market and the impact on fans.
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Concerns Over Ticket Resales and Dynamic Pricing
For years, music fans have voiced frustration with the rising cost of concert tickets and the difficulty of securing them. The FTC’s lawsuit shines a light on the complexities of this issue, revealing a system where individual scalpers, reseller networks, and even hackers contribute to an underground market. Beyond individual scalpers, the FTC alleges that Live Nation and Ticketmaster have, at times, tacitly collaborated with these entities to profit from the resale of tickets.
“Triple Dipping” and Alleged Profit Maximization
A central accusation within the lawsuit revolves around Ticketmaster’s alleged practice of “triple dipping” into consumer spending. The FTC claims the company collects fees from various points within the ticket sales process: primary market brokers, secondary market brokers, and ultimately, the concertgoers themselves. The agency estimates that this system has resulted in consumers paying approximately $16 billion in fees. This conduct is further complicated by the company’s alleged violation of the 2016 Better Online Ticket Sales (BOTS) Act, which aims to curb the use of bots in ticket purchasing.
Internal Practices and Broker Control
The FTC’s claims are supported by internal communications, including an email from a senior Ticketmaster executive shared with Live Nation leadership. This email reportedly admitted that the companies have a policy of “turning a blind eye” to brokers’ violations of ticket purchase limits. Furthermore, an internal review revealed that just five brokers controlled over 6,300 Ticketmaster accounts and possessed over 246,000 tickets to over 2,500 events. Despite having a system—TradeDesk—designed to monitor and flag high-volume ticket buyers and identify multiple accounts, the FTC alleges the company failed to enforce these safeguards effectively.
Misleading Advertising and Price Transparency
In addition to concerns about resale practices, the lawsuit also alleges that Ticketmaster engages in deceptive advertising by falsely advertising ticket costs. The company is accused of listing prices that are lower than the final total after fees and markups, potentially misleading consumers about the true cost of tickets. This lack of price transparency adds another layer of frustration for fans already struggling with rising costs.
Broader Regulatory Scrutiny and Industry Response
Live Nation and Ticketmaster have faced increased scrutiny in recent months, with anti-trust investigations underway from the U.S. Justice Department in 2024. Celebrities like Taylor Swift have publicly criticized the company’s practices, and consumer advocacy groups have continued to call for greater regulation of the live entertainment ticketing market. Several states, including Minnesota, have already taken steps to regulate online ticket sales and prohibit the use of bots—demonstrating a wider trend towards consumer protection in the ticketing industry.
The FTC’s lawsuit reflects a serious attempt to address the systemic issues within the live entertainment ticketing market, and challenges the market power of Live Nation and Ticketmaster.
The lawsuit against Live Nation and Ticketmaster signifies a pivotal moment in the ongoing debate surrounding ticket pricing, transparency, and consumer access—potentially leading to meaningful changes in the way live entertainment events are ticketed and sold.
