FTC and State Prosecutors File Lawsuit Against Live Nation and Ticketmaster Over Ticketing Practices
In a significant legal move, the Federal Trade Commission (FTC) and several state attorneys general have jointly filed a lawsuit against Live Nation Entertainment and its subsidiary, Ticketmaster. The lawsuit, lodged in the U.S. District Court for the Central District of California, accuses the companies of engaging in practices that allow ticket brokers to purchase event tickets and resell them at inflated prices, ultimately costing consumers billions of dollars.
Allegations of Deceptive Practices
The FTC’s complaint outlines a series of allegations against Live Nation and Ticketmaster, including the use of “bait-and-switch pricing” tactics. This practice involves advertising lower ticket prices that are not actually available to consumers. Furthermore, the complaint asserts that Ticketmaster has sold millions of tickets to brokers, often at significant markups, despite restrictions imposed by artists on such sales.
According to the FTC, while Ticketmaster publicly claims that its business model is incompatible with that of ticket brokers, internal communications suggest otherwise. The agency stated, “In private, Ticketmaster acknowledged that its business model and bottom line benefit from brokers preventing ordinary Americans from purchasing tickets to the shows they want to see at the prices artists set.”
Legal Framework and Support
The lawsuit claims that the business practices of Live Nation and Ticketmaster violate the Better Online Ticket Sales Act, along with other laws designed to prevent deceptive sales tactics. The attorneys general from Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia have joined the FTC in this legal action, highlighting the widespread concern over ticketing practices across multiple states.
FTC Chairman Andrew N. Ferguson emphasized the impact of these practices on everyday consumers, stating, “It should not cost an arm and a leg to take the family to a baseball game or attend your favorite musician’s show.” This sentiment resonates with many consumers who have expressed frustration over the rising costs of attending live events.
The Financial Landscape of Ticket Sales
The FTC’s report reveals that from 2019 to 2024, consumers are projected to spend nearly $83 billion on tickets purchased through Ticketmaster. The platform currently controls at least 80% of ticket sales for major event venues, underscoring its dominant position in the market. This monopoly raises questions about fair competition and consumer choice in the ticketing industry.
Previous Legal Challenges
This lawsuit is not the first legal challenge faced by Live Nation and Ticketmaster. In May, the Department of Justice filed a federal lawsuit accusing the companies of illegally monopolizing the live entertainment industry. The DOJ’s suit alleges that Live Nation has violated antitrust laws, harming consumers in the process, particularly through its ownership of Ticketmaster. This ongoing scrutiny reflects a growing concern over the concentration of power in the ticketing market.
Historical Context
The ticketing industry has undergone significant changes over the past two decades, particularly with the rise of online ticket sales. Ticketmaster, founded in 1976, became a dominant player in the market, especially after its merger with Live Nation in 2009. This merger raised eyebrows at the time, as it combined the largest ticketing service with a major concert promoter, leading to concerns about potential monopolistic practices.
Historically, ticket scalping has been a contentious issue, with various states implementing laws to regulate the resale of tickets. However, the rise of online platforms has complicated these efforts, as brokers can now easily purchase large quantities of tickets and resell them at inflated prices. This has led to a growing backlash from consumers and artists alike, who argue that the current system undermines the integrity of live events.
Consumer Impact and Reactions
The impact of these practices on consumers cannot be overstated. Many fans have experienced the frustration of trying to purchase tickets for popular events, only to find them sold out or available only at exorbitant prices through secondary markets. This has led to a sense of disillusionment among concertgoers and sports fans, who feel that they are being priced out of experiences that should be accessible.
In response to the ongoing legal challenges, consumer advocacy groups have called for greater transparency and fairness in the ticketing industry. They argue that consumers deserve the right to purchase tickets at fair prices without the interference of brokers who exploit the system for profit.
Conclusion
The joint lawsuit filed by the FTC and state attorneys general against Live Nation and Ticketmaster marks a pivotal moment in the ongoing battle over ticketing practices in the United States. As the legal proceedings unfold, the outcome could have far-reaching implications for the future of ticket sales and consumer rights in the live entertainment industry. With growing scrutiny from regulators and a public increasingly frustrated by rising costs, the pressure is mounting on these companies to reform their practices and prioritize the interests of consumers.
