Live Concert and Event organizers, Live Nation and Ticketmaster, accused of forcing fans to pay inflated prices by the Federal Trade Commission (FTC)
In a significant move aimed at reforming the ticketing industry, the Federal Trade Commission (FTC) and a bipartisan group of state attorneys general have filed a lawsuit against Ticketmaster and its parent company, Live Nation, on Thursday. The lawsuit alleges that Ticketmaster has been deceiving artists and consumers by advertising lower ticket prices than the final cost consumers pay. The FTC states that Ticketmaster controls 80% or more of major U.S. concert venues' primary ticketing, giving it a dominant position in the market. One of the key concerns is the issue of fans and attacks from brokers' bots, which have been purchasing tickets to resell on secondary sites at inflated prices. Ticket brokers use fake accounts to buy up millions of dollars worth of tickets and then sell them at a substantial markup on Ticketmaster's platform. The lawsuit also accuses Ticketmaster of falsely claiming to impose strict limits on the number of tickets consumers can buy for an event, but in reality, coordinating with ticket brokers who bypass those limits. This practice allows ticket brokers to buy up a large number of tickets, contributing to the scarcity and high prices for fans trying to purchase tickets directly. The FTC's lawsuit follows a similar action taken against Maryland-based ticket broker Key Investment Group in August 2022. The FTC accused Key Investment Group of using fictitious Ticketmaster accounts and other methods to buy tickets for events, including Swift's tour. The Biden administration has also taken action in this regard, with a ban on junk fees and a requirement for Ticketmaster to display the full price of a ticket during shopping. This rule went into effect in May. The FTC Chairman, Andrew Ferguson, stated that American live entertainment should be accessible to all and should not cost a fortune. Senators have also grilled Live Nation, Ticketmaster's parent company, in a 2023 hearing, focusing on the company's practices and their impact on consumers. Joining the lawsuit were the attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia. According to the FTC, consumers spent over $82.6 billion buying tickets from Ticketmaster between 2019 and 2024. President Donald Trump also targeted the industry, signing an executive order in March directing U.S. officials to ensure ticket resellers comply with Internal Revenue Service rules. However, no response was received from Live Nation Entertainment regarding the FTC's allegations as of the time this news article was written. The Associated Press left messages seeking comment on Thursday with Live Nation Entertainment, based in Beverly Hills, California. The outcome of this lawsuit is expected to have significant implications for the ticketing industry and the live entertainment sector as a whole.
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