Live Events Giant Faced with Legal Action by FTC Over Accusations of Forcing Exaggerated Ticket Prices for Shows and Events
In a significant move aimed at ensuring fairness and affordability in the live entertainment 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. The legal action, which was filed in the U.S. District Court for the Central District of California, alleges that the companies have used illegal tactics to force consumers to pay more for live events.
The lawsuit follows a series of investigations into Ticketmaster's practices, with the company coming under scrutiny since 2022 due to the botched ticket sales for Taylor Swift's Eras Tour. According to the FTC, between 2019 and 2024, consumers spent over $82.6 billion buying tickets from Ticketmaster.
At the heart of the lawsuit are accusations that Ticketmaster has deceived artists and consumers by advertising lower ticket prices than what consumers must pay and falsely claiming strict ticket limits. In reality, Ticketmaster coordinates with ticket brokers who bypass those ticket limits and use fake accounts to buy up millions of dollars worth of tickets, selling them at a substantial markup on Ticketmaster's platform.
The FTC Chairman, Andrew Ferguson, stated that American live entertainment should be accessible to all and should not cost a fortune. He emphasized that the high prices of tickets are a concern for many consumers. Lina Khan, the chairwoman of the Federal Trade Commission involved in the legal actions against Ticketmaster and Live Nation, has been a vocal advocate for increased scrutiny of big tech companies and their practices.
The lawsuit comes after Senators grilled Live Nation in a 2023 hearing regarding the incident, and 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. The attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia have joined the lawsuit.
The order also directed the FTC to take enforcement action to prevent unfair, deceptive, and anti-competitive conduct in the secondary ticketing market. The Biden administration has taken additional steps to address these issues, with a ban on junk fees requiring Ticketmaster to display the full price of a ticket as soon as consumers begin shopping.
In August, the FTC sued Maryland-based ticket broker Key Investment Group, alleging it used fictitious Ticketmaster accounts and other methods to buy tickets for events, including Swift's tour. As of now, Live Nation Entertainment has not responded to messages seeking comment on the lawsuit.
Ticketmaster controls 80% or more of major U.S. concert venues' primary ticketing, according to the FTC. The lawsuit is expected to have significant implications for the live entertainment industry, potentially leading to increased transparency and fairness in ticket sales.
