The Federal Trade Commission has filed a lawsuit against Ticketmaster and Live Nation, accusing the companies of using “illegal” tactics in the ticket resale market.
The FTC filed the lawsuit in California federal court on Sept. 18, with seven states joining the lawsuit, including Florida, Illinois, and Virginia, CNBC reported. The lawsuit accuses Ticketmaster and Live Nation of conspiring with scalpers to “unlawfully purchase” tickets and inflate their profits.
“[Ticketmaster and Live Nation’s] illegal conduct frustrates artists’ desire to maintain affordable ticket prices that fit the needs of ordinary American families, costing ordinary fans millions of dollars every year,” the lawsuit states.
The lawsuit accuses Ticketmaster of using a “bait-and-switch” strategy by advertising lower ticket prices before raising them with added fees. It also claims the company lets brokers exceed ticket limits to boost resale profits and violates the Better Online Ticket Sales Act.
Ticketmaster is accused of “triple dipping” by profiting from
fees paid by brokers on the primary market, brokers on the secondary market, and consumers on resold tickets. From 2019 to 2024, Ticketmaster raked in $3.7 billion in profits, while artists and fans bore the costs, the FTC said.“I want an injunction that tells Ticketmaster, ‘You can’t do this.’ You can’t you can’t screw ordinary American consumers who just want to go to a baseball game or a concert, so that brokers can make massive profits and Ticketmaster can share in those profits,’” FTC Chairman Andrew Ferguson said.
Ticketmaster’s alleged practices have sparked lawsuits in the U.S. and abroad. In the U.K., the company is under investigation for its use of “dynamic pricing,” a tactic that raises ticket costs based on market demand. The latest example of alleged dynamic pricing came with ticket sales for Britpop band Oasis’s reunion concerts.
The FTC’s case comes on the heels of a Justice Department lawsuit seeking to
break up Live Nation and Ticketmaster over alleged antitrust violations and monopoly power in the ticketing industry. That lawsuit stemmed from a 2022 probe launched after backlash from Taylor Swift fans over Eras Tour ticket prices.RELATED CONTENT: ELEVATING YOUR EXCELLENCE: John Hope Bryant Is A Champion Of Financial Literacy