FTC Sues Live Nation, Ticketmaster Over Alleged Illegal Ticket Resales

The Federal Trade Commission (FTC) and seven states are suing Live Nation and Ticketmaster for allegedly colluding with brokers in illegal resale tactics.

The allegations:

• As per the filing in the US District Court for the Central District of California, Live Nation and Ticketmaster are accused of coordinating with brokers and allowing them to buy millions of tickets in the primary market.

• By doing so Ticketmaster is failing to uphold its own ticket limits.

• The ticketing platform then sells those tickets on the secondary market at a substantial markup.

• As per Music Business Worldwide, this means Ticketmaster can “triple dip” on fees, collecting them from:

• Brokers when they buy tickets on the primary market

• Brokers again when Ticketmaster sells their tickets on Ticketmaster’s secondary market

• Consumers who buy tickets on its secondary market

• The FTC also alleges that Ticketmaster uses “bait-and-switch” tactics, deceiving customers by advertising “deceptively low ticket prices to consumers” and charging more at checkout.

• This despite Live Nation’s 2023 announcement it was switching to an “all-in” pricing model.

Also in the lawsuit:

• The FTC is joined in the suit by the states of Virginia, Utah, Florida, Tennessee, Nebraska, Illinois, and Colorado.

Industry support:

• The National Independent Talent Organization (NITO) has released a statement on the FTC’s action. It says:

• “Without commenting on the specific charges, NITO applauds the Federal Trade Commission's efforts to reform an unfair ticketing ecosystem that too often does not serve consumers or artists. Changes are needed that address excessive fees, availability of tickets for fans at fair prices and keeping the process aligned with artists’ interests that benefit their fans.”