Ticketmaster and Live Nation Resell Tickets Illegally: FTC
The FTC accused Ticketmaster and Live Nation of enabling illegal ticket resale, affecting millions of consumers with inflated prices.
Ticketmaster and its parent company, Live Nation, face serious accusations from the Federal Trade Commission (FTC) for alleged illegal ticket resale practices.
In a complaint filed last Thursday in the United States District Court for the Central District of California, the FTC accused the two companies of making it easier for consumers to Tickets were allegedly stolen by scalpers from the marketplace and then sold at inflated prices, costing consumers billions of dollars.
The FTC alleges that Ticketmaster and Live Nation's practices include not only ticket reselling but also deceptive pricing tactics. According to the complaint, the companies advertised prices lower than what was actually available, confusing buyers.
Furthermore, it alleges that despite limits set by artists on the number of tickets scalpers can purchase, Ticketmaster and Live Nation sold millions of tickets to these intermediaries at significantly higher prices.
In its statement, the FTC emphasizes that while Ticketmaster has publicly stated that its business model is against scalpers who exceed ticket limits, the company has privately acknowledged that it benefits financially from these practices. The complaint alleges that resellers are forcing ordinary consumers to exclude tickets at the prices set by the artists, highlighting a clear inconsistency in their business practices and pitch.
The lawsuit, which also includes the attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia, focuses on violations of the Enhanced Online Ticket Sales Act and other laws prohibiting deceptive sales tactics.
The FTC notes that between 2019 and 2024, consumers spent nearly $83 billion on tickets through Ticketmaster, highlighting the platform's dominance, which controls at least 80% of ticket sales at major venues in the United States.
“It shouldn't cost an arm and a leg to take the family to a baseball game or attend a concert with your favorite musician,” said FTC Chairman Andrew N. Ferguson in a statement.
It's worth noting that in May of this year,The Department of Justice also filed a federal lawsuit accusing Live Nation of illegally monopolizing the live entertainment industry. This legal action reinforces the accusations against the company, which acquired Ticketmaster in 2009, and highlights the consequences that these practices have for the average consumer.
In this context, authorities are looking for a solution to curb these practices that, according to the FTC, are harmful to consumers and jeopardize fair competition in the event ticket market.