Ticketmaster and Live Nation are being sued by the FTC due to claims of misleading pricing in secondary ticket sales, considered deceptive.
The US Federal Trade Commission (FTC) has taken action against Ticketmaster and its corporate parent, Live Nation, in a lawsuit that accuses the companies of antitrust violations and deceptive practices. The lawsuit, which was filed alongside seven states, alleges that the companies have engaged in activities that have harmed both performing artists and consumers.
The controversy began last year during a pre-sale event for Taylor Swift's Eras Tour when Ticketmaster's website crashed, allowing scalpers to purchase a significant number of tickets that were later sold at large markups on the secondary market.
The FTC claims that Ticketmaster imposed strict limits on the number of tickets consumers could purchase, but brokers routinely exceeded those limits. The lawsuit also accuses Ticketmaster of selling millions of tickets on a resale platform, allowing brokers to harvest millions of dollars worth of tickets in the open market.
The lawsuit also alleges violations of the BOTS Act, which prohibits the use of automated software to purchase tickets in excess of limits set by the event organisers.
In addition to these allegations, the FTC accuses Ticketmaster of deceiving artists and consumers through bait-and-switch pricing. The FTC claims that Ticketmaster then sold the illegally harvested tickets at a substantial markup, causing consumers in the secondary market to pay significantly more than face value.
Ferguson, the FTC Chairman, stated that President Donald Trump's executive order made it clear that the federal government "must protect Americans from being ripped off when they buy tickets to live events." Ferguson added that the FTC is working hard to ensure that fans have a shot at buying fair-priced tickets, and today's lawsuit is a monumental step in that direction.
The FTC's lawsuit seeks civil penalties against Ticketmaster and additional monetary relief. Last year, the lawsuit could have resulted in Live Nation being compelled to sell Ticketmaster.
FOX Business reached out to Live Nation and Ticketmaster for comment, but as of the time of publication, neither company had responded.
This is not the first time that Ticketmaster has faced scrutiny from the FTC. In 2013, the FTC fined Ticketmaster $10 million for misleading customers about ticket fees.
The FTC's lawsuit against Ticketmaster and Live Nation comes at a time when the live events industry is recovering from the COVID-19 pandemic, which forced many events to be cancelled or postponed. The lawsuit could have significant implications for the industry and the way that tickets are sold in the future.
In conclusion, the FTC's lawsuit against Ticketmaster and Live Nation alleges antitrust violations and deceptive practices that have harmed both performing artists and consumers. The lawsuit seeks civil penalties and additional monetary relief, and could have significant implications for the live events industry.
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