The Federal Trade Commission and seven states sued Live Nation and Ticketmaster on Thursday, alleging the companies worked with ticket brokers in the secondary market. The lawsuit claims the companies enabled scalpers to purchase beyond their advertised ticket purchasing limits, allowing for the resale of tickets at steep markups far above face value. The lawsuit follows a similar move last year by the Department of Justice.
In the lawsuit, filed in federal court in California on Thursday and reviewed by Variety, the FTC further alleged Ticketmaster — which is fully owned by Live Nation Entertainment — wrongfully engaged in a “bait-and-switch” between artists and consumers through advertising lower prices.
“Defendants have reaped massive profits by misrepresenting the total price of tickets to consumers, who pay billions of dollars each year in mandatory fees not reflected in the list price,” the complaint reads. Additionally, it highlights the ways in which Ticketmaster claimed publicly that they support “all-in pricing” — where, as they put it, “the first price the consumer sees is the price the consumer pays.”
Further, the lawsuit accuses both companies of deceptively imposing strict limitations on the number of tickets that consumers could purchase for an event, claiming they “knowingly allow” brokers to use multiple Ticketmaster accounts to unlawfully purchase tickets and drive up their sales on other marketplaces.
The National Independent Venue Association and the National Independent Talent Organization, both of which represent independent entities in the touring space and have long accused Live Nation and Ticketmaster of unfair practices, were quick to applaud the move.
“Today’s lawsuit has given credibility to what fans, artists, and independent stages have believed for years: Live Nation and Ticketmaster exploit their dominance not just in concert promotion and primary ticketing, but in the resale market as well,” NIVA executive director Steven Parker said. “The FTC and seven states now allege that the same company that controls nearly 80% of major concert ticketing has been enabling scalpers to game Ticketmaster’s system, reselling tickets back to fans at massive markups.
The FTC alleged that Live Nation and Ticketmaster violated the Better Online Ticket Sales Act, or BOTS Act, stating that the company “gives purchasing consumers no choice.”
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“Defendants earn significant revenue from ticket resales,” the lawsuit claims. “When reselling tickets brokers purchased from Ticketmaster, Defendants can ‘triple dip’ on fees, collecting fees from: (1) brokers when they purchase the tickets on the primary market, (2) brokers, again, when Ticketmaster
sells their tickets on Ticketmaster’s secondary market, and, finally, (3) consumers who purchase tickets from Ticketmaster on its secondary market.”
“This is not just bad business; it is deception and abuse of monopoly power. By turning a blind eye to scalpers, even giving them the tools to bypass limits and harvest tickets, Live Nation has acted as the promoter, the primary ticket seller, the artists’ manager, and the scalper.”
A rep for NITO said: “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.”
This FTC suit comes a month after it sued a ticket resale company Key Investment Group and affiliated companies including Epic Seats and Totally Tix LLC, alleging that it used illegal methods to secure tickets and resell them at inflated rates for popular concerts, including Taylor Swift’s “Eras” tour.
“President Trump made it clear in his March Executive Order that unscrupulous middlemen who harm fans and jack up prices through anticompetitive methods will hear from us,” said FTC Chairman Andrew N. Ferguson in a statement following the August lawsuit. “Today’s action puts brokers on notice that the Trump-Vance FTC will police operations that unlawfully circumvent ticket sellers’ purchase limits, ensuring that consumers have an opportunity to buy tickets at fair prices.”
In a possibly related move, Live Nation named Richard Grenell, the controversial Trump-appointed head of the Kennedy Center, to its board of directors in May.
From Variety US