Background and Relevance of the Companies
Ticketmaster, a leading ticketing platform, and its parent company Live Nation, dominate the US live entertainment industry. Together, they control approximately 80% of ticket sales for major concerts in the United States. Their influence and market share make this lawsuit significant, as it addresses potential anti-competitive practices and consumer deception.
The Lawsuit Details
The Federal Trade Commission (FTC) and seven US states have filed a lawsuit against Ticketmaster and Live Nation in a federal court in California. The regulatory bodies accuse the companies of knowingly allowing ticket resellers to obtain millions of tickets in violation of purchase limits, subsequently selling them at inflated prices.
FTC’s Allegations Against Ticketmaster
According to the FTC, Ticketmaster allegedly “turned a blind eye” to resellers who consistently exceeded ticket purchase limits using thousands of fake accounts. This practice enabled these resellers to acquire tickets far beyond their allotted share, which they then resold at exorbitant prices.
Consumer Impact and Financial Losses
Between 2019 and 2024, US consumers spent over $82.6 billion on concert tickets through Ticketmaster alone. The FTC claims that this lawsuit aims to protect consumers from such price-gouging practices, especially in light of President Donald Trump’s executive order to safeguard consumers from ticket pricing abuses.
Technological Support for Resellers
Internal documents reportedly show that Ticketmaster provided technical support to resellers through a software platform called TradeDesk. This allowed resellers to manage tickets acquired via multiple accounts, facilitating resale and further inflating prices.
Ticketmaster’s Deceptive Pricing Practices
The lawsuit also targets Ticketmaster’s pricing practices, alleging that the company advertised significantly lower ticket prices than consumers ultimately paid after mandatory fees and surcharges. These hidden fees could reach up to 44% of the final ticket cost, totaling $16.4 billion between 2019 and 2024, according to the FTC.
Key Questions and Answers
- Who filed the lawsuit? The Federal Trade Commission (FTC) and seven US states.
- Who are the defendants? Ticketmaster and its parent company, Live Nation.
- What are the allegations? Ticketmaster knowingly allowed resellers to exceed purchase limits and provided them with technical support for resale, leading to inflated ticket prices.
- What are the hidden fees? Mandatory fees and surcharges added to ticket prices after initial advertisement, sometimes reaching up to 44% of the final cost.
- What is the financial impact on consumers? Between 2019 and 2024, US consumers spent over $82.6 billion on concert tickets through Ticketmaster.
