FTC files lawsuit against Live Nation for alleged failure to prevent Ticketmaster scalping

Live Nation and Ticketmaster Face Lawsuit Over Alleged Illegal Ticket Resale Practices

The Federal Trade Commission (FTC) and seven states have filed a lawsuit against Live Nation, a major player in the music industry, and its subsidiary Ticketmaster. The lawsuit accuses the company of engaging in illegal ticket resale practices, including failing to curb large-scale ticket resale operations, automatic bots, and purchase limits. The FTC alleges that Ticketmaster has been working with scalpers to unlawfully turn tickets for a profit.

Violation of Better Online Ticket Sales Act and False Advertising

According to the complaint, Ticketmaster has been profiting by collecting fees from brokers on both the primary and secondary markets, as well as from concert goers. This practice, known as “triple dipping,” has resulted in consumers paying around $16 billion in fees. The company has also been accused of violating the 2016 Better Online Ticket Sales (BOTS) Act by allowing brokers to exceed purchase limits.

Additionally, the FTC claims that Ticketmaster has been falsely advertising ticket costs by listing prices that are lower than the total after fees and markups, a violation of the FTC Act. The company has also been criticized for its TradeDesk system, which is supposed to monitor high-volume ticket buyers but has been found lacking in tracking those who exceed purchase limits and hold numerous accounts.

Public Outcry and Regulatory Scrutiny

Music fans have long been complaining about the ticketing practices of Live Nation and Ticketmaster. Celebrities, including Taylor Swift, have spoken out against the corporation for issues such as fluctuating ticket prices and bots programmed by resellers to quickly snatch up available tickets. In response to these concerns, a Minnesota bill regulating online ticket sales and prohibiting bots was enacted earlier this year.

The FTC’s lawsuit against Live Nation and Ticketmaster is just the latest development in a series of legal challenges and regulatory inquiries facing the music industry giant.