FTC and Seven States Sue Live Nation and Ticketmaster Over Alleged Ticket Resale Practices

The Federal Trade Commission (FTC), in collaboration with attorneys general from seven states, has initiated legal action against Live Nation Entertainment Inc. and its subsidiary, Ticketmaster, alleging that the companies permitted ticket brokers to circumvent purchase limits, resulting in inflated resale prices and significant profits for the firms.

The lawsuit, filed in the U.S. District Court for the Central District of California, contends that Ticketmaster, which controls approximately 80% of primary ticketing for major concert venues, knowingly allowed brokers to bypass artist-imposed ticket purchasing limits. This practice enabled brokers to acquire large quantities of tickets and resell them at substantial markups, generating $3.7 billion in resale fees for Ticketmaster between 2019 and 2024.

The FTC further alleges that Ticketmaster engaged in deceptive pricing practices by advertising lower ticket prices than what consumers ultimately paid, due to undisclosed fees added at the end of the transaction. These fees, which ranged from 24% to 44% of the ticket price, amounted to $16.4 billion from 2019 to 2024.

FTC Chairman Andrew Ferguson emphasized the agency's commitment to protecting consumers, stating, "American live entertainment is the best in the world and should be accessible to all of us. It should not cost an arm and a leg to take the family to a baseball game or attend your favorite musician's show."

The states joining the lawsuit are Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia. The legal action seeks civil penalties and other appropriate monetary relief for the alleged violations of the FTC Act and the Better Online Ticket Sales Act.

This lawsuit adds to the ongoing scrutiny of Live Nation and Ticketmaster's business practices, including a 2024 Department of Justice lawsuit alleging monopolistic behavior in the live concert industry.

Following the announcement of the lawsuit, Live Nation's stock experienced a decline, reflecting investor concerns over the potential impact of the legal proceedings.