FTC and Seven States Sue Live Nation and Ticketmaster Over Alleged Deceptive Ticketing Practices
The Federal Trade Commission, along with seven states, has filed a lawsuit against Live Nation and its subsidiary Ticketmaster, alleging deceptive ticketing practices that harm consumers and artists.
The Federal Trade Commission (FTC), in collaboration with seven states, has initiated legal action against Live Nation Entertainment Inc. and its subsidiary, Ticketmaster, alleging deceptive ticketing practices that adversely affect consumers and artists. The lawsuit, filed in the U.S. District Court for the Central District of California, accuses the companies of engaging in a "bait-and-switch" pricing strategy, where advertised ticket prices are significantly lower than the final cost after additional fees are applied. The FTC contends that these fees can increase the total ticket price by 30% or more during checkout.
Furthermore, the complaint alleges that Ticketmaster knowingly allows ticket brokers to circumvent purchase limits set by artists, enabling these brokers to acquire large quantities of tickets and resell them at inflated prices on Ticketmaster's secondary market. This practice purportedly generates substantial profits for Ticketmaster through multiple fees: initially from the brokers' primary market purchases, again when brokers list tickets on the resale platform, and finally from consumers purchasing these resale tickets. The FTC estimates that Ticketmaster collected $3.7 billion in fees from resale tickets between 2019 and 2024.
FTC Chairman Andrew N. Ferguson emphasized the importance of accessible live entertainment, 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 lawsuit is supported by the attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia. This legal action follows a separate antitrust lawsuit filed by the Department of Justice and 30 states in 2024, which seeks to dismantle the alleged monopoly held by Live Nation and Ticketmaster over ticketing, promotion, venue ownership, and management.
As of now, Live Nation and Ticketmaster have not publicly responded to the allegations.