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

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 LLC. The lawsuit, filed in the U.S. District Court for the Central District of California, accuses the companies of enabling large-scale ticket resales and employing deceptive pricing strategies that have financially impacted consumers.

According to the FTC, Ticketmaster failed to enforce its own ticket purchase limits, allowing brokers to acquire substantial quantities of tickets for popular events. These tickets were then resold at significant markups on Ticketmaster's secondary market platform. The complaint alleges that Ticketmaster benefited financially from this arrangement by collecting fees at multiple stages: from brokers during the initial purchase, from brokers again when tickets were listed for resale, and from consumers who bought the resold tickets. This practice, referred to as "triple dipping," reportedly generated $3.7 billion in resale fees between 2019 and 2024.

The lawsuit also contends that Ticketmaster engaged in "bait-and-switch" pricing tactics by advertising lower ticket prices than what consumers ultimately paid after additional fees were applied. These fees, which could constitute up to 44% of the ticket's face value, were often disclosed only at the final stages of the purchase process, leading to consumer confusion and dissatisfaction.

FTC Chair Andrew Ferguson emphasized the broader implications of these practices, 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." He further noted that the FTC is committed to ensuring fair pricing and access for consumers.

The complaint alleges violations of the FTC Act and the Better Online Ticket Sales (BOTS) Act, which prohibits the use of automated bots to circumvent ticket purchase limits. The FTC is seeking civil penalties and other forms of monetary relief. The attorneys general from Virginia, Florida, Illinois, Tennessee, Nebraska, Utah, and Colorado have joined the FTC in this legal action.

As of now, Live Nation and Ticketmaster have not publicly responded to the allegations. The outcome of this lawsuit could have significant implications for the ticketing industry and its regulatory landscape.