FTC and States Sue Live Nation and Ticketmaster Over Alleged Ticketing Violations

The Federal Trade Commission (FTC), in collaboration with attorneys general from seven states, has initiated legal action against Live Nation Entertainment and its subsidiary, Ticketmaster. The lawsuit alleges that the companies engaged in deceptive practices by allowing ticket brokers to circumvent purchase limits, leading to inflated resale prices that have cost consumers billions of dollars.

According to the FTC, Ticketmaster permitted brokers to bypass artist-imposed ticket limits by creating multiple accounts and using proxy IP addresses. This enabled brokers to acquire large quantities of tickets, which were then resold at significant markups on Ticketmaster's own platform. The company allegedly profited from fees on both the initial sale and the resale transactions. Internal communications suggest that Ticketmaster was aware of these practices, with a senior executive reportedly stating that the company "turn[s] a blind eye as a matter of policy" to brokers' violations of ticket limits.

The complaint also accuses Ticketmaster of engaging in "bait-and-switch pricing" by advertising lower ticket prices than those ultimately charged to consumers. Mandatory fees, sometimes as high as 44% of the ticket's face value, were reportedly added late in the purchasing process, leading to higher-than-expected costs for buyers.

FTC Chairman Andrew N. Ferguson emphasized the impact on consumers, stating, "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, filed in the U.S. District Court for the Central District of California, seeks civil penalties and other remedies for the alleged violations. This legal action follows a separate antitrust lawsuit filed by the Department of Justice in 2024, which accused Live Nation and Ticketmaster of monopolistic practices in the live entertainment industry.

Live Nation and Ticketmaster have not yet responded to the allegations.