Live Nation and Ticketmaster Face Lawsuit Over Ticket Resale Practices

## Legal Actions Against Ticketmaster and Live Nation

Live Nation and Ticketmaster are facing serious allegations for supposedly allowing scalpers to acquire tickets, later reselling them at inflated prices on Ticketmaster’s own platforms. This controversy has sparked a lawsuit initiated by the Federal Trade Commission (FTC) alongside seven states, claiming these companies engage in practices detrimental to artists and consumers alike.

## Accusations and Practices

The lawsuit outlines three main illegal activities that harm artists and inflate ticket costs for buyers. First, the companies are accused of concealing additional fees until the final checkout stage, a tactic described as deceptive marketing. Second, they allegedly permit ticket brokers to circumvent artists’ imposed limits on ticket purchases.

### Violations of the BOTS Act

The most significant claim involves a breach of the BOTS (Better Online Ticket Sales) Act. The FTC asserts that both companies have generated hundreds of millions in revenue by systematically violating this law, which prohibits circumventing measures set to enforce ticket-purchase limits.

According to the FTC, instead of adhering to this legislation, Live Nation and Ticketmaster are allegedly encouraging brokers to exploit multiple accounts to bypass security and access controls. This manipulation, they argue, results in inflated ticket prices, making it difficult for regular fans to buy tickets at face value.

## A Triple Revenue Model

The allegations extend to a “triple dip” on ticket fees that enriches the companies. They profit when brokers purchase tickets, again when those tickets are re-listed, and once more when consumers buy re-sold tickets.

### Statements from Officials

FTC Chairman Andrew N. Ferguson emphasized the importance of enforcing competition laws to safeguard consumers from exploitative practices. He pointed out that the goal is to ensure fair access to live entertainment, asserting that it shouldn’t cost a fortune to attend events.

In support of the lawsuit, Stephen Parker, from the National Independent Venue Association, highlighted how it recognizes long-standing concerns about the power imbalance that exists in the ticketing ecosystem.

Parker described the ongoing practices as not just unprincipled but as an exploitation of monopoly power. Live Nation’s role is multifaceted, acting as the promoter, primary seller, and also enabling scalpers.

## Ongoing Legal Challenges

This lawsuit complicates Live Nation’s already challenging relationship with federal authorities, following a significant antitrust case filed last year. A judge recently denied an effort by Live Nation and Ticketmaster to dismiss key parts of this case, indicating ongoing scrutiny.

### Transparency Concerns

The FTC’s complaint also delves into Ticketmaster’s alleged habit of obscuring ticket prices. Internal documents trace this behavior back to at least 2014, revealing that the company prioritized misleading pricing despite knowing that transparent pricing could boost sales.

It wasn’t until May 2023, amidst the FTC investigation, that Ticketmaster announced plans to include fees in visible ticket prices, a move deemed overdue by many.

*This situation is evolving.*