The US Federal Trade Commission (FTC) has filed a lawsuit against Live Nation and its subsidiary Ticketmaster, alleging that the companies engage in illegal ticket resale practices. The lawsuit, which is supported by seven states, claims that Ticketmaster fails to prevent large-scale ticket resale operations, automatic bots, and purchase limits, effectively working with scalpers to turn tickets for a profit.
According to the FTC, Ticketmaster’s practices have resulted in consumers paying around $16 billion in fees. The company is accused of “triple dipping” its profits by collecting fees from brokers on the primary market, brokers on the secondary market, and concertgoers. This system is said to be in violation of the 2016 Better Online Ticket Sales (BOTS) Act.
The complaint also alleges that Ticketmaster falsely advertises ticket costs by listing prices that are lower than the total after fees and markups, a violation of the FTC Act. An internal email from a senior Ticketmaster executive reportedly admitted that the company “turns a blind eye” to brokers’ violations of posted ticket limits. For instance, an internal review found that just five brokers controlled over 6,000 Ticketmaster accounts and possessed nearly 250,000 concert tickets to almost 2,600 events.
Live Nation has been under scrutiny from entertainment leaders and federal regulators over the past year, including an anti-trust investigation by the US Justice Department in 2024. The company has faced criticism from celebrities, such as Taylor Swift, and fans who have dealt with fluctuating ticket prices, long queues, and bots programmed by resellers to quickly purchase available tickets. A recent Minnesota bill regulating online ticket sales and prohibiting bots has also drawn attention to the issue.
The lawsuit against Live Nation and Ticketmaster highlights the need for greater transparency and regulation in the ticket resale market. As the case proceeds, it is likely to have significant implications for the music industry and ticketing practices. The FTC’s actions aim to protect consumers from unfair and deceptive practices, ensuring that they have access to fair and transparent ticket prices.
