The U.S. Federal Trade Commission (FTC) and seven states have taken legal action against Live Nation and its ticketing service, Ticketmaster. The lawsuit claims they enabled ticket brokers to buy up concert tickets and sell them at inflated prices, costing fans millions.
This situation follows Ticketmaster’s infamous ticket sale for Taylor Swift’s Eras tour in 2022, which faced massive issues. At that time, a flood of bots and resellers crashed the site, leading to a canceled public sale. Live Nation’s stock dropped by 2.3% following this latest news.
According to the FTC, Ticketmaster controls about 80% of primary ticket sales for major venues. They allege that between 2019 and 2024, Ticketmaster made $3.7 billion in resale fees while ignoring brokers who violated ticket purchasing limits. Moreover, the company did not clearly disclose total ticket prices upfront, which the FTC says breaches consumer protection laws.
Andrew Ferguson, the FTC chair, expressed that this lawsuit is crucial for giving fans a fair chance at reasonably priced tickets. The lawsuit is being filed in California by the states of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia.
Interestingly, internal communications from Ticketmaster reveal that the company has been aware of these violations since 2018. An email indicated that they chose to ignore these issues as a matter of policy.
This case adds to the scrutiny facing Ticketmaster. The Department of Justice has also been pursuing a breakup of Live Nation and Ticketmaster, accusing them of monopolistic practices in the live concert sector. The companies have denied these claims.
In light of these events, it’s clear that the ticketing industry is under enormous pressure for reform. Fans are increasingly vocal about their experiences, sharing frustrations on social media. Platforms like Twitter and Reddit are buzzing with discussions about fair pricing and transparency in ticket sales, reflecting a growing demand for change in how tickets are sold and distributed.
For further insights on this topic, you can read about the ticketing challenges in entertainment from sources like The Guardian.
