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The Federal Trade Commission and seven states have sued Ticketmaster and its parent company, Live Nation, over claims of unfair ticket sale practices.
Ticketmaster is accused of using “bait-and-switch” tactics in its ticket sales, forcing users to pay a price at checkout that’s higher than what they saw in advertisements.
The agency criticizes Ticketmaster for not taking appropriate action against scalpers. The ticketing company publicly complains about the challenges it faces from resellers, but routinely allows them to exceed purchase limits and harvest thousands of tickets for a single event, the FTC claims.
Ticketmaster also allegedly profits from the resale of tickets purchased illegally. It controls nearly 80% of the concert market, and if fans can’t get their tickets from a regular sale, they may turn to Ticketmaster’s own resale platform. There, brokers sell tickets at inflated prices, and the platform profits from another round of additional fees.
Ticketmaster and Live Nation “have consistently declined to deploy additional technology that would more effectively prevent brokers from evading ticket limits because such tactics would decrease their revenue,” the FTC says, citing internal documents.
According to the agency, Ticketmaster’s unlawful practices also hurt artists who wish to make their tickets more affordable. “Defendants’ illegal conduct frustrates artists’ desire to maintain affordable ticket prices that fit the needs of ordinary American families, costing ordinary fans millions of dollars every year,” it says in the complaint.
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Last week, Ariana Grande posted on Instagram that she’s “incredibly bothered” by resellers who are trying to offload tickets to her upcoming tour at inflated prices. “I just wanted you to know that my team and I see it and that I care very much and we will do, and are doing, everything we can,” she told her fans.
The FTC is seeking civil penalties and monetary relief that the court finds appropriate. The attorneys general of Virginia, Utah, Florida, Tennessee, Nebraska, Illinois, and Colorado also joined the suit.
In May 2024, the Department of Justice also sued Live Nation for monopolization and thwarting competition. That case is ongoing.
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Jibin is a tech news writer based out of Ahmedabad, India. Previously, he served as the editor of iGeeksBlog and is a self-proclaimed tech enthusiast who loves breaking down complex information for a broader audience.
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