The Federal Trade Commission (FTC) and seven states sued Ticketmaster and its parent company Live Nation on Thursday, accusing the ticketing firms of allowing scalpers to circumvent their own rules and resell tickets at higher prices to draw in more profits.
The government alleges that Ticketmaster and Live Nation tacitly coordinate with ticket brokers by “routinely” allowing them to exceed purchasing limits. It also accuses the companies of deceptive pricing practices.
“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,” the lawsuit reads.
Ticketmaster’s practices have faced increased scrutiny in recent years, particularly after its system suffered a meltdown as Taylor Swift fans attempted to buy tickets for her “The Eras Tour” in 2022.
The Justice Department and more than two dozen states sued Ticketmaster and Live Nation last year for allegedly monopolizing the live entertainment industry and driving up ticket prices.
The FTC’s new lawsuit takes aim at their resale practices. It alleges that the ticketing companies are aware of and aid brokers’ efforts to get around ticket limits by creating numerous Ticketmaster accounts.
The government underscores that Ticketmaster draws in significant revenues from resales. This allows them to “triple dip” on fees from broker purchases and sales, as well as consumer purchases of resold tickets, according to the lawsuit.
“American live entertainment is the best in the world and should be accessible to all of us,” FTC Chair Andrew Ferguson said in a statement. “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 Trump-Vance FTC is working hard to ensure that fans have a shot at buying fair-priced tickets, and today’s lawsuit is a monumental step in that direction,” he continued.
