The Federal Trade Commission (FTC) has initiated a lawsuit against Live Nation and Ticketmaster, alleging systemic unfair practices, including deceptive pricing and manipulation in ticket sales. Joined by seven state attorneys general and the Utah Division of Consumer Protection, the 84-page complaint was filed in the Central District of California and seeks a permanent injunction, monetary relief, and civil penalties for violations of the FTC Act, the Better Online Ticket Sales Act (BOTS Act), and state consumer protection laws.
The complaint outlines three primary allegations against Live Nation: deceptive ticket pricing practices, collusion with ticket brokers to exceed purchase limits, and systematic violations of the BOTS Act. The FTC claims that Ticketmaster's pricing structure, which includes hidden fees that inflate ticket costs by as much as 30%, is designed to maximize revenue at the expense of transparency.
Furthermore, the lawsuit accuses Ticketmaster of allowing ticket brokers to buy tickets in excess of set limits, which undermines artists' efforts to keep ticket prices affordable. The complaint cites instances where brokers purchased large quantities of tickets for resale at significantly marked-up prices, often with Ticketmaster's tacit approval.
The FTC is seeking both a permanent injunction against these practices and civil penalties under relevant laws, claiming that Ticketmaster's actions have caused harm not only to consumers but also to artists. The lawsuit follows previous legal challenges against Live Nation regarding anti-competitive practices stemming from its merger with Ticketmaster.
In response to the lawsuit, representatives from the National Independent Venue Association and the National Independent Talent Organization expressed support for the FTC's efforts to reform the ticketing system, highlighting the need for greater fairness in pricing and availability for fans and artists alike. Live Nation has not publicly commented on the lawsuit.