Ticketmaster and Live Nation are being accused of misleading pricing in ticket resales by the Federal Trade Commission. Deception in pricing practices was the charge levied against the companies by the FTC.
The Federal Trade Commission (FTC) has taken a significant step in its ongoing efforts to protect consumers from unfair ticket pricing, filing a lawsuit against Ticketmaster and Live Nation. The lawsuit, which was joined by seven states, accuses the companies of deceiving performing artists and consumers about ticket prices and limits.
The controversy arose in November 2022, when Ticketmaster's website crashed during a pre-sale event for Taylor Swift's Eras Tour, allowing scalpers to purchase a significant number of tickets. This incident, along with other issues surrounding the rollout of Taylor Swift's tour tickets, prompted a lawsuit from fans and federal scrutiny.
The FTC's suit against Ticketmaster alleges violations of the FTC Act's prohibition on deceptive acts or practices, as well as the Better Online Ticket Sales (BOTS) Act. The BOTS Act is designed to prevent ticket bots from buying up large quantities of tickets, thereby ensuring that fans have a fair chance at buying tickets at face value.
Ticketmaster is accused of imposing strict limits on the number of tickets consumers could purchase, while brokers routinely exceeded those limits. The lawsuit also accuses Ticketmaster and Live Nation of selling illegally harvested tickets at a substantial markup, causing consumers to pay significantly more than face value.
The FTC is seeking civil penalties against Ticketmaster and Live Nation, as well as additional monetary relief. FTC Chairman Andrew Ferguson stated that President Donald Trump's executive order made it clear that the federal government must protect Americans from being ripped off when buying tickets to live events.
Live Nation Entertainment Inc.'s (LYV) stock price decreased by 2.37% following the FTC's lawsuit announcement. The US states that joined the FTC in the lawsuit against Ticketmaster and Live Nation are Colorado, Florida, Illinois, Nebraska, Tennessee, Utah, and Virginia.
The FTC and Justice Department's lawsuit against Ticketmaster could result in Live Nation being compelled to sell Ticketmaster. In March 2022, the FTC and Justice Department sued Ticketmaster under the Biden administration, alleging antitrust violations and accusing Live Nation of having a monopoly over live event tickets.
FOX Business reached out to Live Nation and Ticketmaster for comment regarding the latest developments, but as of the time of writing, no response has been received. President Ferguson emphasised that American live entertainment should be accessible to all and should not cost an arm and a leg to attend events like baseball games or concerts. The FTC's lawsuit against Ticketmaster and Live Nation is a monumental step in ensuring that fans have a shot at buying fair-priced tickets.
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