The United States Federal Trade Commission (FTC) and seven states have sued Live Nation and its parent Ticketmaster for working with brokers who illegally buy and resell tickets.
The suit alleges that Live Nation and Ticketmaster coordinated with brokers buying large amounts of tickets, and then resold these tickets “at a substantial markup”. The FTC also argued that these companies advertised deceived consumers by advertising lower ticket prices than buyers could pay.
“American live entertainment is the best in the world and should be accessible to all of us. It should not cost an arm and a leg to take the family to a baseball game or attend your favourite musician’s show,” said FTC Chair Andrew N. Ferguson.
The states suing alongside the FTC include Illinois, Virginia, Florida, Tennessee, Colorado, Nebraska, and Utah.
According to the suit, Ticketmaster has charged consumers hidden fees on every ticket sale, which can represent as much as 44% of the ticket price. “In Ticketmaster’s own words, Defendants have taken a ‘bait and switch approach’ to advertising ticket prices, employed specifically to create a ‘lift’ in ticket sales,” the lawsuit said.
Ticketmaster and Live Nation also knowingly allow brokers to exceed limits on purchasing tickets, the FTC alleged.
These companies encourage brokers to use multiple accounts to purchase thousands of tickets, per the suit, and permit these tickets to be resold on Ticketmaster’s platforms at large markups.
The suit was filed in the District Court for the Central District of California, where Live Nation is based.
Ticketmaster controls around 80% of major concert venues’ primary ticketing, according to the FTC, with buyers spending over US$82.6 billion on tickets from Ticketmaster from 2019 to 2024. The U.S. Justice Department launched an antitrust lawsuit to break up Ticketmaster and Live Nation in May 2024.
Live Nation’s (NYSE: LYV) share price closed at $164.68, down from its previous close at $169.32. Its market capitalisation is $38.61 billion.
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