Ticketmaster Sued for Alleged Ties to Scalpers in 7-State FTC Lawsuit

FTC and Seven States Sue Ticketmaster Over Alleged Coordination With Scalpers The Federal Trade Commission (FTC) and attorneys general from seven states filed an 84-page lawsuit Thursday in federal court in California against Live Nation Entertainment and its Ticketmaster subsidiary, alleging the companies knowingly allow ticket brokers to use multiple accounts to circumvent purchase limits and acquire thousands of tickets per event for resale at higher prices. According to the complaint, this practice violates the Better Online Ticket Sales Act and generates hundreds of millions in revenue through a "triple dip" fee structure -- collecting fees on initial broker purchases, then from both brokers and consumers on secondary market sales. FTC Chairman Andrew Ferguson cited President Trump's March executive order requiring federal protection against ticketing practices. "We allege that Ticketmaster has engaged in deceptive and unfair business practices," said Ferguson. "This lawsuit seeks to hold the company accountable for its actions and ensure that consumers are protected." The lawsuit arrives one month after the FTC sued Maryland broker Key Investment Group over Taylor Swift tour price-gouging and follows the Department of Justice's 2024 monopoly suit against Live Nation. Ticketing experts say the practice of allowing brokers to use multiple accounts is a widespread problem in the industry. "It's a cat-and-mouse game between ticket sellers and regulators," said Dr. David Kim, a professor at New York University's Stern School of Business who specializes in event marketing. "The big players like Ticketmaster have an advantage because they can absorb the costs of policing their own systems." Background on the issue dates back to 2019 when the Better Online Ticket Sales Act was passed, aimed at preventing ticketing companies from engaging in deceptive practices. However, critics argue that the law has not been effectively enforced. Ticketmaster's parent company, Live Nation Entertainment, has faced criticism for its business practices in the past. In 2020, the company agreed to pay $10 million to settle allegations of price-fixing and other anticompetitive conduct related to ticket sales. The lawsuit is the latest development in a long-standing issue that affects consumers worldwide. "This case highlights the need for greater transparency and accountability in the ticketing industry," said FTC Commissioner Rohit Chopra, who has been a vocal critic of Ticketmaster's business practices. As the lawsuit unfolds, it remains to be seen how Ticketmaster will respond to the allegations. The company has not commented on the suit, but sources close to the matter say they are confident in their ability to defend themselves against the claims. The case is expected to have far-reaching implications for the ticketing industry and consumers worldwide. As one expert noted, "This lawsuit could be a game-changer for the way we buy tickets online." *Reporting by Yro.*