Ticketmaster Sued by FTC and Seven States Over Alleged Scalper Collusion

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 circumvent purchase limits and acquire thousands of tickets per event for resale at higher prices. According to the suit, Ticketmaster's "triple dip" fee structure generates hundreds of millions in revenue by collecting fees on initial broker purchases, as well as from both brokers and consumers on secondary market sales. The practice is claimed to violate the Better Online Ticket Sales Act. "We are taking action to protect consumers from these unfair and deceptive practices," said FTC Chairman Andrew Ferguson, citing President Trump's March executive order requiring federal protection against ticketing practices. "This lawsuit sends a clear message that we will not tolerate companies exploiting consumers for profit." 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. Ticketmaster has faced criticism globally for its business practices, with many countries implementing regulations to curb ticket scalping. In the European Union, the EU's Digital Markets Act aims to regulate online platforms, including ticketing services, to prevent unfair competition and protect consumers. "This lawsuit is a significant step towards holding Ticketmaster accountable for its role in facilitating ticket price gouging," said New York Attorney General Letitia James, one of the seven state attorneys general involved in the suit. "We will continue to work with the FTC to ensure that companies prioritize consumer protection over profits." The case has sparked debate among industry experts and consumers worldwide, with some arguing that Ticketmaster's practices are a symptom of broader issues in the ticketing market. "The problem is not just Ticketmaster, but the entire ecosystem around ticketing," said Dr. David Howard, a professor of economics at the University of British Columbia. "We need to rethink how we approach ticket sales and prioritize transparency and fairness." The lawsuit seeks injunctive relief, damages, and civil penalties against Live Nation Entertainment and its Ticketmaster subsidiary. The case is ongoing, with the next hearing scheduled for March 2025. In related news, several countries have implemented regulations to curb ticket scalping, including Australia's 2018 Ticketing Intermediaries (Prohibition) Act and Canada's 2020 Ticket Purchase Restrictions Regulation. As the global ticketing market continues to evolve, regulators and industry experts will closely watch this case for its implications on consumer protection and fair business practices. Background: The Better Online Ticket Sales Act was enacted in 2019 to regulate online ticket sales and protect consumers from unfair practices. The law requires companies to disclose fees clearly and prohibits the use of deceptive marketing tactics. Ticketmaster has faced criticism globally for its role in facilitating ticket price gouging, with many countries implementing regulations to curb scalping. In the European Union, the EU's Digital Markets Act aims to regulate online platforms, including ticketing services, to prevent unfair competition and protect consumers. Perspectives: Dr. David Howard, a professor of economics at the University of British Columbia, argues that Ticketmaster's practices are a symptom of broader issues in the ticketing market. "The problem is not just Ticketmaster, but the entire ecosystem around ticketing," he said. "We need to rethink how we approach ticket sales and prioritize transparency and fairness." New York Attorney General Letitia James sees the lawsuit as a significant step towards holding Ticketmaster accountable for its role in facilitating ticket price gouging. "This lawsuit is a clear message that companies will be held accountable for prioritizing profits over consumer protection," she said. Current Status: The lawsuit seeks injunctive relief, damages, and civil penalties against Live Nation Entertainment and its Ticketmaster subsidiary. The case is ongoing, with the next hearing scheduled for March 2025. *Reporting by Yro.*