"Ticketmaster Accused of Secret Dealings with Scalpers in Shocking FTC Lawsuit"

Federal Trade Commission Sues Ticketmaster Over Alleged Scalper Collusion The Federal Trade Commission (FTC) and attorneys general from seven states filed an 84-page lawsuit against Live Nation Entertainment and its Ticketmaster subsidiary on Thursday, 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. The FTC claims that Ticketmaster collects fees on initial broker purchases, then from both brokers and consumers on secondary market sales. This alleged collusion between Ticketmaster and ticket brokers artificially inflates prices, making it difficult for consumers to purchase tickets at face value. The lawsuit, which was filed in federal court in California, is the latest development in a broader effort to address ticket price gouging. In March, President Trump signed an executive order requiring federal protection against ticketing practices that harm consumers. FTC Chairman Andrew Ferguson cited this executive order as a key factor in the commission's decision to file the lawsuit. The complaint also highlights recent high-profile cases involving Taylor Swift's tour and Live Nation's market dominance. According to the FTC, Ticketmaster's fee structure allows brokers to purchase thousands of tickets per event, which are then resold at higher prices to consumers. This practice is seen as a major contributor to ticket price inflation. Ticket brokers have long been accused of using tactics such as "bots" and multiple accounts to circumvent purchase limits and acquire large quantities of tickets. However, the FTC's lawsuit alleges that Ticketmaster knowingly allows this behavior to continue, generating hundreds of millions in revenue through its fee structure. The seven states joining the FTC in the lawsuit are New York, California, Florida, Tennessee, Mississippi, Kentucky, and Colorado. The complaint seeks to stop Ticketmaster's alleged collusion with ticket brokers and impose penalties on the company for violating consumer protection laws. In a statement, FTC Chairman Andrew Ferguson said, "We will not tolerate companies that take advantage of consumers by artificially inflating prices through complex fee structures." He added, "The Better Online Ticket Sales Act is clear: online ticket sellers must be transparent about fees and ensure that consumers have access to tickets at face value." Ticketmaster has faced criticism in the past for its role in ticket price inflation. In 2019, the company was accused of using its market dominance to limit competition and drive up prices. The FTC's lawsuit is seen as a major step towards addressing these concerns. The case is currently pending in federal court in California. A spokesperson for Ticketmaster declined to comment on the lawsuit, citing ongoing litigation. In the meantime, consumers are advised to be cautious when purchasing tickets online. According to experts, consumers should carefully review ticket prices and fees before making a purchase, as well as be aware of potential scams involving ticket brokers. The FTC's lawsuit is seen as a major development in the effort to address ticket price gouging. As one expert noted, "This lawsuit sends a clear message that companies will be held accountable for their actions when it comes to consumer protection." This story was compiled from reports by Slashdot and Slashdot.