FTC sues Live Nation, Ticketmaster Over Deceptive Ticketing
The Federal Trade Commission (FTC) and seven state attorneys general, have filed a landmark lawsuit against Live Nation Entertainment and its subsidiary Ticketmaster, alleging widespread misconduct in the live events ticketing industry.
At the heart of the case is the charge that Ticketmaster has been “tacitly coordinating with brokers and allowing them to harvest millions of dollars worth of tickets in the primary market,” according to the FTC. “Live Nation and Ticketmaster then sell the illegally harvested tickets at a substantial markup in the secondary market, causing consumers to pay significantly more than the face value of the ticket.”
The lawsuit, filed in the U.S. District Court for the Central District of California, seeks civil penalties and monetary relief for consumers. It alleges violations of both the FTC Act and the Better Online Ticket Sales (BOTS) Act.
[ALSO READ: Industry responds to FTC suing Live Nation and Ticketmaster]
Alleged Deception and Bait-and-Switch Pricing
According to the FTC’s complaint, Ticketmaster misled both artists and consumers in multiple ways, including:
- Bait-and-switch pricing: Advertising tickets at deceptively low prices that ballooned once hidden fees were added at checkout.
- Illusory ticket limits: Claiming strict purchasing caps while brokers routinely exceeded those limits with impunity.
- Profiting from broker sales: Selling millions of tickets – often at higher cost – on its own resale platform that were obtained by brokers in violation of supposed limits.
From 2019 to 2024 alone, Ticketmaster collected $16.4 billion in fees, some reaching as high as 44% of a ticket’s face value. Internal company research even showed that consumers were less likely to buy tickets if upfront prices included all fees – yet Ticketmaster continued to obscure the true cost, according to the FTC.
Industry Dominance and Broker Collusion
Some estimates show that Ticketmaster controls up to 80% of the primary ticketing for the largest concert venues The company has also has steadily expanded its resale business. The FTC alleges that, despite its public claims, Ticketmaster privately admitted it profits when brokers prevent everyday fans from getting tickets at artist-set prices.
Key findings in the complaint include:
- Brokers use thousands of fake Ticketmaster accounts and proxy servers to evade purchase limits.
- A mere five brokers controlled more than 6,000 accounts and nearly 250,000 tickets across 2,594 events.
- Ticketmaster provides brokers with TradeDesk software and app, an “inventory management tool” that streamlines high-volume resale activity while making it easy for Ticketmaster to identify which brokers are breaking the rules.
- Company executives acknowledged that they “turn a blind eye as a matter of policy,” and even declined more effective anti-bot measures because they would cut into revenue.
“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 favorite musician’s show.,” said FTC Chairman Andrew N. Ferguson.
The Attorneys General of Virginia, Utah, Florida, Tennessee, Nebraska, Illinois, and Colorado joined the FTC in the action.
What Comes Next
The Commission stressed that the filing of a complaint does not mean guilt has been proven. The case will now be decided in court, where Live Nation and Ticketmaster will have the opportunity to respond to the allegations.
But the lawsuit sends a strong message: the U.S. government is ramping up its efforts to protect consumers from opaque pricing and unfair practices in live event ticketing.
With consumers spending more than $82.6 billion on Ticketmaster tickets between 2019 and 2024, the outcome could reshape how Americans access their favorite concerts, sports, and live shows.
Hypebot will publish Live Nation’s response when it becomes available.
Bruce Houghton
ALSO READ: Industry responds to FTC suing Live Nation and Ticketmaster
“FTC sues Live Nation, Ticketmaster Over Deceptive Ticketing” first appeared on Hypebot.com
