Home MusicFTC Sues Ticketmaster and Live Nation Over Alleged Illegal Ticket Resale Tactics

FTC Sues Ticketmaster and Live Nation Over Alleged Illegal Ticket Resale Tactics

by Mick Lite
0 comments Buy Author Cup Of Coffee

On September 18, 2025, the U.S. Federal Trade Commission (FTC), joined by seven states, filed a lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, accusing them of engaging in illegal ticket resale practices that have cost consumers billions. The lawsuit, filed in federal court in California, alleges that the companies have been complicit in allowing ticket brokers and scalpers to bypass ticket purchasing limits, driving up prices for fans and deceiving both consumers and artists.

The FTC claims that Ticketmaster and Live Nation have been “tacitly coordinating” with ticket brokers, enabling them to harvest millions of dollars’ worth of tickets in the primary market by circumventing security measures and exceeding artist-set ticket limits. These tickets are then resold at significant markups on Ticketmaster’s secondary marketplace, generating substantial profits for both the brokers and the company. According to the FTC, Ticketmaster reaped $3.7 billion in resale fees and $16.4 billion in hidden fees from 2019 to 2024, with total consumer spending on the platform reaching $82.6 billion during this period.

The lawsuit highlights several specific practices deemed unlawful:

  • Bait-and-Switch Pricing: Ticketmaster is accused of advertising lower ticket prices while adding mandatory fees—sometimes as high as 44% of the ticket cost—at checkout, a practice described internally as “sucks” by a senior executive. This deceptive pricing strategy has misled consumers about the true cost of tickets.

  • Ignoring Ticket Limits: Despite publicly stating strict ticket purchase limits, Ticketmaster allegedly allowed brokers to use thousands of fake accounts, proxy IP addresses, and other tactics to buy tickets in bulk. One internal review found five brokers controlled 6,345 Ticketmaster accounts, accumulating 246,407 tickets for 2,594 events.

  • Supporting Scalpers: The FTC cites internal documents, including an email from a Ticketmaster executive stating the company “turns a blind eye as a matter of policy” to brokers violating ticket limits. The agency also alleges that Ticketmaster provided technical support to brokers through its TradeDesk software, facilitating bulk ticket purchases for resale.

These practices are said to violate the Better Online Ticket Sales (BOTS) Act, a 2016 law signed by President Barack Obama and reinforced by an executive order from President Donald Trump in March 2025, which prohibits the use of bots to circumvent ticket-buying limits. The FTC argues that Ticketmaster’s failure to enforce these limits has led to fans paying significantly more than face value for tickets to concerts, sports events, and other live entertainment.

Ticketmaster controls approximately 80% of primary ticketing for major concert venues in the United States, giving it significant influence over the live entertainment industry. The FTC lawsuit follows years of scrutiny over the company’s practices, including a 2024 Department of Justice lawsuit accusing Live Nation and Ticketmaster of monopolizing the live events market, which allegedly stifles competition and inflates prices.

The current lawsuit also comes amid heightened public and regulatory frustration, particularly after high-profile ticketing controversies, such as the 2022 Taylor Swift “Eras Tour” ticket sale debacle, where bots and brokers scooped up tickets, leaving many fans empty-handed or facing exorbitant resale prices. Additionally, Ticketmaster is under investigation in the United Kingdom for its use of dynamic pricing during Oasis reunion concert ticket sales, further spotlighting its pricing practices.

The lawsuit is supported by attorneys general from seven states: Virginia, Colorado, Florida, Illinois, Nebraska, Tennessee, and Utah. Virginia Attorney General Jason Miyares emphasized that Ticketmaster’s practices have driven up ticket prices for consumers, stating, “All too often, those tickets are snatched up by bots and brokers for resale, forcing Virginians to pay substantially higher prices for the entertainment they love.” Tennessee’s Attorney General Jonathan Skrmetti also highlighted violations of the Tennessee Consumer Protection Act, noting that Ticketmaster misrepresented the enforcement of ticket limits.

The FTC and states argue that these practices harm not only consumers but also artists, who are misled about ticket availability and pricing. The lawsuit seeks civil penalties, monetary relief, and a permanent injunction to force Ticketmaster to change its practices, potentially including stricter enforcement of purchase limits and more transparent pricing.

The National Independent Venue Association (NIVA) and National Independent Talent Organization (NITO) have applauded the FTC’s actions, seeing it as a step toward addressing long-standing issues in the ticketing industry. Public sentiment has been critical of Ticketmaster’s practices, with users expressing frustration over high fees and dynamic pricing models that can result in vastly different prices for the same event.

Live Nation’s stock fell 3% following the lawsuit’s announcement, signaling market concerns about potential fines and operational changes. Representatives for Ticketmaster and Live Nation have not yet publicly responded to the lawsuit, though the company previously claimed to block over 200 million bots daily and expressed willingness to work with the FTC to improve industry practices.

The FTC’s lawsuit could have far-reaching implications for the ticketing industry. If successful, it may lead to stricter regulations on ticket sales, enhanced anti-bot measures, and greater transparency in pricing. FTC Chairman Andrew Ferguson emphasized the agency’s commitment, stating, “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.”

As the case progresses, it will likely fuel ongoing debates about Ticketmaster’s dominance and the fairness of the live events market, with potential outcomes that could reshape how fans access and pay for tickets.

You may also like

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?