Are Ticketmaster and Live Nation Facing Legal Trouble Over Resale Practices?

This article explores the recent lawsuit against Ticketmaster and its parent company Live Nation, initiated by US regulators for allegedly engaging in illegal ticket resale practices. The Federal Trade Commission (FTC) claims the companies collaborated with brokers to inflate ticket prices, costing consumers millions. This legal action highlights ongoing concerns about fairness and transparency in ticket sales, particularly in the face of rising prices and monopolistic practices.

Last updated: 12 October 2023 (BST)

Key Takeaways

• The FTC and seven states have filed a lawsuit against Ticketmaster and Live Nation.
• Allegations include illegal coordination with ticket brokers to drive up prices.
• The companies reportedly earned £2.7 billion in resale fees from 2019 to 2024.
• Ticketmaster controls 80% of major concert ticket sales in the US.
• The lawsuit follows previous scrutiny, including a problematic ticket sale for Taylor Swift's tour.

An Overview of the Allegations

The FTC's lawsuit accuses Ticketmaster and Live Nation of violating consumer protection laws by engaging in deceptive ticket resale practices. These companies are alleged to have exploited their dominant market position, facilitating brokers in obtaining tickets in bulk, which are then resold at significantly marked-up prices. This tactic not only inflates costs for consumers but also undermines the integrity of the ticketing process.

The Role of Brokers in Ticket Sales

According to the FTC, Ticketmaster and Live Nation had a "tacit agreement" with ticket brokers, allowing them to bypass ticket purchase limits set by artists. These limits are intended to ensure fair access for genuine fans. The failure to enforce these limits reportedly enabled brokers to acquire tickets unlawfully, which were then resold on the Ticketmaster platform itself.

Financial Implications for Consumers

The financial ramifications of these practices are staggering. Between 2019 and 2024, the companies allegedly profited £2.7 billion from resale fees. This figure highlights the extent to which consumers have been burdened by inflated ticket prices, making it increasingly difficult for average fans to attend live events.

Consumer Protection and Regulatory Actions

The FTC's lawsuit is a significant step in the ongoing battle for consumer rights in the ticketing industry. The agency aims to protect the public from unfair business practices and ensure that ticket prices are transparent and fair. FTC chair Andrew Ferguson stated, "American live entertainment is the best in the world and should be accessible to all of us," emphasising the need for a fairer market.

Historical Context of Ticketmaster's Practices

Ticketmaster's dominance in the ticket sales market has been a point of contention for years. The company controls around 80% of the ticketing for major concerts, which raises concerns over monopolistic behaviours. This legal challenge is not isolated; it follows a series of controversies, including the widely criticized ticket sale for Taylor Swift's Eras Tour, where fans experienced significant difficulties accessing tickets due to website failures.

Legal Actions Against Live Nation

In addition to the FTC lawsuit, Live Nation has faced scrutiny from the US Department of Justice (DOJ). In a separate case, the DOJ accused the company of employing illegal tactics to maintain its monopoly in the live music industry. Former Attorney General Merrick Garland has called for judicial intervention to break up the company, citing its harmful impact on competition and consumer prices.

Implications of the Lawsuit

This latest lawsuit could have far-reaching consequences for Ticketmaster and Live Nation. If successful, it may lead to significant changes in how tickets are sold and resold, potentially increasing transparency and fairness in the industry. Consumers may benefit from lower prices and improved access to tickets, as regulatory scrutiny intensifies.

The Future of Ticket Sales and Live Entertainment

The ticketing landscape is at a crossroads. With growing public concern over rising ticket prices and the monopolistic practices of Ticketmaster and Live Nation, there is a push for reform. The outcome of the FTC's lawsuit could set a precedent for how ticket sales are regulated, affecting not just consumers but also artists and venues across the United States.

What Happens Next?

As the legal proceedings unfold, both Ticketmaster and Live Nation are likely to mount a vigorous defence against the allegations. The companies have previously described similar claims as "absurd," indicating they will contest the FTC's findings. The timeline for resolution remains uncertain, but the legal scrutiny is expected to intensify, potentially leading to a reassessment of ticketing practices in the near future.

Conclusion

The lawsuit against Ticketmaster and Live Nation underscores a growing awareness of consumer rights within the ticketing industry. As the case progresses, it will be crucial to monitor how these developments unfold and whether they lead to meaningful change. With increased scrutiny from regulators, the hope is that live entertainment can become more accessible and affordable for everyone.

FAQs

What are the main allegations against Ticketmaster and Live Nation?

The FTC alleges that Ticketmaster and Live Nation coordinated with brokers to inflate ticket prices through illegal resale practices, violating consumer protection laws.

How much money have Ticketmaster and Live Nation made from resale fees?

It is reported that between 2019 and 2024, Ticketmaster and Live Nation earned approximately £2.7 billion from resale fees.

What actions has the FTC taken against Ticketmaster?

The FTC has filed a lawsuit accusing Ticketmaster of deceptive practices, highlighting its role in facilitating illegal ticket resales and failing to enforce purchase limits.

How does Ticketmaster's market dominance affect consumers?

Ticketmaster's control over 80% of the ticket sales market gives it significant power, which can lead to higher prices and limited options for consumers seeking fair access to tickets.

What could be the potential outcome of the lawsuit?

If the FTC's lawsuit is successful, it could lead to reforms in ticket sales practices, potentially lowering prices and increasing transparency in the industry.