Live Nation and Ticketmaster Sued by the FTC
Overview of the Lawsuit
Live Nation and its ticketing subsidiary, Ticketmaster, are facing legal action from the United States Federal Trade Commission (FTC). The lawsuit, disclosed by the FTC on September 18, focuses on practices that involve purchasing large quantities of tickets for events and subsequently reselling them at inflated prices.
Allegations Against Live Nation and Ticketmaster
The FTC alleges that Live Nation and Ticketmaster are “tacitly coordinating with brokers” who exploit the primary market to acquire millions of dollars worth of tickets. This coordination appears to facilitate a system where ticket scalpers can dominate the market, leaving average consumers with limited access to reasonably priced tickets.
In addition to these claims, the FTC points out that despite Ticketmaster implementing security measures to curb ticket resales, the problem persists. The lawsuit further alleges that both companies have misled artists and consumers through bait-and-switch pricing tactics, advertising lower ticket prices while failing to disclose additional fees that significantly raise the total cost.
Previous Scrutiny of Live Nation and Ticketmaster
This lawsuit is not the first instance of federal scrutiny directed at Live Nation and Ticketmaster. Reports indicate that Ticketmaster came under intense criticism during a ticket sale for Taylor Swift’s Eras Tour, which was overwhelmed by a surge of requests from fans, bots, and resellers, ultimately leading to the cancellation of a planned public sale.
Moreover, the Department of Justice has previously attempted to separate Ticketmaster from Live Nation in a lawsuit last year, accusing the two entities of monopolizing the live event ticketing industry. The ongoing scrutiny highlights a growing concern over the power and practices of these companies within the market.
Conclusion
The lawsuit filed by the FTC against Live Nation and Ticketmaster underscores the ongoing challenges and controversies surrounding ticket sales in the live entertainment industry. As consumers and artists alike voice their frustrations over ticket pricing practices, the outcome of this legal action may have significant implications for the future of ticketing and live events.
FAQs
What is the main issue in the lawsuit against Live Nation and Ticketmaster?
The lawsuit centers on allegations that Live Nation and Ticketmaster are coordinating with brokers to acquire large quantities of tickets and resell them at inflated prices, while also misleading consumers with bait-and-switch pricing tactics.
Have Live Nation and Ticketmaster faced legal issues before?
Yes, both companies have faced federal scrutiny in the past, including a lawsuit from the Department of Justice aimed at separating Ticketmaster from Live Nation due to concerns over monopolistic practices in the ticketing industry.
What actions have Ticketmaster taken to prevent ticket resales?
Ticketmaster claims to have implemented security measures to stop ticket resales, but the FTC alleges that these measures have not been effective in curbing the issue.
How have consumers reacted to Ticketmaster’s pricing practices?
Consumer frustration has been mounting over the lack of transparency in ticket pricing, with many feeling misled by the additional fees that are not disclosed upfront during the purchasing process.
