Ticketmaster accused by FTC of conspiring with brokers to buy concert tickets at face price, get a kickback at higher resale | Fortune

"The FTC said Live Nation and its subsidiary, Ticketmaster, have deceived artists and consumers by advertising lower ticket prices than what consumers must pay and falsely claiming to impose strict limits on the number of tickets consumers can buy for an event. In reality, the FTC said, Ticketmaster coordinates with ticket brokers who bypass those ticket limits. The FTC said brokers use fake accounts to buy up millions of dollars worth of tickets and then sell them at a substantial markup on Ticketmaster's platform."

"Ticketmaster controls 80% or more of major U.S. concert venues' primary ticketing, according to the FTC. Consumers spent more than $82.6 billion buying tickets from Ticketmaster between 2019 and 2024, the agency added. "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," FTC Chairman Andrew Ferguson said in a statement."

"The lawsuit was filed in the U.S. District Court for the Central District of California. Joining the lawsuit were the attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah and Virginia. Ticketmaster has been in lawmakers' sights since 2022, when it spectacularly botched ticket sales for Taylor Swift's Eras Tour. The company's site was overwhelmed by fans and attacks from brokers' bots, which were scooping up tickets to sell on secondary sites. Senators grilled Live Nation in a 2023 hearing."

The Federal Trade Commission and several state attorneys general sued Live Nation and Ticketmaster, alleging deceptive practices that increase consumer costs for live events. The FTC alleges Ticketmaster advertised lower ticket prices while falsely imposing purchase limits and coordinating with brokers who bypass those limits. Brokers allegedly use fake accounts to buy tickets and resell them at large markups on Ticketmaster's platform, generating additional fees for the company. Ticketmaster reportedly controls more than 80% of primary ticketing at major U.S. concert venues, and consumers spent over $82.6 billion on Ticketmaster from 2019 to 2024. The lawsuit was filed in federal court in California and is joined by seven state attorneys general.

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