FTC Sues Ticketmaster and Live Nation Over Unfair Practices

The Federal Trade Commission (FTC) and seven states have filed a lawsuit against Ticketmaster and Live Nation, alleging the companies engaged in deceptive practices that allowed scalpers to circumvent ticket purchasing limits and resell at inflated prices.

Filed in federal court in California, the lawsuit claims Ticketmaster and Live Nation worked directly with ticket brokers in the secondary market, enabling them to purchase beyond advertised limits through multiple accounts (as per Variety). The FTC alleges this system allowed scalpers to acquire tickets and resell them at steep markups far above face value, while the companies profited from each transaction.

The complaint specifically targets what the FTC describes as a “bait-and-switch” pricing strategy, where Ticketmaster advertises lower ticket prices before adding mandatory fees during checkout. “Defendants have reaped massive profits by misrepresenting the total price of tickets to consumers, who pay billions of dollars each year in mandatory fees not reflected in the list price,” the complaint states.

Despite Ticketmaster’s public claims supporting “all-in pricing” where “the first price the consumer sees is the price the consumer pays,” the FTC argues the company continues to engage in deceptive pricing practices that mislead consumers about the true cost of tickets.

The National Independent Venue Association and National Independent Talent Organization, both representing independent entities in the touring industry, praised the legal action. NIVA executive director Steven Parker stated: “Today’s lawsuit has given credibility to what fans, artists, and independent stages have believed for years: Live Nation and Ticketmaster exploit their dominance not just in concert promotion and primary ticketing, but in the resale market as well.”

The FTC alleges violations of the Better Online Ticket Sales Act, claiming Live Nation and Ticketmaster “give purchasing consumers no choice” while enabling scalpers to game the system. The lawsuit follows a similar Department of Justice action filed last year and comes after the FTC sued ticket resale company Key Investment Group in August for using illegal methods to secure and resell tickets for events including Taylor Swift’s ‘Eras’ tour.