Ticketmaster and Live Nation accused of utilizing bots and concealing service charges by FTC legal action
The Federal Trade Commission (FTC) and seven state attorneys general have taken legal action against Live Nation Entertainment and its subsidiary Ticketmaster. The lawsuit, filed on September 17, 2021, in the US District Court, accuses the companies of manipulating the ticket market and engaging in misleading pricing tactics, costing consumers billions of dollars.
The lawsuit alleges that Ticketmaster's practices may be in violation of the 2016 BOTS Act, a law that prohibits ticket sellers from using certain practices that disadvantage competing ticket sellers. One of the accusations is that Ticketmaster employs a 'bait-and-switch' scheme, where advertised low ticket prices are followed by additional hidden mandatory fees that surge the total amount by 30%.
Another accusation is that Ticketmaster has systematically deceived consumers and violated federal law. The complaint alleges that Ticketmaster aids brokers in using automated bots to bypass purchase limits for high-demand events, thereby allowing these tickets to be resold at higher prices on Ticketmaster's secondary market. The lawsuit further alleges that Ticketmaster helped professional brokers, which may also be in violation of the BOTS Act.
The FTC estimates that the alleged tactics generated $3.7 billion in resale fees for Ticketmaster from 2019 to 2024. FTC Chairman Andrew N. Ferguson stated that American live entertainment should be accessible to all, not just those who can afford high prices.
Live Nation, in response, has stated that it will vigorously defend against the new FTC suit. The company faces an additional legal issue, as it already faces an antitrust case filed by the Department of Justice in 2024, aiming at dismantling Live Nation's perceived monopoly on the live events business.
This is not the first time Ticketmaster has faced legal issues. In 2013, the company settled a class-action lawsuit over ticket sales for Bruce Springsteen and the E Street Band concerts. The settlement provided $7.5 million in cash to ticket buyers and $4.5 million in Ticketmaster vouchers.
As the case unfolds, consumers and the live entertainment industry will closely watch the developments, hoping for a fair and transparent ticketing market.
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