The Federal Trade Commission (FTC) has taken severe legal action against Live Nation Entertainment and its subsidiary Ticketmaster.
FTC and seven state attorneys general have filed a lawsuit alleging the company has systematically deceived consumers and violated federal law.
On September 17, the US District Court filed a lawsuit that consisted of two major accusations.
The first one employs a “bait-and-switch” scheme, while the other is a violation of the 2016 BOTS Act.
Via employing a bait-and-switch scheme, Ticketmaster advertised low ticket prices and then added additional hidden mandatory fees that surged the total amount by 30% increase.
While, 2016 BOTS Act was violated by helping professional brokers.
In the complaint, it is stated that the company aids brokers in employing automated bots to circumvent purchase limits. This enables them to buy thousands of tickets for high-demand events.
These tickets were then resold at much higher prices on Ticketmaster’s own secondary market.
According to FTC estimations, the alleged tactics helped the company to generate a staggering $3.7 billion in resale fees for Ticketmaster from 2019 to 2024.
FTC Chairman Andrew N. Ferguson stated in an official statement: “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.”
Live Nation refuted the claims, saying that it will vigorously defend.
The new FTC suit adds to the already existing legal woes of the company, which already faces a similar antitrust case filed in 2024 by the Department of Justice that aims at dismantling its perceived monopoly on the live events business.