FTC Sues Ticketmaster, Live Nation Over ‘Illegal’ Ticket Resale Tactics: Report

The U.S. Federal Trade Commission (FTC) reportedly sued Ticketmaster and Live Nation Entertainment (LYV) regarding tactics related to “illegal” ticket resale.

According to a CNBC report, a lawsuit was filed in California’s federal court, and seven states joined the complaint, including Florida, Illinois, and Virginia.

The report added that the FTC wrote in the filing that these companies “tacitly worked” with scalpers, which allowed them to “unlawfully purchase” tickets and help in boosting their profits.

″[Ticketmaster and Live Nation’s] illegal conduct frustrates artists’ desire to maintain affordable ticket prices that fit the needs of ordinary American families, costing ordinary fans millions of dollars every year,” the lawsuit stated, according to CNBC.

Retail sentiment on Live Nation dipped to ‘neutral’ from ‘bullish’ territory a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. Shares of the company were down nearly 3% during midday trading.

The report added that the FTC’s lawsuit alleges Ticketmaster employs a “bait and switch” strategy, which allows it to alter the company’s advertising of ticket prices only to inflate the final cost. It also claims that the company knowingly permits brokers to exceed ticket limits for resale, violating the Better Online Ticket Sales Act.

CNBC reported that the FTC alleged Ticketmaster was involved in “triple dipping” by charging fees at multiple stages, collecting fees from brokers in both the primary and secondary markets, as well as from consumers in the secondary market. The report, citing the FTC, said that the company generated $3.7 billion from resold tickets between 2019 and 2024.

The report added that according to the FTC, Ticketmaster manages about 80% of major concert venues, and that between 2019 and 2024, consumers spent over $82 billion on tickets through the platform.

Shares of Live Nation have gained 27% this year and jumped nearly 58% in the last 12 months. 

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