FTC Launches Legal Action Against Ticketmaster and Live Nation Over Ticket Resale Allegations
The U.S. Federal Trade Commission (FTC) filed a lawsuit on Thursday against Ticketmaster and its parent company, Live Nation Entertainment, accusing the companies of engaging in illegal ticket resale practices. The suit, lodged in federal court in California, is joined by seven states, including Florida, Illinois, and Virginia.
The FTC alleges that Ticketmaster and Live Nation “tacitly worked” with scalpers to unlawfully purchase tickets, artificially inflating prices and undermining artists’ efforts to keep events affordable for average consumers. According to the complaint, these practices cost fans millions annually.
Allegations of Price Manipulation and Regulatory Violations
The lawsuit accuses Ticketmaster of employing a “bait and switch” tactic that misleads consumers by altering advertised ticket prices, effectively increasing total costs. Additionally, the company is said to allow brokers to exceed ticket purchase limits intentionally for resale purposes, violating the Better Online Ticket Sales Act.
The FTC further claims that Ticketmaster engages in what it terms “triple dipping,” collecting fees multiple times: from brokers on the primary market, brokers on the secondary market, and consumers purchasing tickets on the secondary market. Between 2019 and 2024, Ticketmaster reportedly facilitated $3.7 billion in resold tickets.
Impact on Consumers and Artists
FTC Chairman Andrew Ferguson emphasized the need for an injunction to halt these practices, stating on CNBC’s “Closing Bell Overtime” that Ticketmaster should no longer exploit ordinary American consumers or enable brokers to reap excessive profits.
Ferguson also noted the FTC’s alignment with President Donald Trump’s agenda in pursuing consumer protection enforcement.
With an estimated 80% control over ticketing at major concert venues, Ticketmaster processed over $82 billion in ticket sales from 2019 to 2024, illustrating its dominant market position.
Market Reaction and Broader Scrutiny
Following the lawsuit announcement, Live Nation’s shares declined by roughly 2%. The company has yet to respond publicly to the allegations.
Separately, Ticketmaster faces investigation in the U.K. over its use of dynamic pricing for reunion concerts by the Britpop band Oasis, a pricing strategy that adjusts ticket costs based on market demand.
This lawsuit follows a 2024 Justice Department antitrust case aimed at breaking up Live Nation and Ticketmaster due to their dominant market share. The DOJ’s earlier probe was triggered by widespread criticism over Ticketmaster’s handling of ticket sales for Taylor Swift’s Eras Tour in 2022.
FinOracleAI — Market View
The FTC’s lawsuit against Ticketmaster and Live Nation introduces significant regulatory pressure on a dominant player in the live event ticketing market. The allegations of collusion with scalpers, price manipulation, and multiple fee collections pose risks to the companies’ business model and revenue streams. Investor sentiment has already shown negative reactions, as reflected in the share price decline. Market participants should monitor ongoing legal developments and potential regulatory actions that could reshape ticketing industry practices or lead to structural changes in Live Nation’s operations.
Impact: negative
