The U.S. consumer protection agency (FTC) announced on Thursday that it was taking legal action against Ticketmaster - the ticketing giant for shows and sporting events - and its parent company Live Nation Entertainment. It accuses them of "illegal resale tactics".
Illegal resale tactics
The federal agency and seven US states are taking legal action against both companies, accusing them of looking the other way when resellers create multiple accounts to buy far more than the possible limit of tickets per consumer. These resellers, using thousands of fake accounts, then resell the tickets at much higher prices.
Technological support for resellers
The FTC even claimed that internal documents indicate that Ticketmaster even provided technological support to these resellers through a platform called TradeDesk, which facilitates the resale of tickets.
Entertainment "should be accessible to everyone"
Entertainment "should be accessible to everyone. Taking your family to a baseball game shouldn't cost an arm and a leg," denounced FTC Chairman Andrew Ferguson in a statement. Ferguson also pointed to the executive order signed in March by U.S. President Donald Trump to protect consumers from ticket price gouging.
Denounced pricing practices
The FTC also denounced TicketMaster's pricing practices. In fact, the company - which holds a monopoly on around 80% of ticketing for major concert venues in the U.S. - advertises prices well below the final cost of tickets.
44% surcharge
In fact, TicketMaster's additional fees can reach up to 44% of the price of a ticket. Thanks to this tactic, the company would have pocketed $16.4 billion between 2019 and 2024, reports the FTC.
Anti-competitive practices
Live Nation had already been sued by the US Department of Justice in May 2024 for anti-competitive practices. At the time, the Biden administration said it wanted to force the separation of Live Nation and its subsidiary Ticketmaster.
A survey conducted by England and the European Union
Ticketmaster is also in the crosshairs of the UK and the European Union. The two countries have even opened an investigation into the company following its chaotic sale of tickets for the Oasis tour this summer.