(NEXSTAR) – The Federal Trade Commission (FTC), along with attorneys general from seven states, has initiated a lawsuit against Ticketmaster and its parent company, accusing them of gaining profits through fees while ignoring illegal resale practices.
The lawsuit alleges that Ticketmaster, based in California, and its parent company, Live Nation, misled both artists and fans by advertising low ticket prices and claiming strict purchase limits. “Despite these claims, ticket brokers frequently and significantly exceeded those limits,” the suit claims. As a result, consumers had to buy tickets on Ticketmaster’s resale platform at “a much higher price.”
According to the FTC, an internal investigation revealed that just five brokers managed 6,345 Ticketmaster accounts, possessing 246,407 concert tickets for 2,594 events.
The legal action also claims that from 2019 to 2024, Ticketmaster concealed necessary fees that could reach up to 44% of the ticket price “until the transaction’s conclusion, and still did not clearly disclose the additional charges before consumers completed their ticket purchase.” The FTC states that these fees amounted to $16.4 billion during those years.
“American live entertainment is unmatched globally and should be within reach for everyone,” stated FTC Chairman Andrew N. Ferguson in a press release. “It shouldn’t cost a fortune to take your family to a baseball game or attend a concert by your favorite artist.”
Attorneys general from Virginia, Colorado, Florida, Illinois, Nebraska, Tennessee, and Utah have joined the FTC in filing this lawsuit under the Better Online Ticket Sales Act.
Ticketmaster has been in lawmakers’ sights since 2022, when it spectacularly botched ticket sales for Taylor Swift’s Eras Tour. The company’s site was overwhelmed by fans and attacks from brokers’ bots, which were scooping up tickets to sell on secondary sites. Senators grilled Live Nation in a 2023 hearing.
Ticketmaster’s dominance over the industry – the FTC says the company controls 80% of the primary ticket market for major concerts – and its practices have been targeted by both the Biden and Trump administrations.
In March, President Trump was joined by Kid Rock, wearing dark sunglasses and a red, white and blue suit, for the signing of an executive order to crack down on ticket overcharging. The order also directed the FTC to “take enforcement action to prevent unfair, deceptive, and anti-competitive conduct in the secondary ticketing market.”
In August, the FTC sued Maryland-based ticket broker Key Investment Group use, alleging it has used thousands of fictitious Ticketmaster accounts and other methods to buy tickets for events, including Swift’s tour.
Between 2019 and 2024, Americans spent over $82.6 billion on tickets from Ticketmaster, according to the FTC.
Nexstar reached out to Ticketmaster for comment, but did not immediately receive a response.
The Associated Press contributed to this report.
