Live Nation and Ticketmaster are seeking to have a lawsuit filed by the Federal Trade Commission (FTC) dismissed, arguing that the claims regarding ticket pricing practices represent an overreach of federal authority. The FTC’s lawsuit, initiated in September 2023, accuses the companies of engaging in “unfair and deceptive practices” that have allowed scalpers to inflate ticket prices significantly, particularly in the wake of a resurgence in live events following the COVID-19 pandemic.
In a motion submitted to a federal court on October 3, 2023, Live Nation and Ticketmaster characterized the FTC’s legal action as “unprecedented.” They assert that the agency’s interpretation of the Better Online Ticket Sales Act (BOTS Act), a law enacted in 2016 aimed at preventing ticket scalping, is being misapplied. The companies argue that the law was designed to empower ticket issuers to combat ticket harvesting, not to target them for operating resale platforms.
The FTC claims that Live Nation and Ticketmaster have tacitly coordinated with ticket brokers, enabling them to buy and resell tickets at inflated prices. As a result, consumers have been adversely affected, leading to claims that the companies have cost fans billions in excessive ticket prices. The rising costs have become a significant concern for concertgoers, especially with notable events such as Taylor Swift’s Eras Tour, where tickets commanded five-figure sums in the resale market.
According to FTC Chairman Andrew N. Ferguson, “American live entertainment is the best in the world and should be accessible to all of us.” He emphasized that it should not be prohibitively expensive for families to attend events like baseball games or concerts.
In their legal filings, Live Nation and Ticketmaster’s attorneys argue that the BOTS Act does not apply to them in the way the FTC suggests. They contend that the act targets scalpers directly and does not impose liability on ticket issuers for brokers’ actions. The lawyers state, “Plaintiffs’ theory boils down to the idea that Ticketmaster is liable under the BOTS Act merely for knowing that some brokers used multiple accounts.”
The motion further challenges additional claims made by the FTC, including allegations of “bait-and-switch pricing” practices. Live Nation and Ticketmaster argue that their current pricing model employs “all-in pricing,” which transparently includes fees upfront, addressing previous consumer complaints.
Despite their strong position against the lawsuit, Live Nation has announced several policy changes in response to the scrutiny from the FTC. The company has stated that it will implement measures to prevent brokers from operating multiple accounts on its platform, discontinue a controversial ticket uploading application, and require brokers to provide Social Security numbers for ticket sales.
As this legal battle unfolds, the outcome may have significant implications not only for Live Nation and Ticketmaster but also for the broader landscape of ticket sales and consumer rights in the live entertainment industry.
