FTC Alleges Ticketmaster Raked in Billions from Illegal Resale Tactics, Files Major Lawsuit

The Federal Trade Commission (FTC) and seven states filed a significant lawsuit on Thursday against Ticketmaster and its parent company, Live Nation Entertainment, accusing the entertainment giant of engaging in illegal ticket resale tactics that generated billions in revenue. The complaint, lodged in the U.S. District Court for the Central District of California, alleges that Ticketmaster knowingly collaborated with scalpers to circumvent ticket purchase limits, leading to inflated prices for fans and artists. "Our investigation suggests that was false and that they were helping scalpers circumvent those rules and ripping off artists and fans," stated FTC Chairman Andrew Ferguson in a social media post regarding the filing.

The lawsuit details several deceptive practices, including a "bait and switch" approach where Ticketmaster advertised lower prices that significantly increased with hidden fees during checkout. Furthermore, the FTC claims Ticketmaster actively encouraged brokers to use multiple accounts to bypass security measures and exceed ticket limits, violating the Better Online Ticket Sales (BOTS) Act. This alleged coordination allowed Ticketmaster to "triple dip" on fees, profiting from initial sales to brokers, subsequent listings on its secondary market, and final purchases by consumers.

From 2019 to 2024, the FTC estimates Ticketmaster collected approximately $3.7 billion in fees from resold tickets. The complaint highlights instances such as a single broker purchasing over 9,000 tickets for a Beyoncé concert, with Ticketmaster then reselling more than 2,500 of them. The agency asserts that Ticketmaster controls roughly 80% of primary ticketing for major concert venues, giving it substantial market power.

This legal action follows increasing scrutiny of Live Nation and Ticketmaster, including a 2024 antitrust lawsuit filed by the Department of Justice and 30 states aiming to break up the company's alleged monopoly. Public outcry over issues like the 2022 Taylor Swift "Eras Tour" ticket debacle also prompted congressional hearings and a March executive order from President Donald Trump, directing the FTC to enforce competition laws in the live entertainment sector. Live Nation and Ticketmaster have not yet issued an immediate response to the latest lawsuit.