The Federal Trade Commission (FTC) has formally accused Ticketmaster and its parent company, Live Nation, of engaging in illegal ticket resale practices that allegedly deceive consumers and artists. The FTC claims that Ticketmaster permits ticket brokers to exceed purchase limits and profits from the inflated resale prices. This practice results in customers often paying significantly more than the original ticket price, as these resellers acquire the tickets before fans have the opportunity to purchase them at face value. Additionally, when a ticket is resold through Ticketmaster’s platform, the company receives a share of the resale profit, creating a contentious situation in which it benefits financially from the same ticket multiple times.
The FTC alleges that Ticketmaster leadership is aware of these practices and neglects to take action against ticket brokers, describing this behavior as a company policy. The commission also highlights that Ticketmaster’s pricing advertisements frequently mislead consumers, with actual checkout prices being significantly higher than initially advertised.
With an estimated 80% share of primary ticket sales in the United States, Ticketmaster’s market dominance leaves fans and artists with limited alternatives. Ticketmaster has often cited the challenges associated with combating scalpers as a justification for its practices. However, the FTC has dismissed this rationale, asserting that the company’s conduct ultimately forces consumers to turn to the resale market, where they face steep markups and additional fees.
This ongoing situation sheds light on broader concerns about market fairness and consumer protection in the ticketing industry.
Source: https://www.theverge.com/news/781261/ftc-suing-ticketmaster-antitrust-illegally-coordinating-with-brokers