Lawsuit Claims Live Nation And Ticketmaster Teamed With Scalpers To Rake In Millions

Live Nation TicketMaster
Photo credit: rafapress / Depositphotos

Live Nation and Ticketmaster are facing a new legal battle, accused of allowing scalpers to snap up large quantities of tickets only to resell them at steep markups on Ticketmaster’s own resale platforms. The Federal Trade Commission (FTC), joined by seven states, claims the concert promoter and ticketing giant engaged in practices that harm both artists and fans while boosting their profits.

According to the lawsuit, the companies engaged in three main practices: hiding fees until checkout, letting brokers exceed artist-imposed ticket limits, and violating the BOTS (Better Online Ticket Sales) Act. The latter accusation is particularly significant, with the FTC alleging Ticketmaster and Live Nation earned “hundreds of millions of dollars” by allowing scalpers to bypass purchasing rules.

Instead of enforcing ticket limits, the lawsuit contends, the companies “knowingly allow, and even encourage,” brokers to use multiple accounts to grab tickets en masse. These tickets are then listed on Ticketmaster’s resale marketplaces, inflating prices and leaving regular fans struggling to buy tickets at face value.

The FTC also argues this scheme allows Live Nation and Ticketmaster to “triple dip” on fees: first when brokers buy the tickets, again when they relist them, and finally when consumers purchase the resold tickets.

FTC Chairman Andrew N. Ferguson referenced an executive order from President Donald Trump requiring the agency to ensure ticket resellers comply with competition laws and the BOTS Act. Ferguson said the order is designed to “protect Americans from being ripped off” and make live entertainment more accessible.

This lawsuit adds to Live Nation’s ongoing federal troubles, including a major antitrust case filed by prosecutors in May 2024. The suit also highlights longstanding internal practices at Ticketmaster, citing documents that show the company intentionally hid fees from ticket listings, even after tests indicated that transparent pricing could reduce sales.

The complaint further claims that Ticketmaster has long been aware of brokers who create hundreds or thousands of accounts to bypass ticket limits, with internal communications from 2018 suggesting the company often chose to “turn a blind eye” to such activity.

The FTC’s legal action signals a renewed effort to hold Live Nation and Ticketmaster accountable, aiming to ensure fair access to tickets and curb the influence of scalpers in the live entertainment market.