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Live Nation Addresses FTC Lawsuit Over Ticketmaster

Scalper Collusion and Hidden Fee Allegations

by Nadia Khan
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Last month, the Federal Trade Commission (FTC), along with seven states, filed a lawsuit against Live Nation Entertainment and its ticketing arm Ticketmaster LLC. The suit alleges that Ticketmaster and Live Nation knowingly allowed large-scale ticket brokers (scalpers) to pick up a large number of tickets using multiple accounts, circumventing posted purchase limits, and then resell those tickets at steep mark-ups. 


It also alleges deceptive pricing practices: advertising relatively low ticket prices but piling hidden fees (up to 44%) at checkout, and not being transparent about the total cost until very late in the process.

 

What the lawsuit entails

The lawsuit alleges Ticketmaster “tacitly coordinated with brokers and allowed them to harvest millions of dollars worth of tickets in the primary market.” The complaint states Ticketmaster and Live Nation then sold the illegally harvested tickets at substantial mark-ups in the secondary market, raising costs for consumers far above face value.

The complaint says Ticketmaster claimed to enforce strict purchase limits, but brokers often violated those limits and the company “turn[ed] a blind eye as a matter of policy.” An example in the complaint mentioned five large brokers controlling 6,345 Ticketmaster accounts and holding 246,407 concert tickets across 2,594 events. 

The FTC alleges deceptive pricing as mandatory fees were hidden until checkout. These hidden fees reached up to 44% of the ticket cost and racked up to $16.4 billion from 2019-2024. The practices are alleged to violate the FTC Act (prohibiting deceptive acts or practices) and the Better Online Ticket Sales Act (BOTS Act). 

 

Live Nation’s response

According to Forbes.com, in a letter sent to Senators Marsha Blackburn (R-Tenn.) and Ben Ray Luján (D-N.M.), Live Nation’s executive vice-president for regulatory affairs, Daniel M. Wall, addressed the allegations made by the FTC and states, and outlined changes that Ticketmaster will implement. According to the reporting:

  • Wall described the FTC’s allegations as a “distorted view of the facts and the law.”
  • Ticketmaster said it will limit users and ticket brokers to only one account, enforce that through taxpayer-ID or Social Security number verification, and deploy AI-powered screening to cancel suspected scalper accounts.
  • The company also said it would shut down its resale‐vendor tool “TradeDesk” (or at least its concert ticket function), although Wall denied the tool was helping scalpers, he said it would be retired to avoid reputational harm.
  • Ticketmaster asserted that resale listings account for only about 3% of Live Nation’s revenue, as part of the company’s effort to dispute the idea that it colluded with scalpers.
  • The letter also stated that the company will enforce its resale limits more strictly, so brokers will no longer be allowed to exceed the limits set by the platform.

 

Why this matters

From ravers to concert attendees, the lawsuit has implications for live music fans trying to secure tickets to shows and festivals. Hidden fees have long frustrated fans and made budgeting for live events more difficult. Consumers want a fair shot at securing tickets without being forced into the resale market. The case also highlights the challenges artists and promoters face when ticketing limits are bypassed, potentially affecting smaller shows and fan access.

When tickets are funneled to brokers rather than fans, performers lose the chance to connect with their community directly. Every ticket sold at inflated resale prices often means fans miss out on the shared experiences that make live music culture so special, and artists see less of the value from their work reaching the people who truly support them.

Ticketmaster’s response to the lawsuit mentioned plans to limit users and ticket brokers to a single account, verified through taxpayer ID or Social Security numbers, with AI-powered screening to cancel suspected scalper accounts. While this could help curb scalping and give fans a fairer shot at tickets, it also raises questions about privacy and how much sensitive personal information consumers will be required to share. 

At its core, the lawsuit raises questions about fairness, transparency, and how ticketing practices impact fans, artists, and the broader live music community.

 

What’s next

The case is expected to move through the courts over the coming months, and fans, artists, and industry watchers are all waiting to see whether the FTC can enforce changes at Ticketmaster and Live Nation. In the meantime, the company has announced steps such as limiting users and brokers to one account, implementing AI-powered screenings for scalpers, and shutting down its TradeDesk resale tool. While these moves aim to address some of the FTC’s concerns, it remains unclear how quickly they will be fully implemented or whether they will meaningfully improve ticket access for fans. Regulators and the public will be watching closely to see if these changes translate into fairer pricing and a more transparent ticketing process.

 

 

Do you think Ticketmaster’s changes will improve access to tickets, or are fans still at a disadvantage? What other measures could make a real difference for live events? How have you been affected by ticketing hurdles? Let us know!

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