Government authorities in the U.S. have filed a lawsuit against Ticketmaster and Live Nation, alleging deceptive practices in the resale of concert tickets.
In a significant turn of events, the Federal Trade Commission (FTC) and seven US states have accused Ticketmaster and its parent company, Live Nation, of breaking consumer protection laws and using illegal methods in concert ticket sales. The FTC alleges that these practices have earned billions of dollars in resale fees between 2019 and 2024.
The FTC's allegations come amidst a series of controversies surrounding Ticketmaster's high ticket prices and questionable sales practices in recent years. The company, which dominates the live music market, has faced criticism for its role in the resale of tickets, particularly in light of the Oasis reunion tour and Taylor Swift's 'Eras Tour'.
In 2022, Taylor Swift fans reported website failures when the North American leg of the pop star's tour went on sale. Similarly, the UK competition watchdog threatened the company with legal action over the 'misleading' way it sold tickets for the Oasis reunion tour this summer.
The FTC's chair, Andrew Ferguson, stated that American live entertainment should be accessible to all and should not cost a fortune to attend events like baseball games or concerts. He expressed concern over the alleged resale tactics, which are claimed to have brought in $3.7 billion (£2.7bn) in resale fees.
According to the allegations, Ticketmaster and Live Nation are said to have coordinated with brokers to purchase gig tickets and sell them at a substantial markup, profiting from large resale fees. The companies are also accused of advertising lower prices for tickets than what customers actually end up paying.
In response to these allegations, Ticketmaster's Managing Director in the UK, Andrew Parsons, stated that the company's tickets are 'very fairly priced'. However, the company has not yet responded to the FTC's allegations, at the time of writing.
The controversy surrounding Ticketmaster's practices comes at a time when the UK's grassroots music venues are closing down at a rate of two per week in 2023. The high costs associated with concert tickets have been cited as a contributing factor to the closure of these venues, which are crucial to the development of new talent.
In a positive note, Live Nation reported that it had its biggest year yet in 2023, taking into account both concert attendance and ticket sales. However, the FTC's allegations and the subsequent fallout could potentially impact the company's future, as well as the broader live music industry.
The FTC's lawsuit against Ticketmaster and Live Nation is a significant step towards ensuring fair and transparent practices in the live entertainment industry. As the investigation continues, it remains to be seen how these allegations will shape the future of concert ticket sales and the live music industry as a whole.
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