Live Nation and Ticketmaster are seeking the dismissal of a lawsuit filed by the U.S. Federal Trade Commission (FTC) regarding ticket resales. This motion was submitted to the U.S. District Court for the Central District of California on January 6. The companies argue that the lawsuit represents an extreme case of agency overreach.
Background of the Lawsuit
The FTC initiated the lawsuit in September, accusing Ticketmaster of violating the Better Online Ticket Sales (BOTS) Act. This law was enacted in 2016 to prohibit the use of automated software to purchase tickets in bulk, which are then resold at inflated prices. The FTC claims Ticketmaster knowingly allowed scalpers to acquire large numbers of tickets during sales.
Ticketmaster’s Stance
In their legal motion, Live Nation and Ticketmaster assert that the FTC is mistakenly holding Ticketmaster accountable for the actions of third-party ticket resellers. They argue that Ticketmaster has not violated any regulations set forth by the BOTS Act, as the agency did not demonstrate that the company circumvented technology meant to prevent bulk ticket purchases.
Concerns Over Ticketing Practices
Ticketmaster has faced ongoing criticism for rising ticket prices. Many fans expressed outrage over high costs during sales for popular artists, such as Bruce Springsteen in 2022. Ticketmaster maintains that prices are set by artists, not the platform itself, and claims to be fighting against scalpers.
- Ticketmaster generates revenue through various tiers of resale.
- They charge brokers at the primary sale, again when tickets are resold on their platform, and finally, consumers purchasing these tickets.
Regulatory Adjustments and Future Plans
In light of the lawsuit, Ticketmaster has pledged to enhance its regulations on ticket resales. Dan Wall, the Executive Vice President of Corporate and Regulatory Affairs at Live Nation, indicated that they are looking to ban multiple account holders, including ticket brokers, from their platform.
Live Nation’s Response to Additional Lawsuits
Besides the FTC lawsuit, Live Nation is also contesting an antitrust lawsuit from the Department of Justice. The company asserts that the evidence presented is misleading and does not accurately reflect their market position.
Furthermore, they face a potential class-action lawsuit from consumers alleging that Ticketmaster covertly provided tickets to brokers while claiming to combat scalping practices. A judge in California has suggested that this lawsuit may proceed as a class action, potentially impacting millions of customers.
As the legal battle unfolds, Ticketmaster continues to assure fans and artists that its practices aim to prioritize genuine ticket buyers.
