It’s about time that the U.S. Federal Trade Commission (FTC) has followed suit. It subsequently sued Live Nation Entertainment and its subsidiary, Ticketmaster, in a California federal district court. The lawsuit claims that the companies used unlawful ticket resale practices, in breach of the Better Online Ticket Sales (BOTS) Act. In addition to Florida, Illinois and Virginia, seven other states have signed onto this legal action. This decision represents a colossal threat to the leading ticketing behemoth’s business model.
The lawsuit claims that Live Nation Entertainment, which reported $3.7 billion in resold tickets between 2019 and 2024, knowingly allowed brokers to circumvent ticket limits. This practice is said to further erode critical protections to ensure that ticket resale marketplaces provide consumers—including everyday American families—fair access to tickets. When the news of the lawsuit hit, shares of Live Nation Entertainment fell by about 2%. This significant drop indicates that investors are concerned about the negative effects these legal proceedings might have.
The FTC contends that the aggregate impact of all the company’s actions has been profound on ticket prices and overall availability. According to the commission, these “illegal conduct frustrates artists’ desire to maintain affordable ticket prices that fit the needs of ordinary American families, costing ordinary fans millions of dollars every year.” This press release signals the FTC’s recommitment to oppose the harmful monopolistic practices of Live Nation and Ticketmaster. These actions have major repercussions on the local artistic community and for music lovers.
The BOTS Act would put a stop to this scalping and help ensure a fair ticket distribution process. The BOTS Act prohibits using automated bots to buy tickets. This pro-consumer lawsuit alleges that Live Nation’s anti-competitive practices are illegal. This further enables brokers to exploit ticket inventory and price gouge consumers.
To date, neither Ticketmaster nor Live Nation Entertainment have publicly commented in response to the lawsuit. This case could be a seismic shift in how ticket sales are handled going forward. It will have tremendously hurtful effects on both consumers and artists alike.