Image Source: Variety
In a significant legal development, Ticketmaster and its parent company Live Nation have filed a motion to dismiss a lawsuit initiated by the Federal Trade Commission (FTC) and seven states last September. The lawsuit accuses them of enabling scalpers by allowing ticket purchases that exceed advertised limits, a practice that has resulted in inflated resale prices for fans.
Representatives for Live Nation and Ticketmaster argue that the lawsuit exemplifies an “egregious instance of agency overreach.” They claim that the allegations misapply the Better Online Ticket Sales (BOTS) Act of 2016, which is designed to protect genuine fans from ticket scalping and harvesting by unscrupulous brokers.
Understanding the FTC Lawsuit Against Ticketmaster
The FTC’s lawsuit centers around claims that Ticketmaster facilitated scalping by enabling brokers to exploit loopholes in ticket purchasing systems. These brokers reportedly create multiple Ticketmaster accounts to surpass per-account limits, subsequently reselling tickets at steep markups.
As part of their defense, Ticketmaster’s lawyers stated, “This statute is designed to help ticket issuers like Ticketmaster combat ticket harvesting and scalping.” They contend the lawsuit represents an unprecedented move to apply the law against a ticket issuer for operating a resale platform. Furthermore, they mention that scalpers use advanced techniques, such as software that allows concurrent logins on multiple accounts, to circumvent Ticketmaster’s verification processes.
Ongoing Challenges and Market Dynamics
The legal battle follows another contentious issue, as Live Nation faces a separate lawsuit led by the Department of Justice, which claims the company holds a monopolistic grip on the live events industry. This lawsuit further complicates the landscape for Ticketmaster, which already struggles within a multi-billion dollar resale market where ticket prices can skyrocket due to high demand and limited supply.
- Lawyers for Ticketmaster emphasize their role as an intermediary in person-to-person ticket resales, rather than as a reseller themselves.
- The lawsuit highlights the ongoing challenges and tensions between large ticketing companies and the growing outcry against ticket scalping.
Potential Implications of the Lawsuit
With a hearing set for February 19, the outcome of this motion could have far-reaching implications for ticket sales practices and consumer access in the entertainment industry. If the court sides with the FTC, it could pave the way for stricter regulations on ticket sales. Conversely, if the motion to dismiss is granted, it may reinforce Ticketmaster’s current practices and set a precedent for how similar cases are handled in the future.
Furthermore, Live Nation’s stock performance may become a point of interest, especially considering its recent fluctuations in light of the political landscape and public opinion regarding ticket pricing fairness.
FAQs About Ticketmaster and the FTC Lawsuit
What is the FTC lawsuit about?
The FTC lawsuit alleges that Ticketmaster and Live Nation facilitated ticket scalping by allowing purchases that exceed set limits, resulting in inflated resale prices.
How is Ticketmaster responding to the allegations?
Ticketmaster argues that the lawsuit is an overreach and improperly applies the BOTS Act against a ticket issuer for its resale platform operations.
What are the potential outcomes of the lawsuit?
The motion to dismiss could lead to stricter regulations on ticket sales if upheld, or it could reinforce current practices if granted by the court.
When is the hearing for the motion?
The hearing for the motion to dismiss is scheduled for February 19.
How are consumers affected by these practices?
Consumers may face higher ticket prices due to scalping, making live events less accessible to genuine fans.
