FTC and seven states Prosecution Ticketmaster owner Live Nation Wednesday. this litigation It was accused of intentionalizing the company to allow brokers to purchase tickets in bulk. Ticketmaster allegedly then let them resell tickets with major marks on their second-hand market.
The FTC claims Ticketmaster realizes that resellers often bypass the security measures of these purchases. The company profited three times from the resale. It charges a fee on the first purchase and then receives a buyer and seller fee on resale. Ticketmaster costs $16.4 billion between 2019 and 2024, according to the FTC.
The agency paints pictures of the company, which reflects rampant corporate greed. The Federal Trade Commission claims that an internal on-site review showed that only five resellers received 246,407 tickets, with fares priced at 2,594. The agency accused Ticketmaster of accusing of “turning around” in an internal email[s] Policy vision. ”
It is said that the company can even provide technical support to brokers through its brokers trade Application. The software is designed to merge and manage tickets purchased through multiple Ticketmaster accounts.
Ticketmaster has allegedly not implemented a third-party authentication tool that could prevent large-scale purchases. Why? The FTC quoted the company as saying that the tools would be “too effective”. The company is said to have admitted to engaging in deceptive pricing. What they call the reason: Customers are less likely to buy tickets when purchasing tickets See the actual cost early.
The FTC accused Live Nation of two laws: the FTC Act prohibits deceptive practices and the BOT Act. The latter is Signed by President Obama in 2016just before leaving the office. As the name implies, it prohibits the use of robots or other software to get more tickets than is permitted by law. Earlier this year, President Trump release Executives orders increase the enforcement of the law.
The lawsuit was filed in the U.S. District Court for the Central District of California. The suits that joined the FTC were Virginia, Utah, Florida, Tennessee, Nebraska, Illinois and Colorado.
