Federal Trade Commission and seven states sued Living nation and Ticket master On Thursday, companies worked with ticket brokers in the secondary market. The atmosphere claims that the companies enabled Scalpers to buy in addition to their advertised ticket purchase boundaries, which enables the resale of tickets to steep markings well above nominal value. The atmosphere follows one Similar movement last year by the Ministry of Justice.
In the trial, submitted in the Federal Court of California on Thursday and reviewed by AmountThe FTC Further alleged Ticketmaster-which is fully owned by the Live Nation Entertainment-which incorrectly engages in a “bet-and switch” between artists and consumers by advertising lower prices.
“Defendants have fragile huge profits by incorrectly representing the total price of tickets to consumers, which pays billions of dollars each year in compulsory fees that are not reflected in the list price,” the complaint reads. In addition, it highlights the ways in which Ticketmaster publicly claimed that they support “all-in pricing”-where they put it, “the first prize that the consumer sees is the price the consumer pays.”
Furthermore, the mood accuses both companies of fraudulently imposing strict restrictions on the number of tickets that consumers could buy for an event and claim that they “consciously allow” brokers to use several Ticketmaster accounts to illegally buy tickets and increase their sales in other marketplaces.
National Independent Venue Association and National Independent Talent Organization, both representing independent units in the tournament and has long accused Live Nation and Ticketmaster of unfair methods, was quick to applaud the move.
“Today’s mood has given credibility to what fans, artists and independent scenes have believed for several years: Live Nation and Ticketmaster utilize their dominance not only in concert promotion and primary ticket, but also in the resale market,” said NIVA’s CEO Steven Parker. “FTC and Seven States now claim that the same company that controls almost 80% of large concert tickets has enabled Scalpers to play Ticketmaster’s system and restore tickets back to the fans on massive markings.
FTC claimed that Live Nation and Ticketmaster violated the law on better ticket sales online, or Bots ACT, that the company “gives purchasing consumers no choice.”
“Responding earns significant revenue from ticket sales,” the mood claims. “When they re -sell tickets brokers purchased from Ticketmaster, responding” triple can dip “on fees and collect fees from: (1) brokers when they buy tickets in the primary market, (2) brokers, again, when Ticketmaster
Selling their tickets at Ticketmasters secondary market and finally (3) consumers who buy tickets from Ticketmaster at their secondary market. “
“This is not just bad business; it is fraud and abuse of monopoly power. By turning a dazzling for Scalpers, even giving them the tools to circumvent borders and harvest tickets, Live Nation has acted as a promoter, primary ticket salesman, artist’s manager and scalper.”
A rope for Nito said: “Without commenting on the specific fees, Nito applauds the Federal Trade Commission’s efforts to reform an unfair ticket ecosystem that too often does not serve consumers or artists. Changes are needed for exaggerated fees, accessibility of tickets to fans at fair prices and keeping the process adapted to artists who benefit their benefit their benefits their goodness that benefits their goodness that benefits their benefit their favoirs that benefit their benefit their favoirs.
This FTC costume comes one month after it sued a ticket sales company Key Investment Group and affiliated companies including EPIC SEATS and Total Tix LLC, claiming that it used illegal methods to secure tickets and sell them at inflated prices for popular concerts, including Taylor Swifts “ERA”.
“President Trump clarified in his executive order in March to unscrupulous intermediaries that harm fans and raise prices through anti -competitive methods will hear from us,” said FTC chairman Andrew N. Ferguson in a statement after August. “Today’s measures add brokers to Trump-Vanance FTC will polish the business that illegally circumvents ticket vendors’ purchasing limits, which ensures that consumers have the opportunity to buy tickets at reasonable prices.”
In a possible related move, Live Nation named Richard Grenell, The controversial Trump-out-of-Kennedy Center, to its board in May.
