FTC lawsuit against Ticketmaster moves forward

A US federal judge has rejected Ticketmaster and Live Nation’s attempt to dismiss a Federal Trade Commission lawsuit alleging that the companies enabled large-scale ticket brokers to circumvent purchase limits and resell tickets through Ticketmaster’s secondary marketplace.

The ruling means the case can move forward into discovery, where the parties will be able to seek documents, testimony and other evidence. It does not determine whether the FTC’s allegations are true.

Court says BOTS Act can apply to ticketing platforms

Ticketmaster had argued that the BOTS Act was primarily intended to target individual ticket resellers rather than primary ticketing platforms.

US District Judge Maame Ewusi-Mensah Frimpong rejected that interpretation in an order issued on September 28.

“The BOTS Act does not preclude platforms from facing liability, and the court will not read it as doing so,” the judge wrote.

The FTC alleges that professional brokers used large numbers of accounts, including accounts created using fictitious information, to exceed ticket purchasing limits.

According to the regulator, Ticketmaster was aware that some brokers were operating hundreds or thousands of accounts but continued to allow tickets obtained above stated limits to be listed on its resale marketplace.

The FTC has also alleged that Ticketmaster provided high-volume resellers with access to its TradeDesk software, which allows brokers to manage tickets acquired across multiple accounts.

Ticketmaster denies allegations

Live Nation and Ticketmaster have denied wrongdoing and have previously highlighted measures they say are designed to combat ticket abuse and protect artists and consumers.

The judge’s decision only finds that the FTC has presented legally sufficient allegations for the case to continue. The underlying claims will now be examined through the litigation process.

The original FTC complaint also includes allegations concerning ticket pricing and mandatory fees. The regulator claims consumers spent more than $82.6 billion on Ticketmaster tickets between 2019 and 2024, while mandatory ticket fees totalled $16.4 billion during the same period.

The case is being heard in the US District Court for the Central District of California.