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Ticketmaster seeks to dismiss U.S. FTC ticket resale case
Summary
Ticketmaster and parent Live Nation asked a federal judge in Los Angeles to dismiss an FTC and seven-state lawsuit, arguing the 2016 BOTS Act applies to resellers rather than ticketing platforms. The FTC alleges Ticketmaster ignored brokers' violations and collected about $3.7 billion in resale fees from 2019 to 2024.
Content
Ticketmaster and parent Live Nation have asked a federal judge in Los Angeles to dismiss a case brought by the U.S. Federal Trade Commission and seven states. The companies filed court papers saying the Better Online Ticket Sales (BOTS) Act targets resellers, not ticketing platforms, and so does not apply to Ticketmaster. The FTC and the states allege Ticketmaster ignored brokers' violations of purchase limits and collected about $3.7 billion in resale fees between 2019 and 2024. Ticketmaster's market position and a widely criticized 2022 ticket sale for a major tour are part of the broader context for the dispute.
Key points:
- Ticketmaster and Live Nation urged U.S. District Judge Maame Ewusi-Mensah Frimpong to dismiss the FTC and state lawsuit.
- The companies argue the BOTS Act is intended to help ticket issuers and does not impose liability on ticketing platforms for tickets sold by resellers.
- The FTC and seven states sued in September, alleging Ticketmaster knew since 2018 that resellers violated its ticket limits and benefited from resale fees totaling about $3.7 billion from 2019-2024.
- The BOTS Act, passed in 2016, bans circumvention of technological measures used to prevent mass-purchasing by resellers and prohibits sale of tickets obtained by those methods.
- The FTC estimates Ticketmaster controls a large share of concert ticketing for major venues, and Live Nation and Ticketmaster face a separate Department of Justice trial in March over monopolization claims.
Summary:
A ruling in favor of Ticketmaster could remove the BOTS Act-based claim from the FTC and state lawsuit while other legal challenges remain. Undetermined at this time.
