The Federal Trade Commission (FTC) and attorneys general from seven states have filed an 84-page lawsuit against Live Nation Entertainment and its Ticketmaster subsidiary, accusing them of enabling scalper coordination to circumvent purchase limits and exploit a ‘triple dip’ fee structure. The suit alleges that the companies knowingly allowed ticket brokers to use multiple accounts to acquire thousands of tickets per event for resale at higher prices, generating hundreds of millions in revenue through a ‘triple dip’ fee structure — collecting fees on initial broker purchases, then from both brokers and consumers on secondary market sales.
FTC Chairman Andrew Ferguson stated that this practice violates the Better Online Ticket Sales Act and cited President Trump’s March executive order requiring federal protection against ticketing practices. The lawsuit arrives one month after the FTC sued Maryland broker Key Investment Group over Taylor Swift tour price-gouging and follows the Department of Justice’s 2024 monopoly suit against Live Nation. The allegations highlight ongoing concerns about the ticketing industry’s practices and the potential for antitrust actions against major players in the sector.
While the FTC’s primary focus is on consumer protection, the financial impact of these allegations could be significant. The ‘triple dip’ fee structure is believed to generate substantial profits for ticketing companies, raising questions about the fairness of such practices. Legal experts suggest that if the lawsuit is successful, it could lead to regulatory changes that impact the entire ticketing industry, potentially affecting both consumers and businesses that rely on ticket sales for revenue.
Industry stakeholders have expressed mixed reactions. While some consumers support the lawsuit, arguing that scalping practices lead to higher prices and limited availability of tickets, others, including ticket vendors and event organizers, may view the suit as an overreach. The outcome of this case could have far-reaching implications for the ticketing industry, influencing how ticket sales are regulated and how prices are set for concerts and other events.
As the case progresses, the FTC and the seven states will need to demonstrate that Live Nation and Ticketmaster engaged in willful misconduct. Legal analysts suggest that evidence of deliberate coordination with scalpers, such as the use of multiple accounts or insider information about ticket availability, will be crucial in proving the case. If successful, the lawsuit could set a precedent for future antitrust actions against ticketing companies, reshaping the landscape of how tickets are sold and priced in the United States.