Followers Paid Billions Extra — Now Ticketmaster Faces A Monumental FTC Lawsuit – Stay Nation Leisure (NYSE:LYV)

The Federal Commerce Fee (FTC), joined by seven states, on Thursday filed go well with in opposition to Stay Nation Leisure, Inc. LYV and its subsidiary Ticketmaster, accusing the businesses of facilitating unlawful ticket brokering and deceiving shoppers with hidden charges and resale practices.

The FTC argues that Stay Nation and Ticketmaster’s conduct violates the FTC Act and the Higher On-line Ticket Gross sales Act. The fee is looking for civil penalties and different financial reduction.

The criticism was filed within the U.S. District Courtroom for the Central District of California and handed on a 2-0-1 fee vote, with Commissioner Melissa Holyoak recused.

In line with the FTC’s complaint, Stay Nation and Ticketmaster allowed ticket brokers to bypass restrictions, buy huge portions of tickets within the main market, after which resell them at important markups.

These practices, the company stated, inflated prices for shoppers and undermined truthful entry to reside occasions.

Additionally Learn: Spotify Inventory Smashes Information: Goldman Sees $200 Billion Music Streaming Market By 2035

FTC Chairman Andrew Ferguson tied the motion to a March govt order from President Donald Trump, emphasizing that the federal government has a accountability to guard followers from being “ripped off” when shopping for tickets. “American reside leisure is the perfect on the planet and needs to be accessible to all of us,” Ferguson stated.

“The Trump-Vance FTC is working onerous to make sure that followers have a shot at shopping for fair-priced tickets, and as we speak’s lawsuit is a monumental step in that route.”

Ticketmaster controls about 80% of main live performance venues’ main ticketing enterprise and has constructed a robust presence in secondary ticket gross sales. Between 2019 and 2024, shoppers spent over $82.6 billion on tickets by means of its platform, the FTC famous.

The company alleged that whereas Ticketmaster publicly claimed to oppose brokers who break ticket limits, the corporate privately acknowledged that brokers’ exercise fueled its earnings.

Inside paperwork revealed that executives “turned a blind eye” to violations. As an illustration, simply 5 brokers have been discovered to manage greater than 6,300 Ticketmaster accounts and almost 250,000 tickets throughout over 2,500 occasions.

The criticism additional accused Ticketmaster of offering instruments to help brokers, together with a software program platform referred to as TradeDesk, which aggregates tickets from a number of accounts for simpler resale administration. Inside information additionally confirmed that the corporate declined to make use of stronger verification applied sciences as a result of they have been thought of “too efficient” at decreasing gross sales.

One other focus of the lawsuit is alleged bait-and-switch pricing. The FTC stated Ticketmaster marketed decrease costs than prospects in the end paid by hiding necessary charges till checkout. These charges, typically as excessive as 44% of ticket prices, generated $16.4 billion from 2019 to 2024.

Inside analysis confirmed that customers have been much less doubtless to purchase tickets when charges have been disclosed upfront, but the corporate continued the observe.

LYV Worth Motion: Stay Nation Leisure shares have been down 1.11% at $162.85 on the time of publication on Friday. The inventory is buying and selling inside its 52-week vary of $102.32 to $175.25, in keeping with Benzinga Professional information.

Learn Subsequent:

Picture: Melinda Nagy on Shutterstock.com