Ticketmaster, the largest ticket sales and distribution company in the United States, has faced numerous lawsuits over the years related to its business practices. As the dominant player in the ticket industry, Ticketmaster has attracted scrutiny from consumers, competitors, and government regulators.
Lawsuits Related to Fees and Pricing
One of the most common areas of legal action against Ticketmaster relates to its fees and pricing. Ticketmaster’s fees, such as service fees and order processing fees, often add more than 20% to 30% to the base ticket price. Many consumers have accused Ticketmaster of engaging in deceptive pricing practices by hiding the full costs of tickets until late in the ordering process.
Some of the notable fee-related lawsuits against Ticketmaster include:
- In 2003, a class action lawsuit was filed in California alleging that Ticketmaster misled customers about the total cost of tickets by hiding exorbitant fees until the end of the transaction. The suit accused Ticketmaster of fraud, breach of contract, and unfair business practices. The case was settled in 2008 for $18.2 million, with Ticketmaster providing discounts and free ticket vouchers to compensate consumers.
- In 2011, Ticketmaster faced another class action lawsuit in California over its fees. The lawsuit alleged that Ticketmaster violated consumer protection laws by advertising base ticket prices that did not include mandatory fees added later in the transaction. The case was dismissed in 2012 after a judge ruled that Ticketmaster’s fee disclosures were adequate under the law.
- In 2017, Ticketmaster was hit with a lawsuit in Canada alleging that its “deceptive and misleading” fees violate consumer protection laws against false advertising and misrepresentation. The suit accused Ticketmaster of engaging in “bait and switch” pricing tactics by advertising low ticket prices and then tacking on exorbitant fees at checkout.
Individual consumers have also sued Ticketmaster in small claims courts across the country to challenge its fees and get refunds for excessive charges added to their ticket purchases.
Lawsuits Related to Market Dominance and Anticompetitive Practices
Ticketmaster has also faced a number of legal challenges related to its dominant market position in the ticket sales industry. As one of the largest primary ticket sellers and the owner of major ticketing platforms like TicketExchange, critics have accused Ticketmaster of monopolistic and anticompetitive business practices.
Some examples of antitrust lawsuits brought against Ticketmaster include:
- In the mid-1990s, the grunge rock band Pearl Jam filed an antitrust lawsuit against Ticketmaster, alleging it had engaged in anticompetitive behavior by entering into exclusive contracts with major concert venues. This made it difficult for venues to use competitors and forced consumers to use Ticketmaster. The Department of Justice launched an investigation but ultimately declined to take action against Ticketmaster.
- In 2009, Ticketmaster faced several lawsuits alleging it violated antitrust laws by merging with Live Nation, the world’s largest concert promoter. The merger allowed Ticketmaster to enter into exclusive deals with Live Nation venues. Multiple suits claimed this would lead to higher ticket prices and fees, limited choices for concertgoers, and stifled competition. The merger ultimately went through after Ticketmaster and Live Nation agreed to modify certain terms of the deal.
- In 2017, Songkick, an online concert discovery service, filed an antitrust lawsuit against Ticketmaster for allegedly “weaponizing its monopoly control over ticketing” by entering into exclusivity agreements with venues to block competitors from selling primary tickets. The case is still ongoing.
Additionally, Ticketmaster has faced legal action from state governments, including lawsuits filed by attorneys general in New Jersey and Arkansas accusing the company of violating state consumer protection laws through monopolistic practices.
Lawsuits Over Hidden Fees and Drip Pricing
One of the most common complaints against Ticketmaster is that they hide the full costs of fees and delivery charges until late in the ticket buying process. This practice, known as “drip pricing,” has led to numerous lawsuits and settlements with Ticketmaster over the years.
Some key legal cases focused on hidden fees include:
- In 2003, a class action lawsuit accused Ticketmaster of fraud for hiding fees until the end of the transaction. Ticketmaster paid $18.5 million to settle the case in 2008.
- In 2011, Ticketmaster faced a class action in California alleging it violated consumer laws by advertising base prices that excluded mandatory fees added later. The case was dismissed in 2012.
- In 2017, a Canadian class action accused Ticketmaster of false advertising and misleading “drip pricing.” The case is still pending.
- In 2019, Ticketmaster paid a $4.5 million settlement to resolve a lawsuit alleging it charged deceptive fees and hid the full ticket prices from consumers.
Despite numerous lawsuits, Ticketmaster has continued to engage in fee and pricing practices that have drawn criticism from regulators and consumer advocates. However, legal action has resulted in Ticketmaster paying millions in lawsuit settlements and restitution for overcharging fees.
Lawsuits Over Data Breaches and Privacy
Ticketmaster has faced legal action over data breaches and privacy violations on a number of occasions:
- In 2013, Ticketmaster settled a class action lawsuit for $23 million over a data breach in which hackers accessed customer names, addresses, emails, and credit card details.
- In 2018, Ticketmaster revealed it had discovered a data breach impacting 40,000 UK customers. The company faced legal threats and demands for compensation over the incident.
- In 2019, Ticketmaster Netherlands agreed to pay a €1.8 million fine after a data breach exposed personal information of over 280,000 customers.
- In 2022, Ticketmaster agreed to a $10 million settlement to resolve a class action lawsuit alleging the company violated privacy laws by using tracking software to monitor customers without consent.
These cases demonstrate legal liability for companies like Ticketmaster when they fail to protect customers’ personal information and payment data from hackers, thieves, and misuse.
Notable Individual Lawsuits Against Ticketmaster
In addition to large class action lawsuits, Ticketmaster has faced numerous legal challenges from individuals in small claims courts across the United States:
- In 2000, a small claims lawsuit against Ticketmaster in California resulted in a judgment ordering the company to pay $4000 in damages for excessive fees.
- In 2008, Ticketmaster paid $2100 to a plaintiff in small claims court in California who sued over fees that more than doubled the base price of tickets.
- In 2009, two New Jersey men sued Ticketmaster in small claims court over $10 service fees charged for free ticket vouchers. They were awarded damages equal to the fees.
- In 2011, a fan sued Ticketmaster in Texas small claims court for failing to disclose service fees upfront. She was awarded $250 over the hidden charges.
- In 2015, a sports fan in Utah sued in small claims over $50 in Ticketmaster service fees and won a default judgment of $400.
While small in scale, these individual cases collectively point to the enormous public displeasure with Ticketmaster’s fee practices and how litigation has become a channel to challenge the company.
Government Antitrust Investigations
In addition to lawsuits, Ticketmaster has been subject to major government antitrust investigations over its pricing practices and market power:
- In 1994, the Justice Department opened an antitrust probe into Ticketmaster to determine whether it was abusing its market dominance. The DOJ ultimately dropped the case in 1995.
- In 2009, the UK’s Office of Fair Trading investigated Ticketmaster over concerns about restrictions placed on venues and inflated fees for consumers. No charges were brought.
- In 2018, the U.S. Department of Justice launched an antitrust investigation into whether Live Nation was abusing its power in the ticketing industry after merging with Ticketmaster. No legal action has been taken as of late 2022.
Despite multiple probes by regulators, Ticketmaster has managed to avoid any major legal consequences from government authorities regarding antitrust violations thus far. However, ongoing controversies and investigations demonstrate the level of public suspicion surrounding Ticketmaster’s business practices and market control.
Conclusion
Ticketmaster has faced a long history of lawsuits and legal actions over its pricing practices, service fees, market dominance, privacy violations, and other controversial business practices. Antitrust authorities have also conducted multiple investigations into possible abuse of power, though no major government action has been taken.
The lawsuits and cases against Ticketmaster demonstrate the level of consumer anger and distrust that exists toward the company. Litigation has become a common method for both individuals and classes of consumers to challenge what many perceive as unfair, deceptive, or monopolistic ticketing practices. Despite numerous settlements, fines, and judgments against it, Ticketmaster remains the dominant force in event ticketing with limited meaningful changes to its core business models. Ongoing legal challenges continue from those hoping to reform the company’s practices and increase transparency and competition in the industry.