LOS ANGELES — Ticketmaster and parent company Live Nation must continue defending a federal lawsuit alleging that the ticketing platform tolerated professional brokers’ efforts to evade purchasing limits while profiting from resale transactions.
A federal judge declined to dismiss the Federal Trade Commission’s case, allowing the litigation to proceed into discovery. The procedural ruling does not establish that Ticketmaster violated the law.
The dispute reaches the platform itself
The Federal Trade Commission, joined by several states, alleges that Ticketmaster knew brokers were using numerous accounts and other methods to acquire tickets beyond limits established for popular events. Regulators contend the company collected fees when some of those tickets were resold through its secondary marketplace.
Ticketmaster disputes the allegations. The company has argued that the Better Online Ticket Sales Act, commonly called the BOTS Act, was designed to protect ticketing platforms from abusive scalpers—not to impose liability on the platform whose controls were allegedly circumvented.
The judge’s refusal to dismiss the complaint means the parties can seek documents, testimony and other evidence concerning broker monitoring, enforcement decisions, purchasing limits and resale revenue.
Why radio and music promoters should care
Radio promotions, concert partnerships, artist campaigns and ticket giveaways depend on listeners believing that tickets are distributed through a fair and understandable system. If ordinary fans believe automated purchasing operations and professional brokers receive preferential access, the damage extends beyond the ticketing company to participating artists, stations and promoters.
The next phase of the case may provide a clearer view of what Ticketmaster knew, how it responded and whether its conduct falls within the federal statute. Those questions remain allegations until resolved through evidence, settlement or trial.
Sources: Federal Trade Commission case record; federal docket summary; Barrett Media.