Ticketmaster Winks at Scalpers for a Cut of the Action, Says Class Action

This complaint claims that Ticketmaster, LLC and Live Nation Entertainment, Inc. have allowed ticket scalpers to flourish rather than getting rid of them, alleging that the companies receive kickbacks from scalpers’ sales. This allows them to make money on the same tickets twice, the complaint claims: once when the tickets are originally sold and then a larger amount when the scalpers sell the tickets at an inflated price. 

The class for this action is all end-user purchasers in the US who bought a secondary-market Ticketmaster ticket from a professional reseller in Ticketmaster’s resale partner program or via TradeDesk or a similar system operated by Ticketmaster or Live Nation, such as EventInventory or eimarketplace.

Live Nation, a concert promoter, owns Ticketmaster, which sells tickets to concerts, pro sports competitions, theater performances, and other events. 

According to the complaint, scalpers use bots to buy masses of tickets to resell at inflated prices. The complaint claims that the reselling of tickets has become a $5 billion industry in the US. 

The complaint claims that Ticketmaster is on such cordial terms with scalpers that it held a private event for them during a ticketing and live event convention in September 2018. Unfortunately for them, it was attended by undercover reporters for Canada’s national broadcaster, CBC, and the Toronto Star newspaper. The complaint quotes the LA Times on the event: “Posing as scalpers … the journalists were pitched on Ticketmaster’s professional reseller program. Company representatives told them Ticketmaster’s resale division turns a blind eye to scalpers…”

This is profitable for Ticketmaster, the complaint alleges, saying that Ticketmaster may collect “$25.75 on a $209.50 ticket on the initial sale” but, when the company posts it for resale by a scalper at $400, “the company stands to collect an additional $76 on the same ticket.” Ticketmaster has developed a “professional reseller program” for this called TradeDesk, although reports claim that neither the program nor TradeDesk are mentioned on Ticketmaster’s website or in its corporate reports. 

Ticketmaster’s code of conduct “specifically prohibits resellers from purchasing tickets that exceed the posted ticket limit for an event” and its policy “prohibits the creation of tictitious user accounts for the purpose of circumventing ticket limit detection…” The company now claims to have started an internal review of its professional resellers’ accounts and employee practices.

On September 21, 2018, the complaint claims, two US senators opened an investigation of Ticketmaster’s practices, sending the company a letter asking some very pointed questions about its business and practices.

The complaint claims that the company has violated the California Business & Professions Code and have engaged in unjust enrichment.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Ticketmaster Winks at Scalpers for a Cut of the Action Complaint

September 28, 2018

This complaint claims that Ticketmaster, LLC and Live Nation Entertainment, Inc. have allowed ticket scalpers to flourish rather than getting rid of them, alleging that the companies receive kickbacks from scalpers’ sales. This allows them to make money on the same tickets twice, the complaint claims: once when the tickets are originally sold and then a larger amount when the scalpers sell the tickets at an inflated price. 

ticket_masters_scalpers_complaint.pdf

Case Event History

Ticketmaster Winks at Scalpers for a Cut of the Action Complaint

September 28, 2018

This complaint claims that Ticketmaster, LLC and Live Nation Entertainment, Inc. have allowed ticket scalpers to flourish rather than getting rid of them, alleging that the companies receive kickbacks from scalpers’ sales. This allows them to make money on the same tickets twice, the complaint claims: once when the tickets are originally sold and then a larger amount when the scalpers sell the tickets at an inflated price. 

ticket_masters_scalpers_complaint.pdf
Tags: Entertainment, Event Tickets