FTC sues Ticketmaster, saying it forces fans to pay more for concerts and events

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. subsidiary / səbˈsɪd iˌɛr i / (n.) – a company that is owned or controlled by another, larger company
    Example:

    The big car company has a subsidiary in another country.


  2. markup / ˈmɑrkˌʌp / (n.) – the extra amount added to the cost of something so that it can be sold at a higher price
    Example:

    The store bought the jacket for $25 and sold it for $40. The markup was $15.


  3. cost an arm and a leg / kɔst ən ɑrm ænd ə lɛg / (idiom) – to be very expensive; to cost a lot of money
    Example:

    Renting a car in the city center can cost an arm and a leg during the holidays.


  4. botch / bɒtʃ / (v.) – to do something badly or carelessly, causing it to fail or be spoiled
    Example:

    The team botched the championship match by missing easy goals in the first half.


  5. grill / grɪl / (v.) – to ask someone many difficult or unpleasant questions in an intense way
    Example:

    The police grilled the suspect about where he was on the night of the crime.


Article

Read the text below.

The Federal Trade Commission (FTC) and a bipartisan group of state attorneys general sued Ticketmaster and its parent company, saying they are forcing consumers to pay more to see live events through a variety of illegal tactics.


The FTC said Live Nation and its subsidiary, Ticketmaster, have deceived artists and consumers by advertising lower ticket prices than what consumers must pay and falsely claiming to impose strict limits on the number of tickets consumers can buy for an event.


In reality, the FTC said, Ticketmaster coordinates with ticket brokers who bypass those ticket limits. The FTC said brokers use fake accounts to buy up millions of dollars’ worth of tickets and then sell them at a substantial markup on Ticketmaster’s platform. Ticketmaster benefits from the additional fees it collects from those sales, the FTC said.


Ticketmaster controls 80% or more of major U.S. concert venues’ primary ticketing, according to the FTC. Consumers spent more than $82.6 billion buying tickets from Ticketmaster between 2019 and 2024, the agency added.


“American live entertainment is the best in the world and should be accessible to all of us. It should not cost an arm and a leg to take the family to a baseball game or attend your favorite musician’s show,” FTC Chairman Andrew Ferguson said in a statement.


The lawsuit was filed in the U.S. District Court for the Central District of California. Joining the lawsuit were the attorneys general of Colorado, Florida, Illinois, Nebraska, Tennessee, Utah and Virginia.


Ticketmaster has been in lawmakers’ sights since 2022, when it spectacularly botched ticket sales for Taylor Swift’s Eras Tour. The company’s site was overwhelmed by fans and attacks from brokers’ bots, which were scooping up tickets to sell on secondary sites. Senators grilled Live Nation in a 2023 hearing.


But reform in the industry has been slow. The Biden administration took action with a ban on junk fees, requiring Ticketmaster to display the full price of a ticket as soon as consumers begin shopping. That rule went into effect in May.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The FTC is accusing Ticketmaster and its parent company of forcing consumers to pay more to see live events through a variety of illegal tactics. In your country, do you think ticket-selling companies are doing the same thing? Why do you say so? Discuss.
  • Previously, the Biden administration banned junk fees so that consumers would see the actual ticket prices. As a consumer, do you think junk fees or additional prices are acceptable? Why or why not? Discuss.

Discussion B

  • FTC Chairman Andrew Ferguson said in a statement that American live entertainment is the best in the world. Do you agree or disagree? Why? What is your opinion of live entertainment in your country? Discuss.
  • Ferguson also said that live entertainment should be accessible to all of us. What can be done to make live entertainment accessible to all? Discuss.