Yes, Ticketmaster has been sued numerous times throughout its history. As the largest ticket sales and distribution company in the United States, Ticketmaster has faced lawsuits from consumers, competitors, and government regulators related to its business practices. Some of the most notable lawsuits brought against Ticketmaster include class action lawsuits alleging excessive fees, anti-competitive behavior lawsuits from competitors like StubHub and Fandango, and lawsuits from governments related to deceptive practices and violations of consent decrees.
Major Lawsuits Faced by Ticketmaster
Here is an overview of some of the major lawsuits Ticketmaster has faced over the years:
Excessive Fees Class Action Lawsuits
Ticketmaster has faced multiple class action lawsuits alleging they charge excessive fees that exploit consumers. Some examples include:
– In 2003, Ticketmaster faced a class action lawsuit alleging violations of California’s Unfair Competition Law by charging excessive fees. The suit claimed the fees added more than 30% to the base ticket price. Ticketmaster settled the suit in 2008 for $18.5 million.
– In 2019, Ticketmaster was hit with a class action lawsuit in California alleging their fees are excessive and breach their contracts with customers. The suit claimed Ticketmaster’s fees violate consumer contracts which state the final price must include all fees.
– In 2022, a class action lawsuit was filed in Illinois claiming Ticketmaster charges fees that are not adequately disclosed to customers and that are excessive compared to the company’s actual costs for services. The suit is ongoing.
Anti-Competitive Behavior Lawsuits
Ticketmaster has also faced multiple lawsuits alleging anti-competitive business practices aimed at suppressing competition. Some examples include:
– In 1994, the grunge rock band Pearl Jam filed an anti-trust lawsuit against Ticketmaster. Pearl Jam claimed Ticketmaster had a monopoly on ticket distribution services and used exclusionary practices to freeze out competition.
– In 2008, competitors StubHub and RMG Technologies filed a lawsuit against Ticketmaster alleging they illegally leveraged their dominance in primary ticket sales to foreclose competition in secondary ticket sales markets. This lawsuit is ongoing.
– In 2009, competitor Fandango filed an anti-trust lawsuit claiming Ticketmaster’s exclusive deals with major venues locked out competitors. They settled the suit in 2010.
Violations of Consent Decrees
The U.S. Government and individual states have sued Ticketmaster on multiple occasions for violating consent decrees prohibiting deceptive trade practices. For example:
– In 1994, the U.S. Justice Department and multiple states sued Ticketmaster for violations of a consent decree related to misleading advertisements making it seem like tickets were sold out when they were not.
– In 2000, Los Angeles and San Francisco sued Ticketmaster for violations of California’s Unfair Competition Law through deceptive practices violating a consent decree. For example, misleading customers that tickets were sold out online to drive them to higher phone fees.
Key Takeaways from Lawsuits Against Ticketmaster
Some key themes and takeaways emerge from analyzing the wide range of lawsuits brought against Ticketmaster over the past few decades:
– Excessive service fees are a consistent issue of legal complaints and class action lawsuits. Consumers argue the lack of transparency around Ticketmaster’s fees violate consumer protection laws and contractual obligations.
– Anti-competitive practices are a recurring allegation as competitors argue Ticketmaster uses monopolistic tactics and exclusive deals to suppress competition in ticket sales/distribution.
– Deceptive practices around advertising ticket availability have led to numerous lawsuits alleging consumer protection law violations.
– As the dominant primary market ticket seller, Ticketmaster is subject to extra scrutiny and regulations limiting anti-competitive behavior. Lawsuits frequently allege they violate decrees and regulations imposed to limit such behavior.
– Ticketmaster has paid out millions in lawsuit settlements over the years but these have largely been considered the “cost of doing business.” No lawsuits have significantly disrupted Ticketmaster’s business operations.
Notable Settlements Paid by Ticketmaster for Lawsuits
Here are some of the major lawsuit settlements and fines paid out by Ticketmaster over the years:
Year | Plaintiff | Settlement Amount |
---|---|---|
2003 | California class action suit over excessive fees | $18.5 million |
2010 | Settlement with Fandango over anti-trust issues | $4 million |
2011 | U.S. Justice Department fine over misleading ticket availability | $22.3 million |
2019 | California class action settlement over excessive fees | $6.55 million (pending final approval) |
In total, Ticketmaster has paid out well over $50 million in lawsuit settlements and fines to consumers and government regulators over its checkered legal history. And there are more active lawsuits pending that could result in additional payouts.
Ongoing Lawsuits Facing Ticketmaster
There are several major ongoing lawsuits Ticketmaster is currently facing including:
Illinois Excessive Fees Class Action
As mentioned previously, Ticketmaster was hit with a new class action lawsuit in 2022 alleging they charge excessive and inadequately disclosed fees. The plaintiffs claim Ticketmaster essentially uses a “bait-and-switch” tactic, advertising low ticket prices but charging much higher final prices with added fees. This case seeks damages under Illinois consumer fraud laws.
StubHub Antitrust Litigation
StubHub’s 2008 lawsuit claiming Ticketmaster uses monopolistic practices to suppress competition in ticket resale markets is still winding its way through the court system. After multiple appeals, the case is headed to the Supreme Court in 2023. StubHub alleges violations of the Sherman Antitrust Act.
Songkick Antitrust Litigation
The ticketing app Songkick filed an antitrust suit in 2018 claiming Ticketmaster tried to crush them by leveraging control over venues and ticket sales. Songkick alleges Ticketmaster engaged in anticompetitive conduct andconversion of trade secrets. Ticketmaster could face significant damages if the ongoing case goes against them.
Has Ticketmaster Faced Criminal Charges?
While Ticketmaster has faced dozens of civil lawsuits over its business practices, it does not appear the company has ever directly faced criminal charges or prosecution. Lawsuits by government entities like the Department of Justice have typically resulted in settlement agreements and fines for violations of consent decrees rather than criminal indictments or charges.
However, in the late 1990s, Ticketmaster employees became the subject of a criminal investigation and prosecution related to hacking into competitor Tickets.com’s computer systems to gather intelligence and potentially disable their operations. While Ticketmaster denied organizational involvement, several employees pleaded guilty to computer trespass charges and testified that superiors approved their actions. The criminal case did not result in formal charges against Ticketmaster the company. However, it highlighted the cutthroat tactics companies in the highly competitive ticket sales industry will sometimes engage in.
How Have Lawsuits Affected Ticketmaster?
While Ticketmaster has paid out substantial settlement amounts over the years, the dozens of lawsuits filed against it do not appear to have significantly affected its dominant market position.
Some impacts of lawsuits against Ticketmaster include:
– Settlement payments have cost the company tens of millions but are seen as just the “cost of doing business” given Ticketmaster’s billions in annual revenues.
– Lawsuits have forced Ticketmaster to change or clarify some of its fee disclosures and advertising practices around ticket availability. However, excessive fees remain an issue.
– Competition has increased with challengers like StubHub pressuring Ticketmaster through lawsuits. However, Ticketmaster still largely prevails with its exclusive venue deals.
– Government monitoring and consent decrees are a result of legal action. But Ticketmaster has continued aggressive business tactics and even violated consent decrees.
– Reputation damage with consumers has occurred due to lawsuits over fees and deceptive practices. But brand damage does not appear to have diminished Ticketmaster’s market power.
– Innovation may have been stalled as legal issues distract the company. But Ticketmaster remains dominant with its existing business model.
Overall, while lawsuit settlements have imposed monetary costs, public relations damage, and restrictions on certain business practices, Ticketmaster’s fundamental market dominance remains largely intact despite decades of litigation aimed against many of its core business practices. Its exclusive deals with major venues, lack of consumer alternatives, and aggressive competitive tactics continue to sustain its market power.
Recent Controversies Over Dynamic Pricing at Ticketmaster
Ticketmaster has faced renewed controversy in 2022 over its use of “dynamic pricing” – raising ticket prices in response to high demand. Dynamic pricing is legal, but has triggered a backlash from some consumers and artists. Controversies include:
– Bruce Springsteen fans revolted when ticket prices for his 2023 tour soared to $4,000+ due to dynamic pricing. Springsteen’s team blamed Ticketmaster.
– Taylor Swift fans faced astronomical prices up to $3,000 for her Eras Tour in 2022-2023 also due to demand-based pricing. Fans protested they could not afford her shows.
– Consumer groups have argued dynamic pricing is ethically wrong and exploits fans. But Ticketmaster claims it helps them thwart ticket scalpers who would charge even higher markup.
– Artists themselves often do not control pricing for shows at major venues with exclusive Ticketmaster deals. This has put blame unfairly on some artists for high prices.
– U.S. lawmakers proposed the BOSS ACT in 2022 (Better Oversight of Secondary Sales and Accountability in Concert Ticketing) to ban products like Ticketmaster’s “Official Platinum” dynamic pricing program which caused uproar. No vote has occurred yet.
After decades of legal action on fees and competition issues, dynamic pricing has sparked renewed scrutiny and controversy surrounding Ticketmaster’s ongoing ticketing practices. While likely not illegal, dynamic pricing has triggered new ethical debates and calls for both artists and policymakers to exert more control and oversight of Ticketmaster.
Conclusion
In summary, Ticketmaster has absolutely faced a long history of lawsuits over its business practices since gaining market dominance in the ticketing industry in the early 1990s. Major themes of legal actions against Ticketmaster include excessive fees, anti-competitive behaviors, violations of consent decrees, and deceptive trade practices.
Dozens of class action lawsuits, regulatory fines, and settlements with competitors have collectively cost Ticketmaster tens of millions. However, decades of lawsuits have largely amounted to just a “cost of doing business” as Ticketmaster has maintained its monopolistic market position and core ticketing model despite legal challenges. Ongoing and future lawsuits seem unlikely to severely disrupt Ticketmaster or force fundamental changes unless artists, lawmakers, and consumers unite through both legal and public pressure. Ticketmaster’s market power persists for now, but growing controversies signal the company will likely continue facing legal and public scrutiny over its business practices going forward.