Ticketmaster is regulated by multiple government agencies in the United States. As a major player in the live entertainment and ticketing industry, Ticketmaster is subject to oversight and regulations at both the federal and state level. The key agencies that regulate Ticketmaster’s operations and business practices are the Federal Trade Commission (FTC), the Department of Justice (DOJ), state attorneys general, and consumer protection agencies.
Federal Trade Commission
The Federal Trade Commission (FTC) is the main federal agency that regulates Ticketmaster. The FTC’s mission is to protect consumers and promote competition. Under its consumer protection mandate, the FTC has the authority to take action against unfair or deceptive trade practices. In the past, the FTC has investigated and taken enforcement actions against Ticketmaster regarding issues such as hidden fees, misleading advertisements, and violations of consumer rights.
Some key ways the FTC regulates Ticketmaster include:
- Prohibiting unfair or deceptive practices – The FTC can investigate and penalize Ticketmaster for practices that harm consumers, such as misleading advertisements or disclosures.
- Requiring disclosures – The FTC requires Ticketmaster to clearly disclose all fees and charges to consumers upfront before purchase.
- Ensuring consumer rights – The FTC ensures Ticketmaster upholds basic consumer rights, such as order confirmation and cancellation abilities.
- Monitoring compliance – The FTC monitors Ticketmaster’s sales practices and compliance with consumer protection laws.
- Bringing enforcement actions – The FTC can impose fines, consumer refunds, and injunctions to stop unlawful practices by Ticketmaster.
The FTC has brought multiple enforcement actions against Ticketmaster over the company’s history. In 1994, the FTC sued Ticketmaster alleging it monopolized ticket distribution services. The case ultimately settled with Ticketmaster agreeing to disclose all fees upfront to consumers. In 2009, the FTC again fined Ticketmaster $2.5 million for violating consumer rights laws.
Department of Justice
The Department of Justice (DOJ) is another federal agency that regulates Ticketmaster, focused primarily on antitrust enforcement. Under federal antitrust laws like the Sherman Act, the DOJ investigates anti-competitive practices and monopolization attempts across industries. The DOJ regulates Ticketmaster by:
- Reviewing mergers and acquisitions – The DOJ reviews proposed mergers, like Ticketmaster’s 2008 merger with Live Nation, to prevent monopolies.
- Monitoring anticompetitive practices – The DOJ watches for monopolistic practices like exclusive dealing contracts that may violate antitrust law.
- Prosecuting antitrust violations – The DOJ can bring civil and criminal antitrust cases against Ticketmaster for violations.
- Breaking up monopolies – In extreme cases, the DOJ has the power to break up companies that illegally monopolize an industry.
The DOJ often works closely with the FTC on consumer protection matters involving major companies like Ticketmaster. The two agencies have overlapping authority, but the FTC focuses more on consumer issues while the DOJ focuses on antitrust matters.
State Attorneys General
State attorneys general also regulate Ticketmaster under their own state consumer protection laws. Attorneys general can investigate Ticketmaster’s operations within their states and file lawsuits for practices that harm local consumers. Some key regulatory powers of state attorneys general include:
- Subpoena power – Can issue subpoenas to Ticketmaster for documents and information on the company’s state operations.
- Consumer complaints – Can act on consumer complaints about Ticketmaster received from citizens of their state.
- Law enforcement – Can bring civil and criminal cases against Ticketmaster for violating state consumer laws.
- Injunctions – Can seek court injunctions to halt unlawful practices by Ticketmaster within their state.
- Fines – Can impose fines and penalties under state consumer protection statutes.
For example, in 2021 a coalition of state attorneys general opened an investigation into Live Nation Entertainment and Ticketmaster for potential antitrust violations relating to their dominant market power. The investigation is ongoing as attorneys general continue monitoring Ticketmaster’s compliance with state laws.
Consumer Protection Agencies
Ticketmaster is also regulated by state and local consumer protection agencies. These agencies investigate consumer complaints, mediate disputes, and enforce consumer laws that apply to Ticketmaster’s operations. Some examples include:
- Better Business Bureaus – Mediate buyer complaints and can pursue investigations based on major complaint trends.
- State Consumer Protection Divisions – Enforce state laws against unfair or deceptive trade practices.
- Consumer Financial Protection Bureau – Oversees consumer financial transactions and services.
- State Licensing Boards – Oversee registration/licensing of Ticketmaster to do business in their state.
Consumer agencies provide important localized regulation and complaint resolution services relating to Ticketmaster. They often work with state attorneys general on larger investigations and enforcement actions as well.
Key Regulations
There are a variety of specific regulations and consumer protection laws that apply to Ticketmaster’s operations and practices, enforced by agencies like the FTC, DOJ, and state attorneys general. Some key regulations include:
- Unfair and Deceptive Practices Laws – Broadly prohibit unfair, fraudulent, or misleading business practices that harm consumers.
- Consumer Review Fairness Act – Bars companies from imposing gag clause penalties or restrictions on negative reviews by customers.
- Mandatory Refund Laws – Require companies to provide timely refunds to consumers for events that get cancelled or changed.
- Event Ticket Sales Regulations – Govern transparency and disclosures around event ticket fees, sales, cancellations, and more.
- Advertising and Marketing Regulations – Set standards for truthful, non-misleading advertisements and marketing by Ticketmaster.
Ticketmaster must regularly review and update its policies and practices to comply with these regulations as enforced by oversight agencies at both federal and state levels.
Recent Regulatory Actions
Ticketmaster has faced an array of regulatory actions and investigations over the past decade relating to different issues and alleged violations of consumer protection laws:
- 2022 – A coalition of state attorneys general announced an ongoing antitrust investigation into Live Nation Entertainment and Ticketmaster looking at potential abuse of market power in live entertainment.
- 2021 – Ticketmaster paid a $10 million fine to resolve charges by the FTC that the company illegally withheld refunds for cancelled events during the COVID-19 pandemic.
- 2019 – The Canadian Competition Bureau fined Ticketmaster $4.5 million for advertising deceit involving hidden fees.
- 2018 – Ticketmaster paid a $2.55 million fine to the State of New Jersey to settle charges of deceptive advertising tactics to sell ticket insurance.
- 2017 – The Better Business Bureau issued a warning about Ticketmaster for failing to provide timely refunds and responses to customer complaints.
This mix of federal, state, and consumer agency actions demonstrates the extensive oversight and regulation Ticketmaster faces from multiple angles.
Public Indicators
There are several public indicators that can help assess whether Ticketmaster is appropriately complying with regulations and protecting consumer interests:
- Complaint volumes – High volumes of complaints filed against Ticketmaster with agencies like the BBB or state attorneys general may indicate compliance issues.
- Enforcement actions – Recent lawsuits, investigations, fines or penalties against Ticketmaster can signal areas of needed improvement.
- Consumer surveys – Low satisfaction scores or negative reviews from Ticketmaster customers may suggest problems.
- Transparency – Clear, upfront fee disclosures and policies online can show a commitment to compliance.
- Accountability – Willingness to quickly address identified issues and change problematic policies demonstrates accountability.
While no company is perfect, responsiveness to these indicators reflects Ticketmaster’s priority on compliance with regulations designed to protect consumers.
Conclusion
In summary, Ticketmaster is regulated at multiple levels of government to ensure fair business practices and consumer protection. The Federal Trade Commission and Department of Justice oversee Ticketmaster at the federal level, while state attorneys general and consumer agencies provide localized accountability. Regulations like the Unfair and Deceptive Practices Laws prohibit a wide range of harms to consumers that agencies can pursue actions against. Through the combination of federal antitrust and consumer protection oversight, as well as active state enforcement, Ticketmaster faces substantial regulation requiring it to uphold basic standards of appropriate business conduct.