In October 2021, a class action lawsuit was filed against Ticketmaster for allegedly deceiving customers by advertising ticket prices that are deceptively low due to added on “drip pricing” fees. The lawsuit alleges that Ticketmaster hides the true costs of tickets from customers by initially showing ticket prices that do not include mandatory fees that are added later in the checkout process.
What is the background of the Ticketmaster hidden fees lawsuit?
The lawsuit was filed by Matthew McMillan in US District Court for the Central District of California. McMillan claims that Ticketmaster’s fee disclosures during the checkout process violate California and New York laws prohibiting deceptive business practices and false advertising. The lawsuit notes that Ticketmaster tacks on fees incrementally throughout the purchasing process, misleading consumers into believing they are getting a better deal than they are.
Some of the key complaints in the lawsuit include:
- Ticketmaster adds fees later in the checkout process that can equal up to more than 50% of the advertised base price.
- These fees include an “Order Processing Fee”, a “Service Fee” and an “UPS Delivery Fee”.
- The total cost of fees is not disclosed until later in the checkout process after the customer has already invested time and effort selecting tickets.
- Customers are lured in under the false impression that ticket prices are lower than their true cost.
The lawsuit claims that Ticketmaster employs these deceptive practices in order to extract higher fees from customers who might otherwise back out if the fees were disclosed up front. The suit alleges violations of California’s False Advertising Law, Unfair Competition Law, and Consumer Legal Remedies Act, along with New York’s Deceptive Acts and Practices Act.
What are the key accusations against Ticketmaster?
The key accusations outlined in the Ticketmaster hidden fees class action lawsuit include:
- Advertising false ticket prices – Ticketmaster is accused of advertising ticket prices on the initial event page that are deceptively lower than the true total cost that includes fees.
- Hiding the full costs – The lawsuit alleges Ticketmaster purposefully hides the full costs of fees by only disclosing some of them at different stages of the checkout process.
- Tricking consumers – By hiding the full costs, Ticketmaster allegedly tricks consumers into believing tickets cost less than their actual prices.
- Unfair competition – The lawsuit claims Ticketmaster’s practices amount to unfair competition under California and New York consumer laws.
- Unjust enrichment – Ticketmaster is accused of being unjustly enriched at the expense of consumers through collecting higher fees.
In essence, the lawsuit alleges Ticketmaster uses bait-and-switch tactics to lure in customers with low ticket prices and then tacks on higher fees later in the checkout process. This violates consumer protection laws in California and New York, resulting in harm to consumers.
What fees and practices are under scrutiny?
The Ticketmaster fees and practices that are specifically under scrutiny in the lawsuit include:
- Service fees – These fees can equal 25% or more of a ticket’s face value but are not added until late in the checkout process.
- Order processing fees – Added per ticket fee for processing orders that can amount to 10-15% of ticket prices.
- UPS delivery fees – Fees for UPS ticket delivery that are not disclosed until the end of the checkout process.
- Advertised ticket prices – The lawsuit claims base ticket prices advertised upfront don’t represent the true total ticket costs.
- Drip pricing tactics – Incrementally disclosing fees throughout the checkout process is an alleged tactic to obscure full costs.
The lawsuit aims to bring transparency to Ticketmaster’s event ticket pricing and force them to advertise the full inclusive costs of tickets upfront rather than hiding components of the full price until later in the buying process.
What time period does the lawsuit cover?
The class action seeks to cover purchases made through Ticketmaster’s websites from October 21, 2016 to the present. This roughly 5-year time period covers all purchases made during the time frame that Ticketmaster is accused of employing deceptive hidden fee pricing.
Some key dates related to the lawsuit time period include:
- October 21, 2016 – Earliest purchases covered by the lawsuit.
- January 2020 – Ticketmaster announces changes providing fee estimates earlier in checkout.
- October 2021 – Class action lawsuit filed against Ticketmaster.
- Present – Ongoing alleged use of deceptive fees until the present.
Purchases made through Ticketmaster websites from late 2016 through 2021 and into 2022 are potentially eligible to be included as part of the lawsuit.
Who is covered by the Ticketmaster class action lawsuit?
The potential class members covered by the lawsuit include:
- All persons in the US who purchased tickets through Ticketmaster’s websites from October 21, 2016 to present.
- The lawsuit aims to include Ticketmaster customers across the US who made purchases through their desktop or mobile websites.
- Both individual ticket buyers and bulk repeat purchasers are potentially included.
- Only purchases made directly through Ticketmaster are included, not resale sites.
- The lawsuit looks to cover “tens of millions” of US Ticketmaster customers affected by hidden fees.
In general, any US resident who purchased Ticketmaster tickets online during the period covered by the lawsuit could potentially be included as part of the class. The exact size and parameters of the class will be determined as litigation proceeds.
What are the claims made in the Ticketmaster hidden fee lawsuit?
The lawsuit makes claims against Ticketmaster under the following state laws:
- California
- False Advertising Law (Bus. & Prof. Code §§ 17500 et seq.)
- Unfair Competition Law (Bus. & Prof. Code §§ 17200 et seq.)
- Consumer Legal Remedies Act (Civ. Code §§ 1750 et seq.)
- New York
- Deceptive Acts and Practices Act (Gen. Bus. Law §§ 349 et seq.)
In general, these laws prohibit businesses from engaging in deceptive practices and false advertising in transactions with consumers. The lawsuit alleges Ticketmaster violated these consumer protection laws by:
- Advertising false ticket prices that don’t represent the full costs
- Hiding the full costs and fees associated with tickets
- Failing to adequately disclose service fees and other charges
- Misrepresenting the ticket pricing and purchase terms
- Engaging in bait-and-switch sales tactics
Through these actions, Ticketmaster allegedly misled consumers and violated state laws against false advertising and deceptive practices.
What damages and relief are sought by the lawsuit?
The Ticketmaster hidden fees class action lawsuit seeks the following relief on behalf of all class members:
- Compensatory and statutory damages
- Restitution and disgorgement of profits
- Punitive and exemplary damages
- Declaratory and injunctive relief
- Attorneys fees and costs
This includes monetary damages to compensate class members for the excess fees paid, along with punitive damages and restitution of profits from Ticketmaster’s alleged unlawful practices. The lawsuit also seeks court orders prohibiting Ticketmaster from further deceptive acts and full refunds of fees to class members.
What is the current status of the lawsuit?
Here is a brief timeline of the major developments in the case so far:
- October 2021 – Lawsuit filed in US District Court for Central District of California
- January 2022 – Ticketmaster filed motion to compel arbitration
- March 2022 – Plaintiffs filed opposition to Ticketmaster’s motion
- June 2022 – Oral arguments held on motion to compel arbitration
- July 2022 – Court denied Ticketmaster’s motion to compel arbitration
- Ongoing – Parties conducting discovery and preparing for trial
As of October 2022, the lawsuit remains ongoing with the plaintiffs prevailing in early motions to keep the case in court rather than private arbitration. The parties are engaged in the pre-trial discovery process. Ticketmaster has signaled it may file an appeal of the order denying arbitration.
Who is the judge presiding over the case?
The Ticketmaster hidden fee lawsuit is being handled in the US District Court for the Central District of California. The presiding judge is:
- Judge Percy Anderson
Judge Anderson denied Ticketmaster’s motion to compel arbitration in July 2022. He will handle overseeing all pre-trial matters and proceedings in the case unless it is transferred to another judge at some point.
Who are the attorneys representing consumers?
The plaintiffs and proposed consumer class are represented by the following law firms serving as co-lead class counsel:
- Girard Sharp LLP
- Bursor & Fisher, P.A.
These veteran class action law firms are based in California and New York. They specialize in consumer protection cases involving false advertising and unfair business practices.
Has Ticketmaster responded to the lawsuit?
Ticketmaster has denied any wrongdoing and is vigorously defending itself against the hidden fee class action lawsuit. Some key components of their response so far include:
- Ticketmaster asserts all its fees are adequately disclosed to consumers.
- They say their practices comply with all state advertising laws.
- Ticketmaster moved to enforce arbitration agreements and avoid a class action lawsuit.
- They claim consumers agree to mandatory arbitration when purchasing tickets.
- Ticketmaster alleges claims over CA tickets are improperly venued in CA.
While aggressively fighting the case, Ticketmaster has not made any major changes to its checkout fee practices since the lawsuit was filed beyond providing fee estimate disclosures earlier in the process.
Is Ticketmaster offering any settlements?
As of October 2022, Ticketmaster has not offered any settlement to resolve the class action lawsuit. Key facts on the status of potential settlements include:
- No settlement offers have been publicly reported yet.
- Settlement unlikely prior to ruling on arbitration enforceability.
- Legal experts say a settlement could happen if court forces case to trial.
- Plaintiffs will likely demand full refund of hidden fees in any settlement.
- Consumers don’t need to do anything now to get a future settlement.
For now, Ticketmaster appears to be pursuing dismissal of the lawsuit through enforcing arbitration agreements. Settlement talks typically happen later if the court allows a class action to proceed to trial.
What should consumers do about the Ticketmaster lawsuit?
Consumers who may be eligible class members in the lawsuit do not need to take any action at this time. Some key steps to consider for potential class members include:
- Do nothing to join – No need to opt-in as the suit seeks to cover all without action.
- Monitor lawsuit news – Keep updated on major case developments going forward.
- Save Ticketmaster receipts – Keep documentation of purchases and fees paid.
- Consult an attorney – Get individual legal advice about options for those with significant purchases.
- Object to arbitration – Opt out of any arbitration agreement with Ticketmaster.
Await further notice on if the court formally certifies a class. Any approved settlements will be publicized to class members if negotiations occur.
Can consumers join the Ticketmaster class action?
The Ticketmaster hidden fee lawsuit is filed as a proposed nationwide class action intended to cover all eligible US consumers by default. Important things to know about joining the Ticketmaster class action include:
- No need to join now – Consumers are automatically included if part of the class.
- Can’t join independently – Must proceed as part of class, can’t file own lawsuit.
- May be able to opt-out – Can likely exclude yourself from the class later.
- Objection option – Can object to settlement terms if dissatisfied.
- Awaiting class certification – Court yet to formally approve the class.
For now, affected consumers are included unless they later opt-out after a class is certified. Those wishing to join should simply monitor the lawsuit for developments.
Is the Ticketmaster lawsuit unique?
The Ticketmaster hidden fee class action lawsuit has some unique aspects compared to other fee lawsuits against event companies and online retailers. Some things that make the Ticketmaster lawsuit different include:
- Challenges hidden fee practices still used today
- Alleges bait-and-switch sales tactics
- Targets incremental fee disclosures throughout checkout process
- Focuses on violations of California and New York consumer laws
- Seeks broad nationwide class of tens of millions
- Plaintffs defeated early arbitration enforcement attempt
Overall, the lawsuit takes unprecedented aim at Ticketmaster’s entrenched system of rolling out fees during checkout. It seeks impactful changes and refunds instead of just small tweaks.
Could other event companies be sued too?
The Ticketmaster lawsuit focuses solely on alleged hidden fee practices used by Ticketmaster and Live Nation. However, legal experts say the case could potentially inspire similar lawsuits against other major event and ticket sale companies. Reasons others may face lawsuits in the future include:
- Other companies use similar incremental hidden fee disclosures
- Suits vs. Ticketmaster puts industry fee practices under scrutiny
- May force changes that level playing field on fee transparency
- Consumersbecome more aware of hidden event fee practices
- Comapnies try to avoid the time and cost of defending lawsuits
While not guaranteed, the Ticketmaster lawsuit draws increased attention to the previously accepted industry practice of obfuscating full event costs through incremental hidden fees.
Conclusion
The Ticketmaster hidden fees class action aims to fundamentally change how the company discloses service fees and other charges during the ticket buying process. By accusing Ticketmaster of violating state consumer laws against deceptive pricing, the lawsuit seeks to force more transparent up front pricing so consumers understand the full costs of tickets initially. With early wins keeping the case out of arbitration, the plaintiffs appear poised to continue aggressively pursuing systemic changes and refunds for potentially tens of millions of consumers affected by alleged bait-and-switch ticketing tactics.