Ticketmaster and Live Nation are being sued for working directly with ticket resellers, as The Hollywood Reporter outlines in a new story. According to a class action lawsuit filed Friday in California federal court, Ticketmaster “actively encourages scalpers to resell event tickets on its site because it collects a fee on both the initial sale and resale.”
“Have you ever wondered why Ticketmaster has been unable to rid itself of the scalpers who purchase mass quantities of concert or sports tickets from its website and then resell them for much more minutes later?” the complaint states. “The answer: Ticketmaster hasn’t wanted to rid itself of scalpers because, as it turns out, they have been working with them.”
“Indeed, on its own website, Ticketmaster refers to the activity of professional scalpers as ‘unfair competition,'” the complaint continues. “But now it has been caught secretly permitting, facilitating and actively encouraging the sale of tickets by scalpers on the secondary market using its TradeDesk platform — all for a second cut on those sales.”
In September, the CBC and the Toronto Star published their investigations revealing that representatives from Ticketmaster’s professional reseller program, TradeDesk, told undercover journalists that the resell division doesn’t police users who have bought tickets in bulk from Ticketmaster’s main division using bots and fake identities.
At least two U.S. Senators, Jerry Moran and Richard Blumenthal, have reportedly sent a letter to Live Nation asking for clarification about the program. Lead plaintiff Allen Lee is suing Ticketmaster along with its parent company Live Nation Entertainment for “unfair business practices and unjust enrichment.”
Stay tuned for more developments on the class action lawsuit against Ticketmaster and Live Nation.
In other music news, two new Tupac albums are reportedly on the way.