The Federal Trade Commission has intensified pressure on Live Nation and its subsidiary Ticketmaster by filing a lawsuit that claims the companies have been deceiving fans for years. However, the entertainment ticket company is upholding its prices.
Regulators allege that Ticketmaster’s business model relies on hidden costs, unfair resale practices, and deliberate cooperation with scalpers that inflate ticket prices far beyond their face value.
According to the complaint, consumers have been forced to pay billions in fees that were never clearly disclosed at the point of purchase. Among the FTC’s most serious accusations is what it calls a “bait and switch approach,” where fans see an advertised ticket price that later increases by 30 percent or more during checkout due to mandatory fees.
The lawsuit further claims Ticketmaster knowingly allowed scalpers and brokers to evade ticket limits designed to keep sales fair, giving them the ability to buy large quantities and resell them at steep markups. In this process, Ticketmaster allegedly benefits three separate times: collecting service fees when scalpers make their initial purchases, when those tickets are resold on Ticketmaster’s marketplace, and again when fans buy them at inflated resale prices. The agency estimates the company earned $3.7 billion in resale fees from 2019 to 2024 alone.
While regulators argue that Live Nation has built an empire on unfair practices, CEO Michael Rapino recently defended the cost of concerts during CNBC Sport and Boardroom’s Game Plan conference on Tuesday. He insisted that ticket prices remain relatively affordable when compared to other high-demand events.
“In sports, I joke it’s like a badge of honor to spend [$70,000] for Knicks courtside,” Rapino said. “They beat me up if we charge $800 for Beyoncé.”
Rapino emphasized that the average concert ticket remains within reach for many fans despite the backlash surrounding rising costs. By placing concerts side by side with professional sports, he suggested that music events still deliver unique value for the price.
For artists, Rapino explained, touring has become the backbone of their income. With streaming generating limited revenue, performers depend almost entirely on live shows.
“The artist is going to make 98% of their money from the show,” he said.
Using Beyoncé’s Cowboy Carter tour as an example, he described the massive scale of production that goes into today’s concerts: “She’s got 62 transport trucks outside. That’s a Super Bowl she’s putting on every night.”
Beyond the numbers, Rapino highlighted the emotional and social importance of live music.
“No matter what you bring to that table that day, you unite around that one shared experience. For those two hours, I tend to drop whatever baggage I have and have a shared moment,” he reflected.
The sentiment was echoed by Ryan Smith, CEO of the Smith Entertainment Group, who drew parallels between sports and live music.
“In sports, we’re really media companies. We’ve got talent, we’ve got distribution. We’re putting on a show or a wedding or something every night,” he said.
With the FTC lawsuit unfolding, Live Nation is in a delicate position. On one hand, Rapino insists that concerts are underpriced compared to sports and provide unparalleled experiences for fans.
On the other, regulators are determined to prove that Ticketmaster’s practices have left both fans and artists at a disadvantage.
