In a legal battle that could reshape the live event ticketing world, Live Nation and its subsidiary Ticketmaster are pushing back hard against a sweeping lawsuit filed by the U.S. Federal Trade Commission (FTC) and seven states. The suit, launched in September 2025, alleges that the companies enabled large-scale ticket scalping and deceived fans, all while dominating the American ticketing landscape. On January 6, 2026, Live Nation and Ticketmaster filed a motion in a Los Angeles federal court, calling for the case to be dismissed and labeling it an “egregious instance of agency overreach.”
The FTC’s lawsuit accuses the two companies of working hand in glove with resellers to gouge fans. According to Reuters, the suit claims that Ticketmaster and Live Nation allowed brokers to exceed strict ticket purchase limits—often using multiple accounts and falsified information—to snap up millions of tickets. These tickets were then resold at inflated prices on Ticketmaster’s own resale platform, with the companies allegedly pocketing billions in resale fees from 2019 to 2024. The FTC estimates that Ticketmaster controls up to 80% of major U.S. concert ticketing, underscoring the scale of the issue.
At the heart of the legal dispute is the 2016 Better Online Ticket Sales (BOTS) Act. This law was passed in response to widespread frustration over bots and scalpers scooping up tickets before real fans could, especially after high-profile fiascos like the 2022 Taylor Swift Eras Tour sale, which saw Ticketmaster’s website overwhelmed by automated requests and resellers. The BOTS Act prohibits using technology to circumvent ticketing safeguards and bans the sale of tickets obtained through such means.
But Live Nation and Ticketmaster argue that the FTC is turning the law on its head. As Variety reports, the companies’ lawyers wrote in their motion, “This statute is designed to help ticket issuers like Ticketmaster combat ticket harvesting and scalping, ensuring that tickets are accessible to genuine fans. Plaintiffs now ask this Court to take the unprecedented step of applying this law against a ticket issuer for its operation of a resale platform.” They further contend, “Plaintiffs’ theory boils down to the idea that Ticketmaster is liable under the BOTS Act merely for knowing that some brokers used multiple accounts or that some accounts possessed more tickets than the ticket limit permitted. But that theory does not amount to a violation of the statute Congress enacted.”
Ticketmaster’s defense hinges on a narrow reading of the BOTS Act. The company insists it does not acquire or sell tickets itself on the resale market—rather, it simply provides a marketplace where brokers and consumers can list tickets. Therefore, Ticketmaster argues, the law should only apply to the resellers who use bots or other tricks to scoop up tickets, not to the platform itself. “Ticketmaster cannot be held liable under the law because resellers, not Ticketmaster, are the ones who sell the tickets listed on its resale platform,” the company stated in court filings, according to Reuters.
The FTC, however, paints a different picture. In its 84-page lawsuit, the agency alleges that Ticketmaster and Live Nation not only failed to stop brokers from violating ticket limits but also profited handsomely from the resulting resale activity. The complaint cites internal communications in which a Ticketmaster executive allegedly admitted that the company could identify brokers bypassing security measures but “turn a blind eye as a matter of policy.” In another email, an employee reportedly wrote that a proposed anti-scalping technology was “too effective,” suggesting a reluctance to fully crack down on resellers. Billboard notes that these internal discussions are key evidence in the FTC’s case, although Live Nation’s Executive Vice President Daniel M. Wall has argued that the agency is misquoting messages out of context.
The lawsuit also charges Ticketmaster with deceptive pricing, claiming the company continued to obscure the true cost of tickets even after internal research showed that consumers were less likely to buy when presented with the full price upfront. This alleged practice, the FTC says, violates both its new Junk Fees Rule and the TICKET Act, which is currently under review by the Senate. Ticketmaster counters that it began implementing all-in pricing in May 2025, after the FTC’s rule on deceptive fees took effect, and therefore any such claims are moot.
In response to the legal pressure, Ticketmaster has made some changes, including banning users with multiple accounts in an effort to curb scalping. Dan Wall, Live Nation’s EVP of corporate and regulatory affairs, has highlighted the company’s investments of over $1 billion in anti-bot technology, fraud detection, and ticket security. “Ticketmaster is an industry leader in the fight against bots and ticket scalping,” Wall told shareholders, citing innovations like rotating barcodes, SafeTix, and digital waiting rooms designed to keep tickets in the hands of real fans rather than bad actors.
But critics argue that these efforts have not gone far enough, especially given the platform’s immense power. As reported by Variety, the FTC’s suit maintains that Ticketmaster has deliberately failed to adapt to ever-evolving scalper tactics, such as using false email addresses, alternate SIM cards, and IP-masking browsers. The agency alleges that this inaction has allowed brokers to dominate the resale market, with fans left paying the price.
Legal experts say the outcome of this case could set a major precedent. If the court accepts Ticketmaster’s argument, it would mean the BOTS Act applies only to resellers and not to ticketing giants—even those that control the rules, set limits, and collect fees on every transaction. That would be a significant narrowing of the law’s reach, potentially leaving platforms like Ticketmaster largely exempt from anti-scalping regulation.
Meanwhile, Live Nation and Ticketmaster face mounting legal challenges on other fronts. The companies are scheduled to stand trial in March 2026 in a separate case brought by the U.S. Department of Justice, which accuses them of monopolizing the live concert industry and stifling competition. Both firms deny the allegations, maintaining that their practices benefit artists and fans alike.
The controversy comes amid growing global scrutiny of ticket resale practices. The UK government recently voted to ban ticket resale above face value, and similar legislation is under consideration in Quebec. These moves reflect a broader public backlash against hidden fees, bot-driven sales, and soaring ticket prices—issues that have left many music lovers feeling shut out of the events they care about.
A hearing on Ticketmaster’s motion to dismiss is set for February 19, 2026, before U.S. District Judge Maame Ewusi-Mensah Frimpong. The decision could have far-reaching implications for how tickets are bought, sold, and regulated in the years to come. As fans, artists, and regulators alike watch closely, the future of live event ticketing hangs in the balance.