Ticketmaster’s New Terms Strip Away Consumers’ Rights

WASHINGTON, D.C. — Ticketmaster and its parent company Live Nation Entertainment are facing backlash from consumers and the Federal Trade Commission (FTC) for raising ticket prices and imposing hidden fees. A recent update to Ticketmaster’s terms-of-use agreement has drawn particular ire as it limits consumers’ ability to sue or join class action lawsuits.

According to The Lever, the updated agreement includes a clause that mandates arbitration, forcing ticket buyers into a private judicial system that may favor corporations, sparking concerns about consumer rights being undermined.

“Buried in the fine print is new language that locks you and everyone else who buys a ticket into a private judicial system,” said Luke Goldstein from The Lever, who is investigating the impact of these changes. “Ticketmaster is trying to keep ticket prices high while stripping you of your legal rights.”

The FTC has previously filed a lawsuit against Ticketmaster, accusing the company of engaging in unfair practices, including excessive fees and illegal price manipulation in the resale market, often dominated by scalpers. The legal scrutiny intensified after Taylor Swift‘s 2022 ERAS tour ticket sales led to widespread complaints from fans, further emphasizing the need for accountability.

David Sirota, host of Lever Time, pointed out that hidden fees added to ticket prices have contributed to public frustration. “You buy a ticket for a hundred bucks, but by the time you check out, it’s 170,” noted Kid Rock during discussions surrounding ticket prices at the White House in March 2023.

The recent changes to Ticketmaster’s terms of service have incensed consumer rights advocates who argue the arbitration agreement represents a bigger trend within corporate America. “Arbitration is often accompanied by a scam,” said David Seligman, an attorney with Towards Justice, emphasizing the barriers it creates for consumers to hold corporations accountable when wronged.

Seligman explained that arbitration provisions often strip consumers of their right to class action lawsuits, which are vital in cases involving widespread corporate misconduct. He highlighted the challenges many consumers face when attempting to reclaim their rights through arbitration, where success rates heavily favor companies.

“They create a system where the deck is stacked against you,” Seligman said. A significant finding indicated that arbitration rulings favor corporations more than 95% of the time, underscoring the disparities inherent in such private judicial systems.

As consumers continue to express outrage over Ticketmaster’s practices, lawmakers are under pressure to address the growing concerns around corporate accountability and forced arbitration. A bill presented to Congress aims to prohibit forced arbitration clauses in various contexts, potentially impacting how companies can limit consumer rights in the future.

The legal battle over Ticketmaster’s practices is far from over, and the outcomes may redefine the landscape of consumer rights, accountability, and arbitration in the ticketing industry.