Ticketmaster Class Action Says Ticket Resell Program Benefits Scalpers

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A concert-goer alleges in a class action lawsuit that Ticketmaster and Live Nation contribute to the scalper’s market by allowing them scoop up large numbers of tickets and then resell them at astronomical prices.

Lead plaintiff Stanley Niedbalski claims in the Ticketmaster class action lawsuit that despite representing to the public that it limits the number of tickets that can be purchased, the company’s “verified resale” program encourages a secondary market for the most sought after tickets.

“In recent years, consumers have experienced a shortage of tickets on the primary market, namely, ticketmaster.com, but only to find them on the secondary reseller market priced at far more than the original value of the tickets, including higher fees,” alleges the Ticketmaster class action lawsuit.

“Ticketmaster has expanded into the secondary ticketing market of reselling tickets through its ‘verified resale’ program. Through its ‘verified resale’ program, scalpers sell directly on Ticketmaster’s site, including Ticketmaster’s resale sites such as ticketsnow.com, ticketexchangebyticketmaster.com, and ticketmaster.com/verified.”

According to the Ticketmaster class action lawsuit, Ticketmaster touts the verified resale program as a safe place for consumers to purchase tickets.

However, the ticket company has a profit motive, says the plaintiff. Ticketmaster, as well as Live Nation, supercharge their profit by getting two cuts of the sale off one ticket through the program.

“For example, Ticketmaster collects $25.75 in fees on a $209.50 ticket on the initial sale,” alleges the Ticketmaster class action lawsuit. “When the same ticket is posted for resale Ticketmaster’s site for $400, Ticketmaster stands to collect an additional $76 on the same ticket.”

The Ticketmaster class action lawsuit alleges that Ticketmaster’s own policy limits the number of tickets consumers can purchase to discourage bots that can automatically buy huge numbers of tickets when they are released, only to sell them at an inflated price later. But, Ticketmaster’s verified resale program incentivizes scalpers and is a backdoor for the use of ticket buying bots.

“Ticketmaster’s resale ticketing practice of allowing scalpers to disregard the rules set by Ticketmaster and laws prohibiting the use of ticket bots is unfair and unlawful resulting in harm to consumers,” contends the Ticketmaster class action lawsuit.

“This practice creates a shortage of tickets in the primary market, encourages inflated prices, and increase in fees in the secondary market, all for the benefit of Ticketmaster and at the expense of consumers. Consumers are then left with no choice but to purchase tickets on the secondary market.”

The Ticketmaster class action lawsuit seeks to represent a nationwide Class of “end-user purchasers” who bought a Ticketmaster ticket from the secondary market using the verified resale program. The plaintiff also seeks to represent an Ohio subclass.

The Ticketmaster class action lawsuit is seeking statutory, punitive, and compensatory damages, as well as a court order stopping Ticketmaster’s verified resale program.

Niedbalski and the proposed Class are represented by Rosemary M. Rivas and Rosanne L. Mah of Levi & Korsinsky LLP.

The Ticketmaster Resell Ticket Prices Class Action Lawsuit is Niedbalski v. Ticketmaster LLC, et al., Case No. 2:18-cv-10241, in the U.S. District Court for the Central District of California.