Explaining the Ticketmaster Class Action Lawsuit

You’re likely familiar with the frustrations of Ticketmaster’s hidden fees, which a class action lawsuit alleged were illegally excessive and deceptive. The $400 million settlement provides partial relief, including $2.25 discount codes per ticket, though broader issues of Ticketmaster’s parent company Live Nation’s monopolistic practices remain. To further understand the implications of this lawsuit and its impact on the live event ticketing industry, let’s dive deeper into the details.

Key Takeaways

• A class action lawsuit was filed against Ticketmaster for allegations of illegally overcharging certain fees on ticket purchases over a 14-year span.
• Ticketmaster agreed to a $400 million settlement to avoid further litigation, providing class members with $2.25 discount codes per ticket, up to 17 codes.
• Allegations included Ticketmaster engaging in deceptive pricing practices, such as hidden “Order Processing Fees” that inflated ticket prices by up to 28%.
• The lawsuit highlighted the lack of transparency in the live event ticketing industry and Ticketmaster’s monopolistic practices that limit consumer choice.
• The ruling opened the door for consumers to hold the ticketing giant accountable and could potentially lead to similar lawsuits, benefiting consumers through increased transparency.

The Ticketmaster Lawsuit

Although a class action lawsuit was filed against Ticketmaster over allegations of illegally overcharging certain fees, the company agreed to a $400 million settlement to avoid further litigation.

The class includes customers who were U.S. residents at the time of purchase and paid Order Processing Fees that weren’t fully refunded. Eligible class members can receive a $2.25 discount code per ticket, up to a maximum of 17 codes, and UPS Subclass members can receive an additional $5 UPS delivery credit.

The settlement was administered by Schlesinger v. Ticketmaster c/o GCG, with final approval granted in January 2015.

Allegations Against Ticketmaster and Live Nation

The allegations against Ticketmaster and its parent company Live Nation paint a troubling picture of corporate misconduct. The class action lawsuit accuses the ticketing giants of:

1. Illegally overcharging excessive and deceptive fees on ticket purchases from their website over a 14-year span.
2. Driving up high ticket prices through anti-competitive practices that limit consumer choice and inflate costs.
3. Concealing these hidden fees from customers until the final stages of the purchasing process.

The settlement aims to provide partial relief to affected customers, but the broader issues of monopolistic behavior and lack of transparency in the live event ticketing industry remain unresolved.

Plaintiffs and the Class

The lawsuit was filed by five customers who allege Ticketmaster illegally overcharged certain fees. The class members are Ticketmaster customers who purchased tickets and paid Order Processing Fees that weren’t fully refunded.

To qualify, class members must have been US residents at the time of their ticket purchases. Importantly, no proof of purchase is required for class members to claim benefits. If eligible, class members will automatically receive $2.25 discount codes per ticket purchased, up to a maximum of 17 codes.

Deceptive Pricing Practices

The lawsuit alleged that Ticketmaster engaged in deceptive pricing practices, including hidden “Order Processing Fees” that weren’t fully refundable. These fees and a lack of pricing transparency are the key issues at the heart of the class action settlement. Ticketmaster denies the allegations but opted to settle the lawsuit to avoid further litigation.

Hidden Ticketing Fees

Why do Ticketmaster’s allegedly hidden fees and deceptive pricing practices raise concerns for consumers? The lawsuit claims Ticketmaster’s “order processing fees,” “service charges,” and other fees can add up to 28% of a ticket’s face value, leading to inflated pricing.

This raises concerns because:

1. The hidden fees misrepresent the true cost of tickets, violating consumer protection laws.
2. The fees contribute to higher ticket prices, which can make live events less accessible.
3. Ticketmaster’s dominance allows it to conceal the full cost from consumers.

Ticketmaster disputes the allegations, stating its service charges are no higher than elsewhere and only retain a “modest portion.” However, the case highlights the need for transparency in ticketing pricing.

Pricing Transparency Issues

One of the core issues raised in the Ticketmaster class action lawsuit is the company’s alleged lack of pricing transparency. Plaintiffs claim Ticketmaster conceals certain mandatory fees, such as “service fees”, until the online checkout process, allowing the company to inflate prices and limit consumer choice.

Consumers argue this deceptive pricing model makes it difficult to compare the total ticket costs across different platforms. The lawsuit seeks to hold Ticketmaster accountable for allegedly hiding delivery and other fees that can drastically increase the final purchase price, in violation of consumer protection laws.

Implications of the Lawsuit

The ruling opens the door for consumers to hold the ticketing giant accountable, potentially addressing long-standing concerns over high ticket prices and limited choices. The implications of this lawsuit are far-reaching:

1. It signals a shift in the legal landscape, as previous lawsuits were effectively blocked by Live Nation’s arbitration-only policy.
2. The rejection of Live Nation’s arbitration terms, deemed unconscionable and unenforceable, marks a significant turning point.
3. This ruling could pave the way for similar lawsuits, potentially benefiting consumers by increasing Live Nation and Ticketmaster’s accountability and transparency.

Is the Ticketmaster Class Action Lawsuit Similar to the T-Mobile Class Action Lawsuit?

The Ticketmaster Class Action Lawsuit and the T-Mobile Class Action Lawsuit both revolve around consumer grievances. Many individuals are comparing the tmobile lawsuit claims and customer experiences to assess patterns in corporate behavior. Both cases highlight the importance of customer rights and the accountability of large companies in addressing consumer dissatisfaction.

Live Nation’s Monopolistic Practices

Assuredly, Live Nation’s monopolistic practices have significant implications for the live music industry. With Live Nation controlling over 60% of the concert promotion market and owning/controlling over 265 concert venues, its dominance is unparalleled. This gives Live Nation immense power, allowing it to drive up prices across the industry and punish venues that use other online ticket systems.

Even for those who haven’t attended a Live Nation concert, the company’s monopolistic grip is alleged to impact the entire live music landscape. A forced breakup of Live Nation could reshape the industry, but the government’s success remains uncertain as Live Nation argues the merger has improved the industry.

Next Steps for Consumers

Eligible consumers who purchased Ticketmaster tickets during the specified period can expect to receive their $2.25 discount codes directly via email between April 25, 2016 and June 18, 2016.

Additionally, UPS Subclass Members can claim a $5 UPS delivery credit.

To guarantee receipt of the discount codes, follow these steps:

1. Check your email inbox and spam/junk folder for the email notice by June 18, 2016.
2. If you don’t receive the email, contact the Claims Administrator to verify your eligibility and claim the cash.
3. Act quickly, as the discount codes and credits are only valid for a limited time.

Conclusion

You’ll likely see some changes ahead as a result of this lawsuit. The class action paints a clear picture of Ticketmaster’s deceptive practices and Live Nation’s monopolistic control over the live entertainment industry. Consumers can expect more transparency around ticket pricing and fees, and hopefully, increased competition that gives you more choice in how you purchase tickets to your favorite events.