Ticketmaster and LiveNation just made it impossible for you to sue them. Yes you’re reading that correctly.
On Sept. 18, the United States Federal Trade Commission (FTC) filed a lawsuit against LiveNation’s ticketing arm, Ticketmaster, alleging that the entertainment giant was purposefully inflating prices. This is in direct violation of Section 5(a) of the FTC act and the Better Online Ticket Sales Act.
In addition to the lawsuit filed by the FTC, the state of California has filed a class action lawsuit against the company on behalf of residents Michelle Madrigal, Helen Pantuso and others. The suit alleges that the company illegally concealed the full price of tickets until online checkout.
Now, over a month later, the live entertainment giant is firing back. How are they responding? By locking customers into a predicament. Waive your rights to enter a class action lawsuit or kiss live events goodbye.
In Section 14 of the Ticketmaster terms of use the company states that in order to use the service, you must agree to waive your rights to join that or any other class action lawsuits levied against the company.
This announcement was met with outrage by live entertainment fans everywhere and they have brought that frustration to social media. One user joked, “Ticketmaster’s got me pledging loyalty like I’m joining a medieval guild, all that’s missing is pricking my finger and dripping blood on a Groupon.”
Not only is this waiver receiving mainstream criticism, but legal professionals are condemning this move as well.
A judge with the Ninth Circuit Court of Appeals in California recently struck down similar mass arbitration protocols and class waivers in Ticketmaster and Live Nation agreements. In the case of Heckman v. LiveNation, the judge ruled the agreements are unenforceable under state law.
Now here’s the question on everyone’s minds. What does this mean for me?
For ticket buyers, this creates a steep hill for them to climb if they choose to fight Ticketmaster’s conduct.
Filing individual arbitration claims is often less expensive than participating in a class action. However, the effect of these claims are less effective in producing broader and more widespread change.
The impact of this suit isn’t limited to the effectiveness of a class action. If only individuals can file claims, systemic issues, like those raised in the FTC lawsuit, will likely go unchallenged or be less likely to produce change.
However, observers say that the landscape is changing. The Ninth Circuit’s rejection combined with the FTC’s antitrust lawsuit signals that people in power are listening.
Arguably more importantly, it says that the days of Ticketmaster’s unchecked monopoly are numbered.
