Ticketmaster finds itself facing another lawsuit over its alleged coordination with professional scalpers, this time over claims that its resale practices constitute anticompetitive behavior under California law.
The proposed class action, which has been removed from state to federal court, explains that Ticketmaster “reaps tremendous profits” by helping scalpers buy tickets en masse before other customers get the chance in order to resell them at a marked-up price. As explained in the complaint:
“Tickets to live events such as concerts and sporting activities are generally sold in two markets: the primary market, wherein tickets are initially sold to consumers, and the secondary market, wherein tickets originally purchased in the primary market are resold, usually for higher prices.”
Ticketmaster collects double commissions on resold tickets, the case explains, adding that the company went so far as to design a sophisticated online system, TradeDesk, to help scalpers bypass ticket limits and instantaneously make bulk purchases. By contracting with scalpers, Ticketmaster suppresses competition in the secondary market and unfairly causes regular customers to pay more, the suit claims.