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Tumbled
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FTC: Springsteen Ticket Buyers Can Expect a Refund From Ticketmaster Consumer restitution from settlement anticipated to exceed $1 million, says FTC chairman Jenna Greene
The National Law Journal
February 19, 2010
Bruce Springsteen concertgoers, take heart. The Federal Trade Commission has got your back.
The agency Thursday announced it has settled charges that Ticketmaster and its affiliate TicketsNow used "deceptive bait-and-switch tactics" to sell tickets to 16 Springsteen concerts last year.
When thousands of consumers tried to buy tickets via Ticketmaster's Web site, they were unknowingly redirected to TicketsNow, a resale site that charged as much as four times more than the face value of each ticket. In some cases, consumers purchased "phantom tickets" that the reseller didn't even possess.
"Buying tickets should not be a game of change," said FTC Chairman Jon Leibowitz at a press conference Thursday. "Our hope is to clean up the Wild West of ticket reselling."
In a complaint simultaneously filed and settled Thursday in the U.S. District Court for the Northern District of Illinois, the FTC charged Ticketmaster and its affiliates with deceptive and unfair practices in violation of Section 5 of the FTC Act.
The settlement calls for Ticketmaster to refund the difference between the original price of each ticket -- $95 maximum -- and the amount charged by TicketsNow -- up to $400. Leibowitz estimated that consumer restitution would top $1 million.
The settlement also calls for what Leibowitz called "dramatic changes in ticket practices." Now, when Ticketmaster redirects consumers to TicketsNow, this must be "clearly and conspicuously" disclosed. Also, resellers must clearly disclose if the tickets offered are in-hand or speculative.
The FTC also sent warning letters to about 10 other ticket resellers, putting them on notice of the agency's new standards.
Ticketmaster was represented by its general counsel, Chris Riley, and outside counsel Linda Goldstein, a partner in the New York office of Manatt, Phelps & Phillips and chair of the firm's advertising, marketing and media division.
Last month, the U.S. Department of Justice approved the merger of Ticketmaster and Live Nation Inc. to form Live Nation Entertainment Inc., but imposed some conditions on the deal.
In 2009, Ticketmaster settled a case brought by New Jersey Attorney General Anne Milgram to resolve more than 2,000 complaints in connection with the sale of tickets to a Springsteen concert at the Meadowlands in East Rutherford, N.J.
This article first appeared on The BLT: The Blog of Legal Times.
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