11:29am PT by Eriq Gardner
Ticketmaster Says Customers Suing Over Scalping Bought Ticket Out of Class Action
Ticketmaster has turned to the fine print in order to save itself from a putative class action that alleges the company actively encourages the sale of tickets on the secondary market.
Allen Lee is among ticket buyers now suing Ticketmaster and its parent, Live Nation, after undercover reporters from Canada's CBC and the Toronto Star detailed how Ticketmaster facilitates scalpers in order to gain a second cut on sales. The lawsuit claims violations of the Cartwright Act, California Penal Code and unfair and fraudulent business practices.
Most courts have upheld clickware agreements so long as they are conspicuous enough, although Spotify lost a ruling a couple years ago for the unconscionable way it had modified terms without proper notice. Plaintiffs lawyers will now argue against compelled arbitration, while renewed attention to Ticketmaster's alleged cooperation with scalpers has some calling for new legislation.