Print-friendly Version
Ticketmaster, MTV Sued By Ticketing Firm
A promotion that allowed fans to purchase tickets for the upcoming Red Hot Chili Peppers/Foo Fighters tour via the MTV and Ticketmaster websites--before they were available through traditional outlets--has spawned a lawsuit by Costa Mesa, Calif.-based ticketing firm ETM, the second-largest in the U.S.
According to a press release issued by ETM, the suit alleges that Ticketmaster and MTV sold tickets to an event at the Bi-Lo Center in Greenville, S.C., which is currently under contract to use ETM as its exclusive ticket vendor. ETM is seeking a permanent injunction to stop similar promotions and unspecified damages allegedly sustained by ETM as a result of the practices.
ETM's press release also alleges that Ticketmaster tacked on "substantially higher" service charges at the Bi-Lo Center than ETM would have charged for the same event. Ticketmaster convenience and handling fees for the Chili Peppers event at the Bi-Lo center totaled $9.60 for tickets sent via U.S. mail and increased if a delivery option of overnight mail or UPS shipping was chosen. At press time, ETM's ticket sales for the event had not yet begun and surcharge information was unavailable.
According to a Bi-Lo Center spokesperson, about 300 tickets were sold for the concert via the MTV/Ticketmaster promotion through Thursday (1/27), but the promotion's final sales figures weren't available. The Ticketmaster onsales for the Bi-Lo Center ended as scheduled at 5 p.m. ET today (1/28), and the remainder of the tickets for the show were scheduled to go on sale via ETM outlets tomorrow.
Also named in the suit are Q Prime Inc., which manages the Red Hot Chili Peppers, and Ticketmaster Online-CitySearch, which has an exclusive agreement with Ticketmaster to sell Ticketmaster tickets on the Internet. (LiveDaily is a publication of Ticketmaster Online-CitySearch.)
According to ETM's press release, the company's lawsuit alleges violations of the Federal Sherman Act (conspiracy, restraint of trade and monopolization) and California Cartwright Act (restraint of trade), as well as advertising, unfair business practices, unfair competition and tortious interference with ETM's contractual relations.
A spokesperson for Ticketmaster said the company had no comment.
ETM began ticketing operations with the 1995 Pearl Jam tour after Ticketmaster and Pearl Jam's management locked horns over what the band's camp considered to be excessive service fees. In mid-tour, Pearl Jam shifted ticketing systems, moving to Philadelphia-based Fillmore Tours & Tickets for the duration of the 1995 run and the band's entire 1996 U.S. tour.
ETM and its subsidiaries have forged ticketing agreements with the Bi-Lo Center, North Charleston Coliseum in South Carolina, America West Arena in Phoenix, and the San Diego Sports Arena. The company, which sells event tickets by telephone, online and through kiosks, also has agreements to sell tickets for at least 10 professional sports franchises. The company also sells movie tickets.
Ticketmaster and MTV's sister station VH1 have partnered several times in the past for similar "Tickets First" campaigns. Among the tours connected to "Tickets First" promotions were John Mellencamp, Sting, Melissa Etheridge, Gloria Estefan, The Rolling Stones and Meat Loaf.
(LiveDaily Staff Writer Mark Lewis contributed to this story.)
