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Ticketmaster Faces Scalping Lawsuit in Canada, Blames “Glitch” For Springsteen Debacle

2/10/09, 3:52 pm EST

Hours before Live Nation and Ticketmaster revealed final merger plans, an Ontario man filed a class action lawsuit against Ticketmaster in Canada after he was maneuvered to the secondary ticket site TicketsNow while trying to buy seats for a Smashing Pumpkins show in November 2008. In a situation eerily similar to the one that plagued Bruce Springsteen fans last week, the $410 million lawsuit alleges Henry Krajewski was redirected to TicketsNow after failing to buy C$66.50 (Canadian dollars) Smashing Pumpkins tickets; he instead paid C$533.65 for a pair of tix using the TicketsNow site as prompted by Ticketmaster. Ontario is a province where there are laws against reselling tickets on the secondary market at more than their face value, according to Billboard.biz.

During today’s merger phone conference, Live Nation’s Michael Rapino spoke out against the suit, saying “class action lawsuits have no merit, it’s like chasing cars down the road.” Referring to Ticketmaster’s problems regarding redirects to TicketNow, he added, “There was actually a glitch in the system that had nothing to do with availability of the tickets, it had to do with Visa [credit cards] that couldn’t process the data and so it froze the system.” Several hours after Rapino made these statements, Ticketmaster issued a revised statement that places the blame on its own software, rather than a specific problem with Visa.

“There were people who misunderstood what we did and we said if anyone who brought tickets at a higher price we’d make them good for that. There was no real controversy here,” he said during the conference. “The issue is that there is a secondary market. That has existed for a long time, now it’s called secondary, it used to be called scalpers, that is a reality. It has been the reality for a very long time and in which all sorts of practices go on. What Ticketmaster has done in entering the business is try to make it transparent and will continue to make it more and more transparent and make it secure.”

Rapino admitted that there have been some “hiccups” in the system, as Phish and Springsteen fans can attest, but “we are adjusting daily to make sure our system can handle our summer load and it will be business as usual.”

Related Stories:

Live Nation and Ticketmaster Announce Merger Agreement
Bruce Springsteen “Furious” At Ticketmaster, Rails Against Live Nation Merger
Phish Fans Furious As Live Nation Fails First Major Ticketing Test
Get Ready to Pay Big Fees: Live Nation Ticketing Service Launches
Ticketmaster and Live Nation Battle To Fill Void Left By Labels


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Comments

Mallory | 2/10/2009, 4:38 pm EST

This is BS. Ticketmaster already basically has a Monopoly on concert tickets (ANY tickets). They create huge logistical problems for venues and artists involved every day (currently working with an arts organization that is having major Ticketmaster pains and its cutting into their potential growth). Now they’ve acquired LiveNation, making the monopoly secured. This type of action, scalping tickets on third-party websites, is ridiculously greedy and ethically questionable. What the hell are they thinking? Are there any decent people left in the world?

L Poule | 2/10/2009, 6:13 pm EST

Bought 4 tickets for a World Jr.Hockey Championship through Ticketmaster.
After taking delivery of the tickets I noted that he printed value on the tickets were $15.00 each. I should have paid 60.00 for them. But they just were just so POPULAR and the sales were going out the window that I ended up paying $355.00 for them.
OBSCENE gouging and IT”S MORE COMMONLY CALLED SCALPING on the street and it’s illegal in ONTARIO

Greendale | 2/10/2009, 6:13 pm EST

This explanation by ticketmaster is pure bullshit. I have a mastercard, and my purchase froze as well. Luckily, ticketmaster got back to me and I was able to sell my tickets for a large premium online. Thanks Stub Hub!

David_Smith | 2/10/2009, 7:20 pm EST

As a long-time YES fan I was pleased to see there was a Vancouver date (Feb 15th) for their current tour.

I went on line to get a seat and found myself at the TicketNow website. A $70 ticket was going for $106, plus a $15.50 handling fee. The tickets would be shipped by courier from the USA for $29.95. The result would be more than double the face value.

This is scalping, plain and simple. It is unacceptable for monopolist TicketMaster to be doing this!

Anonymous | 2/10/2009, 8:37 pm EST

Ticket brokers sure get a lot of flak, about how they are always inflating ticket prices….

But nobody ever seems to mention that you can very often get tickets way BELOW cost, through brokers too.

It’s supply and demand, people, and its nothing new.

Big Steven | 2/10/2009, 9:01 pm EST

I wish I had thought to purposely buy TicketsNow tickets and then say I didn’t realize they were upcharged. Then I could have gotten my uncle the lawyer to settle out of court with the scumbags and we’d simply accept 2 tickets (delivered at no charge) to every concert that comes through Toronto. I hate TicketMaster!

eyehatethem | 2/11/2009, 12:25 am EST

Ticketmaster is the reason i barely go see shows anymore.

MemphisQueen | 2/11/2009, 12:42 am EST

I agree wholeheartedly. They have a monopolgy and charge outrageous fees. Why do they charge a convenience fee AND an order processing fee? And if you print the ticket at home, you’re assessed yet another fee for using your own printer and ink!

I often attend gigs for small unknown artists, and at face value tickets of $15, I’m often assessed $8 worth of fees! That’s over 50% in fees alone!!!

how could the US approve this merger without thinking it was creating a monopoly – something they’re NOT supposed to allow.

Steve | 2/11/2009, 8:41 am EST

Ticketmaster’s been running this scam for a long time. I’ve been redirected several times with prices anywhere from 4-6 times face value. Couldn’t bring myself to be a willing victim of robbery even though I really wanted the tickets. Explaining that scalping is a reality and they are just making it transparent…. so is robbery and yes it has been transparent in ticketmasters case. I don’t feel like an idiot but they obviously think I’m one with explanations like that. Not too many judges are either. All the best to our friend with the capital and the principles to take them to task.

francisco | 2/11/2009, 11:24 am EST

The same thing is going on with the phish reunioin in hampton.the day the tickets went on sale for under fifty dollars through ticketmaster,i was redirected to tickets now and tickets were starting at around 350 dollars plus a 45 dollar service fee per ticket.was that a system glitch?no way.tickets now still has tickets available for the hampton shows by the hundreds all starting at 300 dollars and up.

Elaine | 2/11/2009, 12:43 pm EST

While I recognize that the practice of scalping has been around for a long time in the entertainment ticket industry, my complaint is centred around the fact that they seem to have access to tickets “before” they even go on sale to the public. I live in Barrie, Ontario and with regards to the upcoming Springsteen tour, we tried to purchase general admission tickets to the Pittsburgh show when they went on sale Feb. 2 but none were available shortly after Ticketmaster opened sales. When checking out other ticket sites (where we purchased inflated tickets before) I was surprised to see that these sites were already selling tickets to the Toronto show which didn’t go on sale to the public until Feb. 6. Scalping is probably always going to exist, but they should have to fight for their tickets at the same time the general public does – that at least would even the odds a bit. In the current system, the regular paying customer doesn’t even have fair access to all the face-value priced tickets. This is wrong.

Drew | 2/11/2009, 3:25 pm EST

I hope ticketmaster goes bankrupt, I really really do. That rotten, schieving company is the reason I never go to shows anymore, except local ones where I can pay at the door. I tried to get Rise Against, Alexisonfire, and NHL tickets, and everytime I was told that only TicketsNow has the tickets, at triple the price though! shut em down harper

anon | 2/11/2009, 4:59 pm EST

“Greendale | 2/10/2009, 6:13 pm EST

This explanation by ticketmaster is pure bullshit. I have a mastercard, and my purchase froze as well. Luckily, ticketmaster got back to me and I was able to sell my tickets for a large premium online. Thanks Stub Hub!”

As well as being a cock, you feel the need to advertise the fact you’re one…

Garry | 2/11/2009, 7:00 pm EST

The ACDC concert was the same thing. Another kick in the butt was when I recieved my Visa bill and it was in U.S funds for a CDN show

Kappy | 2/12/2009, 7:50 pm EST

Why is this industry getting away with so much for so long in all of north america? Never mind the reselling of tickets by TicketNow et al; look at the regular price of any ticket after all the charges. It’s robbery. How come it’s a monopoly? How come we don’t have a choice? How come they ARBITRARILY, AT THEIR SOLE DISCRETION add any charges they please with no regulation whatsoever? In any other industry the seller pays the intermediary for the actual sale of the ticket. Airlines pay the travel agent, not the traveller. Who has ever heard of the price of a plane ticket plus a service charge (ok, maybe $10 tops), plus processing fee, plus delivery charge, plus more made-up charges? The furniture store pays the salesman, the purchaser doesn’t. Record companies pay the itunes store (apple), or are fees added to the song price for it to be delivered to us? This business model works only because we let it go on and the government lets it g on. This irrational abuse from ticketmaster is why it has been over five years since I went to a show. As long as I’m forced to use Ticketmaster, I will not see any of my favourite artists live. Too bad.

Laura K. | 2/13/2009, 11:02 am EST

Why doesn’t TicketsNow post on their main website page under their logo that they are a “ticket reseller”, instead of a TicketMaster Company? By doing so, everyone will know when purchasing tickets that they will pay above face value on tickets. Instead, in small print off to the right side beyond initial view it is noted…Not very obvious to someone excited to get their tickets before the show is sold out.

Laura K. | 2/13/2009, 11:02 am EST

Why doesn’t TicketsNow post on their main website page under their logo that they are a “ticket reseller”, instead of a TicketMaster Company? By doing so, everyone will know when purchasing tickets that they will pay above face value on tickets. Instead, in small print off to the right side beyond initial view it is noted…Not very obvious to someone excited to get their tickets before the show is sold out.

rocky | 2/15/2009, 12:03 am EST

Ticketmaster is doing the same thing right now with Mccartney tickets in las vegas.It’s the most shameful,disgusting practise I’ve ever seen!

Some Clarification Please | 2/16/2009, 12:28 am EST

I was under the impression that Ontario had a “Ticket Speculation Act” and not “Anti Scalping Legislation” where it has to be proven that a ticket is PURCHASED ON SPECULATION for the purpose of selling the ticket at more than the face value, not JUST that it is being sold for more than the face value.
Just asking.

Nathan | 2/23/2009, 8:05 pm EST

I, for one hope the recession is exceptionally hard on the cocksuckers who run and work at ticketmaster.

Jerry in Atlanta | 2/24/2009, 1:02 pm EST

Ironically a ’software glitch’ also happened to me when I went to purchase tickets for ACDC in December. I went to ticketmaster to buy some of the $90 seats, it said they were sold out but then redirected me to TicketNow for $410 each. Michael Rapino is full of s-it if he thinks its Visa software because I didnt even get to the point of entering a credit card. He should be thrown in jail along with Barry Diller and the crooks who own Ticketmaster. If you stand outside a concert and scalp tickets you go to jail. If you do it online its legal,whats wrong with this picture?

ron | 2/26/2009, 4:34 pm EST

just tried for 2 days to buy advance tickets to Leonard Cohen in Oakland on 4/13. First day was exclusively for fan club members. Logged in exactly at 10 a.m. as instructed. No tickets avaialble. Second day exclusive for American Express cardholders. 5 minutes after 10 a.m and no tickets available. Just checked Stub Hub. Lots of tickets available at outlandish prices. Ticketmaster assholes for letting it happen. And scalper assholes for buying the tickets up just to sell them on StubHub.

Sports Fan | 2/27/2009, 3:08 pm EST

Also, StubHub now has offices inside most baseball parks! Whats the advantage of this to the parks?
They are scalping their own tickets, thats what. The parks dont like people scalping but they turn around and do the exact thing!
Yet, honest people need to jump through hoops to get to purchase a few seats, while the parks give their seats to StubHub, make a killing and rob the sports fan blind! Ticketmaster is doing the same, they own a scalping company?

Lisa | 3/4/2009, 7:16 pm EST

When I saw tha price printed on the tickets wanted cry. We were 100% sure that we purchased them thrgouth ticket Master!!!!!!! to my surprise we did not!!!!!!!!!!!!. When I received the tickets I Couldn’t beleive it. I didn’t know what to do. When the credit card bill arrived the CHARGE WAS UN USD FUNDS!!!!!!!!!!!!!! Not in CAD dollars. Short story for 4 tickets for Il Divo Concert in Vancouver $576 (for 4 tickets) I ended up paying after the exchange rate, insurance, extra fees , etc, $1,670.89 . That’s right over one Thousand dollars. I would like to see ewhat is ticket master going to.

Lisa | 3/4/2009, 7:16 pm EST

When I saw tha price printed on the tickets wanted cry. We were 100% sure that we purchased them thrgouth ticket Master!!!!!!! to my surprise we did not!!!!!!!!!!!!. When I received the tickets I Couldn’t beleive it. I didn’t know what to do. When the credit card bill arrived the CHARGE WAS UN USD FUNDS!!!!!!!!!!!!!! Not in CAD dollars. Short story for 4 tickets for Il Divo Concert in Vancouver $576 (for 4 tickets) I ended up paying after the exchange rate, insurance, extra fees , etc, $1,670.89 . That’s right over one Thousand dollars. I would like to see ewhat is ticket master going to.

BCKid | 3/6/2009, 2:21 pm EST

I had the same issue with tickets for Elton John.

Ticketmaster shows for 54.50USD before tax and surcharge but they were “sold out” and sent me to the Ticket Now. I ended up paying 164.00USD per ticket, and had a HORRIBLE experience with them. They threatened to not even send me the tickets I bought and no refund as they are only a third party vendor. They gain their tickets from an outside source for lower cost.

Jessica | 3/9/2009, 11:24 pm EST

People please quit complaining about the prices. There will always be people willing to pay the high price for a ticket. The more you complain the higher the standard ticket price will go to cover the fees you dont want them to charge. Why didnt you boycott it? All of you still bought the tickets. If it is too much then dont go to the show. If people quit goin then they will have to make a change. Besides how many people shop on e-bay. that is price jacking too!

Barb | 3/18/2009, 9:04 pm EST

I got caught up in the Ticket Master/Tickets Now bull. I purchased the tickets on January 27, 2009. They were $10.00 tickets that I was charged $43 for. The game was set for 3/15/09, the day before my birthday, costing me a whoppint $212. I live in Dublin OH and would like to know who I can report this to? Thanks in advance, and I look forward to hearing from you. Signed-Barbara/godsgrace4barb@ yahoo.com

SillyWilly | 3/19/2009, 3:15 am EST

A problem with Visa transactions? Then I’d love to know why my Mastercard transaction was redirected to Ticketsnow for a Paul Simon show; 20 seconds after the on-sale time of 10:00 AM. (I did get a refund of the price difference though after contacting them).

Creg | 3/19/2009, 10:30 am EST

payed over 300 usd for 3 $50 lawn tickets to phish

M.Anderson | 3/25/2009, 2:52 pm EST

i have just recently purchased tickets to fleetwood mac in toronto canada…myself and my family were going(6) tickets…wanted lower bowl…none available sold out ,,,, sold out i was told..ok so i settle for upper bowl…not so great seats..but seats none the less…for the first concert….but to our surprise they were selling the final concert tickets before the first concert went on sale …????? whats that about…and to kill it all went to the tickets now site today and low and behold.. lower bowl tickets at alot more than what they are on ticket master…why are tickets being sold for the final concert ….first …i wanted the first concert …… terrible ethics to me ….some one should do something about this it is ripping people off…thanks

Angela | 4/16/2009, 10:03 am EST

“Glitch”, my butt. I was inside the Ticketmaster system seconds after Phish tickets went on sale for Asheville, NC. Although it was later revealed that tickets sold out in 10 minutes, I was immediately told that they were already gone (2 seconds after going on sale???) and redirected to Tickets Now to buy a ticket at 4 times the price. I refused and wrote a letter of complaint to TM. The response I received to my letter was the written equivalent of a big yawn.

Lee | 5/14/2009, 2:25 pm EST

It’s really funny, I was also trying to get tickets for the Phish show in Asheville. I had TWO computers, alternately refreshing the site over a LAN line five minutes before the window opened in order to be one of the first possible people in. IMMEDIATELY after I was in the system, tickets were sold out. Meanwhile, the 200 people who had camped out for 4 days outside of the venue were told a ‘glitch’ from Ticketmaster took the tickets promised to the venue and sold them directly through TicketsNow.

What I want to know is this: I understand that some of the tickets sold on TicketsNow are from people, not Ticketmaster, with tickets. But how can they explain TicketsNow REselling tickets that haven’t even gone on sale yet through Ticketmaster?

Tim The Enchanter | 5/22/2009, 9:33 am EST

fuck ticket master up the ass with a rusted, wrought iron ,serated barbed wire wound pole yeah suck pavement

Tim The Enchanter | 5/22/2009, 9:37 am EST

delta squads in your house bitch you hear that shit? you dirty ass grubs are gonna be cryin to your skank ass momma oh mommy dont let the bad man hurt us, fuck you! we gonna woop your mommas ass

wu tang clan aint nothing to fuck with!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!

adam smith | 6/21/2009, 8:06 pm EST

This is why I fully support pirating these artist’s music. Most of them are greedy and could care less about the fans. If I were a famous musician I would manage and produce my own music, and even though I might take a hit on sales, I would either handle the selling of tickets through a private seller, or have a rock solid agreement that if scumbags like TM screwed fans it would automatically end the contract then and there.

It sucks that fans who love the music have to go through this. So if the artists you love are party to stealing your money, steal theirs by downloading their music for free.

adam smith | 6/21/2009, 8:09 pm EST

People should also know that by using your credit card or debit cards you have purchase protection. Call the issuer and reverse the charges. I do it all the time when that sort of thing happens to me.

greg r. | 9/28/2009, 1:16 pm EST

I bought 2 tickets for kings of leon in dallas through stub hub. I paid over $130 dollars each and just received them the face value of $46 dollars. How is this even legal? I spent over $400 dollars(with shipping through fedex)and the actual tickets are not even worth $100 dollars.

wrb | 10/5/2009, 5:04 pm EST

How far will you go to fight an injustice? I have been railing against Ticketmaster for years. Written to them, promoters, bands and venues all to no avail. They all make money from Ticketmaster and the Live Nation monopolies. Ticketmaster virtually guarantees them a sellout. Scalpers buy the tickets from all over the world to resell. The average fan has no chance at good seats unless they are willing to pay the outrageous fees.

Unfortunately, the majority is apathetic. We have become a nation of lemmings. Spoon fed and happily content with our own “convenience”. We no longer fight the mediocrity, but accept it. We accepted outsourcing, computer run answering systems, genetically engineered food, paying for TV… the list goes on and on.

This country was founded on the principals of anarchy and defiance but we have passed laws which make the means of dissent that we championed in our infancy, illegal.

These companies have no fear of reprisal because we have no desire for the “inconvenience” involved in protesting, picketing, boycotting and, if necessary, physically engaging the corruption we now tolerate.

We need more people to post their views, write letters, throw bricks and engage in public disobedience to bring this and other ridiculous, unjust and indifference to humanitarian behavior to the forefront.

We are only killing ourselves and our nation… I know your response, ho hum, sit back in your easy chair, pop another beer and turn on Monday Night Football.

You are oh so predictable a populace!

-WRB

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