Los Angeles Business Journal

Ticketmaster Settles Lawsuit Over Rewards Program

By Deborah Crowe Thursday, May 16, 2013

Ticketmaster will settle claims for up to $23 million, after customers claimed they were charged $9 a month for a rewards program when they bought concert tickets but did not get any benefit, according to a news report.

The now-defunct rewards program, which was in place before Ticketmaster in West Hollywood merged with Beverly Hills concert promoter Live Nation Entertainment Inc. in 2010, affected about a million people, who are eligible for up to $30 each, attorney Adam Gutride told the Associated Press.

U.S. District Judge Dale Fischer approved the settlement in his Los Angeles court last week.

About 1.12 million people were signed up for the rewards program after buying a ticket at Ticketmaster.com between September 2004 and June 2009. Plaintiffs claimed they were unaware of fees charged to the same credit or debit card used to buy the ticket. It took the average person about eight months to cancel the monthly payments, according to the lawsuit.

Of the people who enrolled in the program, 93 percent didn't redeem any of the online coupons.

Defendants in the case included Ticketmaster, its then-parent IAC/InterActiveCorp. and Entertainment Publications Inc. The defendants, which did not admit any wrongdoing, contend that the rewards program fully disclosed its terms and conditions, including the monthly fee.

Live Nation shares on Thursday closed down 20 cents, or 1.4 percent, to $13.69 on the New York Stock Exchange.