Ticketmaster Gets Shown Who's Boss

By Mike Schuster Feb 24, 2009 10:45 am

Springsteen drags online monolith down Thunder Road.

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Anyone who's attended a concert or live performance has been forced to deal with the unavoidable nightmare that is Ticketmaster (TKTM). Given its near-monopoly on many venues and its recent merger with Live Nation (LYV), it would seem that the massive ticket seller is beyond anyone's control.

But this Monday, mighty Ticketmaster confirmed it would change its online sales process to prevent the arbitrary inflation of its prices. And all it took was the New Jersey Attorney General, Bruce Springsteen, and the collective fury of some Garden State goombahs.

The controversy began in January, when the company posted online tickets to a Springsteen concert in New Jersey. Thousands of fans flooded the site, which then claimed the concert was sold out - even though plenty of seats were still available.

Instead, customers were redirected to a Ticketmaster subsidiary site called TicketsNow, which still offered spots to the "sold out" show - but for a radically jacked-up price. Tickets that normally sold for $65 to $95 were listed at $200 to $5,000. In addition, some buyers claimed they bought tickets but never received them.

As a result, Ticketmaster was blasted by over 2,000 complaints, and eventually faced an investigation by New Jersey Attorney General Anne Milgram on whether the company broke state laws. And the firm even received a strongly worded letter from The Boss himself.

On their website, Springsteen and his band condemned the situation and said the "abuse of our fans and our trust by Ticketmaster has made us as furious as it has made many of you."

The company settled out of court with the state of New Jersey - to the tune of $350,000, as compensation for the ripped-off customers. A random drawing will give some buyers a chance at 2 free tickets for an upcoming Springsteen show; the rest will receive a $100 gift certificate, as well as a refund for the difference between the face value and listed price for the tickets they purchased.

Despite an apology to both Bruce and his fans, Ticketmaster CEO Irving Azoff refuses to admit any wrongdoing in the matter, blaming it all on a "technical glitch."

Later today, the company faces a congressional hearing over antitrust concerns surrounding the merger with LiveNation.

Here's hoping they break out the finetooth comb.Twitter: @mcs212