Live Nation-owned Ticketmaster is accused of illegally profiting off of inflated delivery and order processing fees.
In 2009, a class-action lawsuit was filed against the ticketing company by a group of customers. These customers said Ticketmaster raised online fees to make a profit.
Now, Ticketmaster has reached a settlement. A judge has preliminarily approved it.
Ticketmaster plans to distribute $400 million in credits to customers. Those who purchased tickets online between 1999 and 2013 and were charged an order-processing fee are eligible.
The company will distribute up to 161 million $2.25 credits and up to 4.9 million $5 credits. Class-members have to spend money to redeem these credits, so I wouldn’t call this a punishment.
If less than $10.5 million is redeemed in a year, Ticketmaster will make some events free for those who participate in the settlement. This would go on for the next four years.
Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u
Photo from Sharib4rb on Flickr used with the Creative Commons License