Ticketmaster’s attempt to game arbitration services fails

Ticketmaster’s Terms and Contract Validity

  • Many see “we can change terms without notice and retroactively” as meaning there is no real contract at all.
  • Courts in the case reportedly labeled such terms “unconscionable,” aligning with that intuition.
  • Some want systemic punishment: unwind affected contracts, issue mass refunds, or at least penalize knowingly including unenforceable clauses.
  • Others note severability lets big companies stuff in invalid terms with little downside.

Forced Arbitration and Consumer Rights

  • Widespread view: arbitration clauses are used to bully consumers, block class actions, and hide systemic misconduct behind NDAs and private processes.
  • One commenter recounts a highly unfair arbitration where the other side lied, provided no evidence, and still won, with no chance for rebuttal.
  • Some insist they will not agree to arbitration; others point out almost every modern service (including “free” ones) now requires it.

Arbitrator Selection and Structural Bias

  • Core complaint: companies effectively choose the arbitrator or arbitration provider, undermining neutrality.
  • Suggestions:
    • Mutual or random selection of arbitrators, or government assignment (similar to judges or juries).
    • Banning company-picked providers for consumer contracts.
  • Concern that arbitrators, whose business depends on repeat corporate clients, have incentives to favor them.

Legal Background: FAA, Courts, and Congress

  • Debate over whether Congress or the Supreme Court is primarily responsible for expanding arbitration into consumer and employment contexts.
  • Some argue the original Federal Arbitration Act was meant for commercial disputes between merchants, not consumers or workers, and that later court decisions misapplied it.
  • Others note Congress could clarify or reverse these interpretations but has failed due to gridlock.

Access to Justice, Costs, and Small Claims

  • Arbitration is defended by some as cheaper than litigation, potentially easing overloaded courts.
  • Critics reply that:
    • Discovery is weaker or discretionary.
    • Corporate lawyers dominate the process.
    • Upfront arbitration fees can make small claims practically impossible.
  • Small claims courts are cited as a fairer, low-cost venue, but often contractually waived.

Antitrust and Ticketmaster’s Market Power

  • Ticketmaster is seen as a de facto monopoly: for many events there is no realistic alternative, undermining the “just don’t use it” argument.
  • Some mention lack of box-office options and venue ownership as reinforcing this power.
  • Several commenters see Ticketmaster’s behavior as emblematic of broader antitrust failure.

Reform Ideas and Workarounds

  • Proposed reforms include:
    • Outlaw or tightly regulate forced arbitration in consumer and employment contracts.
    • Require neutral provider selection, guaranteed discovery, capped consumer fees, and access to small claims.
    • Limit or reinterpret “contracts of adhesion” where consumers have no real bargaining power.
  • A few joke about “counter-EULAs” (e.g., custom email addresses or local licenses) but acknowledge these likely have no legal effect.