The 9th U.S. Circuit Court has upheld a ruling denying Live Nation and Ticketmaster's attempt to force customer antitrust complaints into arbitration rather than federal court.

The 2023 Heckman v. Live Nation Entertainment decision found the company's arbitration rules "unconscionable" and unfairly beneficial to Live Nation/Ticketmaster. Key issues included:

• Live Nation's ability to change terms without notice
• The switch to New Era as arbitrator, which received nearly all its first-year revenue from Live Nation
• The impossibility for plaintiffs to present claims on equal footing
• Concerns about bias due to New Era's close relationship with Live Nation

The court determined that forcing arbitration would severely limit plaintiffs' ability to prove their cases. The ruling specifically noted that the Federal Arbitration Act does not apply to "mass arbitration contemplated by Live Nation's agreements."

The decision effectively means ticket buyers can pursue their antitrust claims in federal court rather than through arbitration. Live Nation has expressed disagreement with the ruling, maintaining that their arbitration changes were not unfair or unconscionable.

The judge concluded that the arrangement created "a strong and inescapable perception of bias," noting that a true arbitration requires an independent third-party decision maker, which was not the case given New Era's dependence on Live Nation.

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