The 9th U.S. Circuit Court has upheld a ruling denying Live Nation and Ticketmaster's attempt to force customer antitrust complaints into arbitration instead of federal court. This decision marks a significant victory for consumer rights in the ongoing legal battle against the entertainment giant.

The court found the arbitration agreement "unconscionable" for several key reasons:

• Live Nation could change terms without notice
• The chosen arbitrator (New Era) had questionable independence
• The rules were deemed opaque and unfair to plaintiffs
• Mass arbitration would severely limit plaintiffs' ability to prove their cases

Judge William Fletcher's decision highlighted the impossibility for plaintiffs to present their claims on equal footing with Live Nation. The court also found that Live Nation provided nearly all of New Era's first-year revenue, creating a "strong and inescapable perception of bias."

The ruling specifically determines that:

• The delegation clause and entire arbitration agreement are unenforceable under California law
• California's unconscionability law application isn't preempted by the Federal Arbitration Act
• The FAA doesn't preempt California's prohibition of class action waivers in consumer cases

Live Nation has expressed disagreement with the ruling, maintaining that their change of arbitrator was not unfair or unconscionable. However, the decision stands as a significant precedent for consumer protection in the live entertainment industry.

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