This so-called drip pricing allegedly caused consumers to pay much higher prices than advertised - often more than 20 per cent higher and sometimes more than 65 per cent more, the bureau said.
The Competition Bureau has filed an application with the Competition Tribunal, seeking to end the "alleged deceptive marketing practices", in addition to "an administrative monetary penalty".
Live Nation did not immediately respond to a request for comment. The Bureau first warned ticket vendors against the pricing tactic in July, but did not name any specific vendor or secondary marketplace.
The Competition Bureau is a federal agency that is part of Innovation, Science and Economic Development Canada and oversees competition in Canada. Consumers are effectively paying much more than they need to for their tickets due to additional fees, which are added later in the purchasing process.
"In July, we called on ticket vendors to review their marketing practices".
"Together, these actions send a strong signal to online retailers: consumers must have confidence that advertised prices are the ones they will pay", Commissioner of Competition John Pecman said in a statement. In an e-mailed statement, a company spokesperson told The Globe and Mail that the company "remains committed to getting tickets into the hands of fans and has long practiced transparency to enable informed purchasing decisions". "Ticketmaster continues to work closely with Provincial governments to enhance consumer protection and provide the best ticketing experience for fans". In 2010, the bureau reviewed the merger between Ticketmaster and Live Nation.
The bureau found that in order to resolve competition concerns Ticketmaster had to sell its subsidiary business Paciolan and license its ticketing system to its competitors.