Revenue / 10.18.23
Feds Propose Rule Banning 'Junk Fees'
Pollstar (10/12/23) Lind, J.R.
The U.S. Federal Trade Commission (FTC) on Oct. 12 proposed a rule to ban “junk fees,” effectively requiring all-in totally transparent pricing for concerts and other ticketed events. The rule calls for the list price to include fees and a breakdown of where they will go and what they are for. The FTC would be authorized to demand refunds for consumers charged fees in contravention of the rule, and to assess fines for non-compliance. President Biden in February urged Congress to adopt legislation to “lower the huge service fees that companies like Ticketmaster slap on tickets for concerts or sporting events that can easily add hundreds of bucks to a family's night out.” In June, the White House announced Live Nation was transitioning to all-in ticketing for events at its owned-and-operated venues and festivals and that it would also provide an all-in option for all events sold through Ticketmaster. Sen. Amy Klobuchar (D-Minn.), who chaired a January committee hearing specifically targeting Ticketmaster and Live Nation, stated her backing for the FTC's rule. “From buying a concert ticket to booking a flight, hidden fees are a constant challenge for consumers trying to make informed decisions on big purchases,” she commented. “We must put an end to these surprise costs so that consumers have the transparency they need and deserve. This announcement from the Administration is an important step towards ensuring that the price you see is the price you pay.”
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Tags: Revenue , Fees