US Senators Rebuke Ticketmaster for Raising Fees After Hidden Charge Crackdown
US senators have strongly criticized Ticketmaster for increasing ticket fees following a regulatory crackdown on hidden charges, as detailed in a recent report by the Guardian. The Federal Trade Commission mandated in May 2023 that Ticketmaster disclose all concert ticket fees upfront, a practice known as all-in pricing. In response, the company eliminated its order processing fee charged at the end of transactions to comply with the rule.
Fee Adjustments and Regulatory Scrutiny
However, documents obtained by the Guardian through public records requests reveal that Ticketmaster quietly raised other fees to offset potential losses. Former regulators have suggested that these practices may violate the Federal Trade Commission's ban on misleading fees, raising concerns about consumer protection.
Democratic Senator Richard Blumenthal from Connecticut issued a statement, saying, "Ticketmaster seems to believe it has a get-out-of-jail-free card to ignore antitrust and consumer protection laws. The FTC is going to have to choose whether to protect consumers and enforce the law, or cave to Ticketmaster lobbyists."
Ongoing Legal and Investigative Actions
The Federal Trade Commission sued Ticketmaster and its parent company, Live Nation Entertainment, in September 2023, partly for hiding mandatory fees until the end of transactions. Ticketmaster has disputed these allegations, asserting compliance with FTC's all-in pricing rules. The company stated, "Since May 2023, tickets on Ticketmaster.com have displayed the full price upfront in line with the FTC’s all-in pricing rule. We also provide explanations of fees during the purchase process and maintain a dedicated page with additional information."
Senator Blumenthal, as ranking member of the permanent subcommittee on investigations, highlighted findings from a report last month that accused Ticketmaster of driving up concert ticket costs post-pandemic. The report alleged that the company encouraged artists to release tickets on resale markets before general availability and expanded dynamic pricing, both of which increased revenues for Ticketmaster while raising costs for fans.
"As revealed by my PSI investigation, Ticketmaster has taken every opportunity to drive bait-and-switch practices, manipulate the market, and drive up the cost of tickets," Blumenthal added.
Monopoly Concerns and Political Backlash
An ongoing federal trial is examining whether Ticketmaster operates an illegal monopoly in the live music industry and unfairly stifles competition. The company has denied monopoly allegations. Following the trial's start, the Department of Justice reached a settlement with Live Nation Entertainment, which faced criticism from lawmakers, including Senator Elizabeth Warren from Massachusetts.
In a statement, Warren said, "The Guardian’s reporting on Ticketmaster’s fee practices is just the latest reason why Ticketmaster must be broken up – once and for all. Too many giant monopolies think the law doesn’t apply to them, and it’s American families who are forced to pay the price." Over 30 states have decided to continue litigation despite the settlement, underscoring the widespread concern over Ticketmaster's business practices.
