Ticketmaster quietly hikes additional costs to work around "junk fee" rules

Washington DC - Ticketmaster has reportedly continued to charge buyers extra fees in spite of new regulations barring processing charges typically added at checkout.

A new report has revealed that Ticketmaster has upped other additional in order to compensate for revenue lost by cutting processing fees.  © IMAGO / Paul Marriott

According to The Guardian, Ticketmaster has complied with the rules against processing fees, but in order to offset the profits lost by doing so, they've upped other fees on ticket sales for numerous venues.

"To account for the loss of order processing revenue, we must adjust fees to offset the revenue loss," the company said in an email to a venue in Arizona last year.

The workaround could be a violation of the Federal Trade Commission's regulations on hidden fees, former regulators say.

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"Ticketmaster may effectively still be charging the fee, just disguising it as something else. That type of behavior can run afoul of the FTC rule," John Newman, who previously worked as an economist at the FTC, told the outlet.

In response to the report, Ticketmaster claimed they were still in compliance with the FTC's all-in pricing requirement and have continued to provide their customers with "explanations" for additional fees on their purchases.

Though the Biden administration had launched a crackdown on "junk fees," excessively high ticket prices, especially those on Ticketmaster, have continued to fuel outrage among fans.

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Ticketmaster's eye-popping prices fuel outrage among fans

Ticketmaster's excessive prices and fees have continued to frustrate live entertainment fans, despite some new regulations.  © IMAGO / NurPhoto

All-in pricing rules have forced Ticketmaster to display the entire price – including the costs of any additional fees – from the outset when customers are looking to buy, but the extra fees have largely remained, as the latest findings confirm.

Concert sales, in particular, have sparked serious frustration among buyers, as dynamic pricing – which spikes costs based on demand – has repeatedly led to eye-popping prices to see popular stars like Harry Styles and Taylor Swift.

Ticketmaster has also been targeted in a federal antitrust case against its parent company, Live Nation, with the Justice Department alleging that the entertainment giant had garnered a virtual monopoly in live event ticketing.

A settlement was reached earlier this month, but several states have vowed to continue fighting, arguing that the DOJ deal did not adequately combat the monopoly.

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