President Biden targets ticketing ‘junk fees’

President Joe Biden has unveiled new plans to further clamp down on “junk fees” on tickets for events such as concerts.

The Biden-Harris administration says that new rules, proposed by the Federal Trade Commission (FTC), would ban “hidden and bogus fees” and require ticket sellers to disclose final costs upfront.

According to the FTC, the move would “ensure consumers know exactly how much they are paying and what they are getting, and help spur companies to compete on offering the lowest price”.

“Businesses would have to include all mandatory fees when telling consumers a price, making it easier for consumers to comparison shop for the lowest price,” it continues. “The proposed rule would also have enforcement teeth, allowing the FTC to secure refunds for harmed consumers and seek monetary penalties against companies that do not comply with its provisions.”

Biden previously singled out “excessive” ticket fees in his State of the Union address at the start of the year.

“Folks are tired of being taken advantage of and played for suckers”

“Folks are tired of being taken advantage of and played for suckers,” said the president yesterday in the White House Rose Garden. “Research shows that without realising it, folks can end up paying as much as 20% more because of hidden junk fees than they would have paid if they could see the full price up front and compare it with other options. It’s wrong.”

Other federal agencies and organisations are joining the FTC to develop and implement rules prohibiting junk fees across multiple US markets and sectors including the Consumer Financial Protection Bureau (CFPB), the Federal Communications Commission (FCC), the Department of Housing and Urban Development (HUD), and the Department of Transportation (DOT).

Ticketing legislation has been thrust under the microscope in the states, prompted by a string of high-profile controversies involving tours by artists such as Taylor Swift, Bruce Springsteen and The Cure over the past 12 months.

“All too often, Americans are plagued with unexpected and unnecessary fees they can’t escape,” adds FTC chair Lina M. Khan. “By hiding the total price, these junk fees make it harder for consumers to shop for the best product or service and punish businesses who are honest upfront. The FTC’s proposed rule to ban junk fees will save people money and time, and make our markets more fair and competitive.”

Live Nation backed president Biden’s call for transparency around ticketing fees last year and went on to launch the Fair Ticketing Act and received support from the likes of CAA, UTA, Wasserman Music and WME in its calls for ticketing reforms.

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