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US senators introduce Junk Fee Prevention Act

US Senators have introduced new legislation which would eliminate “excessive” ticketing fees for concerts and other events.

Senators Richard Blumenthal and Sheldon Whitehouse have announced the “Junk Fee Prevention Act” following calls from president Joe Biden during his State of the Union address.

Biden argued that hidden or unexpected fees “are not only costly to consumers, but they can stifle competition by encouraging companies to use increasingly sophisticated tools to disguise the true price consumers face”.

If passed, the new legislation would eliminate “excessive, hidden, and unnecessary fees” imposed on consumers and “ensure transparency” in industries such as ticketing by requiring the full prices of services to be provided upfront.

“Concealed surprise fees – nickel and diming Americans to distraction – must be stopped,” says Blumenthal. “Airline travel, concert going, common purchases – seemingly almost everywhere – consumers are compelled to pay hidden excessive charges.

“Our bill will help end this price gouging – forcing full disclosure upfront and restricting abusive fees. It will mandate basic common sense fairness and transparency, which consumers rightly demand and deserve.”

“Our Junk Fee Prevention Act would provide consumers with the transparency they deserve when making a purchase”

“Consumers are charged hidden fees when purchasing everything from flights to concert tickets,” adds Whitehouse. “Our Junk Fee Prevention Act would provide consumers with the transparency they deserve when making a purchase.”

Live Nation has backed president Biden’s call for transparency around ticketing fees last year. The company went on to launch the Fair Ticketing Act last month and has received support from the likes of CAA, UTA, Wasserman Music and WME in its calls for ticketing reforms. Among its recommendations are for all-in pricing across all ticketing marketplaces introduced nationally so that fans know the full cost of a ticket plus fees right upfront.

Ticketing fees have been thrust under the microscope of late after The Cure persuaded Ticketmaster to offer partial refunds for “unduly high” ticketing fees charged in the Verified Fan sale for the band’s upcoming North American tour.

The firm had come in for criticism during this week’s sale when ticket-holders posted screenshots online showing some fees exceeding the cost of the tickets themselves.

Neil Young has also weighed in on the dispute, posting under the headline “concert touring is broken” on his website.

“It’s over, the old days are gone,” he writes. “I get letters blaming me for $30,000 tickets for a benefit I am doing. That money does not go to me or the benefit. Artists have to worry about ripped off fans blaming them for Ticketmaster add-ons and scalpers.

“Concert tours are no longer fun. Concert tours [are] not what they were.”

“Ticketmaster unilaterally decides which tickets it advertises and sells as ‘Official Platinum’ based on a given event”

Meanwhile, a class-action lawsuit has been launched against Ticketmaster in Canada, alleging the company “intentionally misleads consumers for their own financial gain”.

The case – filed by Montreal-based law firm LPC Avocat Inc – says a customer bought two market-driven “platinum” tickets for Drake’s upcoming 14 July show at the Bell Centre for C$789.54 (€533.70) each. However, it says that when Drake added a second show for the following night, the same seats could be purchased for more than $350 less.

As per the Toronto Star, the suit also claims that Ticketmaster knew Drake would be performing two shows at the venue, but “concealed this information” to “squeeze out” as much money as possible from fans buying tickets for the first date.

“Ticketmaster unilaterally decides which tickets it advertises and sells as ‘Official Platinum’ based on a given event,” reads the filing. “The result is that most, if not all, of the tickets advertised and sold as ‘Official Platinum’ are neither ‘premium tickets’ nor ‘some of the best seats in the house’ and are, in fact, just regular tickets sold by Ticketmaster at an artificially inflated premium in bad faith.”

Ticketmaster has not commented on the allegations.

 


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TM captures $500m for event organisers from resale

Ticketmaster says its dynamic pricing model has captured over $500 million for artists and event organisers from resale markets in 2022.

The company revealed the figure in response to criticism from a US congressman over its dynamic pricing model for Bruce Springsteen’s 2023 tour.

Many fans reacted with uproar after individual tickets reached more than $5,000 via Ticketmaster’s market-based pricing when the first wave of The E Street Band’s US tour dates went on sale in July.

The backlash prompted Bill Pascrell, a representative in Springsteen’s home city of New Jersey, to demand answers from the ticketing firm’s parent company Live Nation.

“I write on behalf of my constituents and fans across the country that are excited for Bruce Springsteen and The E Street Band’s 2023 tour,” said Pascrell in a letter to Live Nation boss Michael Rapino. “Hard-working Americans who are fans of Bruce and other popular entertainers should have the ability to enjoy live entertainment without ticket-sales practices that rip off consumers.

“To help fans better understand the frustratingly opaque process that leads to such high prices, I am inquiring about the veracity of the company’s statement, as well as the policies and prices the company has put in place for this tour.”

In a lengthy response reported by Celebrity Access, Ticketmaster reiterates that prices and onsale parameters are set by event organisers, the company.

“The recent Bruce Springsteen tour is a prime example of returning value to artists from the secondary market”

“Dynamic pricing is about capturing more value for the artist at the initial onsale, vs that value going to people reselling tickets on the secondary market,” it says.

“The secondary market sees over $10 billion in ticket sales and continues to grow rapidly. Through Ticketmaster, dynamic pricing has captured over $500 million for event organisers from resale markets in 2022 alone.”

“The recent Bruce Springsteen tour is a prime example of returning value to artists from the secondary market. Ticketmaster was not the only ticketing company selling primary tickets for the Springsteen tour, but the data is compelling.”

Detailing the cost of Springsteen ticket sales on Ticketmaster, the firm says 88.2% of tickets were sold at set prices, with 11.8% of tickets designated “Platinum” (dynamic).  The average price of all tickets sold on the platform was $262, with 1.3% of total tickets across the shows sold for more than $1,000.

In addition, 56% were sold for under $200, 11% between $150 and $200, 27% between $100 and $150, while 18% of all tickets sold were under $99.

Springsteen’s 2023 run begins on 1 February at Amalie Arena in Tampa, Florida, before heading to Europe in April

Addressing the furore earlier this summer, Springsteen’s manager Jon Landau argued the pricing was in line with shows for acts of a similar stature.

“In pricing tickets for this tour, we looked carefully at what our peers have been doing,” Landau told the New York Times. “We chose prices that are lower than some and on par with others.

“Regardless of the commentary about a modest number of tickets costing $1,000 or more, our true average ticket price has been in the mid-$200 range. I believe that in today’s environment, that is a fair price to see someone universally regarded as among the very greatest artists of his generation.”

Springsteen’s most recent tour – 2016/17’s The River Tour – was the highest grossing worldwide tour of 2016, earning $268.3m over 76 shows. His 2023 run begins on 1 February at Amalie Arena in Tampa, Florida, before heading to Europe in April.

 


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Springsteen manager defends tour ticket prices

Bruce Springsteen’s manager has responded to the furore over ticket prices for the singer’s 2023 tour.

Many fans reacted with uproar after individual tickets reached more than $5,000 via Ticketmaster’s “dynamic” market-based pricing when the first wave of The E Street Band’s US tour dates went on sale last week.

But The Boss’ manager Jon Landau insists the pricing is in line with shows for acts of a similar stature, while the average ticket price is around $250.

“In pricing tickets for this tour, we looked carefully at what our peers have been doing,” says Landau in a statement to the New York Times. “We chose prices that are lower than some and on par with others.

“Regardless of the commentary about a modest number of tickets costing $1,000 or more, our true average ticket price has been in the mid-$200 range. I believe that in today’s environment, that is a fair price to see someone universally regarded as among the very greatest artists of his generation.”

Ticketmaster says that platinum tickets account for 11.2% of the total sold, stressing that the remainder of the allocation sold at fixed prices ranging from $59.50 to $399.

Data released by the ticketing platform, reported by Variety showed the average price of tickets sold so far as $262, with 56% sold for under $200. Of that 56%, 18% were sold for under $99, 27% fetched between $100 and $150, and 11% cost between $150 and $200. Ticketmaster adds that only 1.3% of total tickets to date have been sold for more than $1,000.

“Prices and formats are consistent with industry standards for top performers”

“Prices and formats are consistent with industry standards for top performers,” said a Ticketmaster statement.

The tour’s opening US arena shows comprise more than 30 performances, starting at the Amalie Arena in Tampa, Florida on 1 February and running through to his 14 April homecoming at the Prudential Center in Newark, New Jersey.

More than 1.2 million tickets were purchased for the European leg prior to UK dates going on sale earlier this month. The European run kicks off at the 60,000-cap Estadi Olímpic in Barcelona on 28 April and winds up on 25 July in Italy at Prato della Gerascia, Autodromo di Monza.

Springsteen’s most recent tour – 2016/17’s The River Tour – was the highest grossing worldwide tour of 2016, earning $268.3m over 76 shows.

 


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