Live Nation has thrown its support behind the US’s new ban on “junk fees” in the live event ticketing and the hospitality industry.

The Federal Trade Commission (FTC) passed a rule on Tuesday (17 December) requiring ticket sellers, hotels and vacation rental sites to disclose total prices, including fees upfront, prohibiting them from concealing add-on charges until the last minute.

Businesses must prominently display the total price, inclusive of all mandatory fees, whenever offering, displaying, or advertising prices for live-event tickets or short-term lodging.

They are also prohibited from misrepresenting fees or charges and must provide accurate, upfront pricing information. Additionally, the total price must be presented more prominently than any other pricing information to prevent deceptive advertising strategies.

Originally outlined in October 2023, 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”.

Live Nation praised the move, adding that the ban would deliver greater transparency for fans while increasing sales for artists and fewer abandoned carts at checkout.

“We’ve led the industry by adopting all-in pricing at all Live Nation venues and festivals and applaud the FTC’s industry-wide mandate so fans will now be able to see the total price of a ticket right upfront no matter where they go to see a show or buy a ticket,” the live entertainment behemoth said in a statement.

FTC Chair Lina M. Khan said: “People deserve to know upfront what they’re being asked to pay—without worrying that they’ll later be saddled with mysterious fees they haven’t budgeted for and can’t avoid.

Live Nation praised the move, adding that the ban would deliver greater transparency for fans while increasing sales for artists

“The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”

The FTC’s Junk Fees Rule is expected to save consumers an estimated 53 million hours annually by reducing the time spent searching for total prices. The rule could result in approximately $11 billion in savings over the next decade.

The FTC commissioners voted 4–1 in favour of the new rule. Commissioner Andrew Ferguson, who incoming president Donald Trump has picked as the next FTC chair, cast the sole dissenting vote.

In other US ticketing news, the TICKET Act has sparked criticism from the industry’s Fix The Tix coalition this week.

The alliance is calling on US politicians to remove the Act from the Continuing Resolution (the temporary spending bill that keeps federal government operations going when final appropriations have not been approved by Congress and the President) unless some “dangerous loopholes” are removed.

Fix The Tix – which is led by the National Independent Venue Association (NIVA) and includes Eventbrite, Bandsintown, MMF and more than a dozen other major music industry organisations – says that the bill in its current form would “undermine consumer protections and calls for immediate action”.

“It is unfortunate that disinformation from multi-billion dollar resale platforms and the organisations they fund—claiming to represent consumers’ interests—misled Congress into including a loophole that allows predatory brokers and resale platforms to sell fake tickets under a different name,” says executive director of NIVA Stephen Parker.

“They also prevented so many more common-sense reforms from making it into the final legislation, especially strengthening the BOTS Act. These groups chose empowering predators and fighting progress behind the scenes over genuine consumer protections.

“We will make it our mission to blunt, repeal, or strike down any federal provision that would directly or indirectly permit the sale of fake tickets.”

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Campaigners have welcomed a “huge step forward” for live event ticketing reform after the US House of Representatives voted to pass the TICKET Act, which aims to ensure transparent pricing for consumers.

The bill, which passed by 388 votes to 24, is the most comprehensive consumer protection ticketing legislation to receive a floor vote since the BOTS Act passed in 2016.

If enacted, it will enforce all-in pricing, ban speculative ticketing, ban deceptive websites and deceptive website marketing, provide fans with a full refund to cancelled events and require a report from the Federal Trade Commission on BOTS Act Enforcement.

“Today marks the furthest federal live event ticketing reform has gone in nearly a decade,” says a statement by the Ticket Buyer Bill of Rights Coalition, which was founded in February 2023 by leading consumer and fan advocacy organisations. “We applaud them for their leadership and their willingness to engage all stakeholders, especially consumer protection organisations, in seeking a truly comprehensive reform package which has consensus by virtually every stakeholder in the debate.”

Brian Hess, executive director of Sports Fans Coalition, hails the vote as “a momentous day for live event ticketing reform”.

“If enacted, this bill will guarantee fans all-in pricing, prohibitions on several deceptive sales tactics, and refund requirements for cancelled events”

“If enacted, this bill will guarantee fans all-in pricing, prohibitions on several deceptive sales tactics, and refund requirements for cancelled events,” he says. “We hope the Senate will pass this vital legislation and that President Biden will sign it shortly thereafter.”

Live Nation was among a number of companies in the US that pledged to adopt “all-in” ticket pricing last summer, and revealed ahead of the Senate hearing that its programme was responsible for an 8% increase in completed sales in its first six months.

“Showing the total cost to walk in the door upfront is better for fans and artists,” said CEO Michael Rapino. “We’re proud to have led the industry in adapting this common sense policy.”

Last year, 19 organisations from across the music industry came together to form the Fix the Tix coalition to “collectively advocate for a ticketing experience better than the nightmare many fans and artists currently navigate”. The coalition comprises firms such as Wasserman, See Tickets, Universal Music Group, Dice and the National Independent Talent Organization (NITO).

“We commend the House on passing the TICKET Act, an important step towards making comprehensive ticket legislation federal law,” says NITO MD Nathaniel Marro. “NITO now calls on the Senate to pass the Fans First Act, which includes a total ban on speculative tickets and requires itemized ticket fees at the beginning of purchase so that fans know the price they will pay and the price the artist intended. We will continue our work to move comprehensive ticket legislation forward.”

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