Fans watch Taylor Swift perform onstage during “Taylor Swift | The Eras Tour” at La Defense on May 10, 2024 in Paris, France.
Kevin Mazur | TAS24 | Getty Images
The Federal Trade Commission’s new guidelines on price transparency — known as the junk fees rule —will change how ticket prices are presented, which is a rare victory for consumers, experts say.
According to the FTC, businesses selling live-event tickets or short-term lodging must prominently show the total cost upfront, including “all charges or fees the business knows about and can calculate,” before asking for payment. They must also “avoid vague phrases like ‘convenience fees,’ ‘service fees,’ or ‘processing fees'” and “conspicuously disclose the amount and purpose of those charges,” the FTC explained.
“More transparency is always a win for consumers,” said Andrew Mall, an associate professor of music at Northeastern University. However, “if there are any consumers who have been expecting fewer fees as a result, they will be disappointed,” he added.
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Consumers have grown increasingly frustrated with ticket sellers in recent years, especially as a number of blockbuster tours tested the limits of what concert goers were willing to pay.
“Concert ticket pricing is a very elastic economic model,” Mall said, “there is no limit.”
Post-pandemic, ticket prices soared, also known as “funflation.”
The prevalence of tacking on “junk fees” as well as implementing “dynamic pricing,” which is when ticket-selling platforms charge more per ticket depending on demand at any given time, caused costs to escalate even more, often unexpectedly. Neither of these strategies are prohibited under the FTC’s new rule.
“This is not about capping fees or saying what fees companies can or cannot charge,” said Teresa Murray, director of the consumer watchdog office for U.S. PIRG, a nonprofit consumer advocacy research group.
“It’s about transparency and it’s about making things fair, not just for consumers but also for other businesses,” she added.
The rule is narrower than what the FTC proposed in 2023. That rule would have broadly banned hidden charges as part of former President Joe Biden’s wide-ranging crackdown on junk fees that drive up costs without providing visible benefits.
Ticket sellers can continue to charge whatever they want for concerts, sporting events, music, theater and other live performances, Murray said. “They just have to give the total price upfront.”
Consumers will see some immediate changes
Ticketmaster on Monday launched “All In Prices” in the U.S., which now shows the full price of tickets, including all fees before taxes and shipping charges.
“Ticketmaster has long advocated for all-in pricing to become the nationwide standard so fans can easily compare prices across all ticketing sites, and we commend the FTC for making that a reality,” Ticketmaster COO Michael Wichser said in a statement. “Paired with the recent executive order targeting abuse in the secondary market, it marks a meaningful step forward for our industry and we’ll continue pushing for additional reforms that protect both artists and fans.”
Secondary-market seller SeatGeek also announced in a press release Monday it will now display the price of tickets with fees included upfront on its platform, in line with the FTC’s new guidelines.
“Fans deserve pricing that’s clear from the start,” Jack Groetzinger, SeatGeek’s co-founder and CEO, said in the release. “This is an important step forward.”
There may also be a knock-on effect to come, Murray said.
“In the secondary market, where there is a lot of competition, maybe those companies will shave off a few of those fees so they appear to be the lowest cost,” she said. “We wouldn’t be surprised if some fees went away.”
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