Biden compels Live Nation, SeatGeek to end hidden ticket fees post Swift incident
Introduction:
Concert industry giants Live Nation Entertainment, parent company of Ticketmaster, and mobile-ticket vendor SeatGeek have announced their decision to eliminate hidden fees from ticket prices. This move comes in response to mounting pressure from President Joe Biden, who has been urging companies to eliminate so-called “junk fees.”
The catalyst for this development was the controversy surrounding Live Nation Entertainment’s handling of ticket sales for Taylor Swift‘s tour, which involved excessive hidden fees and platform outages that prevented some fans from purchasing tickets.
Biden’s Advocacy and White House Recognition:
President Biden is set to highlight the actions taken by Live Nation, SeatGeek, and other companies during a White House address, where he will also acknowledge ticket sellers like TickPick that already provide transparent pricing without hidden fees. While Live Nation and SeatGeek’s decisions are voluntary, Biden has been vocal about his opposition to “junk fees” and warned of potential action in his State of the Union address. The Department of Justice has also escalated its investigation into Ticketmaster, which controls access to a majority of live events in the nation.
Biden’s Proposed Rules and Congressional Support:
The Biden administration has proposed new regulations targeting various sectors, including credit-card late fees, airlines, and concert ticket sales, aiming to eliminate undisclosed charges that often catch consumers off guard. The Junk Fee Prevention Act, which Biden urges Congress to pass, would eliminate hidden fees altogether. This effort has garnered broad bipartisan support, with a Morning Consult Poll indicating that 76% of U.S. adults, including 80% of Democrats, 73% of Republicans, and 71% of independents, support reducing service fees for event tickets.
Implications for Consumers:
Live Nation Entertainment, encompassing Ticketmaster, plans to implement upfront pricing without hidden fees for concerts and events held at its more than 200 owned venues starting in September. Ticketmaster will also offer consumers the option to view the full costs upfront for other concerts, sporting events, and shows held at venues not owned by Live Nation.
SeatGeek, a prominent secondary ticket seller, will introduce a toggle on its platforms later this summer, allowing customers to choose whether they want to see “all-in” costs for tickets. Notably, online lodging company Airbnb has already transitioned to “all-in” pricing in December. Additionally, New York became the first state to prohibit hidden costs for live events, compelling companies like Live Nation and SeatGeek to adopt upfront price-listing for live entertainment in the region.
Biden’s Motivation and Political Implications:
President Biden’s determination to combat “junk fees” stems from his belief that these hidden charges, prevalent across sectors such as banking, travel, and live entertainment, place an undue burden on ordinary Americans, adding hundreds of dollars to their annual expenses.
Beyond the economic impact, Biden sees this campaign as a means to connect with the public and demonstrate his commitment to addressing everyday concerns. The issue of “junk fees” resonates strongly across demographics and has found support from both Democrats and Republicans, making it a favorable topic for Biden’s economic agenda and efforts to rebuild public confidence amidst a post-pandemic recovery.
Additional Actions on “Junk Fees”:
The Biden administration has undertaken other initiatives to combat “junk fees” in various sectors. The Consumer Financial Protection Bureau proposed a rule in March to significantly reduce credit-card late fees, potentially saving consumers an estimated $9 billion annually. In May, at Biden’s direction, the Department of Transportation is set to introduce regulations requiring airlines to provide compensation and cover expenses for stranded passengers.
The Federal Communications Commission also finalized a rule in November, mandating cable and internet providers to disclose fees and services upfront. Furthermore, the Transportation Department proposed a rule in September, stipulating that airlines and online booking services must display full prices, including baggage and other fees, from the outset. As a result of a December 2021 report by the Consumer Financial Protection Bureau, fifteen of the twenty largest banks have already discontinued fees for bounced checks.
Conclusion:
Under the mounting pressure exerted by President Joe Biden, Live Nation Entertainment and SeatGeek have made significant changes by ending hidden ticket fees. This decision aligns with Biden’s broader campaign against “junk fees” across sectors and is supported by the public and policymakers alike. As companies like Live Nation and SeatGeek take voluntary action, the President will continue to encourage other industry players to adopt transparent “all-in” pricing models. Ultimately, these efforts aim to alleviate the financial burden on consumers and foster greater trust between businesses and their patrons.
