Jun. 15, 2023 at 9:17 am

Live Nation, SeatGeek to scrap hidden fees amid pressure from Biden

June 15, 2023no commentNo tags

WASHINGTON − Concert giant Live Nation and mobile-ticket vendor SeatGeek will no longer hide fees from the total ticket cost amid pressure from President Joe Biden for companies to ditch so-called “junk fees.”

The moves come after Live Nation Entertainment, the parent company of Ticketmaster, faced criticism from the White House and Congress in January over tickets sales for pop star Taylor Swift’s tour that included exorbitant hidden fees and platform outages, preventing some fans from buying tickets.

Biden will tout the steps taken by Live Nation, SeatGeek and other companies during White House remarks Thursday that will also recognize ticket sellers like TickPick that already provide upfront pricing to customers with no hidden fees, according to a White House official familiar with the announcement.

While the companies’ moves are voluntary, Biden has been on a crusade against “junk fees.” He threatened to take action in this year’s State of the Union address, saying “Americans are tired of being played for suckers.” The Department of Justice intensified an investigation last year into Ticketmaster, which controls entry into a majority of the nation’s live events.

The Biden administration has proposed new rules targeting credit-card late fees, airlines and concert ticket sales that aim to get rid of extra charges that aren’t publicized clearly by companies. Executives from SeatGeek, Live Nation and other companies are set to meet with Biden Thursday as he discusses the progress.

The president is expected to call on other companies to make the same shift to “all-in” ticket pricing while renewing his call for Congress to eliminate hidden fees altogether through the Junk Fee Prevention Act.

“Our hope is that as you build momentum around voluntary action, more and more (companies) will do it,” said Michael Negron, a special assistant to the president on economic policy.

What will the SeatGeek, Live Nation changes mean to consumers?

Live Nation Entertainment, which owns Ticketmaster, will begin in September listing the upfront prices − without hidden fees − for concerts and events held at the more than 200 venues owned by Live Nation, the company’s venue operator and promotor.
For other concerts, sporting events and shows held at venues not owned by Live Nation, Ticketmaster will begin providing the option to consumers to view the full costs on the front-end for tickets.
SeatGeek, a major secondary ticket seller, will begin featuring a toggle on its platforms at the end of the summer allowing customers to choose whether they want to see “all-in” costs for tickets.
Online lodging company Airbnb switched to “all-in” pricing in December.
New York became the first state to ban hidden costs for live events, which forced companies like Live Nation and Seat Geek to transition to upfront price-listing for live entertainment there.

Why Biden won’t stop talking about his fight against ‘junk fees’

Biden has talked repeatedly about his war against “junk fees,” arguing that the hidden fees charged to consumers across multiple sectors − including banking, travel and live entertainment − add hundreds of dollars a year to the bills of ordinary Americans.

The White House is also convinced it’s good politics, particularly as Biden tries to improve his standing with the public on the economy as the U.S. rebounds from 40-year high inflation.

“Often policy is a way of showing character,” said Celinda Lake, a 2020 Biden campaign pollster who conducts regular focus groups with voters. “When you’re a longtime politician and you’re in office, people think you get out of touch with their lives, you don’t have any commonsense. This shows, ‘Hey, I am in touch. I do have commonsense.'”

Eliminating junks fees has broad bipartisan support. A Morning Consult Poll in February found 76% of U.S. adults − including 80% of Democrats, 73% of Republicans and 71% of independents − support Congress acting to reduce service fees for event tickets.

“There isn’t anybody who doesn’t like it,” Lake said, arguing that tackling junk fees connects to some Americans in a more tangible way than Biden’s major legislative packages. “It’s a great strategy for women, too, because women focus more on kitchen-table economics.”

Biden’s actions on ‘junk fees’

Other Biden administration actions on junk fees have included:

In March, the Consumer Financial Protection Bureau proposed a new rule to slash credit-card late fees from roughly $30 on average to $8, which would save an estimated $9 billion a year.
At Biden’s direction in May, the Department of Transportation is set to propose new regulations detailing how and when airlines must provide cash or other compensation and cover expenses for meals, lodging, and rebooking when carriers are responsible for stranding passengers.
The Federal Communications Commission finalized a new rule last November that requires cable and internet providers to list fees and service up front on labels.
Last September, the Transportation Department proposed a rule requiring airlines and online booking services to show full prices up front, with baggage and other fees included.
Fifteen of the largest 20 banks have ended fees for bounced checks since the Consumer Financial Protection Bureau in December 2021 released reports on excessive and unfair reliance on banking fees, according to the White House.

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Live Nation, SeatGeek to scrap hidden fees amid pressure from Biden

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