Photo Credit: appshunter
Live Nation responds to the FTC’s promise to put an end to junk fees in the live ticketing and hospitality industries.
Live Nation has released a statement applauding the U.S.’s new ban on “junk fees” in the live ticketing and hospitality industries. The Federal Trade Commission (FTC) passed a rule on Tuesday (December 17th) requiring ticket sellers, hotels, and vacation rental sites to disclose total prices, including fees, upfront, thus prohibiting them from concealing “add-on” charges until the end of the purchasing process.
Businesses are required to prominently display the total price, inclusive of all mandatory fees, whenever offering, displaying, or advertising prices for live event tickets or short-term lodging. Further, they are prohibited from misrepresenting fees or charges and must provide accurate, upfront pricing information. The total price must also be presented more prominently than any other pricing information to prevent deceptive advertising.
Live Nation has praised the move, asserting the ban would deliver greater transparency for fans while increasing sales for artists, with fewer abandoned purchases 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,” said Live Nation.
“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,” said FTC Chair Lina M. Khan. “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 of 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 expects the new junk fees rule to save consumers around 53 million hours annually by reducing the time spent searching for total prices. The rule could also result in approximately $11 billion in savings over the next ten years. The FTC commissioners voted 4-1 in favor of the new rule. Only Commissioner Andrew Ferguson, President-elect Donald Trump’s pick for the next FTC chair, cast the dissenting vote.
