- **Q: What are 'junk fees'?
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Business / Retail
Following a crackdown on hidden 'junk fees' by US regulators, Ticketmaster has quietly raised other fees to offset revenue loss, according to documents obtained by The Guardian and The Independent. This move has sparked concerns about poten...
In response to the Biden administration's crackdown on 'junk fees,' Ticketmaster initially complied with all-in pricing regulations, which required displaying the full ticket price upfront. However, internal documents reveal that the company implemented a strategy to recoup lost revenue by increasing other fees. For example, the Findlay Toyota Center in Arizona eliminated a $6 order processing fee but raised the service fee on each ticket by $2.
The Guardian obtained contracts from 26 publicly owned venues, revealing that nearly all had similar order processing fees that are no longer permitted. Ticketmaster defended its practices, stating that tickets on Ticketmaster.com have displayed the full price upfront since May 2025, in line with the FTC’s all-in pricing rule. They also provide explanations of fees during the purchase process and maintain a dedicated page with additional information.
However, critics argue that this fee shifting undermines the purpose of the regulations. John Newman, a former economist at the FTC, noted that Ticketmaster might still be charging the fee, just disguising it as something else, which could violate FTC rules. Several states, including California, Colorado, Virginia, and Minnesota, have also passed legislation banning hidden fees.
Live Nation Entertainment is currently facing an antitrust trial, with allegations that it operates an illegal monopoly in the live music industry. The Department of Justice initially reached a settlement with the company, but a coalition of over 30 states is continuing the litigation. This context further intensifies scrutiny on Ticketmaster's fee practices.
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