The new “junk fee” rules passed by the Federal Trade Commission (FTC) to clean up the event ticket industry won’t slow the rising price of concert tickets or reduce the huge fees added by ticketing companies, a group of prominent music agents and managers is warning.
In a letter to the FTC last week, Nathaniel Marro, executive director of the National Independent Talent Organization (NITO), said the new rules are “a positive step forward” in cleaning up the business but that they do “nothing to reduce the junk fees buried inside each concert ticket.” NITO is now asking the FTC to expand its ruling to address its concerns.
So-called junk fees, which are added to a ticket purchase by ticketing companies like AXS and Ticketmaster, regularly push ticket fees up 25% to 30%, often without any sign-off from the artist, says Marro.
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“The artist is kept in the dark about how much their fans are being charged in fees for tickets,” Marro wrote in the letter. “We don’t know the fees in advance. Most agents, and artists and managers don’t see the full spread of fees until the show goes on sale.”
Some of the fees also aren’t accounted for during show settlement, Marro added, meaning that most artists don’t know how much revenue ticketing companies are making from their concerts.
Officials with Live Nation pushed back on this claim, telling Billboard that “if an artist team is ever unsure of the venue fees, it’s a simple ask that the venue rental agreement outline it,” adding, “this is never hidden as it’s a standard cost of doing business.”
Marro worries that the FTC’s new requirements that fans be shown the full price of a ticket upfront –instead of first being shown the face value before fees are tacked onto the price at checkout — will make it easier for ticketing companies to add fees to the face value of a ticket while effectively hiding them, resulting in higher ticket prices.
Recent data from Billboard Boxscore shows that ticket prices are rapidly increasing. The average cost of a concert ticket to one of the tours on Billboard’s Year-End top 100 tours chart last year was $132.30, marking an increase of 9.1% from 2023 and a 20.6% increase from 2022. Prior to the pandemic, ticket prices were increasing at a much more sustainable rate of just 3% to 4% a year.
In a statement to Billboard explaining its support for mandatory all-in pricing, Live Nation said that “fans are better off when they focus on the true cost of a ticket, which is the sum of face value and all mandatory fees. There is no basis for obscuring the all-in price on the fiction that artists do not understand ticket fees. That information is never hidden as the NITO comments suggest. It is readily available to artist teams, who also know that most ticket fees go to the venues hosting their events.”
