dailyloe.com – Ticketmaster quietly raised other fees after US regulators cracked down on hidden charges, according to documents obtained by The Guardian. The company eliminated a specific order processing fee to comply with new Federal Trade Commission rules. It then increased different fees at numerous venues to compensate for the lost revenue.
Following a wave of regulations banning surprise fees at transaction checkout, Ticketmaster stopped charging an extra order processing fee. This fee was typically shared with the venue and was a significant revenue source. The global platform sells hundreds of millions of tickets annually.
Documents show the company raised the cost of other fees in many venues. This ensured Ticketmaster did not lose money from the regulatory change. The adjustments were detailed in emails to venue operators.
Ticketmaster wrote an email to the Findlay Toyota Center in Arizona last year. It stated fees must be adjusted to offset lost order processing revenue. The venue eliminated a $6 order processing fee but raised each ticket’s service fee by $2.
This email was part of Ticketmaster’s contract with the venue. It was obtained through a public records request. The Guardian reviewed agreements for 26 publicly owned venues nationwide.
These venues ranged from small town theatres to major stadiums. Examples include the Rose Bowl in Pasadena and the Alamodome in San Antonio. Nearly all contracts described a now-prohibited order processing fee.
At least eight venues amended contracts to raise other fees. This followed the new all-in pricing rules. Contracts and emails clearly show this pattern of adjustment.
Former regulators told The Guardian this practice could violate FTC rules. Rolling an illegal fee into another charge may misrepresent fees to consumers. The FTC’s rule against such misrepresentation took effect last May.
The findings highlight challenges in enforcing consumer protection rules. Companies may find alternative methods to maintain revenue streams. Regulatory oversight must adapt to ensure transparency for ticket buyers.[]
Source: The Guardian
