TO UPDATE: President Joe Biden called on Ticketmaster and other companies to reduce “the enormous service fees” companies charge on tickets to concerts or sporting events that can easily add hundreds of dollars to a family night out.
Biden met with his Competition Council after the White House unveiled a series of proposals to limit so-called “garbage fees” on consumers. The administration also wants limits on early cancellation fees imposed by television, cable and Internet providers.
Rohit Chopra, director of the Consumer Financial Protection Bureau, said: “Across the economy, we’re seeing companies building a model based on these junk fees.”
EARLIER: President Joe Biden wants TV and Internet providers to limit concert ticket and early termination fees, as the White House sees the practices as a sign of a lack of competition in various business areas.
Biden will announce the proposals at a meeting of the President’s Competitiveness Council on Wednesday. Also of note is a Consumer Financial Protection Bureau rule to curb excessive credit card charges and a Department of Transportation rule requiring airlines and booking sites to post the full price of an airline ticket upfront.
Additional proposals will be part of a Waste Fee Prevention Act, legislation targeting a range of fees levied on consumers.
The White House’s focus on concert ticket prices follows a Senate hearing last week that focused on the issue and competition in the ticket industry, when lawmakers spied on Live Nation president Joe Berchtold through subsidiary Ticketmaster. The company is reportedly being investigated by the Justice Department, which has a consent order from the 2010 merger.
The White House cited a GAO review of 31 different sporting events on the websites of five ticket sellers and found that service fees accounted for more than 20% of the ticket’s face value. The total cost was more than half the cost of the ticket itself. The Biden administration also claimed a lack of competition in the industry, citing a 2018 report The New York Times that Live Nation has exclusive partnerships with 80 of the top 100 arenas in the United States.
Biden’s proposal would require legislation to ban the excessive fees, require their disclosure in the ticket price, and require disclosure of all “ticket deductions.” The issue was in the spotlight in November when excessive demand for Taylor Swift tickets kept fans from selling in advance while a public sale was canceled. Berchtold blamed a bot attack.
Another proposal would be legislation to limit early termination fees charged by cable TV, Internet and cellphone providers, which the White House argues discourage new companies from entering the market.
Other aspects of Biden’s proposals include limits on hotels’ “destination fees” or “resort fees” and another ban on airlines charging family members for sitting next to young children.
The FCC recently approved rules required by the Infrastructure and Jobs Act that require broadband providers to post easy-to-understand labels so consumers can compare prices and plans, as well as speeds and data limits. Broadband providers must display the labels on their websites or other areas where they offer services. The labels do not need to be displayed in mass marketing or before consumers select their service location.
Source: Deadline
Mary Crossley is an author at “The Fashion Vibes”. She is a seasoned journalist who is dedicated to delivering the latest news to her readers. With a keen sense of what’s important, Mary covers a wide range of topics, from politics to lifestyle and everything in between.
