NITO Challenges FTC Concert Ticket Rule, Claims Junk Fees Remain Unaddressed
The National Independent Talent Association (NITO) has called on the Federal Trade Commission (FTC) to expand its recently announced concert ticket "Junk Fees Rule," arguing that the current measure falls short of addressing core pricing issues.
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The FTC's rule, approved in December with a 4-1 vote, requires businesses to display all-in pricing upfront, showing the total cost including fees before checkout. While this applies to concert tickets, hotels, and vacation rentals, it doesn't regulate or limit the actual fees themselves.
NITO acknowledges the rule as "a positive step forward" but argues it fails to address the fundamental issue of excessive fees embedded in ticket prices. In their letter to the FTC, they emphasized that the current ruling obscures "the price gap between the amount that an artist wants to charge and the amount the fan pays."
The rule's effectiveness remains uncertain for several reasons:
- Implementation is scheduled for mid-April
- Commercial impact data is limited, though Live Nation reports improved sales with all-in pricing
- Enforcement under the incoming administration is unclear, as noted by Commissioner Andrew Ferguson
For context, all-in pricing is already mandatory in several states, with major players like Ticketmaster implementing it for select tours, including Kendrick Lamar's upcoming performances.
NITO has committed to continuing its work with industry stakeholders to reduce consumer costs and ensure fair ticket pricing. Meanwhile, international developments show similar concerns, with the UK government recently proposing restrictions on resale ticket pricing.
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