NITO Criticizes FTC Concert Ticket Rule for Failing to Address Core Junk Fee Issues

NITO Criticizes FTC Concert Ticket Rule for Failing to Address Core Junk Fee Issues

By Marcus Hartley

January 17, 2025 at 10:22 PM

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.

Federal Trade Commission headquarters exterior

Federal Trade Commission headquarters exterior

The FTC's rule, approved in December by a 4-1 vote, requires businesses to display all-in pricing for tickets upfront, including all fees before checkout. While this transparency measure affects live entertainment venues, hotels, and vacation rentals, it doesn't restrict or reduce the actual fees themselves.

NITO acknowledges the rule as "a positive step forward" but criticizes its limitations in a letter to the FTC: "The FTC's junk fee ruling does nothing to address or reduce actual junk fees that are now buried inside each concert ticket. Transparency that shows the price gap between the amount that an artist wants to charge and the amount the fan pays has been lost with this ruling."

Key points about the current rule:

  • Goes into effect in mid-April
  • Requires total cost disclosure upfront
  • Doesn't prohibit any type or amount of fees
  • Already implemented by some businesses, including Ticketmaster
  • Early reports suggest positive sales impact

The rule's future remains uncertain under the incoming administration, with FTC Commissioner Andrew Ferguson (President-elect Trump's choice for FTC chair) opposing the measure in its current form.

Meanwhile, international markets are taking different approaches. The UK government recently proposed measures targeting resale tickets, including potential price caps on secondary market sales.

NITO has committed to continuing its work with industry stakeholders to address consumer costs and ensure fair ticket pricing.

Fire Aid Concert Logo

Fire Aid Concert Logo

Shawn Mendes VR concert at Red Rocks

Shawn Mendes VR concert at Red Rocks

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