Ticketmaster Quietly Increased Fees Following US Crackdown on Hidden Charges
Documents obtained by the Guardian have exposed that Ticketmaster raised other fees after a US crackdown on hidden charges, aiming to offset revenue losses from regulatory changes. This move has sparked concerns among experts about potential violations of Federal Trade Commission (FTC) rules on fee misrepresentation.
Fee Adjustments to Compensate for Lost Revenue
Following regulations that banned surprise fees at transaction checkouts, Ticketmaster eliminated its order processing fee, which typically added a few dollars to each order and was often shared with venues. However, internal communications show the company simply increased different fees at numerous venues to maintain profitability. In an email to the Findlay Toyota Center in Arizona, Ticketmaster stated, "To account for the loss of order processing revenue, we must adjust fees to offset the revenue loss." The venue removed a $6 order processing fee but raised the service fee per ticket by $2 instead.
This email was part of Ticketmaster's contract with the venue, obtained through public records requests. The Guardian reviewed agreements for 26 publicly owned venues across the US, including major sites like the Rose Bowl in Pasadena and the Alamodome in San Antonio. Nearly all contracts initially included an order processing fee now deemed impermissible, with at least eight venues amending contracts to raise other fees in response to all-in pricing rules.
Expert Warnings on FTC Compliance
Former regulators have raised alarms that rolling an illegal fee into another charge could breach the FTC's rule against misrepresenting fees, which took effect in May 2025. John Newman, a former FTC economist and law professor at the University of Memphis, reviewed the memos and called them "potentially concerning." He explained, "Ticketmaster may effectively still be charging the fee, just disguising it as something else. That type of behavior can run afoul of the FTC rule."
Ticketmaster did not respond to detailed inquiries about its response to state and federal pricing regulations, including how many venues raised fees. In a statement, the company said, "Since May 2025, tickets on Ticketmaster.com have displayed the full price upfront in line with the FTC’s all-in pricing rule. We also provide explanations of fees during the purchase process and maintain a dedicated page with additional information."
Broader Context of Antitrust and Regulatory Actions
This issue unfolds against a backdrop of legal challenges for Live Nation Entertainment, which includes Ticketmaster. The company is facing an antitrust trial over allegations of operating an illegal monopoly in the live music industry, with a focus on exclusive contracts stifling competition. A Department of Justice settlement in early March drew criticism from lawmakers, while over 30 states continue litigation. Live Nation Entertainment denies monopoly claims.
The Biden administration's crackdown on "junk fees" began in October 2022, targeting excessive charges like ticket service fees. President Biden emphasized in a 2023 State of the Union address that such fees impact working-class voters. Live Nation Entertainment executives publicly supported all-in pricing legislation, claiming it would not materially affect business, but contracts revealed protections allowing fee renegotiation to ensure "reasonable compensation" if charges were banned.
State Laws and Fee Shifts
California led state efforts by passing legislation in October 2023 banning hidden fees, requiring all mandatory charges to be included upfront. By July 2024, Ticketmaster had written to venues like Sacramento's convention center, scrapping the order processing fee but increasing its cut per ticket by about 25%. Similar adjustments occurred in Cerritos and other states like Colorado, Virginia, and Minnesota.
John Kwoka, an economics professor at Northeastern University, noted the limits of transparency laws in regulating dominant players. He said, "Since we remain largely hostage to Ticketmaster, they have simply shifted which hand they have in our pockets," highlighting the lack of alternatives due to Ticketmaster's exclusive contracts with around 80% of US venues.
Federal Rule and Ongoing Scrutiny
The FTC's national all-in pricing rule, finalized in late 2024, imposes stricter requirements than California's law, prohibiting fee misrepresentation and mandating disclosure of fee purposes. By May 2025, Ticketmaster had quietly raised fees in at least four more venues, such as the Wintrust Arena in Chicago and Florida State University, adjusting charges to comply while maintaining revenue.
Serena Viswanathan, a former FTC attorney involved in the rule, stated, "It really shows that all of these fees are kind of made up," emphasizing the need for honesty and transparency. The FTC has filed a suit against Ticketmaster and Live Nation Entertainment for allegedly deceiving consumers, though the company disputes this, citing compliance with all-in pricing rules.
A spokesperson for the FTC declined to comment on individual company practices, leaving the authority to determine compliance solely with the agency. This situation underscores ongoing debates about consumer protection and corporate accountability in the ticketing industry.
