Ticketmaster is the largest ticket sales and distribution company in the United States. They sell tickets on behalf of concert promoters, music venues, sports franchises and more. Ticketmaster has faced scrutiny over the years for the fees they charge on top of the ticket’s face value. This has led many to wonder – can Ticketmaster legally charge more than face value for tickets?
What does “face value” mean?
The face value of a ticket refers to the base price printed on the ticket itself. This is the original price set by the artist, team, or venue hosting the event. Face value does not include any additional fees charged by the ticket seller.
For example, a concert ticket may have a face value of $100. This means the original ticket price set by the concert promoter is $100. Any fees charged on top of that $100 base price are considered above face value.
Service and convenience fees
Ticketmaster is known for tacking on substantial fees to the face value price. These fees cover the cost of Ticketmaster’s ticketing services and come in several forms:
- Service fee – This fee covers Ticketmaster’s operating costs for facilitating the ticket sale.
- Order processing fee – Covers the costs of processing the ticket order.
- Delivery fee – Charged for print-at-home tickets and shipping fees.
- Facility charge – A fee some venues require Ticketmaster to charge.
These fees can add an extra 15-45% onto the ticket price. For example, a $100 face value ticket could end up costing $130-$145 after fees.
Dynamic and market-based pricing
In recent years, Ticketmaster has begun rolling out variable and dynamic pricing on tickets. This means ticket prices can adjust over time based on demand.
Highly coveted tickets may start at face value initially. But as the event draws nearer and demand increases, Ticketmaster can raise prices. Similarly, they may drop prices on low-selling tickets closer to the event to increase sales.
Ticketmaster claims dynamic pricing helps reflect the true market value of tickets. However, many critics argue it allows Ticketmaster and partners to artificially inflate prices and gouge fans.
Speculative ticket resale
In addition to initial public sales, Ticketmaster also facilitates ticket resales between fans and third-party resellers.
Resellers can re-list tickets they purchased for well above face value. For example, a reseller may try to flip a $100 ticket for $500 if demand is high enough.
Ticketmaster receives a percentage of all resale transactions via their exchanges. They have faced accusations of allowing speculative resale to occur that takes advantage of fans.
Official ticket limits and requirements
Despite criticism, Ticketmaster maintains that everything they do is within the boundaries of the law and agreements with clients. There are no federal laws prohibiting ticket sellers from charging service fees.
In many states, ticket resellers are free to charge whatever the market will bear as long as they disclose the ticket’s face value. Some states do have limits on resale prices for sports games and other large events.
Ticketmaster also notes that service and convenience fees are clearly disclosed during the purchasing process. Fans upset over the total cost typically have the option to refrain from completing the purchase.
Antitrust lawsuits
While Ticketmaster’s fees and charges may anger fans, they have mostly survived legal challenges claiming violations of free trade and price gouging laws.
In the 1990s, Pearl Jam attempted to boycott Ticketmaster over fees but was unable to get venues to enforce it. In the 2000s, Ticketmaster paid millions to settle a class action lawsuit alleging they had conspired to maintain a monopoly on ticketing services.
In recent years, a company called Songkick challenged Ticketmaster’s exclusive contracts with venues and brokers that prevent competition. The dispute was ultimately settled confidentially out of court.
U.S. Justice Department investigation
In 2022, the U.S. Justice Department began investigating Live Nation, the parent company of Ticketmaster, for possible monopolistic practices.
Critics hope the investigation finally brings about reforms to Ticketmaster’s fee structure, exclusive deals, and resale policies. Potential remedies could include:
- Caps on service fees
- Requirements to disclose the estimated final ticket price upfront
- Banning speculative ticket resale
- Prohibiting exclusivity deals with venues
However, some analysts doubt major changes are imminent. Live Nation/Ticketmaster has proven adept at surviving past antitrust inquiries through settlements and workarounds.
Consumer options
Unless legally prohibited, Ticketmaster is likely to continue utilizing variable and surge pricing to maximize sales. Consumers frustrated with fees do have some options to avoid Ticketmaster:
- Buy directly through the venue box office if available
- Use Ticketmaster alternatives like AXS or Eventbrite
- Join fan clubs or artist presales to access face value tickets
- Purchase resale tickets on Facebook Marketplace or Craigslist
However, Ticketmaster currently has exclusive ticketing deals with many major venues and artists. Avoiding their fees entirely is becoming increasingly difficult for consumers.
Conclusion
Ticketmaster utilizes a variety of fees, dynamic pricing, and speculative resale market policies to charge well above the face value on tickets. This angers many consumers who feel they are being forced to pay inflated prices.
Attempts at legal remedies for these practices have had limited success so far. While some states regulate ticket resale prices, there are no federal bans on Ticketmaster’s common tactics.
The latest DoJ investigation into Live Nation may bring about wider reforms. But Ticketmaster has proven adept at evading substantial changes in the past. Unless prohibited by law, Ticketmaster will likely continue employing controversial fees and sales tactics.
Consumers can avoid Ticketmaster fees in some limited cases by purchasing directly from venues or through alternate sellers. But competitive options are sparse due to Ticketmaster’s widespread exclusive deals.
In most cases, consumers wanting to attend major concerts and events have little choice but to pay Ticketmaster’s fees if they want tickets. Significant changes may depend on the outcome of the DoJ’s antitrust investigation against Ticketmaster’s parent company.