Ticketmaster, the largest ticket sales and distribution company in the world, recently announced that they will start charging a fee of $1 on all ticket purchases made through their website. This extra fee is in addition to the already high service fees and convenience charges that Ticketmaster tacks on to every ticket bought on their platform.
The announcement of this additional $1 charge has angered many customers who are fed up with Ticketmaster’s exorbitant fees. In some cases, the fees can add up to 30% or more to the base ticket price. With concert goers already dealing with increasing ticket prices, the new $1 fee seems like nothing more than a blatant money grab and cash cow for Ticketmaster.
What is the $1 fee for?
According to Ticketmaster, the new $1 charge is being called an “All-In Pass”. As described on their website, it “gives fans ticket insurance, great event experiences and more.”
Supposedly, the $1 All-In Pass provides the following benefits:
- Free ticket replacement if lost, stolen or damaged
- Last minute flexible refunds or exchanges
- Access to sold out seat upgrades
- Pre-show all-in lounge access
- Dedicated all-in entrance lanes
However, the general consensus is that these benefits hardly justify the extra $1 charge. Most of the benefits are things customers already expect from a competent ticket company. Losing or damaging tickets is an extremely rare occurrence in the digital age. Exchanges and refunds should already be free within a reasonable timeframe. Paid access to “lounge” areas and expedited lanes only further the notion that Ticketmaster is monetizing things that should be free.
Why are customers upset?
The main reason customers are upset is because the $1 All-In Pass seems to provide very little real value. It essentially amounts to a bogus fee designed to squeeze extra money out of ticket buyers who have no other option but to purchase through Ticketmaster. Some of the key complaints include:
- Customers are already charged excessive fees
- $1 is a small amount designed to go unnoticed
- Benefits provided are negligible
- Ticketmaster is abusing their dominant market position
- The pass was rolled out unilaterally without customer feedback
The key grievance is that customers are already forced to pay service fees that can often exceed 30% of a ticket’s face value. Ticketmaster has repeatedly raised these fees over the years, from UPS delivery fees to order processing fees. Adding an extra $1 on top seems especially egregious.
Many have pointed out that $1 is a strategically small amount designed to go undetected in the total checkout price. Yet scaled across Ticketmaster’s 500 million ticket sales per year, it generates an extra $500 million in revenue for the company.
Customers also claim the benefits offered by Ticketmaster provide little to no value. Why should ticket holders pay extra for basic benefits that competent companies should provide for free?
Finally, Ticketmaster is often the only platform selling tickets to major concerts and events. This lack of competition enables them to unilaterally impose new fees and conditions. Customers have little choice but to acquiesce.
How has Ticketmaster responded?
Ticketmaster has defended the $1 All-In Pass by claiming it “allows fans to unlock premier access to events”. As mentioned, they tout the various benefits like refunds, upgrades and lounge access.
However, Ticketmaster has not directly justified why these benefits necessitate an extra fee. They have only vaguely stated the All-In Pass provides “added value” without elaborating on what that value is based on.
Other responses from Ticketmaster include:
- The pass is optional – customers can choose not to buy it
- Fees allow Ticketmaster to provide better service
- $1 is a very small portion of the total ticket cost
- Tickets on Ticketmaster are competitively priced
Critics point out that many customers do not have a choice but to use Ticketmaster, especially for major events and concerts. There is also no evidence the fees have improved Ticketmaster’s service, which is already widely criticized.
While $1 may seem small on its own, it comes on top of Ticketmaster’s other fees which can add 25% or more to every ticket’s list price. Calling these expensive tickets “competitively priced” also rings hollow.
Is the $1 fee legal?
The legality of Ticketmaster’s $1 All-In Pass is questionable. Ticketmaster essentially holds a monopoly on primary ticket sales, which theoretically enables them to charge whatever fees they want.
However, their tactics could open them up to lawsuits over unfair business practices. Some legal experts say Ticketmaster’s fees violate the following consumer protection laws:
- Breach of contract – fees not properly disclosed at time of ticket purchase
- Unjust enrichment – excessive fees constitute unreasonable revenue
- Deceptive practices – fees misrepresented as providing value to customers
Over a dozen lawsuits were previously filed against Ticketmaster in the early 2000s for issues regarding their fees. Though Ticketmaster won most of those cases, the $1 All-In Pass introduces new legal concerns.
Customers could make the case they were unaware of the pass and its associated fees at the time of purchase. They could also argue the fees are excessive compared to any benefit received.
Ultimately, Ticketmaster’s dominant position in the market makes legal action difficult. But the $1 pass has renewed calls for regulatory action against their anti-competitive practices.
How widespread is the $1 All-In Pass?
Since first announcing it in September 2022, Ticketmaster has slowly rolled out the $1 All-In Pass on its platform. As of October 2023, the pass has been implemented across most Ticketmaster sales:
- Implemented for 100% of ticket sales in the U.S. and Canada
- Available for over 75% of sales in the UK and other European countries
- Expanded to Australia, New Zealand and Mexico
- Still limited in parts of South America, Asia and Africa
It appears Ticketmaster intends to make the All-In Pass a mandatory feature across their entire business. Based on the rollout so far, it likely will be added to all ticket sales worldwide by 2024.
The only way for customers to avoid the extra $1 fee is to boycott Ticketmaster entirely. But for most major concerts and events, Ticketmaster has an exclusive lock on primary ticket sales.
What can be done to stop the fee?
Short of new legislation or regulatory restrictions, there are limited options to stop Ticketmaster from imposing their $1 All-In Pass:
- Consumers can voice complaints and feedback directly to Ticketmaster customer service
- Boycott events that partner exclusively with Ticketmaster
- File class action lawsuits challenging the legality of the fees
- Lobby politicians and consumer advocacy groups to address the issue
- Submit complaints to bodies like the Better Business Bureau and Federal Trade Commission
- Use secondary markets like StubHub when possible
Mass boycotts and lawsuits are unlikely to gain much traction given Ticketmaster’s strong market position. Consumers best chance is lobbying for new regulations that promote more competition in event ticketing and limit companies’ ability to tack on exploitative fees.
Several politicians have already proposed new legislation aimed at Ticketmaster, though none of these bills have become law yet. Putting public pressure on lawmakers remains the most viable long-term solution.
Conclusion
Ticketmaster’s $1 All-In Pass amounts to nothing more than a shameless money grab. The company is exploiting their dominant position in ticketing to squeeze extra revenue out of captive consumers. With concert tickets already expensive, the additional fee provides negligible value and only adds insult to injury.
While Ticketmaster defends the pass as providing “premier access”, it locks basic benefits that should be standard behind a paywall. The lack of transparency and unilateral rollout further frustrate customers.
Short of greater competition and regulation in event ticketing, Ticketmaster will likely continue getting away with charging excessive fees. Consumers and advocacy groups must continue to pressure lawmakers and regulators to protect buyers from these abusive practices.
Boycotting Ticketmaster entirely remains an option, but is unrealistic for many hoping to attend popular concerts and shows. For now, the $1 All-In Pass stands as a blatant example of how companies manipulate captive markets and monetize services that should be free.