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Consumer groups’ statement on elimination of speculative ticketing disclosure requirements from S. 1303, the “TICKET Act”

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July 27, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – The United States Senate Committee on Commerce, Science, & Transportation today approved an amended version of the Transparency in Charges for Key Events Ticketing Act (“TICKET Act”). Unfortunately, an amendment to the bill that was approved during the markup eliminated a key provision that consumer groups supported which would have required ticket sellers to disclose clearly and conspicuously, prior to a consumer selecting a ticket for purchase, when a seller does not have possession of a ticket being listed for sale. The eliminated provision would have addressed a controversial practice known as “speculative ticketing,” that has harmed too many consumers who thought they had purchased a ticket only to later find out that the seller was unable to fulfill their order. [1] In a July 25 letter to the Commerce Committee, eleven consumer advocacy organizations had urged support for the original version of the TICKET Act, which was introduced with bipartisan support in April.

In response to today’s vote, the undersigned consumer groups released the following statement:

“The live event ticketing market is a rigged game, riddled with deception and a lack of transparency at every turn. We are extremely disappointed that the Commerce Committee today bowed to pressure from industry opponents and missed an opportunity to reduce the risk that fans end up high and dry without tickets to events they had otherwise planned to attend. The TICKET Act, as amended, is a step in the right direction but a reminder of why vested interests continue to resist comprehensive reform. The live event ticketing system needs to be cured of deep flaws that result in consumers being abused before tickets go on sale, while they are for sale, and through the moment they are scanned for entry. The TICKET Act as introduced would have assured transparency to two of the most opaque parts of ticket buying: the pricing of tickets, and the sale of  tickets that sellers do not possess, but are offered to unknowing customers. We continue to support all-in pricing of live event tickets because today’s deceptive drip pricing is unfortunately the norm whether the tickets come from a venue, a team, Ticketmaster, or a resale marketplace. Our groups will continue to work for a fairer ticket marketplace to ensure that fans are able to access affordable tickets to their favorite events in an open, transparent, and competitive marketplace.”

Organizations supporting this statement include National Consumers League, Consumer Action, Consumer Federation of America, Consumer Federation of California, Fan Freedom Project, National Association of Consumer Advocates, Protect Ticket Rights, Public Knowledge, Sports Fans Coalition, and U.S. Public Interest Research Project, and Virginia Citizens Consumer Council.

[1] Burchill, Caitlin. “Burlington man learns his expensive Taylor Swift tickets don’t exist days before concert,” NBC Connecticut. (June 13, 2023) Online: https://www.nbcconnecticut.com/investigations/nbc-ct-responds/burlington-man-learns-his-expensive-taylor-swift-tickets-dont-exist-days-before-concert/3048419/; Oberle, Marisa. “PROBLEM SOLVERS: Potential ‘controversial’ practice leaves Kent Co. family without Taylor Swift tickets,” FOX 17-West Michigan. (June 21, 2023) Online: https://www.fox17online.com/news/problem-solvers/problem-solvers-controversial-practice-leaves-kent-co-family-without-taylor-swift-tickets-day-before-concert

 

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

Consumer groups urge support for S. 1303, the “TICKET Act”

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July 26, 2023

Media contact: National Consumers League – Katie Brown, katie@nclnet.org, 202-823-8442

Washington, D.C. – NCL and other consumer groups submitted the below letter to Chair Cantwell and Ranking Member Cruz to urge support for S. 1303, the “TICKET Act”.

 

July 25, 2023

 

The Honorable Maria Cantwell Chair

Committee on Commerce, Science, & Transportation

United States Senate

254 Russell Senate Office Building Washington, D.C. 20510

 

The Honorable Ted Cruz Ranking Member

Committee on Commerce, Science, & Transportation

United States Senate

512 Dirksen Senate Office Building Washington, D.C. 20510

 

RE: Consumer groups urge support for S. 1303, the “TICKET Act”

Dear Chair Cantwell and Ranking Member Cruz:

The eleven undersigned consumer organizations represent the tens of millions of fans who attend concerts, sports, theater, and other live events every every year 1,  generating more than $130 billion in economic impact.2 Despite the profits fans’ entertainment spending creates for this important industry, the process of obtaining tickets to a live event is often fraught with deception and unfair business practices. From a fan’s point of view, trying to get an affordable ticket to see their favorite band, cheer on their hometown team, or enjoy a night at the theater is a rigged game.

It is for this reason that the undersigned organizations have endorsed S. 1303, the Transparency in Charges for Key Events Ticketing Act (“TICKET Act”).3 We thank you for introducing this bipartisan consumer protection measure and we urge your colleagues on the Commerce Committee to support the bill when the committee considers it this week.

Reforms like those in the TICKET Act are urgently needed to ensure fans can access affordable live event tickets from both primary and secondary ticket sellers. The bill mandates all-in pricing of tickets, which addresses a significant source of frustration for consumers when purchasing tickets. Add-on fees, commonly labeled as “service fees,” “processing fees,” and “facility fees,” are typically added to the cost of the ticket as buyers progress through the ticket-buying process. On average, these fees raise the cost of a tickets by 27 percent and 31 percent on the primary and secondary market, respectively.4 The TICKET Act’s all-in pricing requirement will ensure that consumers see the full cost of a ticket the first time a ticket is advertised. This will allow fans to make a more informed buying decisions before they begin the buying process. Competition will also be enhanced, since competing ticketers on the secondary market will not be able to hide the true cost of a ticket behind a deceptively low advertised price.

The TICKET Act also includes reforms that would address a second significant frustration for ticket buyers: undisclosed speculative ticketing. This practice, also known as “spec ticketing,” involves resellers listing tickets they do not possess for sale on resale websites and secondary ticket exchanges. Speculative selling is a controversial ticketing practice since consumers are often deceived into thinking they are buying tickets the reseller possesses. There are numerous examples where consumers who thought they had a ticket to an event were later told that the speculative ticket reseller was unable to obtain the ticket.5 The TICKET Act addresses this problem by requiring ticket sellers to disclose clearly and conspicuously, prior to a consumer selecting it for purchase, when the seller does not have possession of a ticket being listed for sale. This would benefit consumers by allowing them to make a more informed choice about whether to take the risk that a speculatively resold ticket order may not be fulfilled.

On behalf of America’s live event fans, we thank you for your leadership on this issue and we urge your colleagues to join our organizations in support of this important pro- consumer and pro-competition bill.

 

Sincerely,

National Consumers League

Consumer Action

Consumer Federation of America

Consumer Federation of California

Fan Freedom Project

National Association of Consumer Advocates

Protect Ticket Rights

Public Knowledge

Sports Fans Coalition

U.S. Public Interest Research Group

Virginia Citizens Consumer Council

cc:       Members of the Senate Commerce Committee

 

1 Live Nation Entertainment. “Live Nation Entertainment Reports Fourth Quarter & Full Year 2022 Results.” Press release. (February 23, 2023) Online: https://www.livenationentertainment.com/2023/02/live-nation- entertainment-reports-fourth-quarter-full-year-2022-results/; Fischer, Ben and Broughton, David. “NFL per- game attendance makes big jump.” Sports Business Journal (January 16, 2023) Online: https://www.sportsbusinessjournal.com/Journal/Issues/2023/01/16/Upfront/nYl-attendance.aspx;  National Basketball Association. “NBA sets all-time records for attendance and sellouts during 2022-23 regular season.” Press release. (April 10, 2023) Online: https://www.nba.com/news/nba-sets-all-time- records-for-attendance-and-sellouts-during-2022-23-regular-season; The Broadway League. “2022–2023 Broadway End-Of-Season Statistics Show That Broadway Had Attendance Of 12.3 Million And Grosses Of $1.58 Billion.” Press release. (May 23, 2023) Online: https://www.broadwayleague.com/press/press- releases/20222023-broadway-end-of-season-statistics-show-that-broadway-had-attendance-of-123-million-     and-grosses-of-158-billion/

2 Oxford Economics. The Concerts and Live Event Industry: A Signi9icant Economic Engine (July 26, 2021) Online:   https://www.oxfordeconomics.com/resource/livemusic/

3 “S.1303 – 118th Congress (2023-2024): TICKET Act.” Congress.gov, Library of Congress, 26 April 2023, https://www.congress.gov/bill/118th-congress/senate-bill/1303.

4 United States Government Accountability OfYice. Event Ticket Sales: Market Characteristics and Consumer Protection Issues (GAO-18-347). Pg. 15 (April 12, 2018) Online: https://www.gao.gov/assets/gao-18-347.pdf

5 Burchill, Caitlin. “Burlington man learns his expensive Taylor Swift tickets don’t exist days before concert,” NBC Connecticut. (June 13, 2023) Online: https://www.nbcconnecticut.com/investigations/nbc-ct- responds/burlington-man-learns-his-expensive-taylor-swift-tickets-dont-exist-days-before-   concert/3048419/; Oberle, Marisa. “PROBLEM SOLVERS: Potential ‘controversial’ practice leaves Kent Co. family without Taylor Swift tickets,” FOX 17-West Michigan. (June 21, 2023) Online: https://www.fox17online.com/news/problem-solvers/problem-solvers-controversial-practice-leaves-kent-   co-family-without-taylor-swift-tickets-day-before-concert

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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

CFPB’s structure ruled unconstitutional, but is it really? – National Consumers League

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SG_HEADSHOT.jpgThe DC Federal Circuit Court of Appeals ruled on Tuesday that the structure of the Consumer Financial Protection Bureau (CFPB), the Wall Street financial watchdog that is the brainchild of  Sen. Elizabeth Warren (D-MA), is unconstitutional.The three judge tribunal said that the CFPB will now function under direct oversight of the President, who will have the power to fire the agency’s director at will. The decision is intended to weaken the agency’s ability to wield its regulatory power independently from this or any Administration.

The lawmaker who authored the decision, U.S. Circuit Judge Brett Kavanaugh, is a well-known conservative who once worked on President Bill Clinton’s impeachment as a Hill staffer. Judge Kavanaugh wrote that the CFPB’s “single-director structure” violates the separation of powers specified by the Constitution by vesting one person with vast power “unchecked by the President.” Prior to the decision, the President could only fire the director for very specific reasons. Supporters of the CFPB’s work predicted this court would find a reason to fault the agency and its structure.

Judge Kavanaugh wrote: “The CFPB’s concentration of enormous executive power in a single, unaccountable, unchecked Director not only departs from settled historical practice, but also poses a far greater risk of arbitrary decision-making and abuse of power, and a far greater threat to individual liberty, than does a multi-member independent agency.” This seems like a dubious basis for undermining an agency’s power as Congress created the CFPB structure very deliberately.

It is likely the federal government will ask the full DC Circuit to reconsider its ruling. And the recent wave of Obama appointees to the court may suggest a rehearing is possible. Meanwhile, Senator Warren had this to say about the decision:

“This split decision — which bizarrely relies on a mischaracterization of my original proposal for a new consumer agency — will likely be appealed and overturned. But even if it stands, the ruling makes a small, technical tweak to Dodd-Frank and does not question the legality of any other past, present, or future actions of the CFPB. The CFPB has been, and will remain, highly accountable to both Congress and the President, and continued Republican efforts to transform the agency’s structure or funding should be seen for what they are: attempts fostered by big banks to cripple an agency that has already forced them to return over $11 billion to customers who have been cheated.”

The CFPB has become such an important instrument of protection for consumers by overseeing the activities of the financial service industry that of course, given its imposition of fines and cracking down on industry misdeeds, bad actors are trying at every turn to challenge its power. It’s reminiscent of the multiple legal attacks on the Fair Labor Standards Act of 1938, which stood up well.

The CFPB is doing exactly the job Congress intended, being the cop on the beat, and it’s fortunate that its structure and ability to police the industry won’t be seriously altered by this decision.