As a seasoned gamer who’s been through countless virtual worlds and marketplaces, I can’t help but feel a sense of camaraderie with those consumers who have battled against hidden fees and unexpected charges. The FTC’s new rule is like a much-needed shield for us all, a beacon of transparency in the digital jungle we navigate every day.
It’s about to get easier to compares prices for tickets to live events.
On Tuesday, the Federal Trade Commission made it official that businesses must clearly display all costs, including any undisclosed charges, in an open and straightforward way.
According to FTC chair Lina Khan’s statement, the new rule is projected to help consumers save a significant amount of money – billions of dollars, and time – millions of hours wasted. Furthermore, she emphasized that consumers should be made aware of the true cost of their purchases from the outset, without encountering unexpected or hidden fees later on, which they may not have accounted for in their budgets and cannot evade.
Under this regulation, businesses aren’t barred from charging any kind of fee. Instead, they are obligated to inform consumers about the final cost, which includes all necessary charges, whenever they provide a price quote. The actual total price should be presented more noticeably than other pricing details. If certain fees like shipping costs or taxes are permitted but not immediately included, businesses must clearly disclose them before any payment information is requested.
Last year, the FTC put forward a new regulation, which garnered support from numerous consumers. Many voiced their approval, while also expressing concerns about undisclosed charges levied by Ticketmaster.
Last year, Jennifer Davis informed the FTC that she purchased seven concert tickets from Ticketmaster’s website for her friends. The price displayed per ticket was $53, but upon checkout, each ticket cost her $74.70 due to additional charges: a ‘Service Fee’ of $14.70 per ticket, a ‘Facility Charge’ of $6 per ticket, and an ‘Order Processing Charge’ of $5 for the entire transaction. This added up to almost a 50% increase in price. In her opinion, Ticketmaster behaves like a monopoly by overcharging customers with these extra fees for far too long.
The rule was introduced as Ticketmaster remains engaged in an antitrust legal battle aimed at dissolving the company. The parent company, Live Nation, backed the all-inclusive pricing strategy.
Since consumers have been accustomed to seeing service fees on tickets for live entertainment events due to this long-standing practice, they often don’t know the exact amount they will pay because these fees are determined by numerous venues and can fluctuate. To help consumers make informed decisions, it is crucial that the total cost of a ticket is clearly disclosed.
The rule was approved with a margin of 4 votes to 1. The sole opposing vote came from Andrew Ferguson, who is set to take over as the agency’s chairperson. Similar to other rules put forward by the FTC, he opposed this one because he believes that the FTC lacks the power to implement such a regulation. In his argument, he stated, “The Democratic majority’s four-year push for regulatory control over American businesses has stifled economic growth and raised costs for consumers. The American people made it clear they disagree with this approach in the November elections.
During Khan’s leadership at the FTC, there have been enactments of consumer and worker-advocating regulations, such as prohibiting noncompete clauses and mandating that businesses make unsubscribing as straightforward as subscribing initially. Ferguson was opposed to both these measures.
Khan emphasized the need for persistent action against illegal charges, and suggested that lawmakers at both state and national levels should expand upon these efforts by proposing laws that prohibit misleading and exploitative additional charges in various sectors of the economy,” (paraphrased)
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2024-12-18 04:54