Service Charge Disclosure Bill Backed by Ticketmaster

WASHINGTON —  Ticketmaster Corp., lambasted as the “800-pound gorilla” of the entertainment ticket industry, says it supports a bill that would require full disclosure of service charges on tickets.

But that bill is a ticket to nowhere, at least for this year, because it has little chance of passage before the congressional session ends Friday. Supporters say it will be reintroduced early in the next session, which begins in January.

“We already practice the types of disclosure that are mandated by the bill,” said Ned Goldstein, vice president and general counsel of the nation’s main ticket distributor, at Thursday’s meeting of the House Energy and Commerce subcommittee.

He said signs at retail outlets inform customers of the charges and telephone sales operators are instructed to tell customers who order by phone.

The legislation follows complaints by consumers about high service charges on concert and other live entertainment tickets.

“Ticketmaster, the 800-pound gorilla in the ticketing industry, and in many places the only gorilla in town, rips off consumers,” testified Bill Wood of the U.S. Public Interest Research Group. He said a survey by his group of the company’s service charges for tickets to 80 events in 10 states showed that, on average, Ticketmaster’s fees added $5.10 to the ticket’s face value.

At least two-thirds of the Ticketmaster agents surveyed said their service charges were not disclosed separately on the tickets.