Ticketmaster’s New Invisible Pricing Policy

So I see on Fast Company that a class action suit brought against Ticketmaster has moved forward with everyone who purchased tickets between October 21, 1999 and before May 31, 2010 named as parties to the suit. The suit focuses on the order process and UPS delivery fees notes the Fast Company article:

Plaintiffs assert that Ticketmaster’s Order Processing Fee is deceptive and leads consumers to believe that it represents Ticketmaster’s costs to process their orders, and that the Order Processing Fee is just a profit component for Ticketmaster, unrelated to the costs of processing the orders. Ticketmaster disputes these allegations.

Plaintiffs allege that Ticketmaster’s UPS Delivery option is deceptive because it leads consumers to believe the price they are paying Ticketmaster is a pass-through of the fees that UPS charges to Ticketmaster and that Ticketmaster substantially marks-up the amount it actually pays to UPS. Ticketmaster disputes these allegations.

I had read a piece on the MSNBC website back in September saying that Ticketmaster had created a blog site and were acknowledging that people hated their fees and would offer more transparency about the charges. But that hasn’t been the experience of Herb Weisbaum who wrote the MSNBC piece. He didn’t find out the exact amount of the processing fee until he reached the point of reviewing his order.

And this was after CEO Nathan Hubbard admitted on the Ticketmaster blog, Ticketology (my emphasis),

The problem is that historically we haven’t told you how much you have to pay for a given seat until very late in the buying process. And our data tells us this angers many of you to the point that you abandon your purchase once you see the total cost, and that you don’t come back. The data also says (and this is the important piece) that if we had told you up front what the total cost was, you would have bought the ticket! So by perpetuating this antiquated fee presentation, fans are getting upset, while we and our clients are losing ticket sales.

This practice changes today.

Now with all the changes to programming that probably needed to occur to make good on his promise, perhaps it was too optimistic to expect that would be changed in the first couple days. Or three weeks later when Herb Weisbaum bought his tickets. Or you know, right now 6 weeks later when I tried to buy ticket, clicked on the price details and was told about a $9 convenience fee, but didn’t find out about the processing fee until I was ready to hit submit. True, when it said “The price displayed includes the ticket/item price plus, when applicable, convenience charges, facility charges and additional taxes. Click Price Details for more information.” And that doesn’t mention that there might be charges they may not be telling me about. Silly me for assuming there weren’t unstated charges after reading that there would be more transparency early in the purchasing process. Their new pricing policy is transparent all right, it still remains to be seen.

The other thing that makes me skeptical that Ticketmaster is sincere about changing their ways is that there have only been two entries on the Ticketology blog. The first was in August where the CEO made this promise along with stating Ticketmaster would be offering refunds at select venues. (Which admittedly is a step forward.) The second entry was in September where the CEO talks about how much everyone loves their refund policy.

That’s it.

With all the events for which they sell tickets, all the myriad venues they operate out of and serve, they can’t muster more than 2 entries in 6 weeks? They could have pictures of their employees in and around some of the most famous and attractive venues in the world making you dream of seeing whatever you could just to walk through the doors and sit in those seats.

But all they got is a post about policy changes and another that is sort of self congratulatory about one of those changes. It pretty much screams, “this is a corporate propaganda blog.” Nothing is going to be posted that isn’t vetted by marketing and maybe legal. Ticketmaster protests that they aren’t responsible for the high prices and varied add on charges, but they aren’t doing a very good job of making that case.

About Joe Patti

I have been writing Butts in the Seats (BitS) on topics of arts and cultural administration since 2004 (yikes!). Given the ever evolving concerns facing the sector, I have yet to exhaust the available subject matter. In addition to BitS, I am a founding contributor to the ArtsHacker (artshacker.com) website where I focus on topics related to boards, law, governance, policy and practice.

I am also an evangelist for the effort to Build Public Will For Arts and Culture being helmed by Arts Midwest and the Metropolitan Group. (http://www.creatingconnection.org/about/)

My most recent role was as Executive Director of the Grand Opera House in Macon, GA.

Among the things I am most proud are having produced an opera in the Hawaiian language and a dance drama about Hawaii's snow goddess Poli'ahu while working as a Theater Manager in Hawaii. Though there are many more highlights than there is space here to list.

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