Nix Ticket-Fee Settlement, Consumer Group Urges

A California consumer action group is urging concert-goers to reject a proposed settlement to a 1992 antitrust class-action lawsuit against Ticketmaster, claiming the pact does nothing to address the escalating cost of ticket service fees.

Under the terms of the settlement, Ticketmaster and Bay Area Seating Service Inc. (BASS) acknowledge no fault, liability or wrongdoing, but are required to give away an estimated $1.5 million in tickets to charitable organizations. Although no rebates will be issued to consumers, the law firms representing the plaintiffs stand to make as much as $750,000 in legal fees--subject to court approval.

Consumers opposing the agreement--which was announced March 21 in San Francisco Superior Court--must file petitions of protest before Friday to lawyers affiliated with the case. Individuals who serve written notice will be allowed to challenge the pact at a May 6 hearing.

“Consumers are getting burned big-time by this settlement,” said Anna Alvarez Boyd, director of Consumer Action, a San Francisco-based group founded in 1972 that lobbied unsuccessfully in the California Senate two years ago for legislation to limit ticket fees.

“As it stands, this settlement does nothing to lower convenience fees or to address the issue of competition in the ticket service market. When it comes to buying tickets, there’s really nowhere else to take your business.”

Fred Rosen, chairman of the board and chief executive officer of Ticketmaster, declined to comment. Ticketmaster attorney Ned Goldstein in Los Angeles characterized monopoly allegations against the firm as ludicrous and labeled efforts to derail the settlement as misguided.

“We believe that Consumer Action is being duped by individuals who have a separate agenda,” he said. Goldstein criticized the organization for basing its view on “erroneous” information provided by individuals who have either been dismissed from the case or who are “intent on bashing” Ticketmaster for “political gain.”

The settlement stems from a 1992 lawsuit alleging that the Los Angeles-based ticket agency and its Concord-based affiliate, BASS, conspired with prominent California promoters and venue operators to bilk consumers by arbitrarily fixing the price of ticket “convenience” fees, the service charge that adds 20% to 44% to the price of tickets.

Ticketmaster--which processes more than $1 billion worth of tickets each year to concert and sporting events in 42 states--has dominated the ticket sales market since 1991 when it bought certain assets from Ticketron, thus putting its primary competitor out of business.

The debate over ticket prices and service fees has been intense for years as fans continue to be charged increasing prices by artist managers, promoters and service companies as well as by private brokers and scalpers. Ticketmaster phone service fees for many rock concerts now range from $6 to $8.

Seattle rock group Pearl Jam jumped into the fray last week when it issued letters to promoters vowing to perform only at venues that charge no more than $1.80 for service or handling charges.

The move is seen as an attempt to combat recent actions taken by artists, promoters, venue operators and Ticketmaster to bury escalating service fees and parking costs in the price of tickets, a practice tested two weeks ago in Southern California when Eagles tickets went on sale for as much $115 per seat.

Joseph M. Alioto, a San Francisco attorney who represented some early plaintiffs in the case and who opposes the settlement, is offering to represent plaintiffs in the original suit who want to opt out of the pact and proceed on their own against Ticketmaster.

“If you’ve got a penny in your pocket right now, you’ve got more than you’re going to get from this settlement,” said Alioto, who has criticized Ticketmaster since his unsuccessful Senate run in 1992.