Consumer Group Opens Drive for U.S. Regulation of Concert Fees

A new consumer group, saying concert ticket prices have been driven too high by unfair business practices, Tuesday announced a nationwide campaign to bring about government regulation of the concert industry.

Consumers Against Unfair Ticketing, which calls itself a nonprofit coalition, said in Washington that it will lobby for state and federal laws to cap service fees and monitor contracts among ticket agencies, promoters and concert venue operators.

“Consumers are caught in a stranglehold . . . and it’s time to put a stop to it,” said Maura Brueger, executive director of the Seattle-based group. “Our campaign may have grown out of a dispute last year between Pearl Jam and Ticketmaster, but the battle has escalated far beyond those two players now.”

Ticket prices became a hot topic last May, when members of Pearl Jam, the nation’s best-selling rock band, filed a civil complaint with the U.S. Justice Department accusing Los Angeles-based Ticketmaster of exercising a nationwide ticket distribution monopoly.

The Seattle rock group, whose members also testified in hearings on Capitol Hill, alleged that Ticketmaster thwarted the group’s plan for a low-priced tour last summer. Ticketmaster, which pays a portion of its service fee to maintain exclusive relationships with important acts on the concert circuit, has denied the allegations.

Those exclusive arrangements mean that, in many cases, concert-goers must purchase their tickets from Ticketmaster, which charges fees ranging from $3 to $15.

Judy Black, senior vice president of government relations at Ticketmaster’s Washington office, accused Brueger’s organization of distorting Ticketmaster’s record.

“(Consumers Against Unfair Ticketing) says it wants to make entertainment accessible and affordable for all Americans, but that has been one of Ticketmaster’s primary goals since its inception,” Black said. “Ticketmaster provides a very valuable service for a very reasonable charge.”

Black is the wife of Charles Black, a partner in Black, Manafort, Stone & Kelly, one of several high-powered Washington lobbies recently retained by Ticketmaster.

Ticketmaster hired the lobbyists in January, shortly before Rep. John D. Dingell (D--Mich.) introduced legislation to require the Federal Trade Commission to conduct a study of ticketing practices.

Those arrangements already were being scrutinized by the U.S. Justice Department, which is looking into alleged anti-competitive practices in ticket distribution.

Investigators have spent 10 months conducting extensive interviews with talent managers, promoters and venue operators and are believed to be building a case that could challenge the exclusive arrangements.

Consumers Against Unfair Ticketing said it is working with two other Washington-based nonprofit organizations that represent 50 million people, Consumer Federation of America and the Public Interest Research Group.

Brueger said the new group is concerned not only about Ticketmaster’s service fees, but also about venue facility fees and the prices charged by ticket brokers and scalpers.

Lawmakers in New York, Massachusetts, Oregon and Texas this week introduced bills to require disclosure and limit service fees.

Representatives of Pearl Jam could not be reached for comment, but the band is known to be planning a series of concerts this summer at venues not affiliated with Ticketmaster. Sources said Pearl Jam plans to start its own telephone system to sell tickets to the six-week nationwide tour.

Ticketmaster, apparently attempting to defuse the escalating feud, approached the owners of several venues last week and encouraged them to exploit an option in their exclusive contracts that would allow them to book Pearl Jam.

According to a copy of the contract obtained by The Times, Ticketmaster cannot stop concert venue owners from conducting their own ticket sales from their box offices.

Several concert industry sources said Tuesday that Pearl Jam is aware of the contract clause, but does not trust Ticketmaster and prefers to bypass its system.

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How $18.50 Becomes $28.30

The $18.50 ticket to the Danzig concert at Universal Amphitheatre on March 25 could cost as much as $28.30. Here’s how:

Face value of the ticket: $18.50

Service and processing fees: At Ticketmaster outlets, the service fee is $3.75; by phone, it’s $5.50 plus $1.55 processing fee per order.

Facility fee: Whether the ticket is bought at the box office, a Ticketmaster outlet or over the phone, there’s a $2.75 facility fee.

Total cost for the $18.50 ticket:

At the box office: $21.25

At a Ticketmaster outlet: $25.00

Over the phone: $28.30*

* Total cost per ticket could be less than $28.30 if more than one ticket is ordered.

Source: Ticketmaster