Sen. Cruz: Sports Teams Should Disclose Ticket Fees Up Front

WASHINGTON, D.C. – In his opening statement for the record of today’s “Protecting Consumers from Junk Fees” subcommittee hearing, Senate Commerce Committee Ranking Member Ted Cruz (R-Texas) said companies, especially ticket sellers, should be transparent and disclose additional fees up front. He also urged his colleagues to support the TICKET Act, legislation he introduced with Chairwoman Maria Cantwell (D-Wash) that would require all event ticket sellers to display the total ticket price—including all required fees—in any advertisement or marketing materials.

Sen. Cruz also noted that the TICKET Act has received the backing of fans as well as key ticket-industry entities and organizations like StubHub and the Coalition for Ticket Fairness.

Ranking Member Cruz’s opening remarks, as submitted:

“In October 2022, President Biden stood on a stage flanked by the heads of the Federal Trade Commission and the Consumer Financial Protection Bureau announcing that his Administration would target companies and financial institutions charging consumers so-called ‘junk fees’ to help fight inflation.

“Imagine that! After trillions of dollars of reckless government spending by Democrats that sent inflation soaring, the President’s solution is to target ‘junk fees.’ That’s like offering a Band-Aid for a broken arm. It’s missing the larger problem.

“Unfortunately, this is not simply an inability to diagnose our economic problems, but a clear effort by President Biden to avoid accountability and avoid admitting that we are on a reckless financial trajectory.

“No one here should be fooled by the White House’s argument that targeting ‘junk fees’ is the solution to fighting the sky-high Biden inflation that is harming ordinary Americans every day from the grocery store to the gas pump.

“Setting that context, let’s turn now to today’s conversation about ‘junk fees.’

“No American, myself included, likes paying hidden or extra fees for any product or service. It’s frustrating and confusing.

But I think we need to first take a step back and distinguish how this White House’s regulatory approach is flawed. Rather than gathering evidence and ensuring consumers are equipped with clear information, the Administration is instead engaging in one-size-fits all regulation that would harm Americans through what I can only define as rate regulation or price controls rather than accounting for how our markets actually work.

“Not all fees are ‘junk’ fees. Some fees actually serve an economic purpose.

“For example, most Americans understand that paying ‘add on’ fees for additional toppings on a pizza makes sense. If you want more product, you pay a little extra.

“And we know that credit card late fees or overdraft charges are meant to deter certain behavior that, if not kept in check, could cause some Americans to subsidize the behavior of others.

“These are not ‘junk fees’ but serve a larger function within our markets and pricing schemes.

“Competitive markets, in fact, do produce lower prices for goods and services. In those markets where consumers are confused by pricing or prices are misrepresented, I would argue that rather than resorting to government price controls, which will create higher costs for Americans, we should instead consider price transparency and disclosure.

“Transparency and disclosure provide consumers the information they need to make informed decisions in the marketplace, which instills more market competition.

“The market for event tickets, like sports games and concerts, is one example where Americans would benefit from additional transparency and disclosure. Every sports fan and concertgoer – myself included – can recall a time buying a ticket online expecting to pay an advertised price only to learn at checkout that the total cost was substantially higher because of additional fees that were not disclosed upfront.

“A 2018 GAO report found that ticket fees, which are often not disclosed to Americans early in the ticket buying process, averaged 27% of the ticket’s costs with some fees totaling 58% of the total ticket cost.

“Tacking on fees at the end of a transaction is frustrating and confusing for consumers who expect that the price listed for a ticket is the actual price they will pay.

“That’s why Chairwoman Cantwell and I have introduced the TICKET Act. Similar to how airlines have to advertise the full ticket price upfront, the TICKET Act works the same way for tickets to concerts, sports, and large gatherings. The TICKET Act’s transparency requirements would promote competition for the benefit of all American ticket buyers.

“Rather than resorting to one-size-fits-all government price regulations, I believe the TICKET Act is a reasonable, bipartisan response that identifies a known problem and provides a targeted solution that would benefit all Americans.

“I am pleased to report that multiple stakeholders in the event ticket industry have expressed their support for the TICKET Act, including StubHub.

“I look forward to moving this bipartisan legislation through the Committee and Congress soon.”

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