What Does the TICKET Act Mean For Your Event?

Posted on May 31, 2024

Have you ever bought a ticket for a concert or a sports event only to discover that the final price was much higher than expected? Hidden fees and unexpected charges can be a frustrating part of buying tickets. One significant milestone in this evolution is the introduction of the TICKET Act, a pivotal legislation aiming to make event cancellations and ticket pricing more transparent and fair for event organizers and attendees.

The TICKET Act is designed to make ticket prices clear and straightforward. It requires ticket sellers to show the total price, including all fees, right from the start. This means no more surprises or hidden fees when you reach the checkout page. The goal is to make buying tickets a fairer and more transparent process for everyone.

In this blog post, we’ll explain the TICKET Act, why it’s important, and how it benefits event organizers and attendees. Whether you’re planning an event or just looking to buy a ticket, understanding this new law will help you confidently navigate the ticket-buying process. So, let’s see how the TICKET Act is improving events for everyone.

What is the TICKET Act?

The TICKET Act, formally known as the Transparency in Charges for Key Events Ticketing Act, was introduced by Representatives Jan Schakowsky and Gus Bilirakis in June 2023. This legislation was passed by the House of Representatives as a measure to enhance transparency within the ticketing industry for live events. Introduced in Congress, the TICKET Act requires ticket sellers to be upfront about the total cost of tickets, including all the extra fees that often surprise buyers at the last minute.

This Act mandates that beginning 180 days after its enactment, it will be unlawful for any ticket issuer to sell tickets without displaying the total price clearly and conspicuously in any advertisements, marketing materials, or during the ticket purchasing process 

Key Provisions of the TICKET Act

The TICKET Act introduces several measures to increase transparency and fairness in the live event ticket marketplace. These provisions are designed to protect consumers and ensure a more straightforward ticket purchasing experience. Here’s a breakdown of the key provisions:

• Upfront Disclosure/Transparency in Ticket Prices

The TICKET Act makes it compulsory for ticket sellers to show the total price of the ticket, including all fees, right at the beginning of the purchase process. This means that when you first see the ticket price, it will include everything with precise information—no hidden charges popping up later. This move aims to eliminate surprise fees at checkout, providing you with clear information on the total cost from the start of your ticket purchase process

• Itemized List of Fees

Sellers must provide/disclose a detailed list of all the extra fees along with the total price. This can include service fees, processing fees, delivery fees, facility charges, and taxes, ensuring you know exactly what you’re paying for before completing the purchase 

• Refund Requirements for Cancellations

If an event is canceled or postponed (except for reasons like natural disasters), sellers must offer a full refund or a replacement ticket, depending on the buyer’s preference. This ensures buyers aren’t left out of pocket when things go wrong.

• Ban of Speculative Ticketing

The TICKET Act bans speculative ticketing, where sellers offer tickets for sale that they do not yet own. This prevents people from selling tickets they don’t own, which can lead to disappointment if they can’t get the tickets later. 

• Deceptive URLs and Fraud Protection

To further protect consumers, ticket sellers must clearly state if they are reselling tickets and cannot pretend to be the official seller unless they have a genuine partnership. This measure prevents you from being misled by fraudulent ticketing websites and advertising that trick buyers into thinking they’re buying from the official source, offering an additional layer of security when purchasing tickets online

The TICKET Act is enforced by the Federal Trade Commission (FTC), which makes sure that ticket sellers follow these rules. These provisions collectively aim to create a more transparent, fair, and consumer-friendly ticketing marketplace. By understanding these key aspects of the TICKET Act, you can be better prepared and informed when purchasing tickets for live events.

Why Does Transparency Matter in Ticket Pricing?

When it comes to buying tickets for events, transparency in pricing is incredibly important. Not only does it help event organizers plan better, but it also ensures that attendees have a positive experience from the moment they decide to purchase a ticket. Here’s why transparent ticket pricing matters so much:

Impact On Event Organizers

1. Simplifies Budgeting and Planning: For event organizers, transparency in ticket pricing allows for more accurate budgeting and financial planning. This would help them allocating resources more efficiently, which is critical for the success of any event. 
2. Reduces Last-Minute Surprises: Hidden fees can cause confusion and dissatisfaction among attendees, leading to complaints and refund requests. By showing the total price upfront, organizers can reduce the chances of dealing with unhappy customers at the last minute, allowing them to focus on delivering a great event. This practice not only helps in maintaining a smooth operational flow but also safeguards the organizer’s reputation. 
3. Builds Trust with Attendees: Trust is crucial for any event. When attendees see that all costs are disclosed from the beginning, they feel more confident and secure in their purchase. This trust can lead to higher ticket sales and potentially repeat attendance at future events. 

Impacts on Attendees

1. Clear Understanding of Ticket Costs: Transparency ensures that attendees understand exactly what they are paying for. This clarity comes from detailed breakdowns of the ticket price, including any additional fees, which helps in making informed purchasing decisions.
2. Increased Satisfaction and Trust: Attendees are more likely to feel satisfied and trust the organizers when there are no hidden charges. Knowing the full cost upfront can prevent feelings of being misled or overcharged, contributing to a more positive perception of the event. Infact, an event with a reputation for visible and accurate upfront fees will find it easier to build trust and maintain a relationship with new, and returning attendees.
3. More Positive Event Experience: Transparent pricing eliminates any potential financial surprises, allowing attendees to focus on enjoying the event experience itself. This can lead to a more positive overall experience, encouraging attendees to participate in future events.

Benefits of the TICKET Act for Event Management

• Enhanced Event Planning

By knowing the total costs, including all fees, from the beginning, organizers can allocate resources more effectively, ensuring financial predictability and stability. Additionally, the requirement for ticket sellers to disclose the total price at the start of the transaction simplifies the ticket-purchasing process. This would minimize the chances of last-minute financial surprises that could impact your event’s success, potentially sending ticket sales and attendance through the roof.

• Improved Attendee Relationships

The TICKET Act fosters a trustful relationship between event organizers and attendees by ensuring that all costs associated with the event ticket are communicated upfront. This level of transparency helps reduce complaints and negative feedback, as attendees appreciate the honesty and clarity in the pricing structure. Knowing the full cost from the start can prevent feelings of being misled or overcharged, leaving your attendees satisfied and with renewed trust in the event organizers.

• Setting Industry Standards

The TICKET Act sets a high standard for transparency and fairness in the ticketing industry, serving as a benchmark for other event organizers. By adhering to these regulations, event organizers not only comply with the law but also lead by example, promoting fair practices within the industry. This leadership can inspire and encourage other organizers to adopt similar transparent practices, contributing to a healthier, more consumer-friendly market for live event.

InEvent’s Commitment to Transparency

Our Practices 

Despite the complexity inherent in pricing various event services, InEvent offers various tiered pricing models with very clearly defined features included in all pricing models. Alternatively, for a more tailored and customized approach, we require some customers to participate in a detailed hands-on intro training call. This initial step ensures that every planner is fully informed about the business model and the components involved in their specific event needs. 

After certification, planners have the ability to log in, bypass repetitive demos, and directly receive a tailored quote. This process eliminates any potential for miscommunication by providing each planner with a clear understanding of what they are paying for, tailored to their specific event requirements.

We also agree that a diversity of components, such as language support, implementation scales, and necessary support levels, makes a one-size-fits-all pricing model impractical. Instead, engaging in a direct conversation allows InEvent to offer a “perfect price,” which is often more favorable than what might be assumed from a complex, generalized pricing table.

Supporting the TICKET Act 

InEvent’s commitment to transparency is further demonstrated by its proactive approach to compliance with regulations like the TICKET Act. The company ensures that all legal and fair practice standards are met to comply with the law and foster trust with partners and clients globally. This dedication is part of InEvent’s broader strategy to set high standards within the event management industry.

Additionally, InEvent uses various tools and features that align with the TICKET Act’s requirements. For instance, the platform allows for the creation and management of tickets with clear, detailed descriptions and pricing. This functionality ensures ticket buyers have all necessary information upfront, preventing surprises and fostering transparency.

How to Adapt to the TICKET Act

For Event Organizers

• Review and Update Pricing Models:

1. 1. • Action: Ensure that all ticket prices displayed include every fee from the start. This means updating your pricing models to reflect the total cost upfront.
      • Tip: Use software tools or ticketing platforms that allow you to easily include and display all fees in the initial ticket price.

• Provide Detailed Fee Breakdown:

1. 1. • Action: Offer an itemized list of all fees associated with the ticket. This should be visible at the beginning of the purchase process and throughout.
      • Tip: Clearly label each fee (e.g., service fee, processing fee, tax) to help attendees understand what they are paying for.

• Transparent Advertising:

1. 1. • Action: Ensure that all advertising and marketing materials show the total ticket price, including all fees.
      • Tip: Avoid using misleading terms or language that might confuse potential attendees about the total cost.

• Avoid Speculative Ticketing:

1. 1. • Action: Only list tickets that you have in your actual possession. If you offer a service to obtain tickets on behalf of attendees, make it clear that it’s a service and not the sale of an actual ticket.
      • Tip: Use clear, distinct language and visual cues to separate services from ticket sales.

• Clear Refund Policies:

1. • Action: Clearly disclose your refund policy before the completion of any ticket sale. Explain the circumstances under which a refund will be provided and how attendees can obtain it.
   • Tip: Make this information easily accessible on your website and in the ticket purchase confirmation emails.

For Attendees

• Know Your Rights:

1. 1. • Tip: Be aware that the TICKET Act requires all fees to be disclosed upfront. If you see hidden fees at checkout, the seller might not be complying with the law.
      • Action: Look for detailed pricing information and an itemized list of fees when buying tickets.

• Understand Refund Policies:

1. 1. • Tip: Before purchasing a ticket, check the refund policy to know your options if the event is canceled or postponed.
      • Action: Ensure you know how to request a refund if needed and what to expect in terms of reimbursement.

• Avoid Misleading Websites:

1. • Tip: Make sure the website you are buying from is not pretending to be an official seller unless they have a clear partnership with the event organizer.
   • Action: Look for clear statements about whether the seller is reselling tickets and avoid websites with misleading domain names.

By following these steps, event organizers can comply with the TICKET Act and ensure a fair and transparent experience for attendees. Clear pricing and honest practices not only build trust but also enhance the overall success of your events.

Conclusion

At InEvent, we are committed to these values of transparency and fairness. By supporting the TICKET Act, we aim to create a more honest and enjoyable event experience for everyone. Great events start with trust, and clear ticket pricing is a crucial part of that trust.

If you have any questions about how the TICKET Act affects your event or need assistance in implementing these practices, don’t hesitate to reach out to us by booking a meeting. Together, we can make the event industry better, one transparent ticket at a time.

Join us in supporting the TICKET Act and promoting transparency in event ticketing. Follow InEvent for more insights on fair event management practices and tips to enhance your events. Let’s make every event a success through honesty and clarity.

FAQs

What is the TICKET Act?

The TICKET Act is designed to foster a competitive market by ensuring transparency around ticket fees and speculative ticket sales, ultimately serving the best interests of consumers.

How does an event ticketing system work?

An event ticketing system is an online platform that allows event organizers to sell tickets for various types of events, including in-person, hybrid, and virtual gatherings.

Why are ticket fees perceived as high?

Ticket fees are seen as high because they are added on top of the ticket price, which can frustrate fans. However, these fees are not arbitrary; they cover the costs that venues and ticketing companies incur in producing the event.

Who determines the prices of concert tickets?

The initial prices of concert tickets are set by the artists, sports teams, promoters, or event organizers, not by ticketing platforms like InEvent. These entities also reserve the right to adjust the prices as they see fit.