House committee hears testimony on bills to ban ‘junk fees’ for tickets, other purchases
Most people who have tried to snag tickets for a popular concert know the frustration of seeing the price skyrocket when clicking to check out. There’s now a push at the Minnesota State Capitol to reveal those extra costs upfront.
The Minnesota House Commerce Finance and Policy Committee heard two bills Monday regarding extraneous fees that may catch consumers by surprise.
One bill specifically targets “junk fees” in ticket sales. HF 1989 invokes pop superstar Taylor Swift, whose “Eras” concert tour last year drew scrutiny from Congress and the general public for exorbitant ticket prices charged by Ticketmaster and secondary market sellers.
Mike Dean, executive director of Northstar Prosperity, testified about his attempt to buy tickets for his daughter to see Iowa phenom Caitlin Clark play in the Big Ten Women’s Basketball Tournament this past weekend. He found tickets for $75 before getting hit with a $112 facility fee and an $87 service fee at checkout.
“As consumers, we have no choice but to pay up,” Dean said. “Price gouging has persisted for years, driving prices far beyond the average highest rates. It’s bad for Minnesotans, and it’s bad for small businesses.”
The “T-Swift Bill” also bans speculative ticketing, which occurs when tickets are sold on secondary sites before they’re actually available to anyone. One opponent representing Stubhub argued a ban on speculative ticketing would limit options for consumers.
A second bill heard on Monday, HF 3438, takes a broader approach and would force all kinds of companies to disclose fees upfront for airline tickets, hotel rooms, food delivery and more. The bill would also require extra fees to be included in the advertised price.
Opponents say the bill is too broad.
“What we’re gonna be doing is creating this huge rule that applies broadly to many, many industries that we frankly can’t anticipate all the possible applications of it in this bill,” Rep. Harry Niska, R-Ramsey, said.
Both bills passed out of the committee after Monday’s hearing and were moved to the general register.