A class action lawsuit against Ticketmaster was filed in 2003 and seeks to reimburse consumers who purchased tickets from Ticketmaster.com from October 21, 1999 through May 31, 2010 under California’s False Advertising Law and Unfair Competition. The reimbursement would be for the order processing fees and UPS delivery fees added to the cost of purchasing tickets from Ticketmaster.
At this point most consumers who have purchased tickets from Ticketmaster are being contacted by email from the attorneys representing the plaintiffs in the case against Ticketmaster with information on how to remain a member of the lawsuit or to exclude them from it.
The suit claims two things. One that Ticketmaster charges a processing fee that consumers believe is the true cost of processing the ticket order but the plaintiffs claim is to generate more profits. And the second is that consumers are led to believe that the cost of shipping your tickets by UPS is the actual cost from UPS, just being passed through. But they say Ticketmaster is profiting from the discount they receive to ship packages.
As much as I hate Ticketmaster I would have to disagree with both points. You can only go by the wording to believe you are being charged exactly what Ticketmaster pays for each service and there is simply nothing there that gives that impression. Just telling a customer that there is an Order Processing Fee and UPS fee does not imply you are getting the service at cost.
And you can find thousands of companies doing the same thing on the internet. Charges for processing orders, shipping etc. have long been used as revenue streams for companies that get discounts for selling in bulk. The order processing fee just states they are charging you for your use of their software to sell you the tickets.
The same with the UPS shipping charge. UPS gives large companies such as Ticketmaster a discount for shipping huge volumes of envelopes. In many cases you are still getting a better price for shipping than if you shipped it yourself without a UPS account and the discount a large company receives.
And again, thousands and thousands of companies make money on shipping charges. Have you ever seen those 2 for 1 commercial for cheap kitchen items etc., but you have to pay for separate shipping for each item. They make more money off the shipping than they do off of the product sales!
Overpriced yes! A scam, I doubt it. Except when you think about the money and who’s going to benefit from the lawsuit. If you’ve ever been a part of a class action lawsuit you know the drill. The attorneys will probably settle out of court with pennies for the consumer and millions for the attorneys. I’m not sure which are worse, attorneys and frivolous lawsuits or Ticketmaster and their fees.