It’s a typical result of a big class action settlement. By the time the damaged parties get compensated, there’s not much money left.
Ticketmaster announced today it’s giving $1.50 refunds to people who ordered tickets from the service between Oct. 21, 1999 and Oct. 19, 2011.
Business Insider reports the settlement of a class action suit comes because Ticketmaster did not tell anyone that they make a profit off “processing fees.” In other words, it wasn’t really a “fee,” it was just a money grab.
The settlement doesn’t ban Ticketmaster from doing this in the future, it just has to say on its website that it’s doing it. People will also get an additional $5 if they used “expedited delivery” because Ticketmaster was apparently adding a profit margin to the actual cost of UPS delivery, too.
Coincidentally, tickets for next March’s Buddy Guy concert in Minneapolis went on sale this afternoon. Here’s the breakdown of what people are forced to pay on a typical Ticketmaster order:
Ticket price: $54.50
Facility charge: $4.00
Convenience charge: $12.55
Order processing fee: $7.21
So what good did the lawsuit against Ticketmaster do? This line in the story answers the question:
Also, the Counsel attorneys plan to ask for an award of up to $16,500,000 in attorneys’ fees and expenses, as well as $20,000 to the two plaintiffs who brought forward the class action in the first place.
You could buy all the seats for the next 113 Buddy Guy concerts at the State Theater with that kind of money.