Bands do this every weekend all over the country, yet nobody minds.

ASCAP collects fees for live performances as well as for recorded performances. BMI does the same. These fees are usually extracted from the venue proprietor rather than the performer, since it is the proprietor that is gaining revenue from the performance, which is why you don't often hear about it.

I'm not defending ASCAP or BMI; their distribution of said funds borders on the criminal, in my opinion. But you should do your research before stating things as fact.