#United States #Washington #Tickets #Digital Citizens Alliance #Secondary Markets

The Growing Influence of Brokers in Ticket Sales

A recent investigation by the Digital Citizens Alliance has shed light on the troubling dynamics of secondary markets for concert and sports tickets. The report, titled _When It Comes to Digital Markets Trust Can't Be Secondary_, reveals that brokers are increasingly manipulating access to popular events, resulting in skyrocketing prices for consumers. This phenomenon not only affects ticket prices but can also undermine trust in both digital and traditional markets.

The Role of Brokers

According to the findings, brokers employ sophisticated techniques to acquire significant blocks of tickets before fans have a fair chance to purchase them. This practice leads to extreme markup prices listed on secondary platforms like StubHub and Vivid Seats, forcing fans to either pay exorbitant amounts or miss out entirely on these experiences. Notably, during a recent Mets-Yankees showdown, one out of every six tickets was found on secondary markets like StubHub, showcasing just how prevalent this issue has become. Sellers frequently offered batches of 20 or more tickets, indicating a concerted effort to maximize profits at the expense of ordinary fans.

Consumer Sentiments and Market Trust

The report also highlighted a pronounced distrust among consumers regarding these practices. Survey data indicated that only one-third of Americans hold a favorable view of operators who manipulate ticket sales for profit. In fact, there's a staggering ten-to-one ratio of trust toward primary market sellers over secondary market brokers, illustrating the growing trust gap.

Tom Galvin, the executive director of Digital Citizens Alliance, emphasized the need for a thorough examination of how these brokers interact with ticket platforms, noting that the relationship often leads to consumers feeling that the system is rigged against them. This sentiment reflects a larger anxiety about the economic landscape wherein consumers feel they are battling not just against pricing but against a system designed to prioritize profit over accessibility.

Policy Implications

The investigation was part of Digital Citizens’ Responsible Markets Initiative, which calls attention to the exploitation prevalent in digital markets. This broader initiative aims to educate consumers and inform policymakers about the need for regulations surrounding these markets. Policymakers are starting to take action, as evidenced by an executive order signed by President Trump aimed at addressing price-gouging practices within the entertainment sector. Concurrently, the Federal Trade Commission is beginning to implement new regulations governing event ticket service fees.

Beyond Ticket Sales

The implications of the investigation extend beyond sports and concert tickets. The report ventured into analyses of secondary markets for real estate and digital assets, revealing that brokers are similarly altering dynamics in those spaces. For example, the rise in home prices has been partially attributed to property monetization for short-term rentals, such as those on platforms like Airbnb. This creates additional barriers for individuals seeking affordable housing options.

Recommendations for Change

In response to these findings, Digital Citizens are calling on both federal and state governments to conduct comprehensive research into how ticket brokers operate. Investigating whether these brokers collaborate with platforms to set prices and evaluate if the service fees charged to consumers are excessive becomes imperative. There is also a suggestion to assess whether current European laws on ticket brokers could be adopted in the U.S. to create fairer market conditions.

On a technological front, concerns about domain name investors exacerbating scarcity in the digital marketplace have also come to light, suggesting designers of online platforms need regulation to prevent market distortion.

Conclusion

The evidence presented by the Digital Citizens Alliance makes it clear that the manipulation of secondary markets by brokers poses significant challenges to consumers. As confidence in these markets wanes, it becomes crucial for regulators, consumers, and industry stakeholders to work together to create a fair, equitable marketplace that serves the interests of all involved.

For more details, visit Digital Citizens Alliance for their in-depth report and consumer advocacy efforts.