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    The scoop on ticket scalping

    Consumer Reports News: February 19, 2008 02:58 PM

    Ticket scalping has been around since the 1850s, and legal attempts to stamp out the practice were as futile back then as they are today. But now scalping has become bigger than ever, a booming multibillion-dollar business, thanks to lawmakers who say if you can't beat ‘em, join ‘em.

    The explosion of Internet ticket sales has made it almost impossible for authorities to enforce price caps limiting a seller's markup over face value. In recent years, all but a handful of states have eased or eliminated restrictions on scalping, making it perfectly legal to charge whatever the market will bear for tickets to hit shows, concerts, and sporting events.

    While you'll still find individual ticket sellers working the crowd outside of stadiums, arenas, and theaters, modern-day scalpers are big Internet-based companies like StubHub, TicketsNow, and RazorGator that prefer to be called brokers or resellers. They're regulated, tax-paying entities, and have gained added credibility by inking deals with major sports leagues be the "official" ticket resellers.

    Proponents see only an upside to scalping moving out of the shadows. They contend that, regulated brokers, are safer, more reliable, and offer greater protections to consumers, while creating a fair, open market for tickets to marquee events.

    Critics paint a different picture, suggesting it's a system that favors the wealthy, putting even more events out of the reach of Joe Fan. Speculators motivated by greed, they argue, buy up season tickets and everything else they can get their hands on, strictly for resale, thus preventing real fans from having a fair chance to see their favorite performers.

    What do you think? We at Consumer Reports would like to hear about your experiences—good or bad—with ticket resellers. Were you pleased or dissatisfied, did you encounter any unexpected problems, tricks or traps, and were you able to happily resolve any disputes? Your comments and advice might help other consumers avoid making mistakes in the future, and contribute to a story that we're working on about the subject. So this is your chance to sound off. —Tod Marks


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