TradeMe scalping: a vicious circle

No sooner than tickets for the coming U2 concert went on sale - and sold out - there were a few on TradeMe, leaving many wondering, "Why did they buy them at all?"

The answer, it seems, is a much-hated practice known as scalping - people buying tickets with the sole purpose of selling them on to make a profit.

In the old days, these guys would stand around outside concerts or big events and sell their wares that way. These days, the scalping has gone online, to auction sites like TradeMe.

Of course, there are some who legitimately made a mistake and want to sell the tickets they bought.

That's fine - Ticketek's terms say that's no problem, as long as you sell them for no more than what you paid for them. Just put a "buy now" price on, and you're done.

Unfortunately, demand, ignorance and perhaps greed interfere with this process.

It's possible that some people don't know it's against the terms - we all know that  people rarely read the fine print.

One auction I came across was trying to sell tickets with cream on top to raise funds for their PTA, which they freely admitted. An inventive approach... but maybe they would be better off doing a sausage sizzle.

Concerts should be for the fans, not a cheap and easy way to make a few bucks. If you are a real fan, you don't encourage scalpers by buying the tickets.

The risks of buying scalped tickets

It is against Ticketek's terms and conditions to sell tickets for any more than their face value, and Ticketek reserves the right to cancel, without notice, any tickets they believe have been scalped.

So people buying the tickets from auction sites are running a big risk of turning up to the concert with a cancelled ticket.

Ticketek says it actively monitors auction sites, gathering details and matching them up with tickets for cancellation, which are then put back on sale at the normal rate.

The poor fan who bought them at inflated prices probably won't even realise until they arrive at the electronic gate, flash the barcode, and elicit intimidating stares from the security personnel.

Also, when you buy from a scalper you are simply providing the demand for their supply, and encouraging the practice.

How can you fight scalping auctions?

If you come across an auction that is obviously scalping, and selling the tickets for more than they paid, you can report the listing to the administrator. The prices are shown to the right (click to enlarge).

Just say "item is illegal to sell on TradeMe", and inform them that the sale is breaching the terms and conditions set by Ticketek, especially the following passage:

"Selling tickets for above their face value via auction sites or any other unauthorised means is in breach of Ticketek's Terms and Conditions of Sale."

If enough people do this, these scalpers will hopefully be left with some expensive pieces of paper.

So far I have reported three blatant scalpers and all three auctions have been removed. There are dozens more on there.

Some of them have cleverly covered the seat number and ticket ID - so that Ticketek has a hard time cancelling the tickets.

And if you are buying the tickets... I genuinely hope they aren't cancelled on you, but don't say you weren't warned.

Is vigilante justice like this fair?

There will be some who say that if people don't mind paying extortionate prices, we should let them. They may also think reporting scalping auctions is a petty thing to do, and takes the decision of taking the risk out of the buyers' hands.

It really comes down to opinion. My opinion is that scalping should be impeded at every turn.

Supply and demand is what is keeping these sorts of auctions alive, so if you can crack the egg, the chicken won't grow - if you take my meaning.

It's a hard call, but my opinion is that scalping itself is less ethical than complaining about a scalping auction.

Those scalping tickets will invariably have a host of ways to legitimise the process, from the greed of the recording industry to arguments about a free market.

But in my eyes, it's simple. People could have bought the tickets for the regular price, but the scalpers are making them pay more. It's not fair.

What is TradeMe's stance?

I asked TradeMe for their take on scalping. Their representative, Paul Ford, gave me a few answers.

"People are allowed to on-sell legitimate tickets, so Trade Me's position is that we have always allowed them to be sold," he said.

"We have polled the Trade Me community about whether we should allow the on-sale of tickets. The result was an overwhelming yes (81%), so we decided to continue to allow their sale.

"We realise that there has been high demand for the U2 tickets which are limited in supply. The inevitable secondary market will give those willing to pay the market price an opportunity to get a ticket."

Wait... market price? Surely TradeMe knows that anything above face value breaches Ticketek's terms... this is demonstrated by the fact that I have had three auctions removed by citing those terms.

"Tickets are a tiny money-spinner for Trade Me, revenue is not a factor in our decision to allow tickets to be sold," said Paul.

"All sellers of U2 tickets being sold at the moment are being asked to prove to us that they have the tickets. If the seller does not have the ticket or is unable to provide us proof of that ticket within 24 hours the listing will be removed."

I was also interested in whether TradeMe would automatically remove auctions which go above the face value of the ticket. Their answer seemed to be no, and that manual complaints were the only way.

"Feel free to continue to report the tickets to us so that we can take the appropriate action," said Paul.

What if you really did make a mistake?

First, be careful how many you buy, or with your arrangements, because mistakes can be costly. You can get the face value back, but not the time spent getting the tickets, or the booking and/or delivery fee.

If you really did get tickets mistakenly, just sell them for face value. Simple. You'll lose a little bit, but you are doing the right thing, there's no risk they'll be cancelled and you're giving a true fan a great night out.

Or why not try trading them for other goods or services, instead of selling them? Why not give them away as gifts, for early Christmas or late birthdays?

What are your thoughts on scalping? Should it be illegal/legal? Are the controls tight enough?

*Remember, keep it clean and sensible, or we can't publish your comment.*

» Join Connector on Facebook, Twitter @lukeappleby or Email Luke at connectornz@gmail.com