Scalpers say the press treats them unfairly; they are a 'valuable industry'

Cal Jeffrey

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WTF?! Okay, we are well past the launch frenzy. Black Friday and Cyber Monday have come and gone. And the last-minute Christmas shopping craze is well behind us. So how come I still do not have a PlayStation 5? The answer seems clear. I refuse to pay a scalper double.

The recent scalping furor has generated quite a bit of press, most of it casting these opportunists as villains. Apparently, these people, who have no qualms about cutting to the front of a digital queue and bypassing quantity limitations on purchases, don't like the bad press they are receiving and are speaking out about it.

A man going only by Jordan spoke with Forbes, saying that he thinks the press coverage has been unfair.

"There seems to be A LOT of bad press on this incredibly valuable industry and I do not feel that it is justified, all we are acting as is a middleman for limited quantity items [sic]," he said.

Jordan co-founded a private group called The Lab, which charges people for advice on how to scalp products. This type of business is known as a "cook group." Jordan admitted that he picked up 25 PS5s last month and sold them for about £700 ($967) each. He justifies this practice by comparing it to the retail market.

"Essentially, every business resells their products," the scalper said. "Tesco, for example, buys milk from farmers for 26p or so per litre and sells it on for upwards of 70p per litre. No one ever seems to complain to the extent as they are currently doing towards ourselves."

It is probably not necessary to point out the flaw in his logic. Buying from the source at wholesale then selling it to the public at retail is far removed from unfairly snatching all of a store's stock at retail and selling it for double on eBay. The fallacy was not lost on Forbes either, which put the analogy to its readers for comment.

"He is deluded. He doesn't get he's another layer of profiteering in his own Tesco analogy. He's not Robin Hood," one of them said.

These "middlemen" are not even shy about admitting to using software to cheat purchasing systems. The Lab's other co-found, who goes by Regan, shared screenshots (above) of the bot they use, called Velox. Regan said in some cases the program could complete a purchase in under three seconds. The software can also bypass 3D Secure, a credit card authentication process required in the UK.

Hardware and console scalpers are nothing new, but it has gone crazy in the last several months with a massive proliferation in bots used to bypass online queues and purchase-quantity checks. It's a problem only exacerbated by brick-and-mortar stores banning in-store sales in an attempt at crowd control during the pandemic.

Furthermore, with Sony, Microsoft, Nvidia, and other manufacturers struggling to get enough components to meet demand, it's not going to go away anytime soon. As such, it's not surprising that there have been talks of taking legal or regulatory measures to tackle the problem.

Image credit: Consoles by Jack Skeens, Velox by Janhoi Mcgregor

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There is demand for scalpers' services, which is why they exist. While it would be great if everyone would eliminate this demand as scavengerspc said, there are a lot of people for whom $1K or more is a perfectly fine price to pay for an Xbox or PS4, or $1.5K for a 3080 or 6800XT.

Good luck getting rid of people with lots of money. If the cost of living in your city is 3x somewhere else, and you accordingly get paid that 3x, suddenly that Xbox is now functionally 1/3 the price.
 
I don't necessarily have an issue with scalping per se. After all I have scalped (resold for more than I paid) concert tickets that I did not need before. The thing is, I got in line and waited for those tickets. I didn't cut in front of everybody and buy every ticket the booth had. It's different for ticket sales kind of, but I think you get my point.

Do I have a problem with a guy going out and buying two hard-to-get items in order to sell one so he can essentially keep one for free? No. Do I have a problem with a guy who goes out, butts in front of me, and buys every last item in the store, and then offers me the privilege buying one from him at twice the price as if he is doing me a favor or providing me a "valuable" service? Yes.
 
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The goods are limited and prices are further inflated because of scalpers. It should be banned and treated as a crime. Luckily, places like the UK are already stepping up against this dirty practice.

Your VAT in UK is criminal, why didn't you stop that some 20 years ago?
Your government that thought "every gender can use whatever bathroom they want" will solve LGBTQ issues with toilets, now you have one toilet less since there is no need for more than one.
You think the same people will stop scalping?!
 
I don't necessarily have an issue with scalping per se. After all I have scalped (resold for more than I paid) concert tickets that I did not need before. The thing is, I got in line and waited for those tickets. I didn't cut in front of everybody and buy every ticket the booth had. It's different for ticket sales kind of, but I think you get my point.

Do I have a problems with a guy going out and buying two hard to get items in order to sell one so he can essentially keep one for free? No. Do I have a problem with a guy who goes out, butts in front of me, and buys every last item in the store, forcing me to buy one from him at twice the price? Yes.
A lot of the emotional responses in this thread seem to ignore this. Where does the line get drawn in the law? Is it your example where you waited in line and resold your sole ticket? What about collectors who buy a product or products to keep it sealed and wait to resell it until it's appreciated in value due to age and scarcity? Are wine cellars therefore a form of scalping?

Unfortunately the virus lockdown has put people into dire straits and awful situations so they're responding to stressors like scalpers emotionally and not thinking things through, and ***** politicians are only too happy to strip away more of our freedoms to "protect" us in the mean time.
 
We now live in these strange times where everything is somebody else fault, but never yours.

Nobody forced you to buy from a scalper.

Well, except the *****s that needs to give jensen their moneis, those deserve each others.
 
Lots of misconceptions already so 2 points:

1) You can't really blame people who buy from scalpers: there's an entire industry like, oh I don't know, THIS VERY WEBSITE that's dedicated to create publicity, marketing and overall hype for tech products. Constant advertisement and dominating every platform, every space and even directly targeting people by spying on their search history and private conversations works. The failure is from companies that dedicate so much to this marketing machine and little to no investment at all at improving supply and taking hardware measures to stop crypto mining.

2) You cannot simply say "All scalpers are scum" because all they are doing is taking the core principle any "respectable business" does like real estate, investment funds, etc. And applying that in a smaller scale. Do you know why you almost always need to pay a mortgage or rent? Why don't you complain about "House" and "Terrain" scalpers then? It's because after years of this happening it's a socially acceptable form of exploiting virtually all citizens. If you accept real estate especulation is necessary and desirable part of a capitalist society then so it's paying 3000 USD for a 400 USD 3060 ti because the principles are exactly the same: free market.

So if scalping really, really bothers you it's time you start asking bigger questions than just being annoyed at this one hobby while you're a few months of unemployment away from being homeless and destitute.
 
I still say that Troy should be allowed to deal with ALL scalpers .... "chot 'em, chot 'em!"
 
A lot of the emotional responses in this thread seem to ignore this. Where does the line get drawn in the law? Is it your example where you waited in line and resold your sole ticket? What about collectors who buy a product or products to keep it sealed and wait to resell it until it's appreciated in value due to age and scarcity? Are wine cellars therefore a form of scalping?
What is enabling this is with a limited amount of supply and an outsized demand. Scalping is illegal if the price is manipulated by doing it, as opposed to just reselling something at a higher price to take advantage of what people are offering to buy for something and what retailers are willing to sell something for. If scalping affect the availability of supply in an entire market to force people to buy from them, then yes, it is illegal.

What you are describing are different examples of relling items with a limited supply, but these are not entire markets and there is no outsized demand (given that the console market is an oligopoly and they transition with huge shifts in product offerings). Another example of illegal reselling is when you buy and sell something for an outsized profit because of a crisis (ie. toilet paper at the beginning of the pandemic).

Here's a better translation of scalping done here that's illegal: buying up all the homes being sold in a town and reselling them for way more than they're worth because you have a monopoly on any new offerings. Let me know if this is a false equivalency, but I don't think it is.
 
Your VAT in UK is criminal, why didn't you stop that some 20 years ago?
Your government that thought "every gender can use whatever bathroom they want" will solve LGBTQ issues with toilets, now you have one toilet less since there is no need for more than one.
You think the same people will stop scalping?!

VAT is a RIPOFF designed to steal wealth and redistribute it. European governments are EXPERTS at sucking away peoples and companies income. When you elect crap, you get crap. It blows me away that in the USA certain people are clamoring for more government, more taxes, more regulation and LESS freedom. Some absolutely twisted stuff propagated by the MSM, Hollywood and the rich and those affected don't even realize they've been lied to and manipulated.
 
Scalpers should be prosecuted. Hopefully they are accounting for tax or the government will seek them out as well. Then prosecuted for not having a licensed business.
 
There is demand for scalpers' services, which is why they exist. While it would be great if everyone would eliminate this demand as scavengerspc said, there are a lot of people for whom $1K or more is a perfectly fine price to pay for an Xbox or PS4, or $1.5K for a 3080 or 6800XT.

Good luck getting rid of people with lots of money. If the cost of living in your city is 3x somewhere else, and you accordingly get paid that 3x, suddenly that Xbox is now functionally 1/3 the price.
Found the scalper.
 
We now live in these strange times where everything is somebody else fault, but never yours.

Nobody forced you to buy from a scalper.
I've never bought from a scalper, but I'm still going to blame them for their at best quasi-legal virtual elbowing-me-out-of-the-way using bots and fake addresses to evade retailer policies and restrictions. They aren't being prosecuted but they probably are breaking at minimum the spirit if not also the letter of the wire fraud and computer fraud and abuse act statutes.
 
If there are a limited number of an in demand item, people prepared to spend more money will get them first, welcome to capitalism. We don’t all queue up as equals and wait our turn, that is not how our society allocates things! I’m waiting to buy a gpu and maybe a cpu, once there is one at the price I’m prepared to pay, I’ll buy it, I don’t care who they bought it from.

There is no evidence individual scalpers are capable of operating at a market manipulating scale, it would take an insane amount of capital to buy such a huge amount of stock. The fact many people are doing it individually is not a market manipulation.

Automating the purchasing process or using a computer to complete a check out process isn’t a crime! As long as they don’t hack into a system, dodge paying taxes on profits or steal the items, I see no issue whatsoever.

We can either pay more or wait until the people prepared to pay more get theirs, maybe its a good incentive to find a way to earn more money.
 
"they are a 'valuable industry'"

This is what the mafia says about their "protection" services. And they at least they offer gambling, prostitutions and drugs.
All three perfectly legit now of course.Depending on location.
 
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