> by offloading risk
Offload it straight onto the consumer. If I pay 2x the TM price from a scalper and the event is cancelled and TM offers "full refunds " I'm out the difference.
Offload it straight onto the consumer. If I pay 2x the TM price from a scalper and the event is cancelled and TM offers "full refunds " I'm out the difference.
No, you usually aren't. Both Stubhub[1] and Ticketmaster (through their TM+[2] resale platform) offer full refunds. If the reseller has already been paid, the amount is either deducted from the next payment to the reseller for sales, or taken out of the linked bank account or credit card. If the reseller hasn't been paid yet (they generally get paid on delivery, not on sale), they just don't get paid.
Even if for some reason the exchanges can't recoup the refund cost, they'll just eat it. Exchanges live and die by their reputations, which is also why they punish resellers heavily for delivery problems or invalid tickets.
The article in question is actually about scalpers (brokers) using Ticketmaster's resale platform (TM+) and Point of Sale for managing inventory (Tradedesk).