Digital Secondary Markets Cover
REPORT

WHEN IT COMES TO DIGITAL MARKETS, TRUST CAN’T BE SECONDARY

How the Rise of Digital Secondary Markets for Tickets and Other Goods and Services Threatens to Box Out Consumers, Hike Prices, and Undermine Trust in Broader Markets

Digital secondary markets represent an ever-growing percentage of event ticket sales, short-term rental bookings, and domain name transactions. As such, these online platforms are now critical markets for goods and services. Although they can provide consumers with helpful options that were unavailable just decades ago, they also pose the risk of hindering consumer access and distorting prices due to manipulative actions by brokers and sometimes even the platforms themselves, according to a Digital
Citizens Alliance investigation.

Piracy causes serious consumer harms

$B+

International piracy is a $2.3 billion illegal business

80%

80 percent of pirate sites served up malware-ridden ads to their users

3X

Visitors to piracy sites are 3X more likely to have issue with malware

72%

72 percent of those who used a credit card for a piracy service reported credit card fraud

Combatting the Overseas Digital Piracy Threat

Over 50 countries, including Canada, the United Kingdom, and Australia, have adopted forms of site-blocking.

How site-blocking works: A judge would decide whether blocking an overseas website operated by criminals would be justified. If the judge agrees, then the court would order ISPs to block the site.

Site Blocking Countries