Inauguration Scam - BBB Warns of Online Scalpers

Posted on November 19, 2008
Filed Under General Business, General News |

A record number of Americans want to be a part of history and attend the inauguration of President-elect Barack Obama. Unfortunately, only 250,000 tickets are up for grabs. While many Web sites are claiming to sell tickets online, Better Business Bureau (BBB) of Eastern North Carolina (www.bbb.org) is advising the public that purchasing scalped tickets could leave individuals out in the cold with empty pockets on Inauguration Day.

So how does someone get a ticket to the most popular event of 2009? The Joint Congressional Committee on Inaugural Ceremonies is responsible for divvying out tickets to Congressional representatives. It is then up to the Congressmen and women to hand out the tickets—which are free—to constituents the day before the inauguration. According to the Times Wires Services, some members of Congress—who usually have several hundred tickets to pass out at their discretion—have received thousands of requests. North Carolina Congressman David Price’s office reports nearly 20,000 requests for tickets.

The fact that tickets haven’t even been distributed to the members of Congress yet hasn’t stopped online scalpers from trying to rake in cash from patriotic Americans. A CNN.com report found that some online ticket brokers were selling VIP seats for more than $20,000 each. While many online brokers offer a money-back guarantee if they can’t secure the tickets, the purchaser will likely already be en route to Washington, DC, before they receive the bad news that the broker couldn’t provide the promised tickets.

“While this is certainly a historic time in American history, citizens should remain cautious and be certain they are dealing with a reputable organization when searching for Inauguration tickets,” says Beverly Baskin, president and CEO of the BBB of Eastern North Carolina. “If not, they may be out money and left to watch the swearing in on television.”

Not only are scalpers trying to sell tickets they don’t have, Senator Dianne Feinstein (D-Calif.), the chair of the Joint Congressional Committee on Inaugural Ceremonies, plans to introduce legislation this month that would make scalping inaugural tickets a misdemeanor crime. The Committee is also alerting lawmakers that it is a violation of Congress’ code of ethics for members or staff to sell their tickets.

The BBB strongly advises against purchasing inauguration tickets online, but for those that are willing to assume the risk, the following steps should be taken to reduce the chances of being ripped off:

* When buying from a ticket reselling company online, buyers should always look for the BBBOnLine seal. The BBBOnLine logo is a sign that the company has a good reputation for satisfying customers and a secure Web site for processing payments.
* Paying with a credit card or through PayPal will provide protection and the opportunity for potential reimbursement if the company is fraudulent. Consumers should never pay with a cashier’s check or wire money to a seller, as they will have no way to get their money back if the tickets do not arrive.
* Consumers who have been ripped off buying tickets online can file a complaint with Better Business Bureau online at www.bbb.org. They can also file complaints with their state Attorney General’s office.

Because of the overwhelming requests for tickets, some members of Congress are planning to distribute tickets via a lottery system. Constituents can contact their local U.S. Representative or U.S. Senator to request tickets and get their name in the hopper.

About BBB of Eastern North Carolina:
The Better Business Bureau of Eastern North Carolina is a 501 (c)(6) not-for-profit corporation serving 33 counties in eastern North Carolina. The organization is funded primarily by BBB Accredited Business fees from more than 3,200 local business and professional firms. The BBB promotes integrity, consumer confidence and business ethics through business self-regulation in the local marketplace. Services provided by the BBB include, reports on companies and charitable organizations, general monitoring of advertising in the marketplace, dispute resolution services, and consumer/business education programs. All services are provided at no cost to the public, with the occasional exception of mediation and arbitration. Visit www.bbb.org.