Democrats in the U.S. House of Representatives are investigating whether StubHub’s CEO has engaged in “market manipulation and self-dealing” by operating his own ticket reselling fund on the platform.
In a Friday (July 24) letter to StubHub CEO Eric Baker, first obtained and exclusively reported by Billboard, House Oversight Committee ranking member Rep. Robert Garcia (D-Calif.) demanded information and records about the ticket broker fund Andro Capital. Baker is a part-owner and managing partner of Andro, which has sold secondary-market tickets on StubHub since 2008 and generated more than $5 million in proceeds on the platform since 2022.
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“Reports suggest that you have financed and profited from the very scalpers that are locking fans out of affordable ticket sales in the first place, and that you are further ripping off consumers and smaller sellers by giving yourself preferential treatment on the StubHub platform,” Garcia wrote to Baker. “Oversight Democrats are investigating whether you have manipulated markets for your own benefit, while Americans are left paying higher costs in an unfair system.”
StubHub disclosed Baker’s relationship with Andro in regulatory filings ahead of its $758 million initial public offering last year. But it became news earlier this month following a report by Canada’s CBC News, leading consumers to sue StubHub for falsely representing itself to the public as a neutral, fan-to-fan marketplace.
Now, Garcia says Baker’s “alleged collusion” raises “serious concerns about whether you have engaged in market manipulation and self-dealing at the expense of consumers.” The congressman wants Baker to send the House Oversight Democrats all Andro-related correspondence between himself and StubHub, as well as written responses detailing Andro’s finances and whether the fund gets any access to special features on StubHub.
Garcia’s letter requests that Baker respond with these records and information by Aug. 6. As the minority party in Congress, however, Democrats do not have the power to enforce this demand. That could change next year if Democrats flip the House in November’s midterm elections.
In a statement, Garcia called Baker’s ownership of Andro “deeply troubling.” He said, “We are demanding answers because the American people deserve transparency.”
A rep for StubHub did not immediately return a request for comment on the letter. In a previous statement to CBC, a company spokesperson said Baker’s stake in Andro Capital “has been fully disclosed in StubHub’s public SEC filings.”
The federal government has recently been cracking down on the secondary resale market, where professional brokers often buy up tickets for concerts and other live events and then list them at sky-high prices. President Donald Trump signed an executive order last year directing his administration to take action against deceptive resale practices, leading the Federal Trade Commission (FTC) to sue Ticketmaster over the presence of large-scale ticket brokers on its secondary marketplace.
At the local level, Maine, Vermont and the District of Columbia have all recently passed legislation capping ticket resale prices at 10% above the original cost. More than 20 other states have introduced similar bills this year that would impose restrictions on the secondary ticketing market.
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