Honorable Pat Ryan Urges FTC to Investigate Collectors Holdings
- SLAB-Z
- Dec 22, 2025
- 2 min read
Updated: Jan 28
The Honorable Pat Ryan, a Member of Congress, has formally requested the Federal Trade Commission (FTC) to investigate Collectors Holdings. This conglomerate is accused of monopolizing the $10+ billion trading card grading industry through serial acquisitions and vertical integration. The letter highlights urgent concerns about market manipulation, suppressed competition, and consumer harm.
Core Issues Driving the FTC Request
1. Market Dominance via Serial Acquisitions
Collectors Holdings now controls 83% of the grading market. This dominance stems from acquiring PSA (72% share), SGC (8%), and the pending absorption of Beckett (3%). After the acquisition, SGC’s grading volume plummeted 61%, indicating a pattern of eliminating rivals. The Beckett deal, acquired via private equity firm Collēctīvus Holdings, raises red flags about regulatory evasion.
2. Vertical Integration Risks
Collectors Holdings controls grading (PSA, SGC, Beckett), pricing data (via CardLadder), and marketplace activity. This creates conflicts of interest. Allegations include PSA re-grading its own cards, such as converting PSA 9s to PSA 10s to inflate resale profits.
3. Consumer and Small Business Harm
Currently, no alternatives exist for authentication. This leaves small businesses and collectors vulnerable to price-fixing and service degradation. Grading delays and fee hikes have surged post-consolidation, impacting the entire ecosystem.
4. Labor Market Suppression
Collectors’ control over grading platforms allows it to dictate wages and terms. This stifles competition for specialized labor, making it difficult for new entrants to thrive.
Legal Violations & FTC Investigation Priorities
The letter argues that Collectors’ conduct violates Section 7 of the Clayton Act (anti-competitive mergers) and Section 5 of the FTC Act (unfair methods of competition). Key investigation areas include:
Monopolization Strategy: Investigating whether acquisitions aimed to eliminate competition, including internal documents showing intent.
Regulatory Evasion: Examining Collēctīvus’ role as a potential pass-through entity to bypass merger scrutiny.
Market Manipulation: Assessing vertical integration enabling self-dealing, such as using CardLadder data to manipulate asset values.
Barriers to Entry: Evaluating how control over the professional graders’ labor pool blocks new competitors.
Urgency of FTC Action
The Beckett acquisition, if finalized, would leave CGC Cards (17% market share) as the sole independent competitor. The SGC precedent shows that acquired firms are dismantled within months, risking irreversible market consolidation.
Conclusion
Rep. Ryan’s letter underscores the need for immediate FTC intervention. This is crucial to prevent permanent damage to competition, consumer trust, and small businesses in the collectibles ecosystem. The Commission, in a letter addressed to FTC chairman Andrew N. Ferguson, is urged to scrutinize Collectors’ roll-up strategy, unwind harmful mergers, and restore market integrity.
Read the full letter [HERE].
Explore the Impact of Market Consolidation
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