The trading card grading industry is in turmoil, and collectors weighing their next purchase need to pay attention.
On December 19, 2025, Congressman Pat Ryan formally demanded the Federal Trade Commission investigate Collectors Holdings—PSA’s parent company—for antitrust violations. The request came just days after Collectors announced its acquisition of Beckett Grading Services, a move that would give the company control of over 80% of the grading market.
For anyone buying graded cards right now, the stakes have never been higher.
The Buyback Scandal That Started It All
The congressional scrutiny didn’t emerge in a vacuum. It followed explosive allegations that have dealers across the hobby questioning everything they thought they knew about PSA’s integrity.
The controversy centers on a collector who submitted 30 identical cards and received PSA 9 grades on every single one. PSA then allegedly offered to repurchase some of those cards through its Partner Network at PSA 9 values. Here’s where it gets damning: those same certification numbers later appeared in PSA inventory—graded as PSA 10s.
When the story went public, PSA regraded all 30 cards. The results were stunning: 11 of the original PSA 9s became PSA 10s. That’s a grading error rate exceeding 36 percent.
PSA called it an “isolated grading error.” But CEO Nat Turner acknowledged a “systematic failure” had occurred and, in his explanation, admitted that PSA “authenticates counterfeit cards sometimes.”
The fallout was immediate. Multiple retailers halted PSA submissions, including Score More Points and Three Point. Some card shows stopped accepting PSA slabs entirely.
What the Market Numbers Tell Us
Despite the chaos, PSA’s dominance remains overwhelming. Through November 2025, collectors spent $1.186 billion on graded trading cards on eBay. Of that total, $968 million—82 percent—went to PSA-graded cards. PSA accounts for 91 of the 100 most expensive card sales of all time.
| Grading Company | Market Share | Nov. 2025 eBay Volume |
|---|---|---|
| PSA | 72% | $968 million |
| CGC | ~17% | ~$200 million |
| SGC | Declining | Minimal |
| BGS | TBD (acquired) | TBD |
But those numbers obscure troubling trends. Industry-wide grading submissions dropped 17 percent in November 2025, suggesting collectors are adopting a wait-and-see approach. And SGC, which Collectors acquired in February 2024, has collapsed from 194,000 cards per month at its peak to just 35,000 in November—a 61 percent decline.
The $800,000 Downgrade That Exposed Grade Guarantee Limits
A separate incident revealed just how exposed high-end collectors really are. On December 19, a 1961-62 Fleer Wilt Chamberlain rookie card was downgraded from PSA Gem Mint 10 to Mint 9. That single grade drop vaporized approximately $800,000 in value.
The card had sold for $976,000 at Heritage Auctions in August after receiving a PSA 10 in a new holder. The buyer, uneasy with its quality, submitted it for grade guarantee review. PSA agreed it should have been a 9.
Here’s the catch: PSA’s compensation caps at $250,000 per case and $500,000 per lifetime per customer. The last PSA 9 of this Chamberlain card sold for just $132,000. That’s a gap no guarantee can bridge.
What This Means for Buyers Right Now
If you’re in the market for graded cards, here’s what the current landscape demands:
First, scrutinize high-value purchases carefully. The 36 percent error rate revealed in the regrading scandal suggests PSA 9s and 10s aren’t as definitive as collectors have long assumed. Consider having significant purchases reviewed by independent experts before committing.
Second, diversify your grading exposure. CGC remains the only major independent grader, though it has raised fees by over 20 percent in 2025. That’s the cost of limited competition.
Third, factor in regulatory uncertainty. If the FTC acts on Congressman Ryan’s request, the grading landscape could shift dramatically. Cards graded by companies that might be forced to spin off or restructure carry unknown long-term risks.
Fourth, understand that raw cards may carry less relative risk than before. When grading consistency is in question, the premium for slabbed cards becomes harder to justify.
Looking Ahead
The FTC hasn’t publicly responded to Ryan’s investigation request. Legal experts are divided on outcomes, but former FTC analyst Chris Harris suggested the commission might force Collectors to spin off BGS, SGC, or both.
Collectors Holdings insists Beckett will “remain an independent brand” and “operate independently”—the same promises made about SGC before its dramatic decline.
For now, the hobby’s trust infrastructure is fractured. The 36 percent grading error rate, the $800,000 downgrade with inadequate compensation, and monopoly concerns all point to a market where buyers must do more homework than ever before.
The cards themselves haven’t changed. But the system that certifies their value is facing the most significant challenge in its history.
