Anthony Yates
If you’ve ever tried to buy popular event tickets online, you know you can either suffer through a painful virtual queue or buy them later from unofficial sources at an extortionate fee. The FTC is taking aim at those resellers and is even suing a ticket broker.
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According to a news release by the Federal Trade Commission (FTC), the agency is suing a ticket broker operation. They allege the broker used “unlawful tactics” to exceed purchase limits for ticketed events. Those events include Taylor Swift’s Eras Tour.
The FTC claims the ticket brokers then resold the tickets online with a markup, generating millions in revenue. The release reveals that the scheme is operated by a Maryland-based group called Key Investment Group. They have reportedly gone by several names, such as Epic Seats and TotalTickets.com.
The agency alleges that Key Investment Group bypassed Ticketmaster’s security measures to acquire event tickets en masse.
The FTC Reveals How The Ticket Broker Dodged Online Protections
The complaint alleges that the ticket broker used thousands of Ticketmaster accounts to scoop up tickets. They allegedly used thousands of virtual and traditional credit card numbers and masked their identities with spoofed IP addresses.
The FTC claims the defendants managed to buy up 379,776 tickets in just over a year from Ticketmaster. They cost $57 million, but the broker reportedly resold those tickets for $64 million “in many cases, charging a significant markup to consumers.”
The news release points to a specific example of tickets purchased for a single Taylor Swift concert. It alleges the defendants used 49 accounts to buy 273 tickets, dramatically bypassing the 6-ticket limit. They then resold them at “a significant markup.”
While many would agree it’s a slimy tactic to prey on fans, the FTC explains that it’s illegal. The agency alleges that the defendants “violated the FTC Act and the Better Online Ticket Sales Act.” Those acts make it illegal for anyone to circumvent the security measures used by ticket issuers to limit sales.
The post concludes, “The Commission files a complaint when it has ‘reason to believe’ that the named defendants are violating or are about to violate the law. The case will ultimately be decided in court.
