FTC Files Lawsuit Against Maryland Ticket Broker for Alleged Illegal Ticket Resale Practices
A Maryland ticket broker is facing legal action for allegedly engaging in the illegal purchase and resale of hundreds of thousands of tickets, including tickets to Taylor Swift's popular Eras Tour. The Federal Trade Commission has filed a lawsuit against Key Investment Group, accusing the company of profiting millions of dollars by reselling tickets at inflated prices. The lawsuit claims that the company and its affiliates bypassed Ticketmaster's security measures to exceed ticket purchase limits.
Key Investment Group, also known as Epic Seats, TotalTickets.com LLC, and Totally Tix LLC, allegedly purchased nearly 380,000 tickets from Ticketmaster in a year, costing around $57 million, and resold them for approximately $64 million on secondary marketplaces. The company is accused of purchasing large quantities of tickets for various events, including Taylor Swift concerts and a Bruce Springsteen show, and making substantial profits from reselling them.
The FTC alleges that Key Investment Group used multiple accounts, including fictitious and third-party accounts, to circumvent ticket purchase limits and security measures. The company reportedly utilized various tactics, such as using thousands of credit card numbers, spoofing IP addresses, and employing SIM technology to collect verification codes, in violation of the FTC Act and the Better Online Ticket Sales Act.
The lawsuit highlights specific instances where the defendants allegedly purchased and resold tickets in excess of event limits, including buying 2,280 tickets for Taylor Swift concerts and over 1,500 tickets for a Bruce Springsteen concert. The FTC claims that the brokers' actions violated regulations aimed at preventing the circumvention of security measures on ticketing websites to maintain the integrity of ticket purchasing rules.
Key Investment Group has not yet responded to the allegations made by the FTC. The legal proceedings against the ticket broker shed light on the challenges faced by consumers in accessing tickets to popular events and the importance of enforcing regulations to protect fair access to tickets in the secondary market.