FTC Files Complaint Against Ticket Resellers
The Federal Trade Commission (FTC) has filed a complaint, alleging that certain investment groups involved in ticket reselling bypassed purchasing limits to acquire tickets for live events. This includes high-profile events like Taylor Swift’s ERAS tour, which they then resold at inflated prices, as stated in a filing with a federal court in Maryland on Monday.
According to the FTC, a Baltimore-based company, which runs sites such as TotalTickets.com, utilized thousands of Ticketmaster accounts, some of which were fake or obtained illegally.
Ticketmaster came under heavy fire after a surge of billions of requests from fans, bots, and resellers crashed its website during the ticket sales for Swift’s much-anticipated ERAS tour in 2022. Consequently, the company ended up canceling sales intended for the general public.
Specifically, during a concert in Las Vegas in March 2023, the Key Investment Group used 49 accounts to buy 273 tickets, ignoring a six-ticket limit, and reportedly profited over $119,000 from reselling them. Altogether, this group is said to have resold more than $1.2 million worth of Swift concert tickets purchased in 2023, the FTC noted.
FTC Chair Andrew Ferguson commented that this lawsuit is a clear message to ticket vendors, indicating that the agency will pursue those who manipulate ticket selling regulations.
This legal action is part of a broader initiative, announced by the agency earlier in the year, aimed at combating exploitative ticket resale practices that substantially increase costs for fans.
A representative for a prominent investment group did not respond to inquiries regarding the situation on Monday.
The Key Investment Group previously initiated a lawsuit against the FTC in July in an effort to halt the investigation, asserting that their ticket purchases did not involve bots or violate the Better Online Ticket Sales (BOTS) Act.
The FTC’s claims include accusations against three executives for infringing upon investment group and bot laws, alongside violations of regulations against unfair or deceptive business practices.
Meanwhile, Ticketmaster and its parent organization, Live Nation Entertainment, are facing their own separate lawsuit from a U.S. antitrust entity, suggesting monopolization within the live concert sector.
