FTC sues ticket reseller for evading purchase limits and exploiting fans

The U.S. Federal Trade Commission filed a lawsuit against Key Investment Group, a Maryland-based ticket reseller, alleging that the company used fraudulent tactics to evade purchase limits for popular events, including Taylor Swift’s Eras Tour. Between November 1, 2022, and December 30, 2023, the company purchased a staggering 379,776 tickets through fake accounts and other means, spending nearly $57 million. This practice resulted in the resale of those tickets for approximately $64 million, significantly raising costs for fans. The FTC's action aims to address exploitative practices in the ticket resale industry and uphold consumer protections. Key Investment Group reportedly used 49 different Ticketmaster accounts to acquire 273 tickets for a single Taylor Swift concert, thus bypassing the established limit of six tickets per buyer. This aggressive strategy caused public outcry among fans and raised serious concerns about ticket availability during high-demand events. For context, this lawsuit is part of larger regulatory efforts spearheaded by the agency since a problematic ticket sale in 2022 left many fans frustrated and Ticketmaster facing intense criticism from both the public and lawmakers. The backlash culminated in a U.S. Senate hearing focused on the company's business practices and the need for reform in ticket sales. In response to the lawsuit, Key Investment Group has stated that it will defend itself vigorously, claiming that its practices do not involve automated software to purchase tickets, thus arguing it did not violate the Better Online Ticket Sales Act. The company has criticized the FTC's interpretation of the law, asserting that the intent behind the BOTS Act was aimed at combating malicious software rather than regulating legitimate resale operations. As this legal battle unfolds, it could have significant ramifications for the secondary ticket market, particularly how ticket sales are managed in the future. The lawsuit aligns with a broader initiative by the FTC to regulate and limit exploitative ticket reselling practices, a move that was previously announced by President Donald Trump. As the situation develops, industry stakeholders and consumers alike will be watching closely to see how the FTC's actions may redefine norms and practices within secondary ticket sales.