FTC Sues Ticket Reseller Over Eras Tour Price Gouging Allegations

Federal Trade Commission Files Lawsuit Against Ticket Resale Company

The Federal Trade Commission (FTC) has taken legal action against a ticket resale company based in Maryland, accusing it of breaking federal law to acquire hundreds of thousands of tickets for major concerts, including Taylor Swift's Eras Tour. The company is alleged to have scalped these tickets for millions of dollars in profit.

In the lawsuit filed in federal court and reviewed by The Hollywood Reporter, the FTC claims that Key Investment Group violated the Better Online Ticket Sales Act, also known as the BOTS Act. According to the allegations, the company bypassed Ticketmaster’s ticket purchase limits between November 2022 and December 2023, acquiring nearly 380,000 concert tickets. The company spent approximately $57 million on these tickets and resold them for around $64 million.

The FTC stated that Key Investment Group used various methods to circumvent security measures. These included "thousands of fictitious Ticketmaster accounts, thousands of virtual and traditional credit card numbers, proxy or spoofed IP addresses, and SIM banks." This allowed the company to avoid detection while purchasing large quantities of tickets.

Between March and August 2023, Key Investment Group reportedly purchased about 2,280 tickets for Taylor Swift's 38 Eras Tour show dates. This exceeded the six-ticket-per-customer limit set by the event organizers. The company bought these tickets for around $744,970.29 and resold them for $1,961,980.65. At one of Swift’s shows at Allegiant Stadium in Las Vegas, the company used 49 different accounts to secure 273 tickets, which were resold for $119,227.21 in net profit.

For a 2023 Bruce Springsteen concert at MetLife Stadium, Key Investment Group used 277 different accounts to acquire over 1,500 tickets. These were marked up for a combined revenue of $21,000.

This lawsuit comes months after President Donald Trump signed an executive order in March calling for increased enforcement of the BOTS Act. Until now, the BOTS Act had only been enforced once since its passage in 2016.

FTC Chairman Andrew N. Ferguson emphasized the importance of this case, stating, “President Trump made it clear in his March Executive Order that unscrupulous middlemen who harm fans and jack up prices through anticompetitive methods will hear from us.” He added that the action serves as a warning to brokers who unlawfully circumvent ticket sellers’ purchase limits, ensuring fair pricing for consumers.

A representative for Key Investment Group did not immediately respond to requests for comment. However, the company previously filed its own lawsuit against the FTC in July, arguing that it had fully complied with the BOTS Act.

In a statement, Key Investment Group claimed, “The Better Online Ticket Sales (BOTS) Act is intended to address bad actors using ticket bots, or specialized computer scripts, to find ways to circumvent the ticket buying security systems and secure large volumes of event tickets before consumers have a chance to buy.” The company maintained that it does not engage in such practices.

Key Investment Group further argued that the FTC’s interpretation of the BOTS Act was flawed, claiming that the agency believes ticket limits apply on a company level rather than an individual basis. This interpretation, according to the company, would make many consumers and most companies—including nearly every Fortune 500 company—violate the law.

The FTC’s lawsuit is part of a broader trend of government intervention in the live music industry. Last month, the Department of Justice (DOJ) indicted Oak View Group CEO Tim Leiweke on bid-rigging allegations related to the development of the Moody Center in Austin, Texas. Although Leiweke stepped down from the company, he denied the DOJ’s allegations.

Earlier this year, as part of Trump’s executive order, the DOJ and FTC launched a public inquiry into the live music business. This ongoing scrutiny highlights growing concerns over unfair practices within the industry.