Ticket scalping – whether it be in person or via an online tickets reselling site – has long been the bane of live concert fans.
The United States Federal Trade Commission has filed a suit against ticket broker Key Investment Group alleging illegal tactics that exceeded purchasing limits on events and then reselling them for much higher prices than were allowed.
According to the FTC, the Maryland based broker created thousands of false Ticketmaster accounts in order to purchase tickets to popular shows; including the massively popular Taylor Swift Eras Tour.
The FTC reported that the Key Investment Group under brand names like Epic Seats and Totally Tix acquired nearly 400,000 tickets via Ticketmaster from November 1, 2022 to December 30, 2023; spending $57 Million to buy the tickets and resold those tickets bringing in $64 million!
During her Eras tour in 2023, there was a six ticket limit when purchasing tickets; however, using 49 different fictious accounts, the KIG purchased a total of 273 tickets.
The continuous issue with purchasing tickets via Ticketmaster resulted in the U.S. Senate holding a hearing to question Ticketmaster over the issue.
In response to the suit, the Key Investment Group noted it will “vigorously” defend the allegations saying, “the case threatens to dismantle the secondary ticket market for live events, further consolidating power in the hands of the industry’s largest monopoly.”
KIG added that the FTC is improperly interpreting the 2016 Better Online Ticket Sales Act which they claim is intended to “target Malicious software” not legitimate resale businesses. The Group states that they use live humans, not bots, to conduct their business.
According to the FTC the Act also includes prohibiting the circumventing of security measures intended to enforce the posted limits.
In March, the White House signed an Executive Order that ordered the FTC ensuring “price transparency at all stages of the ticket purchasing process” and to take the appropriate action to “prevent unfair, deceptive, and anti-competitive conduct in the secondary ticketing market”.