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FTC sues Maryland ticket reseller for violating purchase cap
The Federal Trade Commission is taking aim at a Maryland ticket broker accused of cheating the system and cashing in big.
BETHESDA, Md. - The Federal Trade Commission is taking aim at a Maryland ticket broker accused of cheating the system and cashing in big.
What we know:
According to the FTC lawsuit, Key Investment Group, based in Maryland, allegedly scooped up thousands of tickets for popular concerts and events—including Taylor Swift’s Eras Tour—and resold them for millions of dollars.
Regulators say the company’s practices violate the BOTS Act, which bans the use of software to evade ticket limits and restrictions.
"I think part of the BOTS Act is designed to basically prevent entities, whether they're companies or people, from using multiple accounts to buy tickets. Creating fake names, using multiple credit cards, locations, fake office names," said Seth Schachner, Managing Director of Strat Americas.
Dig deeper:
Passed in 2016, the BOTS Act makes it illegal to use technology to get around ticketing limits. The FTC alleges that Key Investment Group used fake accounts and emails to evade restrictions, buying tickets in bulk and reselling them at steep markups.
One example highlighted in the lawsuit: in 2023, the company allegedly bought 273 tickets for a single Taylor Swift concert, despite the six-ticket-per-person limit, and resold them at inflated prices.
The FTC is asking for a court order to shut down these practices and impose civil penalties for each violation.
Still, some experts say government action doesn’t go far enough.
"It's not completely far enough, and I think… I think the idea of putting a cap on ticket prices is one that's out there," Schachner said. "Live Nation CEO Michael Rapino has been advocating for it as a law, actually. Say, put a 20% cap on prices, and I think Live Nation and Ticketmaster would probably give artists the ability to do that."
What they're saying:
Key Investment Group is pushing back strongly. In a press release, the company defended its practices, arguing the FTC is misusing the law:
"The FTC has twisted the intent of the BOTS Act, a law designed to target malicious software, into a weapon against legitimate businesses and consumers... KIG is prepared to vigorously defend itself against this clear example of regulatory overreach," the company stated.
No court date has been set. In fact, Key Investment Group has filed its own lawsuit against the FTC, calling the claims "erroneous" and arguing the agency has a flawed interpretation of the law—insisting it uses humans, not bots, to purchase tickets.