FAQ: FTC Lawsuit Against Maryland Ticket Broker for Alleged BOTS Act Violations

What is this FTC lawsuit about?

The FTC has sued Key Investment Group, a Maryland ticket reseller, for allegedly using thousands of fake accounts, proxy servers, and virtual credit cards to evade Ticketmaster’s purchase limits and acquire nearly 380,000 tickets for resale at higher prices.

Which artists’ tickets were specifically mentioned in the alleged scheme?

The complaint specifically mentions tickets for Taylor Swift’s Eras Tour and Bruce Springsteen’s 2023 stadium shows, with over 2,000 Swift tickets acquired across 38 shows and more than 1,500 Springsteen tickets at one MetLife Stadium concert.

What law is the FTC alleging was violated?

The FTC contends the company violated the Better Online Ticket Sales Act (BOTS Act), a 2016 law that makes it illegal to use automated tools to bypass ticket-purchase limits on online platforms.

How much money was involved in the alleged scheme?

Key Investment Group spent approximately $57 million acquiring tickets between late 2022 and 2023 and resold them for roughly $64 million, with Swift tickets alone costing $745,000 to acquire and reselling for nearly $2 million.

What methods did the company allegedly use to evade purchase limits?

According to the FTC, the company used thousands of fake accounts, proxy servers, and virtual credit cards to circumvent Ticketmaster’s purchase restrictions and acquire tickets in bulk.

How has Key Investment Group responded to the allegations?

The company has previously disputed the allegations, calling the FTC’s interpretation of the law ‘flawed’ and defending its practices as consistent with industry norms, though it didn’t respond to requests for comment on the day the lawsuit was filed.

Why is this case significant for ticket buyers and the industry?

This case is among the first major tests of the BOTS Act and underscores the FTC’s commitment to policing ticket markets against practices that harm fans through anticompetitive methods and price inflation.

What is the Better Online Ticket Sales Act (BOTS Act)?

Congress passed the BOTS Act in 2016 to address consumer complaints about being unable to buy tickets to popular events, making it illegal to use automated tools to bypass ticket-purchase limits, though enforcement has been sparse until recently.

How does this case relate to broader industry trends?

The lawsuit comes as the Biden administration has intensified scrutiny of the live-events industry, with Taylor Swift’s Eras Tour becoming emblematic of fan frustrations with limited ticket supply and soaring resale prices.