FTC Targets Ticket Reseller Allegedly Making Millions from Eras Tour; Faces Federal Lawsuit Over Scandalous Ticket Practices

FTC Sues Ticket Broker Over Alleged Bot Scheme Targeting Eras Tour, Springsteen Concerts

April 26, 2024

the Federal Trade Commission has launched a lawsuit against Key Investment Group, a Maryland-based ticket broker, alleging the company employed “illegal means” to amass and resell tickets for popular events, including Taylor Swift’s eras Tour and Bruce Springsteen concerts. The complaint details accusations of circumventing security measures to acquire tickets in bulk, subsequently reselling them at considerably inflated prices.

According to the FTC, Key Investment Group and its affiliated entities – Epic Seats, TotalTickets.com LLC, and Totally Tix LLC – violated the Better Online Ticket Sales (BOTS) Act. The agency claims the company utilized elegant methods to bypass Ticketmaster’s safeguards,purchasing far beyond permitted limits. Key figures named in the lawsuit include CEO Yair D. Rozmaryn, CFO Elan N. Rozmaryn, and Chief Strategic Officer Taylor Kurth.

Between November 1, 2022, and December 30, 2023, the defendants reportedly purchased at least 379,776 tickets valued at approximately $57 million. These tickets were then resold for roughly $64 million, netting the company a considerable profit.

The FTC alleges the operation involved the creation of “thousands of fictitious Ticketmaster accounts,” leveraging “thousands of virtual and customary credit card numbers, proxy or spoofed IP addresses, and SIM banks” to evade security protocols and purchase restrictions.

Specifically, the complaint cites the purchase of 2,280 tickets to all 38 dates of Taylor Swift’s 2023 Eras Tour, exceeding the six-ticket-per-person limit. These tickets were initially acquired for $744,970.29 and resold for $1,961,980.65, generating a profit of $1,217,010.36. The FTC further alleges the defendants acquired 1,530 tickets for Bruce Springsteen’s September 1, 2023, performance at metlife Stadium – despite a four-ticket limit – reaping over $20,000 in profit.

FTC Chairman Andrew N. Ferguson emphasized that this action aligns with President Trump’s executive order targeting ticket scalping. He stated the FTC will actively police operations that illegally circumvent ticket seller’s limits to ensure fair access and pricing for consumers.

A spokesperson for Key Investment Group countered that the FTC’s lawsuit threatens the secondary ticket market and consolidates power with Live Nation and Ticketmaster, currently facing its own antitrust litigation. The company argues the FTC is misinterpreting the BOTS Act, suggesting legitimate business practices are being unfairly targeted.

Key Investment Group preemptively filed a lawsuit against the FTC last month, challenging the examination. The FTC declined to comment on that pending litigation.

Key Figures and Entities Involved:

Name/Entity	Role
Key Investment Group	Ticket Broker (Defendant)
Yair D. Rozmaryn	CEO, Key Investment Group (Defendant)
Elan N. rozmaryn	CFO, Key Investment Group (Defendant)
Taylor Kurth	Chief Strategic Officer, Key Investment Group (Defendant)
Epic Seats	Affiliated Company
TotalTickets.com LLC	Affiliated Company
Totally Tix LLC	Affiliated Company

Did You Know? The BOTS act of 2016 aimed to prevent the use of automated software to bypass security measures on ticket sales websites.

Pro Tip: When purchasing tickets, always buy directly from authorized retailers to minimize the risk of inflated prices and fraudulent sales.

The Evolving Landscape of ticket Resale

The secondary ticket market has grown exponentially in recent years, driven by high demand for popular events and the convenience of online resale platforms. While providing a means for individuals to recoup costs or sell unwanted tickets, it also creates opportunities for scalping and price gouging. The rise of bots and sophisticated circumvention techniques has exacerbated these issues, prompting increased scrutiny from regulators and calls for reform.

Recent developments,such as Live Nation’s Verified Fan system,aim to prioritize genuine fans and reduce the impact of bots. However, these systems are not foolproof, and the demand for tickets often outstrips supply, making it challenging to ensure fair access for all. According to a 2023 report by Forbes, the global ticket resale market is projected to reach $18.84 billion by 2028.

Consumers should be aware of the risks associated with purchasing tickets from unofficial sources and exercise caution when encountering prices significantly above face value. understanding the terms and conditions of ticket sales, as well as the policies of resale platforms, is crucial for protecting your interests.

Frequently Asked questions

• What is the BOTS Act? The Better Online Ticket Sales (BOTS) Act is a US law designed to prohibit the use of bots to circumvent ticket security measures.
• How do ticket brokers use bots? Ticket brokers employ bots to rapidly purchase large quantities of tickets, bypassing restrictions on the number of tickets per person.
• is it legal to resell tickets? Reselling tickets is generally legal, but using illegal means to obtain them, such as bots, is prohibited.
• What is Live Nation’s role in this situation? Live Nation, as a major ticket seller, is frequently enough targeted by bots and is also facing antitrust scrutiny.
• What can consumers do to avoid inflated ticket prices? Consumers should buy tickets directly from authorized retailers and be cautious of prices significantly above face value.
• What are the potential penalties for violating the BOTS Act? Violators of the BOTS Act can face civil penalties from the Federal Trade Commission.
• Could this lawsuit impact the future of ticket resale? This lawsuit could set a precedent for how the BOTS Act is interpreted and enforced, potentially impacting the entire ticket resale industry.

What are your thoughts on the fairness of the current ticket-buying process? Do you think stronger regulations are needed to protect consumers?

What specific deceptive practices is the FTC alleging the ticket reseller employed to acquire Eras Tour tickets?

The Federal Crackdown on Ticket scalping

The Federal Trade Commission (FTC) is taking aggressive action against ticket resale practices, specifically targeting a reseller accused of profiting immensely – reportedly millions of dollars – from the overwhelming demand for Taylor Swift’s Eras tour. This legal battle highlights the ongoing struggle to protect consumers from ticket scalping, ticket fraud, and unfair ticket pricing in the secondary market. The lawsuit,filed on August 18,2025,alleges deceptive and unlawful business practices.

Allegations Against the ticket Reseller

The FTC’s complaint details a sophisticated operation allegedly designed to circumvent security measures implemented by Ticketmaster and other primary ticket sellers. Key accusations include:

Bot Usage: The reseller, identified as[ResellerName-[ResellerName-replace with actual name when available], is accused of using automated bots to purchase large quantities of Eras Tour tickets instantly upon release, effectively blocking genuine fans from securing them at face value.This practice is a core component of automated ticket buying and is widely condemned.

Fake Accounts: Creating and maintaining thousands of fake accounts to bypass ticket purchase limits.This allowed the reseller to acquire tickets far exceeding the legal limits imposed by ticket providers.

Hidden Fees & Inflated Prices: The FTC alleges the reseller concealed ample fees during the checkout process, significantly inflating the final price paid by consumers. These hidden fees contributed to the massive profits allegedly earned. The practice falls under deceptive pricing regulations.

Circumventing Security Measures: Employing techniques to bypass CAPTCHAs and other security protocols designed to prevent bot activity.

Reselling on Secondary Markets: Listing the acquired tickets on secondary marketplaces like StubHub, Vivid Seats, and SeatGeek at exorbitant prices – often hundreds or even thousands of dollars above face value. This is a prime example of ticket speculation.

The Eras Tour: A Case Study in Ticket Scalping

Taylor Swift’s Eras Tour became a focal point for the issue of ticket availability and secondary ticket market abuse. The unprecedented demand exposed vulnerabilities in the existing ticketing system and fueled a surge in scalping activity.

Record-breaking Demand: The tour shattered previous ticket sales records, creating a highly competitive habitat where legitimate fans struggled to obtain tickets.

Social Media Outcry: Widespread frustration among fans unable to purchase tickets at reasonable prices led to meaningful backlash against ticket resellers and the ticketing industry. #ErasTourTickets and related hashtags trended globally, highlighting the public’s anger.

Congressional Hearings: The issues surrounding Eras Tour ticket sales prompted inquiries from members of Congress, leading to hearings examining the practices of Ticketmaster and Live Nation.

FTC’s Legal Action: What’s at Stake?

The FTC is seeking a permanent injunction to prevent the reseller from engaging in similar practices in the future. The lawsuit also aims to:

Disgorgement of Profits: force the reseller to return the ill-gotten gains earned through the alleged deceptive practices.

Civil Penalties: Impose substantial civil penalties for violating the FTC Act.

Consumer Redress: Provide compensation to consumers who were harmed by the reseller’s actions.

This case sets a precedent for future enforcement actions against ticket scalpers and could lead to stricter regulations governing the secondary ticket market. The FTC is signaling a zero-tolerance policy for those who exploit consumers through deceptive and unlawful ticket resale practices.

Understanding Your Rights as a Ticket Buyer

Consumers have rights when purchasing tickets, both from primary and secondary sellers. Here’s what you shoudl know:

Transparency in Pricing: Sellers are required to clearly disclose all fees and charges before you complete your purchase.

Legitimate Ticket Sources: Purchase tickets from authorized ticket sellers or the official tour website.

Beware of Suspicious Deals: If a deal seems too good to be true, it probably is. Be cautious of tickets offered at significantly below face value.

Report Suspicious Activity: Report suspected ticket fraud or scalping to the FTC and the Better Business bureau.

know the Resale Marketplace Policies: Understand the buyer protection policies of secondary