Introduction to the Lawsuit
The Federal Trade Commission (FTC) has filed a lawsuit against a ticket resort company, claiming that they used illegal methods to secure tickets and sell them at excessive prices for popular concerts, including Taylor Swift’s tour. This lawsuit is a significant step in regulating the secondary ticket market and ensuring that consumers have fair access to tickets.
Details of the Lawsuit
The FTC filed the lawsuit on Monday, accusing the company of violating the Better Online Ticket Sales (BOTS) Act and the FTC Act. The company, Key Investment Group, and its affiliated companies, including EPIC Seats and Torly Tix LLC, allegedly used thousands of Ticketmaster accounts to buy tickets, hid their identity behind proxy or false IP addresses, and used thousands of virtual and traditional credit card numbers.
Leaders Named in the Lawsuit
Some of the leaders of the Key Investment Group were mentioned in the lawsuit, including CEO Yair D. Rozmaryn, CFO Elan N. Rozmaryn, and CSO Taylor Kurth. The FTC states that the company has violated federal laws intended to prevent parties from circumventing safety measures and ticket caps on shows.
Response from the Key Investment Group
A representative of the Key Investment Group said that the lawsuit threatened to reduce the secondary market and that they would vigorously defend themselves. They argued that the FTC’s interpretation of the BOTS Act is illogical and absurd, as it would consider anyone who buys more than four tickets or uses more than one account as a violation of federal law.
Examples of the Company’s Activities
The lawsuit claims that the company bought at least 379,776 tickets from Ticketmaster for $57 million over a year. For example, they bought 2,280 tickets for 38 Taylor Swift shows, paid $744,970.29, and resold them for $1,217,010.36, earning a profit of $472,040.07. Similarly, they used 49 different accounts to buy 273 tickets for a Swift concert in March 2023 and resold them for $119,227.21.
Other Examples of the Company’s Activities
The company also allegedly bought 1,530 tickets for a Bruce Springsteen concert in September 2023 using 277 different accounts and earned sales of $20,900.84. These examples illustrate the company’s alleged practices of using multiple accounts and circumventing ticket limits to buy and resell tickets at inflated prices.
Statement from the FTC
FTC Commissioner Andrew N. Ferguson stated that the lawsuit is part of the Trump administration’s efforts to crack down on unscrupulous middlemen who harm fans and increase prices through unfair methods. The FTC is committed to ensuring that consumers have the opportunity to buy tickets at fair prices.
Previous Lawsuit by the Key Investment Group
In July, the Key Investment Group filed its own lawsuit against the FTC, claiming that they were complying with the BOTS Act and that the closure of the company would decimate the secondary ticketing industry for concerts. The company argued that the FTC’s actions would have unintended consequences and harm consumers.
