FTC Takes Legal Action Against Ticket Reseller Over Taylor Swift’s Eras Tour Profits

## FTC Files Lawsuit Against Ticket Broker

The **FTC** has initiated a lawsuit against a ticket broker, claiming they utilized “illegal means” to earn millions from scalping tickets for various events and concerts, including **Taylor Swift’s Eras Tour**.

### Allegations of Ticket Scalping

The legal complaint targets Maryland-based **Key Investment Group**, alleging they violated the Better Online Ticket Sales Act (BOTS Act) by bypassing Ticketmaster’s security protocols to acquire more tickets than allowed. According to the FTC, these tickets were resold on secondary marketplaces, sometimes at substantial markups for consumers.

### Key Investment Group Named

Alongside Key Investment Group, the lawsuit mentions several affiliated companies, such as Epic Seats, TotalTickets.com LLC, and Totally Tix LLC. The complaint also identifies Key Investment Group’s CEO, Yair D. Rozmaryn; CFO, Elan N. Rozmaryn; and Chief Strategic Officer, Taylor Kurth.

### Extensive Ticket Purchases

From November 1, 2022, to December 30, 2023, the defendants allegedly bought over 379,776 tickets worth approximately $57 million. A portion of these tickets was reportedly resold on secondary platforms for about $64 million.

### Methods of Acquisition

To amass these tickets, the FTC claims the defendants relied on “thousands of fictitious Ticketmaster accounts,” along with multiple credit card numbers, proxy IP addresses, and SIM banks to evade security measures on Ticketmaster’s websites that would have limited their purchases.

### Specific Examples

For instance, the FTC alleges that the defendants acquired 2,280 tickets across all dates of Swift’s Eras Tour, paying approximately $744,970.29 for them. They then reportedly resold these tickets for a total of $1,961,980.65, netting over $1.2 million. Additionally, there were claims of using 277 accounts to secure 1,530 tickets for Bruce Springsteen’s September 1, 2023, concert, leading to profits exceeding $20,000.

### FTC Chairman’s Statement

FTC Chairman Andrew N. Ferguson commented on President Donald Trump’s executive order aimed at targeting “unscrupulous middlemen” who manipulate prices through anticompetitive practices. He emphasized that the FTC’s actions signal to brokers that they must comply with ticket sellers’ purchase limits, ensuring consumers can buy tickets at reasonable prices.

### Response from Key Investment Group

A representative from Key Investment Group argued that the FTC’s lawsuit poses a risk to the secondary ticket market, alleging it consolidates control for larger companies like Live Nation and Ticketmaster. They stated that the FTC has misinterpreted the BOTS Act, claiming it could label anyone purchasing multiple tickets as violating federal law, which they deemed absurd.

### Legal Action Against the FTC

Recently, Key Investment Group filed its own lawsuit against the FTC, contesting the investigation’s validity. A spokesperson for the FTC chose not to comment on this ongoing legal dispute.

In light of these developments, what are your thoughts on the implications of this lawsuit for the ticket market?