The Federal Trade Commission (FTC) on Monday sued a ticket broker for allegedly using fraud to purchase tickets for high-profile performances, including Taylor Swift’s Eras’ tour last year, and then reselling them at a significant mark-up.
The FTC sued the Maryland-based Key Investment Group LLC and its affiliates over the alleged scheme, claiming they used fraudulent means to carry out the plot, such as flooding Ticketmaster with fake accounts.
The agency claimed the operation began in 2016 and that between November 1, 2022, and December 30, 2023 the investment group illegally purchased at least 379,776 tickets from Ticketmaster at a cost of nearly $57,000,000 and then resold a portion of them for a cumulative $64,000,000.
The FTC said the group also purchased 2,280 tickets to 38 stops on Swift’s “The Eras Tour,” over a five month period, which they resold to fans at a major mark-up.
“Defendants paid $744,970.29 for these tickets and resold them for $1,961,980.65, netting $1,217,010.36 in revenue,” the lawsuit states.
The commission claimed the company violated the Better Online Ticket Sales (BOTS) Act, and the FTC Act with their scheme.
“President Trump made it clear in his March Executive Order that unscrupulous middlemen who harm fans and jack up prices through anticompetitive methods will hear from us,” FTC Chair Andrew N. Ferguson said in a statement. “Today’s action puts brokers on notice that the Trump-Vance FTC will police operations that unlawfully circumvent ticket sellers’ purchase limits, ensuring that consumers have an opportunity to buy tickets at fair prices.”
Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.
