Curated News
By: NewsRamp Editorial Staff
August 19, 2025

FTC Sues Ticket Reseller Over Massive Swift, Springsteen Scalping Scheme

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TLDR

  • The FTC lawsuit against Key Investment Group demonstrates how regulatory enforcement can eliminate unfair scalping advantages and restore competitive access to high-demand event tickets.
  • Key Investment Group allegedly used thousands of fake accounts and virtual credit cards to bypass Ticketmaster's purchase limits and acquire 380,000 tickets for resale.
  • This enforcement action protects consumers from price gouging and ensures fair access to live events, making entertainment more accessible for all fans.
  • A Maryland ticket broker allegedly made nearly $2 million reselling Taylor Swift tickets acquired through an elaborate scheme using fake accounts and proxies.

Impact - Why it Matters

This case directly impacts concertgoers who face inflated prices and limited access to popular events due to predatory ticket-buying practices. The FTC's action signals a potential shift toward stronger enforcement of anti-scalping laws, which could lead to fairer ticket distribution and more reasonable prices for consumers. As live event tickets become increasingly difficult to obtain at face value, this legal challenge addresses systemic issues in the ticketing industry that affect millions of fans annually. Successful prosecution could set important precedents for how ticket markets are regulated and protected against artificial scarcity manipulation.

Summary

The Federal Trade Commission has taken decisive legal action against Key Investment Group, a Maryland-based ticket reseller, accusing the company of orchestrating an elaborate scheme to monopolize high-demand concert tickets. Using thousands of fake accounts, proxy servers, and virtual credit cards, the company allegedly circumvented Ticketmaster's purchase limits to acquire nearly 380,000 tickets between late 2022 and 2023. This bulk-buying spree targeted major events including Taylor Swift's Eras Tour and Bruce Springsteen's 2023 stadium shows, with the company spending approximately $57 million on tickets and reselling them for roughly $64 million in profit.

According to the FTC complaint, Key Investment Group's activities violated the Better Online Ticket Sales Act (BOTS Act), a 2016 law designed to prevent scalpers from using automated software to bypass purchase restrictions. The case represents one of the first major tests of this rarely enforced statute. Specific examples cited include the acquisition of over 2,000 Swift tickets across 38 shows, purchased for $745,000 and resold for nearly $2 million, and more than 1,500 Springsteen tickets at New Jersey's MetLife Stadium obtained through 277 accounts. FTC Chairman Andrew N. Ferguson emphasized the agency's commitment to protecting consumers, stating that "unscrupulous middlemen who harm fans and jack up prices through anticompetitive methods will hear from us."

The lawsuit emerges amid heightened scrutiny from the Biden administration on the live-events industry, targeting ticketing platforms, promoters, and venues. Taylor Swift's Eras Tour has become emblematic of fan frustrations with limited supply and exorbitant resale prices. While Key Investment Group has previously disputed the allegations, calling the FTC's interpretation "flawed" and defending its practices as industry-standard, the case highlights ongoing challenges in ticket market regulation and enforcement of the BOTS Act.

Source Statement

This curated news summary relied on content disributed by citybiz. Read the original source here, FTC Sues Ticket Reseller Over Massive Swift, Springsteen Scalping Scheme

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