The Federal Trade Commission sued a Maryland ticket resale company Monday, alleging it illegally snatched up hundreds of thousands of seats at Taylor Swift’s Eras Tour and other major concerts in 2022 and 2023.
The complaint accuses Key Investment Group of violating the Better Online Ticket Sales Act by using deceptive tactics to bypass Ticketmaster limits. Federal regulators say the company created thousands of fake accounts and IP addresses, SIM banks and virtual credit cards to secure nearly 380,000 tickets between November 2022 and December 2023.
Key Investment Group spent about $57 million on tickets during that time and resold them for roughly $64 million, according to the lawsuit. The FTC says the batch included thousands of seats for Swift, Bruce Springsteen and other top acts.
Between March and August 2023 alone, the company purchased more than 2,000 Swift tickets for 38 shows, paying nearly $745,000 and reselling them for almost $2 million, the complaint said.
The FTC said the company also secured more than 1,500 tickets to a Bruce Springsteen show at MetLife Stadium in New Jersey, using 277 accounts. The tickets were resold for about $21,000 in revenue.
“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 Chairman 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.”
The lawsuit marks one of the first major tests of the BOTS Act, which became law in 2016 but has rarely been enforced. The measure was intended to stop scalpers from using automated software to buy tickets in bulk before consumers have a chance.
Key Investment Group disputed the allegations in a statement earlier this year, calling the FTC’s interpretation of the law “flawed” and maintaining that its practices were lawful and industry-standard. The company did not immediately respond to TheWrap’s requests for comment Monday.
The case comes amid a wave of government scrutiny over the live music industry. In recent months, the Justice Department has pursued cases involving ticketing, venues and promoters as part of Trump’s March order targeting anticompetitive practices.
