The U.S. ticket market is facing turmoil after the Federal Trade Commission launched a lawsuit against Key Investment Group. Regulators accuse the company of using deceptive methods to exceed ticket purchase limits and profit from resale.
The Maryland-based reseller operates under brands like Epic Seats and Totally Tix. According to the FTC, the company created thousands of fake accounts to buy tickets for major events, including Taylor Swift’s Eras Tour. Between late 2022 and late 2023, it bought nearly 380,000 tickets worth $57 million. The group then resold them on secondary platforms for about $64 million, making millions in profit.
For one Taylor Swift concert, the group used 49 different accounts to buy 273 tickets. The Eras Tour allowed only six tickets per buyer. As a result, many fans struggled to secure access, fueling widespread frustration. Lawmakers even held Senate hearings to address failures in ticketing practices.
Key Investment Group responded strongly to the lawsuit. The company said it will fight the FTC’s allegations and warned that regulators threaten the entire resale market. Executives argued that enforcement would consolidate power among dominant ticketing firms and eliminate smaller competitors.
In addition, the company said the FTC misapplied the Better Online Ticket Sales Act. Passed in 2016, that law targeted automated bots. However, Key Investment Group claimed its employees, not software, purchased tickets. The firm even filed its own lawsuit earlier this year to block the FTC from enforcing the law.
Nevertheless, the FTC insisted that the law bans anyone from bypassing ticket limits or security measures. Officials stressed that resellers cannot exploit loopholes to overwhelm systems, regardless of whether humans or bots complete the purchases.
Meanwhile, the U.S. ticket market faces even more scrutiny after an executive order from President Donald Trump. The order instructed regulators to ensure greater transparency in ticket pricing and stronger enforcement of resale rules. It also tasked agencies with monitoring compliance by ticket brokers and marketplaces.
The conflict reveals sharp tensions between consumers, regulators, and resellers. Fans demand fairer access, regulators push for accountability, and resellers defend their business model. With live event demand climbing, the outcome of this lawsuit could reshape the U.S. ticket market.
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