FTC’s Ticket Resale Lawsuit Exposes Broken System — How Sellout Is Changing the Game

Published Sep 2, 2025

How Sellout Is Changing the Game
How Sellout Is Changing the Game
How Sellout Is Changing the Game

The ticketing world was rocked this week when the Federal Trade Commission (FTC) filed a lawsuit against Maryland-based reseller Key Investment Group. The company allegedly broke federal law to obtain hundreds of thousands of tickets — including 2,280 for Taylor Swift’s Eras Tour and over 1,500 for a Bruce Springsteen show — and resold them for millions of dollars in profit. Fans who tried to buy tickets faced inflated prices, limited access, and frustration, highlighting just how broken the live event ticketing system can be.

While the FTC’s lawsuit is a step toward enforcement of the Better Online Ticket Sales (BOTS) Act, it also underscores a major issue: the live event ticketing system needs a solution built for fans, not for resellers looking to profit. That’s where Sellout comes in.

What Happened in the FTC Lawsuit

The FTC alleges that Key Investment Group bypassed Ticketmaster’s security measures using:

  • Thousands of fictitious Ticketmaster accounts

  • Virtual and traditional credit card numbers

  • Proxy or spoofed IP addresses

  • SIM banks to evade purchase limits

Between November 2022 and December 2023, Key Investment Group reportedly purchased nearly 380,000 tickets, spending around $57 million and reselling them for $64 million. For Taylor Swift’s Eras Tour, the company exceeded the six-ticket-per-customer limit, buying 2,280 tickets for $744,970.29 and reselling them for nearly $1.96 million. At one Allegiant Stadium show in Las Vegas, 49 accounts secured 273 tickets, generating over $119,000 in profit.

The Bruce Springsteen MetLife Stadium shows were similarly affected, with 277 accounts obtaining over 1,500 tickets, marked up for $21,000 in revenue.

These staggering numbers show how bad actors exploit systems meant to give fans a fair chance at tickets — leaving real fans frustrated and overpaying.

The Industry Response and Regulatory Shift

The FTC’s lawsuit is part of a broader push to clean up the live event ticketing space. President Trump’s 2023 executive order emphasized enforcement of the BOTS Act to crack down on unfair ticket resale practices. Industry stakeholders, including the National Independent Venue Association, praised the lawsuit as “a momentous step toward finally holding ticket brokers and resale platforms accountable.”

However, the case also demonstrates that regulatory enforcement alone isn’t enough. Fans need a transparent, secure, and fair ticketing platform that prioritizes real attendees over profit-driven resellers.

How Sellout Delivers Fair and Transparent Ticketing

At Sellout, we’ve designed an event ticketing platform that eliminates the issues exposed in the FTC lawsuit:

  • Verified Buyers Only: Every account is verified to ensure tickets go to real fans, not resellers.

  • No Bots, No Shortcuts: Our system prevents automated bots and unfair bulk purchases.

  • Transparent Pricing: Say goodbye to hidden fees and inflated secondary market prices.

  • Enforced Limits: Purchase limits are strictly monitored to give more fans access.

  • Regulation-Compliant: Sellout operates in full compliance with federal ticketing laws, ensuring fairness and transparency.

With these safeguards, Sellout creates an experience where fans can purchase tickets confidently, knowing they’re not competing with bots or unscrupulous resellers.

Why Fans Deserve a Better System

The Key Investment Group case illustrates a recurring problem in live event ticketing: access isn’t equal, and fans often pay the price — literally. By choosing platforms like Sellout, fans get:

  • Fair access to high-demand events

  • Transparent pricing without inflated markups

  • Peace of mind knowing they’re supporting ethical ticketing practices

For artists and venues, it also means more authentic engagement with real fans, rather than seeing tickets hoarded and resold for profit.

Looking Forward: A Fairer Future for Live Events

While government enforcement like the FTC’s lawsuit is essential, the true solution lies in platforms that put fans first. Sellout is proud to offer a ticketing experience built on fairness, transparency, and verified access. Fans shouldn’t have to worry about bots, fake accounts, or massive markups — and now they don’t have to.

Partner with Sellout and give your fans the ticketing experience they deserve. Together, we can create events where access is fair, purchasing is simple, and every fan leaves satisfied.

Make Your Next Event
the Best One Yet

Sell more tickets, ease event management stress, keep fans happy. That’s the Sellout experience! Start selling tickets today or schedule a demo with our team.

Address

506 N Broadway Ave, Bozeman, MT 59715

© 2024 Sellout, Inc. All rights reserved.

Make Your Next Event
the Best One Yet

Sell more tickets, ease event management stress, keep fans happy. That’s the Sellout experience! Start selling tickets today or schedule a demo with our team.

Address

506 N Broadway Ave, Bozeman, MT 59715

© 2024 Sellout, Inc. All rights reserved.

Make Your Next Event
the Best One Yet

Sell more tickets, ease event management stress, keep fans happy. That’s the Sellout experience! Start selling tickets today or schedule a demo with our team.

Address

506 N Broadway Ave, Bozeman, MT 59715

© 2024 Sellout, Inc. All rights reserved.