WASHINGTON D.C. (CelebrityAccess) — The Federal Trade Commission is taking legal action against a ticket broker over alleged unlawful practices used to obtain thousands of tickets for resale, including for events such as Taylor Swift’s Eras Tour.
According to the FTC, Maryland-based Key Investment Group has done business under names including Epic Seats, TotalTickets.com LLC, and Totally Tix LLC. The agency alleges the company’s illegal practices generated millions in revenue while driving ticket prices up for fans nationwide.
The suit also names Key Investment Group’s CEO, Yair D. Rozmaryn; Chief Financial Officer, Elan N. Rozmaryn; and Chief Strategic Officer, Taylor Kurth, according to the FTC’s complaint.
The FTC alleges the operation used a variety of techniques to bypass Ticketmaster’s security measures, including limits on the number of tickets sold to a single buyer.
Techniques reportedly employed by the company include:
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The use of thousands of Ticketmaster accounts, including fictitious personas and accounts purchased from third parties.
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The use of multiple real and virtual credit cards.
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The use of “Sim Box” devices, which hold thousands of SIM cards to mask the origin of calls.
According to the FTC, these tactics allegedly helped the company purchase at least 379,776 tickets over a 12-month period at an estimated cost of $57 million. The tickets were reportedly resold on the secondary market for approximately $64 million.
“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,” said FTC Chairman Andrew N. Ferguson. “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.”
A spokesperson for Key Investment Group did not immediately respond to a request for comment. In a July press statement, a company representative said:
“KIG is standing up for the consumers and a fair and free secondary market. Any fan who has ever bought and sold concert tickets understands there’s tremendous risk involved. For every one artist with sold-out high-demand tickets, there are hundreds of artists that have trouble selling out their shows.
“Published secondary data shows that nearly 40% of all concert tickets sold for under $50 and that 55% of all secondary listings had tickets listed for resale below face value. This lawsuit against the FTC makes clear that a well-regulated secondary ticket market empowers fans, increases access, allows open competition and free markets, and strengthens the live event economy,” the spokesperson added.
