The Federal Trade Commission (FTC) has sued ticket reseller Key Investment Group (KIG) for using thousands of fake Ticketmaster accounts to bypass purchase limits and resell tickets at inflated prices, notably for Taylor Swift's Eras Tour.

KIG claims it did not use bots or automated software and argues its practices are legal, asserting that Ticketmaster's own policies set the ticket limits and implicitly endorse their actions.

The company made over $1.2 million by reselling 2,280 tickets purchased in 2023, employing over 13,000 accounts and advanced technology to evade Ticketmaster's anti-scalping measures.

The lawsuit highlights ongoing issues with ticket scalping, illegal resale, and the challenges of enforcing the BOTS Act of 2016, which has seen limited enforcement prior to this case.

This legal action follows previous scrutiny of Ticketmaster and Live Nation for alleged monopoly practices and anti-competitive behavior in the live concert industry, including a Department of Justice investigation.

The case is part of broader efforts by government agencies to regulate secondary ticket markets and ensure fair access to high-demand events, especially after Ticketmaster's problematic 2022 sale for Swift's Eras Tour.

The lawsuit was filed just days after Taylor Swift announced her upcoming 12th studio album, 'The Life of a Showgirl,' set for release in early October 2025, amidst ongoing ticketing controversies.

The Eras Tour, which concluded in December 2024 after more than 150 performances worldwide, grossed over $2 billion and had a $10 billion economic impact, further fueling demand and scalping issues.

The lawsuit names key executives of KIG, including CEO Yair D. Rozmaryn and CFO Elan N. Rozmaryn, who previously faced legal issues related to similar practices, with the company's structure allowing operations across multiple entities.

This case is a significant enforcement effort under the BOTS Act, with the FTC seeking permanent injunctions and civil penalties, emphasizing ongoing challenges in ticket accessibility and pricing.

The legal action also underscores the tension between industry practices and regulatory efforts, with KIG arguing that their methods are standard and that Ticketmaster's failure to prevent such practices implicitly endorses them.

The case is part of a larger narrative involving ticketing issues, including a 2022 Ticketmaster sale controversy, criminal charges against cybercriminals reselling Eras Tour tickets, and the ongoing debate over fair ticket distribution.