The Federal Trade Commission sued ticket broker REPS & Company, alleging it bypassed posted ticket limits to buy 18.5 million seats and resell them at inflated prices.
By the numbers: Since 2022 REPS purchased more than eight tickets at a time for at least 83,500 events, spending more than $1.3 billion and generating at least $120.8 million in resale profit, the complaint says.
Zoom in: In one example, REPS used 1,300 accounts to buy 7,624 tickets to a single Beyonce Renaissance tour concert in Kansas City in 2023, clearing $833,000 on that show alone.
The backstory: The Better Online Ticket Sales Act makes it illegal to circumvent a security measure or access control that a ticket issuer uses to enforce posted event ticket limits.
- Ticketmaster and AXS cap quantity selectors at the purchase limit and check orders against verifiable accounts and unique credit cards, email addresses, phone numbers and IP addresses.
Between the lines: A team largely based in the Philippines opened thousands of ticket accounts under other people names and addresses, then used virtual cards, IP proxy services and multi-session browsers to mask identity and location, the complaint alleges.
- When issuers blocked a purchase, staff made slight changes to an account holder name or address and tried again, according to internal documents cited in the filing.
What they're saying: REPS entire business model is focused on trying to game the ticket-purchasing system in order to obtain as many tickets as possible to resell at inflated prices to consumers, said Christopher Mufarrige, who directs the FTC Bureau of Consumer Protection.
What's next: The commission voted 2-0 to refer the complaint, and the Justice Department filed it in federal court for the Southern District of California. A court will decide the case.
Why it matters: This is the sold-out-in-seconds experience named and quantified: one broker took 18.5 million seats off public sale before ordinary fans reached the front of the queue.
