FTC Launches Landmark Legal Battle Against Concert Ticket Scalpers

The drumbeat of justice has sounded for frustrated concert-goers, as the Federal Trade Commission (FTC) takes unprecedented action against rampant ticket scalping. In a landmark move, the FTC has filed its first-ever federal lawsuit specifically targeting individual concert ticket scalpers, accusing them of systematically violating the Better Online Ticket Sales (BOTS) Act of 2016.

This pioneering lawsuit zeroes in on individuals and companies allegedly deploying sophisticated automated software, known as 'bots,' to circumvent online ticket purchasing limits and hoard thousands of coveted tickets for popular events.

These ill-gotten tickets are then allegedly dumped onto the secondary market at grossly inflated prices, leaving genuine fans with little choice but to pay exorbitant sums or miss out entirely.

Among the key defendants named in this groundbreaking legal action are New York-based ticket brokers Leisure Time Tickets, Just In Time Tickets, and their owner, Thomas J.

Lee. The FTC's complaint alleges a cunning scheme where these entities utilized bots to snatch up vast quantities of tickets for highly anticipated shows, including productions of 'Hamilton,' 'Harry Potter and the Cursed Child,' and concerts by legendary artists like Bruce Springsteen.

The BOTS Act was enacted precisely to combat this deceptive practice, making it illegal to use automated programs to bypass security measures or access controls on ticket vendor websites.

Furthermore, the act prohibits the resale of tickets acquired through such illicit means if the reseller was aware, or reasonably should have been aware, that the tickets were obtained using bot technology.

The FTC's complaint paints a clear picture of how these alleged scalpers operated, describing how they bypassed IP address limits, defeated CAPTCHA challenges, and created numerous fake accounts to secure tickets faster and in larger volumes than any human purchaser could.

This gave them an unfair advantage, effectively shutting out ordinary fans and monopolizing prime seating at face value.

The implications of this lawsuit are significant. If successful, the FTC seeks not only to impose civil penalties against the defendants but also to compel them to disgorge their ill-gotten gains—meaning they would have to return the profits made from their alleged illegal activities.

This would send a powerful message across the secondary ticketing landscape: the era of unrestrained bot-powered scalping may finally be drawing to a close.

For years, consumers have voiced their frustration over the inability to secure tickets at fair prices, often finding them sold out within minutes of going on sale, only to reappear on resale sites at double, triple, or even ten times the original cost.

This lawsuit represents a beacon of hope for fans, signaling a renewed commitment by regulatory bodies to level the playing field and protect the integrity of the live event experience. It's a clear warning shot that the government is prepared to actively enforce the BOTS Act and hold those who exploit the passion of fans accountable.