FTC Takes Legal Action Against Ticket Broker for Circumventing Purchase Limits

Allegations and Legal Basis

The FTC says the ticket broker, REPS & Company Inc., along with its top executives, violated the Better Online Ticket Sales Act by intentionally evading online controls that enforce ticket‑purchase limits. The complaint, which the Department of Justice filed after the FTC’s referral, claims the company used illegal tactics to acquire far more tickets than permitted for popular events.

How the Scheme Supposedly Worked

According to the FTC, REPS employed a large team, many based overseas, to create thousands of fake purchasing accounts using fabricated personal information and virtual payment methods. The firm also allegedly used proxy services and specialized browsers to hide the true location and identity of those accounts. When ticket issuers attempted to block or cancel purchases that exceeded limits, REPS reportedly made minor adjustments to account details to avoid detection.

Impact on Consumers and the Ticket Industry

The agency’s director of consumer protection emphasized that the business model relied on inflating ticket prices for ordinary fans by hoarding inventory that should have been available at face value. Ticket issuers such as major online platforms have instituted safeguards—like capped quantity selectors and verification of accounts—to protect consumers, and the FTC argues that REPS’s actions undermined those protections.

Next Steps in the Case

The FTC’s commission voted to refer the complaint to the Justice Department, which has now filed the civil action in federal court. The lawsuit seeks civil penalties and aims to deter similar practices that distort the ticket market and disadvantage genuine concert‑goers.