FTC sues ticket broker accused of cheating limits to hoard high-demand event tickets

WASHINGTON (Gray News) - The Federal Trade Commission is suing a ticket broker accused of using unlawful tactics to buy millions of tickets to popular events.

The complaint, filed by the Department of Justice, alleges REPS & Company Inc., along with its CEO Ryan Pancheri, President Brian Archibald and Chief Operating Officer Nicholas Totagrande, violated the Better Online Ticket Sales Act.

The law makes it illegal to “circumvent a security measure, access control system or other technological control or measure on an Internet website or online service that is used by the ticket issuer to enforce posted event ticket limits or to maintain the integrity of posted online ticket purchasing order rules.”

The complaint alleges that since 2022, REPS and its operators used unlawful tactics to bypass ticket issuers’ security measures and exceed posted ticket limits.

REPS purchased more than eight tickets for at least 83,500 events — many in high demand and likely to sell out. REPS spent more than $1.3 billion to amass more than 18.5 million tickets, generating at least $120.8 million in profit by reselling them, the complaint says.

For example, REPS generated $833,000 in profit by using 1,300 accounts to purchase 7,624 tickets to one Beyoncé Renaissance tour concert in Kansas City, Missouri, in 2023, according to the complaint.

“Companies that seek to profit by driving up prices or depriving ordinary fans of access to reasonably priced tickets to their favorite shows or events should be on notice that we are watching and will take action to stop this unlawful conduct,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said.

Ticket issuers such as Ticketmaster and AXS have measures to block resellers from violating purchase limits. The complaint alleges REPS uses employees, most of whom are based in the Philippines, to bypass Ticketmaster and other issuers’ account security measures.

The alleged methods include using thousands of purchasing accounts created with other people’s names, addresses or phone numbers, along with virtual credit card accounts and phone numbers controlled by REPS. Employees also used IP proxy services and multisession browsers that mask a user’s identity and location, the complaint alleges.

When ticket issuers detect attempts to bypass limits, they often block or cancel the purchase. REPS developed strategies to work around those controls, such as making slight changes to an account holder’s address or name, the complaint alleges. Internal company documents show REPS officials discussed tactics to keep accounts from being blocked.

The commission voted 2-0 to refer the complaint to the Justice Department for filing. The department filed the complaint on behalf of the commission in U.S. District Court for the Southern District of California.