FTC Takes Action Against Elite Events for Bypassing Ticket Purchase Limits in Violation of Better Online Ticket Sales Act
The FTC fined ticket broker Elite Events $300,000 for illegally bypassing ticket purchase limits on over 2,400 events, including a Metallica concert, and reselling them at inflated prices.
The Federal Trade Commission announced a $300,000 civil penalty against Elite Events and its operators, Kevin W. McKerley and Aaron L. Fera, for violating the Better Online Ticket Sales Act by circumventing ticket purchase limits on more than 2,400 events. The FTC alleged the company used unlawful tactics, including 75 accounts to buy 277 tickets for a Metallica concert at Virginia Tech despite a six-ticket limit per buyer. Elite Events then resold these tickets on secondary markets for prices ranging from $100 to $400, profiting from artificially inflated costs for consumers.
The FTC complaint detailed how Elite Events employed hundreds of agents, many overseas, to exploit weaknesses in ticket issuer security measures such as quantity selectors and account verification systems. Ticket issuers like Ticketmaster and AXS have implemented controls like capped ticket selectors and monitoring of unique identifiers to prevent such circumventions. The FTC stated that these actions deprived fans of fair access to tickets at issuer-set prices, undermining the integrity of online ticket purchasing systems designed to protect consumers.
In a proposed settlement, Elite Events, McKerley, and Fera face over $10.7 million in civil penalties, with $300,000 due immediately due to financial constraints. The remaining amount would be payable if financial misrepresentation is proven. The order also permanently bans the defendants from engaging in the unlawful activities outlined in the complaint, including bypassing ticket limits and using deceptive software.
The FTC filed the complaint and stipulated final order in the U.S. District Court for the Southern District of Georgia. The Commission voted 2-0 to authorize the action, which now requires court approval to take legal effect. The FTC emphasized its role in protecting consumers from practices that drive up prices and limit access to events.