State Champ Radio ticket scalping
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Key Investment Group (KIG) is asking a federal judge to throw out a recently filed Federal Trade Commission (FTC) lawsuit against the ticket resale company over alleged violations of the Better Online Ticket Sales (BOTS) Act.
In August, the FTC filed suit against KIG, alleging the company violated the BOTS Act when it purchased thousands of Taylor Swift tickets for her 2023-2024 Eras Tour and resold them for more than $1 million in profit. The lawsuit was filed days before a similar complaint was filed against Ticketmaster for allegedly refusing to enforce its own rules against scalpers and allowing unrestricted resale on its platform. Since then, Ticketmaster has made changes to its resale policies and, like KIG, has argued that the FTC is misapplying the BOTS Act.
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The FTC sued KIG in August, alleging the Colorado-based ticket resale operation used networks of accounts, IP masking, SIM boxes and other technical tools to evade Ticketmaster’s ticket-purchasing limits and acquire hundreds of high-demand tickets for resale. The agency claims these tactics “circumvented” the ticketing giant’s security controls in violation of the BOTS Act.
KIG is the first of the two firms to file a motion to dismiss. In a sweeping 36-page missive filed on Nov. 24, KIG attorney Bezalel A. Stern with law firm Manatt, Phelps and Phillips argues that the FTC’s complaint attempts to regulate long-established broker practices — like using multiple IP addresses to buy tickets or operating dozens of Ticketmaster accounts — that do not involve bots.
“KIG does not use bots. KIG does not circumvent any security measure,” the company tells the court, arguing the FTC is attempting to impose an unprecedented interpretation of the law that contradicts the law’s legislative history and the FTC’s own prior guidance.
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Stern stresses that the BOTS Act was explicitly drafted to stop “malicious computer code” that lets bot operators overwhelm ticketing websites and jump ahead of human buyers. KIG argues that since it employs human buyers — not automated scripts — the law does not apply. “Without the use of bots, there can be no BOTS Act violation,” KIG claims in the filing.
KIG’s brief also turns the FTC’s own evidence against it. In its lawsuit, the FTC included Ticketmaster records showing the ticketing company tracked KIG’s accounts and purchasing practices — even those created under alternate names — and knowingly allowed them. In a 2024 Ticketmaster email cited by the FTC, a Ticketmaster representative tells KIG that purchases made across different accounts are “within guidelines” so long as each individual account respects the posted per-account ticket limit. KIG’s motion argues that email destroys the FTC’s theory of unlawful “circumvention,” because ticket brokers at KIG cannot “avoid,” “evade” or “deceive” Ticketmaster’s controls when Ticketmaster explicitly authorizes the behavior.
KIG also highlights a contradiction between the FTC’s case against it and the agency’s separate September lawsuit against Ticketmaster and Live Nation. In that parallel case, the FTC alleges the ticketing company “knowingly allows, and in fact encourages, brokers to use multiple Ticketmaster accounts.” KIG argues the FTC cannot simultaneously claim Ticketmaster encourages multi-account purchasing while accusing KIG of “circumventing” the very same rules.
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The filing emphasizes that the FTC never alleges that KIG purchased tickets “within seconds” or at speeds indicative of automated software — the hallmark of bot activity described in past enforcement cases. According to KIG, the FTC is trying to convert everyday reseller practices into federal violations simply because they involve scale.
The FTC’s cited evidence — including a bank audit, news reports and previous consent decrees involving actual bot operators — does not establish that KIG knew its conduct was illegal under the BOTS Act, KIG’s motion claims.
Elsewhere in the motion, KIG alleges that the case began with a politically charged push by the White House to crack down on scalping. The company notes that minutes after President Trump — joined by Kid Rock — signed a March 2025 executive order demanding aggressive enforcement of the BOTS Act, the FTC sent KIG a draft complaint threatening litigation unless the company admitted wrongdoing.
KIG says the agency is now “expanding the BOTS Act far beyond its written and intended scope,” and warns that if the FTC’s theory were adopted, “every person or company who purchases tickets using more than one account” could be accused of violating federal law.
U.S. District Judge George L. Russell III will now consider the motion and whether to dismiss the government’s case before discovery begins. If not, the FTC will proceed to try to prove that KIG’s coordinated multi-account strategy amounted to illegal bot-level activity.
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The U.K. government hopes to decrease the price of resale tickets by an average £37 per ticket ($48 USD), according to a new report released released Wednesday (Nov. 19) in which it outlined its plan to outlaw ticket resale above face value.
According to a memo outlining the new rules, “Music and sport fans will no longer be ripped off on the ticket resale market thanks to new measures which will destroy the operating model of ticket touts,” also known as scalpers. The memo, released by the country’s Department for Business and Trade and Department for Culture, Media and Sport, adds that Prime Minister Keir Starmer’s government will make it “illegal for tickets to concerts, theatre, comedy, sport and other live events to be resold for more than their original cost.” The news was first reported by multiple U.K. outlets on Monday (Nov. 17) prior to the memo’s release.
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The new rules effectively make ticket resale above face value — defined as “the original ticket price plus unavoidable fees, including service charges” — illegal. The law limits the service fees that resale sites can charge and requires platforms like StubHub and Viagogo “to monitor and enforce compliance with the price cap.” The law also bans fans and resellers from buying more tickets than they are legally entitled to purchase during an initial ticket sale.
The U.K. government’s website features supportive quotes from politicians, music managers and artists about the bill, including U.K. Business Secretary Peter Kyle, who said the legislation taking on scalpers was meant to “smash their model to pieces and make sure more fans can enjoy their favourite stars at a fair price.”
In her own statement, U.K. Culture Secretary Lisa Nandy compared ticket scalpers to “a shadow industry, acting without consequence” while Dan Smith of the band Bastille described the legislation as “a good step towards protecting music fans from being ripped off.”
The new rules apply to both ticket resale platforms and social media sites where fans buy and sell goods. Violating the new regulations, according to the government, could result in large financial penalties from the U.K.’s Competition and Markets Authority (CMA).
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“Government analysis suggests that these measures could save fans around £112 million annually [$146 million USD], with 900,000 more tickets bought directly from primary sellers each year,” the government’s website reads.
The law is meant to build on a development from September in which the Competition and Markets Authority secured commitments from Ticketmaster to give U.K. fans 24 hours’ notice if Ticketmaster plans to use tiered pricing and provide clearer information about how the company’s online queues work, among other measures.
“The CMA’s enforcement action in this case, and the measures agreed with Ticketmaster, send a clear message to all ticketing websites that fans must have access to clear and timely pricing information with accurate ticket descriptions, especially where there are different pricing models and queues in play,” the government’s website reads. “In the future, the CMA will be able to respond even more swiftly and robustly to breaches of consumer law.”
The new legislation drew both praise and condemnation from different corners of the music industry. U.S.-based pro-ticket resale group the National Association of Ticket Brokers warned in a statement that it does “not support efforts to thwart competition. We discourage laws that impose price caps that make it more difficult for ticketing companies to compete with one another.”
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Others were more supportive, with Chris Lipscomb, managing girector for AXS U.K., telling Billboard in a statement, “We strongly support the UK government’s efforts to strengthen safeguards around ticket resale, which align with AXS’s longstanding practices in support of fair fan access.”
Matt Kaplan, who heads up U.K. and EU operations for fan-to-fan exchange Tixel, said “the UK’s move to outlaw touting is a huge win for fans, artists and the wider industry, and we fully support this long-overdue reform. Tixel was built to tackle these exact problems, and after nearly a decade fighting for fair, transparent resale in multiple markets around the world, we’re proud to see a framework emerge that protects fans, restores trust and shuts out the bad actors.”
In a statement to Billboard, Nathaniel Marro with the National Independent Talent Organization (NITO) added, “We hope policymakers stateside are paying attention and that reining in predatory resellers is a global movement.” Also in a statement, Stephen Parker of the National Independent Venue Association (NIVA) called on “state lawmakers throughout the United States to follow the United Kingdom’s (UK) proposed ticket resale price cap.”
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Four of the U.K.’s leading artists are among those coming together to call on the British Prime Minister, Sir Keir Starmer, to honour a pledge to protect fans from online ticket scalpers, also known as touts.
Coldplay, Dua Lipa, Radiohead and Sam Fender are all signatories to a joint statement published Thursday (Nov. 13), in which artists, managers and fan groups are asking Starmer to commit to resale price cap legislation in the U.K.
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In its manifesto for the 2024 general election, the Labour Party proposed policies for new consumer protections on ticket resales. This evolved into an industry consultation in January, which invited views from venues, promoters, fans and other parties on a resale price cap, considering options from face value to a 30% uplift.
On Oct. 5, seven months after the consultation closed, the U.K.’s culture minister, Ian Murray, confirmed that the current Labour government would press ahead with plans for a price cap on resale tickets — but the specifics of these plans have yet to be revealed.
Now, dozens of industry figures are calling for the Prime Minister to make the commitment to price cap legislation in the next King’s Speech, which is set to take place next spring.
In the statement, the coalition says new protections are needed to “help fix elements of the extortionate and pernicious secondary ticketing market that serve the interests of touts, whose exploitative practices are preventing genuine fans from accessing the music, theatre and sports they love.”
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It adds: “For too long certain resale platforms have allowed touts to bulk buy and then resell tickets at inflated prices, forcing fans to either pay above the odds or miss out entirely. This erodes trust in the live events sector and undermines the efforts of artists and organisers to make shows accessible and affordable. Introducing a cap will restore faith in the ticketing system, help democratise public access to the arts in line with the Government’s agenda and make it easier for fans to spot illegal behaviour, such as ticketing fraud.”
Alongside the aforementioned names, the list of signatories includes The Cure’s Robert Smith, New Order, Mark Knopfler, Iron Maiden, PJ Harvey, alt-J, Aluna Francis, Bastille, Ben Howard, Brix Smith, Mogwai, Nick Cave & The Bad Seeds and Nubiyan Twist. (View the full list below.)
With the statement on Thursday, the group of signatories joins consumer choice organisation Which?, the FanFair Alliance, O2 and the Football Supporters’ Association, along with organisations representing the music and theatre industries, venues, managers and ticket retailers, among others.
The statement arrives alongside a new investigation from Which?, which outlines the global touting operations targeting the U.K.’s ticketing industry. The group identified prolific scalpers in locations including Brazil, Dubai, Singapore, Spain and the United States, all of whom were bulk-buying tickets for live music and sporting events in the U.K. before relisting them at inflated prices on platforms such as StubHub and Viagogo.
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Examples of this practice included tickets for Oasis’ Wembley Stadium shows, which were listed for prices as high as £3,498.85 ($4,594.04) on StubHub and £4,442 ($5832.41) on Viagogo. Another finding showed that a seat for the recent Minnesota Vikings vs. Cleveland Browns NFL clash at Tottenham Hotspur Stadium was listed for £3,568.39 ($4685.35) on StubHub.
Elsewhere, Which? also found multiple cases of speculative selling, which is when tickets are listed on secondary sites for double the price — even though the seller has not bought them yet.
In a press release, Lisa Webb, a consumer law expert at Which?, said: “Today’s joint statement makes clear that artists, fan organisations and consumers reject the broken ticketing market that has allowed touts to thrive for too long. The Prime Minister pledged to protect fans and a price cap on resold tickets will be a critical step towards fixing this industry, but he must commit to this legislation by including it in the next King’s Speech.”
Webb concluded: “Further reforms are also needed to ensure sellers actually own the tickets they advertise before listing them, that resale platforms ensure the identities of sellers and key information about a ticket are verified and that the new rules are effectively enforced.”
Artist signatories: Alfa Mist, alt-J, Aluna Francis, Amy Macdonald, Andro, Bastille, Ben Howard, Brix Smith, Charlotte OC, Coldplay, Dana Margolin (Porridge Radio), Dua Lipa, Graeme Park, Howard Jones, Idlewild, Iron Maiden, Johnny Marr, Keane, Kelli-Leigh, Low Island, Mark Knopfler, Mogwai, New Order, Nick Cave & The Bad Seeds, Nick Mason, Nubiyan Twist, Orlando Higginbottom, PJ Harvey, Quantic, Radiohead, Revenge of Calculon, Robert Mitchell, Robert Smith (The Cure), Sam Fender, SNAYX, Sweetie Irie, The New Eves, Travis.
Organisations: Fan Fair Alliance, Featured Artists Coalition, Football Supporters Association, LIVE, Music Managers’ Forum, Music Venue Trust, Musicians’ Union, O2, Society of London Theatre & UK Theatre, Society of Ticket Agents and Retailers (STAR), UK Music, Which?.
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The Oasis Live ‘25 Tour kicked off its Australian leg last week (Oct. 31), and it continues to dominate music headlines as the shows roll along.
In a landmark move for Australia’s live music sector, Victoria’s government shut down bulk ticket scalping for Oasis’ recent Melbourne shows (Oct. 31, Nov. 1-4) at the Marvel Stadium by designating them under the Major Events Act 2009. The act allows the Minister for Tourism, Sport and Major Events to formally declare events that then become subject to anti-scalping protections.Under this special declaration, it became illegal to advertise or resell tickets on platforms such as Viagogo and StubHub for more than 10% above the original face value; if they flouted these restrictions, scalpers could be fined between $908 and $545,000 (AUD). A subsequent report from the Herald Sun states that 180,000 tickets for the sold-out shows went to fans as a result of the government effectively shutting out scalpers.
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Oasis’ management applauded the news, saying it could set a new benchmark for fairness in the live music market. “It’s great to see Victoria’s Major Events Declaration doing exactly what it’s meant to — Viagogo can’t list our Melbourne shows — and that’s a huge win for real fans,” they told the Herald Sun.
“When the government and the live industry work together, we can stop large-scale scalping in its tracks,” they added. “We’d love to see other states follow Victoria’s lead so fans everywhere get a fair go.”
Before last week, Oasis had not performed in Australia in nearly two decades. After tonight’s (Nov. 4) final Melbourne gig, they’ll head to Sydney (Nov. 7 and 8), before performing across Argentina, Chile and Brazil, wrapping up proceedings in São Paulo on Nov. 23.
Earlier this month in the U.K., the country’s culture minister, Ian Murray, confirmed that the current Labour government will press ahead with plans for a price cap on resale tickets.
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An industry consultation that took place in January invited views from venues, promoters, fans and other parties on the proposed price, which ranged from no profit being permitted on any ticket to a mark-up of up to 30% of face value.
Writing in the Daily Record last month (Oct. 5), Murray said: “We asked a direct question — should the UK follow countries like Ireland, where resale profiteering is capped in law? The response from fans could not have been a clearer — ‘yes.’”
“So let me tell you what we’re doing,” Murray continued. “First, we will cap resale prices. No more outrageous mark-ups of 500% or 1,000%. We are examining a range of options, from face value to a reasonable uplift.”
UK Finance, which represents 300 financial services outfits including Lloyds, NatWest, HSBC and Barclay, has lobbied against the decision for fear of customers losing out in an unregulated market. Adam Webb of the Fan Fair Alliance, however, disputed these claims in an interview with The Times. “I would advise UK Finance actually speak to experts in those countries, rather than rely on the self-interested research of unregulated offshore websites who promote industrial-scale ticket touting and exploit British audiences,” he said.
Scalpers hoping to earn a big payout flipping Chappell Roan tickets likely just watched their profits vanish after the singer announced she was shutting down resellers charging outrageous markups for her Oct. 1 show in Franklin, Tenn.
The news was greeted with praise by fans who have watched the “Good Luck, Babe!” singer’s star rise to new heights this summer — as well as by questions from ticket buyers wondering how the singer was able to call a mulligan on tickets she’d already sold to ensure actual fans get to attend her show instead.
The answer isn’t totally clear — Roan’s reps did not respond to Billboard‘s requests for comment — but there’s enough information already available about the Franklin show to tell part of the story. It’s also worth noting that Roan isn’t the first artist to deal with scalpers trying to mark up fan-friendly $30 lawn tickets to as high as $900; in years past, major artists like Ed Sheeran and Eric Church, among others, have utilized the same strategy. And while not a perfect system, it’s still an impactful way to ensure that more fans have access to affordable tickets.
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In many ways, for a breakthrough artist like Roan, there are worse problems to have. Over the last year, thanks to the success of her 2023 album The Rise and Fall of a Midwest Princess, her work as a supporting act on Olivia Rodrigo‘s Guts World Tour and her breakout performances this summer at Lollapalooza and Coachella, Roan, as some say in music business parlance, is the blowing the f— up. Now, as with any big star, scalpers are taking advantage.
In one less extensive example of this, tickets for Roan’s Oct. 2 show at Walmart Amphitheatre near Rogers, Ark., were originally priced between $30 and $80 when they went on sale in June. Now, they’re selling for $300 to $1,200 on StubHub and other secondary sites — though in that case, only a couple dozen tickets, out of 11,000 total capacity, appear to be listed on StubHub.
But in Franklin, there were dozens, maybe hundreds, more resale tickets on sale for the show at the 7,500-capacity FirstBank Amphitheater. Located just 20 miles south of Nashville, Franklin is a much bigger music market than Rogers, and the price gouging for tickets apparently prompted someone from her team to work with reps from Ticketmaster to find out who is scalping those tickets and take them away from those responsible.
Catching scalpers on Ticketmaster, especially after a sale has been made, isn’t particularly complicated. While there are laws governing ticket ownership and rights, in most cases ticketing companies treat tickets like revocable licenses, meaning they have the right to disable tickets that a fan purchased and refund them their money if they are caught violating Ticketmaster’s terms of service.
For example, many scalpers will try to buy up as many tickets as possible using multiple credit cards. That’s a violation of Ticketmaster’s “limit per order” policy, which limits the number of tickets that can be purchased per order based on the event and demand for tickets.
Ticketmaster prohibits users from using multiple IP addresses or email addresses when buying tickets, so if someone successfully completed a purchase of a Chappell Roan ticket but was later found to have used multiple email addresses or a VPN to hide their IP addresses, that could be grounds for their tickets to be canceled and refunded. It wouldn’t take long for a couple of Ticketmaster executives to comb through the transactions for a 15,000-capacity show and find purchases tied to bots with no IP addresses, or large purchases from newly-created accounts linked to free email services.
Once those transactions are identified, most are investigated and the purchases canceled. In Roan’s case, the canceled tickets were pooled and sold via lottery to fans who had to register in advance for a shot at buying them. Though it’s unclear how many tickets were canceled and reissued to fans, it’s unlikely that more than a few hundred tickets were involved.
While this practice is popular with fans and punishes amateur scalpers, there is an argument to be made that, in some cases, it enriches professional scalpers who are better at avoiding detection by reducing the number of tickets available on resale sites and in turn driving up the price for those tickets that aren’t taken down.
But the effort isn’t specifically aimed at eliminating all ticket scalping. Instead, it’s about randomly disrupting the predatory practices of scalpers targeting vulnerable shows by rising artists like Roan who don’t want to charge fans hundreds of dollars to see their concerts. And by focusing on high-margin shows where scalpers are set to make big paydays, artists like Roan really can impact the pocketbooks of professional ticket resellers and help keep more of their tickets affordable for fans.
A small percentage of Taylor Swift fans made huge profits reselling their Eras Tour tickets on sites like StubHub as professional scalpers mostly had to watch from the sidelines, according to data reviewed by Billboard.
The unusual dynamic underscores the challenges major tours face in combating scalpers — and the unintended consequences of efforts to keep tickets off the secondary market.
Swift’s touring team sought to keep tickets for the Eras Tour off the secondary market, according to Ticketmaster officials, and met with Ticketmaster executives to discuss how to best prevent mass ticket scalping. One option was that Ticketmaster could use its Safetix service to digitally lock tickets in place and prevent fans from transferring their tickets, effectively blocking all ticket buyers from reselling their tickets on sites like StubHub. But the downside was that, while many fans liked the idea of blocking scalpers, they didn’t like having their own tickets made non-transferable and found such restrictions inconvenient.
Ultimately, the tour decided to use Ticketmaster’s Verified Fan platform to screen out scalpers from the initial ticket sale, asking buyers to register in advance. Fans identified as legitimate fans were sent a code allowing them to buy tickets during the presale, which opened on Nov. 15, 2022, and subsequently crashed as millions of fans, scalpers and bots flooded the site.
Ticketmaster officials would later say the website meltdown was the result of a massive denial of service attack that disrupted the presale but didn’t defeat the security measures put in place to screen out scalpers from fans. As proof of its success, Ticketmaster announced that less than 5% of the approximately 5 million tickets sold for the tour ended up being listed on secondary markets.
It’s an impressive feat compared with other major tours in 2023 that took fewer steps to keep tickets off the secondary market and on average saw 20–30% of available tickets sold through StubHub.
While secondary tickets for tours like Beyonce’s and Coldplay’s were initially listed at major markups several times the face value, as more tickets moved through the secondary market prices dropped over time.
Swift’s Eras Tour saw the opposite effect. Eras tickets on StubHub were marked up 10 times face value, and then never dropped. The huge spike in price allowed resale sites, which collect a percentage of sales from both sellers and buyers, to make up the revenue it would have generated had they sold a higher volume of tickets, according to a StubHub rep.
Selling the tickets was easy, but getting them into the hands of fans proved difficult. StubHub noticed that orders for Eras tickets were experiencing an unusually high volume of delays and complaints from buyers. When company officials investigated the issue, they discovered that 83% of the Eras Tour tickets sold on its site were coming from new accounts with no record of past sales. The vast majority of those tickets are believed to have come from Swift fans, and they were making big bucks. A ticket with a face value under $150 could fetch $1,700, while tickets close to the stage were going for as high as $10,000.
While the outcome of the story is surprising, the fact that 83% of the available inventory of Eras Tour tickets on StubHub was sold by fans and not ticket brokers is a testament to how efficiently Swift and Ticketmaster were screening out professional scalpers, reducing their access to inventory to less than 1% of available tickets. While Swift would probably prefer that none of her tickets be flipped on the secondary market, at least she can take solace knowing that her fans, not professional scalpers, reaped most of the financial rewards.
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