DOJ and FTC Sue Ticket Reseller REPS & Co Over $120M BOTS Act Violations

The Department of Justice and the Federal Trade Commission are suing San Diego-based ticket resale firm REPS & Co, alleging it violated the FTC Act and Better Online Ticket Sales (BOTS) Act in an operation that generated more than $120 million in profit.

The claims:

• The DOJ and FTC allege that REPS & Co opened thousands of accounts across ticketing platforms such as Ticketmaster and AXS, and circumvented the platforms’ purchase limits.

• The complaint alleges that the company spent more than $1.3 billion to purchase over 18.6 million tickets for approximately 83,500 events, including concerts by Beyoncé, Post Malone, and Pitbull.

• The agencies allege REPS used roughly 1,300 accounts to purchase 7,624 tickets to one of Beyoncé’s Renaissance tour shows at Arrowhead Stadium on October 1, 2023, generating more than $833,000 in profit.

• In 2024 it’s alleged the company used 700 accounts to buy 5,430 tickets for Pitbull’s show at Empower FCU Amphitheater, earning more than $120,000 in profit.

• The agencies allege that REPS hired ticket buyers, mostly based in the Philippines, and employed tactics including VPNs and IP-masking tools to circumvent ticketing platforms’ security measures.

The defendants:

• The defendants include Chief Executive Ryan Pancheri, President Brian Archibald, and Chief Operating Officer Nicholas Totagrande.

What they said:

• Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection: “REPS’ entire business model is focused on trying to game the ticket-purchasing system in order to obtain as many tickets as possible to resell at inflated prices to consumers. 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.”