Ticket Broker Elite Events Settles FTC BOTS Act Allegations

Georgia-based ticket broker Elite Events will pay $300,000 in civil penalties to resolve allegations it violated the BOTS Act, as reported by Pollstar.

The allegations:

• The Federal Trade Commission (FTC) alleged that Elite Events – also doing business as SmartScalpers and via smartscalpers.com – used “unlawful tactics” to bypass ticket purchasing limits for 2,400 different events, then resold the tickets for profit.

• The FTC provided the example of a Metallica concert in Virginia, where it alleged Elite Events used 75 accounts to purchase 277 tickets.

• Other alleged unlawful measures include using hundreds of purchasing accounts created under fictitious names, or the names of employees; creating virtual credit card numbers; and using IP proxy services and multi-session browsers.

The penalties:

• Pollstar reports that the proposed order establishes civil penalties of $10.7 million, with all but $300,000 suspended.

• The full amount will be payable if it’s discovered the company’s principles – Kevin W. McKerley and Aaron L. Vera – were dishonest about their finances, as per Pollstar.

• The company is also barred from the behavior alleged in the FTC’s complaint.