Ticket Reseller KIG Files Pre-emptive Lawsuit in BOTS Act Crackdown

With the Federal Trade Commission (FTC) threatening “civil penalties in the tens of millions of dollars” against Key Investment Group (KIG) and other secondary ticket sellers for allegedly violating the BOTS Act, KIG has responded by filing its own pre-emptive lawsuit.

The details:

• KIG filed its lawsuit last week in the District Court for the District of Maryland.

• It contends that the FTC’s claims that it has been violating the BOTS Act are inaccurate.

• It states it does not use bots to purchase tickets, but instead relies on “multiple accounts to secure tickets.”

• It adds: “Plaintiffs’ behavior mirrors the behavior of the entire legitimate secondary-ticket market (ie. those businesses who do not use bots to purchase tickets).”

• Such actions are not, it contends, in violation of the BOTS Act.

Industry support:

• Various industry bodies and identities have come out in support of the FTC.

• Artist manager Randy Nichols posted on LinkedIn: “KIG’s model involves using hundreds of Ticketmaster accounts, pseudonyms, and remote browsing tools to scoop up tickets and flip them on resale platforms. They claim it’s legal because they didn’t use ‘bots.’ But let’s be honest: it’s functionally no different.”

• Nathaniel Marro, Executive Director of the National Independent Talent Organization (NITO), has also released a statement: “If KIG doesn't think multi-account behavior violates the BOTS Act, they should go back and read the law. NITO is encouraged to see the FTC continue to crack down on BOTS Act violators and will happily assist their efforts any way we can.”

• The FTC is yet to comment.