US Judge Rules BOTS Act Applies to People, Not Just Software, in FTC Case Against Ticket Reseller

Key facts

• Key Investment Group (KIG) bought at least 379,776 tickets from Ticketmaster between Nov. 1, 2022 and Dec. 30, 2023, spending about $57 million and reselling for roughly $64 million.
• The FTC alleges KIG made more than $5.6 million reselling tickets on the secondary market, including over $1 million from Taylor Swift's Eras Tour and $20,000 from a single Bruce Springsteen show.
• U.S. District Judge George L. Russell III ruled that the BOTS Act 'unambiguously applies to any person and not just to bots,' rejecting KIG's narrow interpretation.
• The FTC claims KIG created or obtained more than 13,000 Ticketmaster accounts, used virtual credit cards, proxy IP addresses, SIM banks, and recruited third parties in Baltimore to open accounts.
• Judge Russell denied KIG's motion to dismiss the FTC lawsuit but also denied the FTC's motion to dismiss KIG's countersuit, allowing both to proceed toward discovery.
• Maryland Sen. Dawn Gile, who sponsored state anti-gouging legislation in 2025, welcomed the ruling, hoping it deters scalpers profiting from fans and artists.

FTC’s Case Against Ticket Reseller Survives Early Challenge

A federal judge in Maryland has cleared the way for the Federal Trade Commission to pursue a high-profile lawsuit against a Pikesville-based ticket broker accused of using deceptive tactics to bypass Ticketmaster’s purchase limits. The ruling, issued Tuesday by U.S. District Judge George L. Russell III, denies Key Investment Group’s motion to dismiss the case, allowing the FTC’s claims to proceed into evidence discovery. The decision keeps alive a legal battle that could reshape how the Better Online Ticket Sales Act is enforced against scalpers who rely on human-run multi-account schemes rather than automated bots.

Judge Rejects Narrow Reading of BOTS Act

KIG had argued that the BOTS Act only covers automated software, not human-operated strategies like creating thousands of fake accounts. But Judge Russell found that the statute’s language applies to 'any person' and is not limited to bots, noting that the law’s acronym does not control its plain meaning. 'Put simply, the court is not persuaded by defendants’ narrow reading of the statute,' he wrote. The ruling also dismissed KIG’s claim that Ticketmaster does not enforce its own security protocols, stating that such issues are best suited for summary judgment and discovery.

Allegations of Massive Ticket Hoarding and Resale

According to the FTC’s complaint, KIG and affiliated companies purchased at least 379,776 tickets from Ticketmaster between November 2022 and December 2023, spending approximately $57 million and reselling portions for roughly $64 million. The agency alleges that the operation created or obtained more than 13,000 Ticketmaster accounts, used virtual credit cards, proxy IP addresses, and SIM banks, and even recruited third parties in Baltimore to open accounts for payment. The FTC says KIG made over $5.6 million reselling tickets, including more than $1 million from Taylor Swift’s Eras Tour and $20,000 from a single Bruce Springsteen show at MetLife Stadium.

Defendants Push Back, Countersuit Allowed

KIG has maintained that it did not use automated bots and that the BOTS Act was intended to target software, not human-run buying strategies. The company argues that the FTC’s interpretation threatens the entire secondary ticket market model. In a partial victory for KIG, Judge Russell separately denied the FTC’s motion to dismiss a countersuit filed by the reseller challenging the validity of the agency’s investigation and enforcement. The judge said KIG 'could use a favorable ruling in this case as a defense in the FTC’s lawsuit.' Both cases will now move forward simultaneously.

Wider Implications for Ticketing Industry

Legal observers say the decision could extend BOTS Act enforcement beyond strictly automated cases, putting brokers that rely on multi-account tactics squarely on the FTC’s radar. The case unfolds amid national scrutiny of ticketing practices, including separate FTC and Justice Department actions and congressional pressure following high-profile on-sale failures. Maryland Sen. Dawn Gile, who sponsored state anti-gouging legislation in 2025, welcomed the ruling, expressing hope it deters scalpers 'making a lot of money off of fans and artists.' The outcome could influence future crackdowns and new state laws aimed at curbing runaway ticket gouging.

Next Steps: Discovery and Potential Trial

For now, the FTC’s complaint and KIG’s preemptive countersuit will proceed in federal court, setting the stage for months of motions, document production, and depositions. The cases could end in a settlement or a full-blown trial. Fans in Baltimore and beyond are unlikely to see immediate changes in ticket availability or resale prices, but the ruling marks a significant step in defining the legal boundaries between lawful reselling and illegal scalping. How the courts ultimately interpret the BOTS Act could reset enforcement priorities for years to come.

The bottom line

• A federal judge ruled that the BOTS Act applies to individuals, not just automated bots, allowing the FTC to pursue a case against a ticket reseller using fake accounts and IP spoofing.
• The FTC alleges Key Investment Group bought nearly 380,000 tickets worth $57 million and resold them for $64 million, making over $5.6 million in profit.
• The reseller created or obtained more than 13,000 Ticketmaster accounts and used proxies, virtual cards, and SIM banks to bypass purchase limits.
• The judge denied KIG’s motion to dismiss but also allowed KIG’s countersuit challenging the FTC’s investigation to proceed.
• The case could expand BOTS Act enforcement beyond automated scalping and influence future state and federal regulations on ticket reselling.
• Maryland Sen. Dawn Gile welcomed the ruling, hoping it deters scalpers who profit at the expense of fans and artists.