FTC, DOJ Settle With Companies for $3.7M Over Ticket Sale Allegations

Three companies bought tens of thousands of tickets through Ticketmaster and resold them for millions, “often at significant markups,” DOJ and the FTC alleged in three settlements totaling more than $3.7 million. It was the first enforcement action under the Better Online Ticket Sales Act, which prohibits brokers from reselling tickets at inflated costs. Just in Time Tickets, Concert Specials and Cartisim violated the Bots Act, circumventing Ticketmaster’s “restrictions on users holding multiple accounts by creating accounts in the names of family members, friends, and fictitious individuals, and using hundreds of credit cards,” DOJ said. “They also allegedly used ticket bots to fool tests designed to prevent nonhuman visitors.” Defendants used programs to conceal their IP addresses, DOJ said. A court levied civil penalties of $11.2 million against Just in Time Tickets, $16 million against Concert Specials and $4.4 million against Cartisim. The penalties will be suspended if the defendants pay $1.6 million, $1.6 million and about $500,000, respectively, while adhering to other terms, DOJ said: “Due to their inability to pay, the judgment will be partially suspended, requiring them to pay $3.7 million.” An attorney for the companies declined comment. “Not only does this deprive loyal fans of the chance to see their favorite performers and shows, it is against the law,” said FTC Consumer Protection Bureau Director Andrew Smith.