Judge Denied Ticketmaster Motion to Dismiss FTC Lawsuit
A federal court will allow the FTC to proceed with claims that Ticketmaster violated the BOTS Act.
Updated on Sept. 29, 2026 in Financial Crime
Live Poll
Should large ticketing platforms be held legally liable for the actions of scalpers on their sites?
A federal judge denied a motion by Ticketmaster to dismiss an FTC lawsuit alleging the company enabled brokers to bypass ticket purchase limits. The court ruled that the litigation may now move forward, including claims regarding deceptive drip pricing practices.
Why it matters
The lawsuit alleges that Ticketmaster ignored security circumvention to profit from resale fees on its secondary market platform. The decision marks a significant step in federal oversight of ticketing practices and the enforcement of the BOTS Act.
The federal court denied Ticketmaster's motion to dismiss on September 28, 2026, allowing the FTC case to proceed to discovery. The legal action includes charges of BOTS Act violations and deceptive pricing practices.
The players
Federal Trade Commission
The independent agency of the United States government is responsible for protecting consumers and promoting competition.
Ticketmaster
The major ticket sales and distribution company is owned by Live Nation and manages event ticketing for venues nationwide.
Key Investment Group
The ticket brokerage firm is a defendant in the FTC lawsuit for allegedly using fake accounts to purchase large ticket volumes.
The details
The FTC claims that Ticketmaster enabled brokers to use thousands of fake accounts to circumvent security measures and purchase limits. Internal communications cited by regulators suggest that executives intentionally chose not to enforce tools designed to stop broker abuse.
Timeline
The FTC filed the lawsuit against Ticketmaster one year ago.
A judge allowed the case against Key Investment Group in April 2026.
The judge issued the order denying the motion to dismiss on September 28, 2026.
Legal Context
This case follows a separate antitrust ruling where a jury determined that Ticketmaster suppressed market competition. It reflects a broader judicial shift toward increased regulatory scrutiny of the dominant ticketing marketplace.
The progression of this case could eventually lead to more transparent pricing and stricter enforcement of purchase limits during ticket sales. Residents may see changes to how major ticketing platforms manage security and broker access in the future.
The takeaway
Consumers should remain aware that ticketing platforms are under heightened regulatory scrutiny regarding their secondary market practices. Monitoring future court updates may provide clarity on potential changes to ticket buying security measures.
What happens next
The case will now enter an evidence discovery phase, which precedes a potential trial unless both parties reach a settlement agreement.
Further reading
For more information on ongoing legal oversight in the industry, visit Financial Crime.
Live Poll
Should large ticketing platforms be held legally liable for the actions of scalpers on their sites?
