Federal agencies are seeking civil penalties against a California ticket broker accused of turning mass purchases above event limits into more than $120 million in resale profit.
The Justice Department filed the case against REPS & Company and three executives on October 15 on the Federal Trade Commission’s referral. The complaint in the Southern District of California alleges violations of the Better Online Ticket Sales Act and the FTC Act.
According to the filing, REPS spent more than $1.3 billion on over 18.5 million tickets across at least 83,500 events. The government says the company bypassed controls designed to restrict how many tickets a purchaser could obtain.
The alleged methods included large numbers of accounts, virtual payment credentials and services that concealed users’ internet addresses. Those claims remain allegations; the filing does not establish that the company or its executives broke the law.
The named individuals are chief executive Ryan Pancheri, president Brian Archibald and chief operating officer Nicholas Totagrande.
The legal issue is not simply that tickets were resold at higher prices. The BOTS Act targets circumvention of technological measures used to enforce posted purchasing limits or protect ordering rules. The government must establish the alleged conduct and its entitlement to the relief requested.
The complaint asks for a permanent injunction, monetary relief within the court’s power and civil penalties. It does not announce a settlement or an existing court-ordered ban.
The FTC’s case record lists the proceeding as pending. Liability and any penalty remain for adjudication by the court.
Official filed complaint, United States v REPS & Company.
