Three New York-based ticket brokers are facing more than $31 million in civil penalties after the Federal Trade Commission (FTC) sued them for allegedly violating the Better Online Ticket Sales (BOTS) Act.

According to the FTC, lawsuits were filed against Concert Specials, Inc and Steven Ebrani; Cartisim Corporation and Simon Ebrani; as well as Just in Time Tickets, Inc and Evan Kohanian.

These ticket brokers allegedly illegally purchase more than 150,000 tickets for popular concerts and sporting events.

In the complaints, the FTC alleged that the defendants used ticket-buying software to automatically search and reserve tickets. They also used software to hide their IP addresses, utilized hundreds of fictitious Ticketmaster accounts and credit cards to avoid posted event tickets.

These New York-based ticket brokers made millions of dollars in illegal profits by reselling the tickets to consumers at higher prices, according to the Commission.

The BOTS Act prohibits the use of computer software like bots to unfairly manipulate the ticket system. In other words, it is illegal to circumvent the security measures, control systems, and other technological controls placed by a ticket issuer on its website to enforce posted purchasing limits for even tickets and to maintain the integrity of ticket purchasing order status.

Additionally, it is illegal to sell tickets that were obtained in violation of the BOTS Act. The FTC and State Attorneys General have authority to enforce the law, which applies to public concerts, theater performances, sporting events, and similar events at venues with a seating capacity of over 200. Congress enacted the law in 2016.

In a statement, FTC Bureau of Consumer Protection Director Andrew Smith, said, “These ticket brokers used bots and other technical tricks to scoop up thousands of tickets to popular events as soon as they went on sale. Not only does this deprive loyal fans of the chance to see their favorite performers and shows; it is against the law.”

FTC's proposed orders and judgments against the accused ticket brokers

The Commission's proposed orders and judgments against the defendants for civil penalties are as follows:

• $16 million against Concert Specials, Inc. and Steven Ebrani, which is partially suspended due to an inability to pay. They will pay $1,565,527.41.
• $11.2 million against Just In Time Tickets, Inc. and Evan Kohanian, which is partially suspended due to an inability to pay. They will pay $1,642,658.96.
• $4.4 million against Cartisim Corp. and Simon Ebrani, which is partially suspended due to an inability to pay. They will pay $499,147.12.

The proposed orders prohibit the accused ticket brokers from further violations of the BOTS Act including using software to circumvent ticket limits, using false identities to purchase tickets, or using any bots to facilitate ticket purchases.

"The settlements our staff negotiated with these alleged BOTS Act violators make clear that serious consequences will befall those who cheat fans out of a fair shot to secure tickets to live events...These first three BOTS Act enforcement actions are only a first step in fixing the broken markets for tickets to live events...," said Acting FTC Chairwoman Rebecca Kelly Slaughter.

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