Key Investment Group (KIG) is asking a federal judge to throw out a recently filed Federal Trade Commission (FTC) lawsuit against the ticket resale company over alleged violations of the Better Online Ticket Sales (BOTS) Act.
In August, the FTC filed suit against KIG, alleging the company violated the BOTS Act when it purchased thousands of Taylor Swift tickets for her 2023-2024 Eras Tour and resold them for more than $1 million in profit. The lawsuit was filed days before a similar complaint was filed against Ticketmaster for allegedly refusing to enforce its own rules against scalpers and allowing unrestricted resale on its platform. Since then, Ticketmaster has made changes to its resale policies and, like KIG, has argued that the FTC is misapplying the BOTS Act.
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The FTC sued KIG in August, alleging the Colorado-based ticket resale operation used networks of accounts, IP masking, SIM boxes and other technical tools to evade Ticketmaster’s ticket-purchasing limits and acquire hundreds of high-demand tickets for resale. The agency claims these tactics “circumvented” the ticketing giant’s security controls in violation of the BOTS Act.
KIG is the first of the two firms to file a motion to dismiss. In a sweeping 36-page missive filed on Nov. 24, KIG attorney Bezalel A. Stern with law firm Manatt, Phelps and Phillips argues that the FTC’s complaint attempts to regulate long-established broker practices — like using multiple IP addresses to buy tickets or operating dozens of Ticketmaster accounts — that do not involve bots.
“KIG does not use bots. KIG does not circumvent any security measure,” the company tells the court, arguing the FTC is attempting to impose an unprecedented interpretation of the law that contradicts the law’s legislative history and the FTC’s own prior guidance.
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Stern stresses that the BOTS Act was explicitly drafted to stop “malicious computer code” that lets bot operators overwhelm ticketing websites and jump ahead of human buyers. KIG argues that since it employs human buyers — not automated scripts — the law does not apply. “Without the use of bots, there can be no BOTS Act violation,” KIG claims in the filing.
KIG’s brief also turns the FTC’s own evidence against it. In its lawsuit, the FTC included Ticketmaster records showing the ticketing company tracked KIG’s accounts and purchasing practices — even those created under alternate names — and knowingly allowed them. In a 2024 Ticketmaster email cited by the FTC, a Ticketmaster representative tells KIG that purchases made across different accounts are “within guidelines” so long as each individual account respects the posted per-account ticket limit. KIG’s motion argues that email destroys the FTC’s theory of unlawful “circumvention,” because ticket brokers at KIG cannot “avoid,” “evade” or “deceive” Ticketmaster’s controls when Ticketmaster explicitly authorizes the behavior.
KIG also highlights a contradiction between the FTC’s case against it and the agency’s separate September lawsuit against Ticketmaster and Live Nation. In that parallel case, the FTC alleges the ticketing company “knowingly allows, and in fact encourages, brokers to use multiple Ticketmaster accounts.” KIG argues the FTC cannot simultaneously claim Ticketmaster encourages multi-account purchasing while accusing KIG of “circumventing” the very same rules.
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The filing emphasizes that the FTC never alleges that KIG purchased tickets “within seconds” or at speeds indicative of automated software — the hallmark of bot activity described in past enforcement cases. According to KIG, the FTC is trying to convert everyday reseller practices into federal violations simply because they involve scale.
The FTC’s cited evidence — including a bank audit, news reports and previous consent decrees involving actual bot operators — does not establish that KIG knew its conduct was illegal under the BOTS Act, KIG’s motion claims.
Elsewhere in the motion, KIG alleges that the case began with a politically charged push by the White House to crack down on scalping. The company notes that minutes after President Trump — joined by Kid Rock — signed a March 2025 executive order demanding aggressive enforcement of the BOTS Act, the FTC sent KIG a draft complaint threatening litigation unless the company admitted wrongdoing.
KIG says the agency is now “expanding the BOTS Act far beyond its written and intended scope,” and warns that if the FTC’s theory were adopted, “every person or company who purchases tickets using more than one account” could be accused of violating federal law.
U.S. District Judge George L. Russell III will now consider the motion and whether to dismiss the government’s case before discovery begins. If not, the FTC will proceed to try to prove that KIG’s coordinated multi-account strategy amounted to illegal bot-level activity.
