The Federal Trade Commission (FTC) has taken action against Elite Events and its operators for circumventing ticket purchase limits, resulting in a $300,000 civil penalty. The company allegedly used unlawful tactics to acquire tickets to high-demand events and resold them at inflated prices.

According to the FTC's complaint, Elite Events, also known as Smart Scalpers, violated the Better Online Ticket Sales Act by employing various methods to bypass ticket purchasing limits set by ticket issuers. This included using multiple accounts and virtual credit cards to purchase tickets for over 2,400 events, significantly profiting from reselling them on the secondary market.

The complaint highlighted specific instances, such as the purchase of 277 tickets to a Metallica concert, where Elite Events used 75 accounts to exceed the limit of six tickets per purchaser. The tickets were bought at prices ranging from $50 to $270 and resold for $100 to $400 each.

Ticket issuers like Ticketmaster have implemented security measures to prevent such violations, including monitoring purchases for unique identifiers. However, Elite Events allegedly employed hundreds of agents and sophisticated tactics to evade these controls.

The FTC's proposed order includes a total of $10.7 million in civil penalties, which will be partially suspended after the initial $300,000 payment due to the company's financial situation. The order also permanently prohibits Elite Events and its operators from engaging in similar unlawful activities in the future.