The Federal Trade Commission (FTC) has initiated a lawsuit against REPS & Company Inc., alleging that the ticket broker engaged in unlawful tactics to bypass ticket purchase limits set by issuers. This complaint, filed by the Department of Justice, claims that REPS purchased millions of tickets to high-demand events, generating significant profits through resale.

According to the complaint, REPS, led by CEO Ryan Pancheri, President Brian Archibald, and COO Nicholas Totagrande, violated the Better Online Ticket Sales Act. This law prohibits circumventing security measures that enforce ticket purchase limits. Since 2022, REPS has allegedly used various illegal methods to exceed these limits, acquiring over 18.5 million tickets for more than 83,500 events, spending over $1.3 billion and earning at least $120.8 million in profit.

The FTC's Bureau of Consumer Protection Director, Christopher Mufarrige, emphasized that companies profiting from inflated ticket prices at the expense of consumers will face scrutiny and action. Ticket issuers like Ticketmaster and AXS have implemented measures to prevent such violations, including monitoring account verifiability and limiting ticket quantities.

The complaint details how REPS employed a team, primarily based in the Philippines, to execute these unlawful tactics. This included creating multiple accounts using false identities and employing technology to mask their activities. Internal documents reveal discussions among REPS officials on strategies to avoid detection by ticket issuers.

The FTC's referral of the complaint to the DOJ was unanimously approved, and the case will be adjudicated in the U.S. District Court for the Southern District of California.