Penalty Amount
$300,000
The FTC alleged that Elite Events and Tickets LLC, doing business as Smart Scalpers, violated the Better Online Ticket Sales Act by circumventing security measures to bypass ticket purchase limits for over 2,400 events, reselling tickets at a profit. The proposed order requires payment of $300,000 (with a total penalty of $10.7 million partially suspended) and permanently prohibits the company and its owners from engaging in such circumvention tactics.
The order imposes a civil penalty of $300,000 (with a total penalty of $10.7 million partially suspended due to inability to pay) and permanently prohibits Elite Events, Kevin W. McKerley, and Aaron L. Fera from circumventing security measures, using multiple accounts, IP addresses, or multisession browsers to bypass ticket purchase limits, and from purchasing tickets using payment methods in names other than their own.
In-house legal teams should review vendor agreements with ticket brokers, resellers, and any third-party that purchases tickets on their behalf. They should ensure contracts include explicit compliance with the Better Online Ticket Sales Act and other applicable laws, prohibit circumvention of security measures or purchase limits, require representations and warranties regarding lawful ticket acquisition, and include indemnification for violations. Additionally, they should review their own terms of service and purchase limits to ensure they are enforceable and include anti-bot and anti-circumvention provisions.
Entity
Elite Events and Tickets LLC
Industry
EntertainmentOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/07/ftc-takes-action-against-elite-events-bypassing-ticket-purchase-limits-violation-better-online
EliteEvents Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/EliteEvents-Complaint.pdf
EliteEvents StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/EliteEvents-StipulatedOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Elite Events and Tickets LLC, which also does business as Smart Scalpers or smartscalpers.com"
"imposes more than $10.7 million in civil penalties against Elite Events, Fera and McKerley, which will be partially suspended after payment of $300,000"
"violated the Better Online Ticket Sales Act"
"circumvent a security measure, access control system, or other technological control or measure on an Internet website or online service that is used by the ticket issuer to enforce posted event ticket limits"
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$1.9M
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