Court Rules
All enforcement actions
SettlementMedium Risk

FTC Takes Action Against Elite Events for Bypassing Ticket Purchase Limits in Violation of Better Online Ticket Sales Act

Elite Events and Tickets LLCJuly 27, 2026Federal Trade Commission

Penalty Amount

$300,000

Summary

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.

Remedy

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.

Monetary PenaltyInjunction

Contract Impact

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.

Contract Search Terms

ticket purchase limitscircumvention of security measuresBetter Online Ticket Sales Act complianceIP proxy servicesmulti-session browsersvirtual credit card accountsticket resalecompliance with applicable lawsanti-circumvention clauseticket broker agreement

Laws Cited

Better Online Ticket Sales Act
15 U.S.C. 45c

Violation Types

Entity Details

Entity

Elite Events and Tickets LLC

Industry

Entertainment

Official Sources

Source Evidence

Entity Name
"Elite Events and Tickets LLC, which also does business as Smart Scalpers or smartscalpers.com"
Fine Amount
"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"
Laws Cited
"violated the Better Online Ticket Sales Act"
Violation Types
"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"

Related Enforcement Actions

FTC

Amazon.com, Inc.

$2.5B

A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.

FTC

Amway Corp.

$225.0M

The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.

FTC

FleetCor Technologies Inc. (now Corpay Inc.)

$100.0M

FleetCor Technologies Inc. (now Corpay Inc.) and its CEO Ronald Clarke agreed to pay $100 million to settle an FTC administrative action alleging the company charged small business customers hidden and unauthorized fees for fuel cards and misrepresented gas savings, fraud-control features, and fees. A federal district court granted the FTC summary judgment on all counts in 2023, and a federal appeals court upheld that judgment and the permanent injunction in 2026. The settlement funds will be used to provide redress to harmed business customers.

FTC

Automobile industry (auto dealers) - no named respondent; industry-wide guidance publication

FTC staff published FAQs on price transparency to help the automobile industry comply with the FTC Act, reiterating that an advertised vehicle price must be the actual price any consumer can pay, excluding only government-required charges. The guidance follows warning letters the FTC sent to 97 auto dealership groups earlier in 2026 and signals continued litigation against dealers that advertise one price but charge more through undisclosed fees. No specific entity was charged and no penalty was imposed.

FTC

Federal Trade Commission

The FTC rescinded its 2021 Policy Statement on Breaches by Health Apps and Other Connected Devices, which had purported to apply the Health Breach Notification Rule to health apps and connected devices that collect consumer health information. The rescission follows the Commission's 2024 update to the Health Breach Notification Rule, which already covers health apps and connected devices like fitness trackers, and implements an executive order directing agencies to eliminate obsolete guidance documents. No company was charged or penalized; this is a deregulatory action.

FTC

Humboldt Merchant Services

$12.0M

The FTC alleged that payment processor Humboldt Merchant Services knowingly processed payments for more than 1,000 shell merchant entities serving as fronts for fraudulent companies engaged in unauthorized billing scams, despite red flags including chargeback rates nearly 10 times higher than card-brand thresholds. Under the proposed stipulated order filed in the U.S. District Court for the Eastern District of Michigan, Humboldt will pay $12 million for consumer redress and is permanently banned from processing payments for merchants with a heightened risk of potential fraud.