TikTok, Fanatics, and the NFL are facing a federal lawsuit alleging they conspired to eliminate independent sports memorabilia sellers from TikTok's livestream marketplace and redirect their customers to Fanatics.
Filed in the U.S. District Court for the Central District of California by David Allan Skalsky and QCBRIPNSHIP LLC, which operated under the name Quad City Breaks, the complaint asserts that the defendants worked together to remove or suppress "breakers"—sellers who livestream the opening of sealed boxes containing sports cards or memorabilia.
According to the lawsuit, the market for such collectibles grew rapidly during the COVID-19 pandemic, enabling thousands of small businesses to operate on platforms like TikTok. The complaint alleges that TikTok, its parent company ByteDance, Fanatics, and several NFL entities falsely suggested Fanatics held exclusive rights to sell broad categories of officially licensed NFL merchandise. Skalsky maintains that independent sellers had legally acquired authentic products and were entitled to resell them.
The "object of the conspiracy was to exclude independent memorabilia sellers from TikTok unless they agreed to sell Fanatics’ merchandise exclusively," the complaint states. Attorney Ariel Givner, commenting on the lawsuit, described it as a dispute over control of the rapidly expanding sports collectibles market, noting that "big players allegedly used TikTok’s power and NFL licensing muscle to control the market and shut out competition."
The lawsuit claims that independent sellers received threatening communications, lost access to their accounts, and saw their accumulated followers and platform visibility erased. It further alleges that TikTok offered some sellers a path back to the platform on the condition that they purchase merchandise exclusively through Fanatics and pay the company a percentage of their sales.
Skalsky reported that Quad City Breaks once generated up to $200,000 per month. Repeated account bans starting in late 2024 allegedly devastated the business, leading to its bankruptcy and the loss of his family's home. The lawsuit argues that these alleged actions harmed consumers by reducing choice and alternative distribution channels, while concentrating market control within Fanatics-affiliated businesses.
Claims in the lawsuit include violations of the Sherman Act, Clayton Act, California Cartwright Act, and state unfair competition laws. Skalsky is also alleging false advertising, interference with business relationships, and breach of the covenant of good faith and fair dealing. He is seeking financial damages, the restoration of his TikTok account and its previous algorithmic standing, cancellation of alleged exclusive arrangements, and an injunction against the practices.
The case centers on whether TikTok, Fanatics, and the NFL improperly leveraged platform access and licensing relationships to eliminate legitimate competitors. These claims are allegations and have not been proven in court. No formal responses from TikTok, Fanatics, or the NFL were included in the provided materials.