Three sellers of sports memorabilia have filed a lawsuit against TikTok and Fanatics, claiming their TikTok Shop accounts faced trademark and gambling violations, and were advised that signing with Fanatics would restore their accounts. Despite signing agreements with Fanatics, two of the sellers remain banned.
According to the lawsuit filed by MVP Breaks, by August 2025, the company was generating approximately $475,000 monthly from sales of signed NFL helmets and card breaks on TikTok Shop, boasting one of the highest follower counts in the sports memorabilia category. However, by September 2025, revenue plummeted to $283,000 due to multiple account strikes for alleged trademark and intellectual property violations, culminating in a permanent ban.
The situation described by MVP Breaks reflects a broader issue highlighted in several antitrust lawsuits filed against TikTok and Fanatics in the Central District of California. The sellers assert that they were informed that the path to regain access to TikTok Shop involved partnering with Fanatics.
Three cases, including those from MVP Breaks, Quad City Breaks from Minnesota, and Dorm Dudes from Ohio, detail similar experiences, although none of the claims have been adjudicated in court.
Reports have emerged regarding TikTok Shop's stricter regulations on card breaks, alongside legal assertions that such activities may constitute illegal lotteries, contributing to the growing trend of gambling in American culture.
Breakers, who are livestream sellers engaging in the opening of sealed card packs or selling autographed memorabilia, have experienced rapid growth on TikTok Shop. David Skalsky, who operated Quad City Breaks, reported earnings of up to $200,000 monthly and even relocated his family due to his success. Unfortunately, his LLC later filed for Chapter 7 bankruptcy, which he attributes to the actions of TikTok and Fanatics.
Dorm Dudes, founded by Ashland University student Zach Balo, reported sales of approximately $3.2 million in Q4 2024, surpassing $3 million in its first year of operations.
The sellers claim that the strikes against their accounts were primarily due to trademark infringement. For instance, Dorm Dudes received a violation notice referencing “trademark infringement” involving the Green Bay Packers. MVP Breaks also noted allegations of gambling, asserting compliance with TikTok's published gambling policies.
Each complaint highlights allegations of gambling leading to violations and permanent bans, although the sources of these allegations remain unspecified.
All three sellers have identified Steve Halupka, TikTok Shop’s US Sports Collectibles Team Lead, as the main contact. MVP Breaks alleges that Halupka pressured them into signing an exclusive deal with Fanatics to restore their account. In a text conversation around October 28, 2025, Halupka and another TikTok representative suggested contacting “Ethan Cole” to finalize the agreement with Fanatics. Halupka indicated that Fanatics was facilitating connections between sellers and authentic products, while also attributing the account issues to the NFL.
Skalsky recounted a similar interaction, where Halupka indicated that the NFL was responsible for flagging his account and suggested that signing with Fanatics would lead to reinstatement.