Do the Feds Need to Stop Automated Online Ticket Scalping? (H.R. 5104)

What is H.R. 5104?

(Updated November 13, 2017)

This bill — known as the Better Online Ticket Sales or BOTS Act — would make it illegal to use or sell software to buy tickets online to events by circumventing security measures in order to then sell (or scalp) those tickets. It would prevent scalpers from using automated programs to buy tickets to concerts, games, and other events faster than humans can so that they can be re-sold elsewhere at a profit.

The Federal Trade Commission (FTC) would be tasked with enforcing these prohibitions, which would be considered “unfair or deceptive practices” by the Commission. People who are wronged by violations of these bans would have the ability to file a civil suit for damages plus $1,000 for each distinct use or sale of software, or sale of a ticket, that caused injury in addition to reasonable attorney’s fees.

Argument in favor

Automated ticket scalping programs make it harder and more expensive for average fans to attend the events they want. It’s an unfair business practice, and this bill would let the FTC put a stop to it.

Argument opposed

People who want to go to events can still buy tickets after automated scalping programs have bought them for resale, they just have to pay a little bit more. The people running those programs deserve their profit.

Impact

People buying tickets online to events they wish to attend; people running automated ticket scalping systems; and the FTC.

Cost of H.R. 5104

The CBO estimates that enacting this bill would cost less than $500,000 per year.

Additional Info

In-Depth: Sponsoring Rep. Marsha Blackburn (R-TN) introduced this bill to protect consumers’ access to online ticket purchases by banning automated scalping systems:

“Scalpers have been taking advantage of computer hacking software (BOTS) to circumvent restrictions put in place by online ticketing agents for years. They purchase tickets in mass quantities and sell them at a drastically inflated rate, which unfairly prices most fans of live entertainment out of the market… The BOTS Act will allow FTC enforcement and a private right of action to be brought against proven online scalpers. It is time to end these anti-consumer tactics and level the online ticket playing field for fans of live entertainment.”

This legislation was passed by the House Energy and Commerce Committee on a voice vote, and it currently has the bipartisan support of 18 cosponsors in the House — evenly divided between Republicans and Democrats.

Media:

• Sponsoring Rep. Marsha Blackburn (R-TN) Press Release
• CBO Cost Estimate
• CSO
• The Hill
• The Tennessean