[Congressional Record Volume 162, Number 137 (Monday, September 12, 2016)]
[House]
[Pages H5292-H5295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BETTER ON-LINE TICKET SALES ACT OF 2016
Mr. BURGESS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 5104) to prohibit, as an unfair and deceptive act or
practice in commerce, the sale or use of certain software to circumvent
control measures used by Internet ticket sellers to ensure equitable
consumer access to tickets for any given event, and for other purposes,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5104
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Better On-line Ticket Sales
Act of 2016'' or the ``BOTS Act''.
SEC. 2. UNFAIR AND DECEPTIVE ACTS AND PRACTICES RELATING TO
USE OF TICKET ACCESS CIRCUMVENTION SOFTWARE.
(a) Sale of Software.--It shall be unlawful for any person
to sell or offer to sell, in commerce, any computer software,
or part thereof, that--
(1) is primarily designed or produced for the purpose of
circumventing a technological measure that limits purchases
made via a computerized event ticketing system;
(2) has only limited commercially significant purpose or
use other than to circumvent a technological measure that
limits purchases made via a computerized event ticketing
system; or
(3) is marketed by that person for use in circumventing a
technological measure that limits purchases made via a
computerized event ticketing system.
(b) Use of Software.--It shall be unlawful for any person
to use any computer software, or part thereof, described in
subsection (a) of this section, to purchase an event ticket
via a computerized event ticketing system in violation of the
system operator's posted limits on the sequence or number of
transactions, frequency of transactions, or quantity of
tickets purchased by a single user of the system, or on the
geographic location of any transactions.
(c) Resale of Tickets.--It shall be unlawful for any person
to engage in the practice of reselling in commerce, event
tickets acquired in violation of subsection (b) of this
section if the person either--
(1) participated directly in or had the ability to control
the conduct in violation of subsection (b); or
(2) knew or should have known that the event tickets were
acquired in violation of subsection (b).
(d) Definitions.--As used in this section--
(1) the term ``computerized event ticketing system'' means
a system of selling event tickets, in commerce, via an online
interactive computer system that effectively limits the
sequence or number of ticket purchase transactions, frequency
of ticket purchase transactions, quantity of tickets
purchased, or geographic location of any ticket purchase
transactions;
(2) the term ``event ticket'' means a ticket entitling one
or more individuals to attend, in person, one or more events
to occur on specific dates, times, and geographic locations;
and
(3) to ``circumvent a technological measure'' means to
avoid, bypass, remove, deactivate, or impair a technological
measure, without the authority of the computerized event
ticketing system operator.
(e) Rule of Construction.--Notwithstanding the prohibitions
set forth in subsections (a) and (b), it shall not be
unlawful under this section to create or use any computer
software, or part thereof, to--
(1) investigate or further the enforcement or defense of
any alleged violation of this section; or
(2) engage in research necessary to identify and analyze
flaws and vulnerabilities of a computerized event ticketing
system, if these research activities are conducted to advance
the state of knowledge in the field of computer system
security or to assist in the development of computer security
products.
(f) Enforcement by the Federal Trade Commission.--A
violation of subsection (a), (b), or (c) shall be treated as
an unfair and deceptive act or practice in violation of a
regulation issued under section 18(a)(1)(B) of the Federal
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(g) Enforcement by States.--
(1) Authorization.--Subject to paragraph (2), in any case
in which the attorney general of a State has reason to
believe that an interest of the residents of the State has
been or is threatened or adversely affected by a violation of
subsection (a), (b), or (c), the attorney general of the
State may, as parens patriae, bring a civil action on behalf
of the residents of the State in an appropriate district
court of the United States to obtain appropriate relief.
(2) Rights of federal trade commission.--
(A) Notice to ftc.--
(i) In general.--Except as provided in clause (iii), the
attorney general of a State shall notify the Federal Trade
Commission in writing that the attorney general intends to
bring a civil action under paragraph (1) before initiating
the civil action against a person for a violation of
subsection (a), (b), or (c).
(ii) Contents.--The notification required by clause (i)
with respect to a civil action shall include a copy of the
complaint to be filed to initiate the civil action.
(iii) Exception.--If it is not feasible for the attorney
general of a State to provide the notification required by
clause (i) before initiating a civil action under paragraph
(1), the attorney general shall notify the Commission
immediately upon instituting the civil action.
(B) Intervention by the ftc.--The Federal Trade Commission
may--
(i) intervene in any civil action brought by the attorney
general of a State under paragraph (1); and
(ii) upon intervening, be heard on all matters arising in
the civil action, and file petitions for appeal of a decision
in the civil action.
(3) Pending action by the federal trade commission.--If the
Federal Trade Commission institutes a civil action or an
administrative action with respect to a violation of
subsection (a), (b), or (c), the attorney general of a State
may
[[Page H5293]]
not, during the pendency of such action, bring a civil action
under paragraph (1) against any defendant named in the
complaint of the Commission for the violation with respect to
which the Commission instituted such action.
The SPEAKER pro tempore (Mr. Kelly of Mississippi). Pursuant to the
rule, the gentleman from Texas (Mr. Burgess) and the gentlewoman from
Illinois (Ms. Schakowsky) each will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. BURGESS. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days in which to revise and extend their remarks and
insert extraneous materials into the Record on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. BURGESS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of several bipartisan bills that
have resulted from the focus on the industries creating the jobs of
tomorrow within the Subcommittee on Commerce, Manufacturing, and Trade.
In particular, we examined the Federal Trade Commission's oversight
of and impact on innovation. We considered several bills to streamline
the Federal Trade Commission's authority in emerging areas. These bills
build on the Federal Trade Commission's work in overseeing the most
cutting edge industries as well as threats to consumer protection
presented, in part, by technological advances.
Mr. Speaker, the Federal Trade Commission has a good model for
policing unfair and deceptive practices in economic sectors driven by
emerging technology. We highlighted this in our Disrupters Series of
hearings, focusing on new and game-changing technologies. The Federal
Trade Commission operates under a flexible framework, and this session
we sought to make improvements.
Before I get into the bills we consider today, I want to highlight
H.R. 5510, the Federal Trade Commission Process and Transparency Reform
Act, which would strengthen the Federal Trade Commission's model by
ensuring it has the right tools, the right restraints, and, of course,
transparency.
This legislation is the sum of several measures from a number of
members of the subcommittee who each contributed some targeted reforms
to ensure that the Federal Trade Commission continues to strike the
right balance between mitigating consumer harm and fostering innovative
products and services.
The Federal Trade Commission was last reauthorized in 1996, and the
last time substantial changes were made to its broad authorities was
1994. A lot has changed in the tech-driven sectors under the Federal
Trade Commission's purview since then, and H.R. 5510 would make small
reforms to ensure that Federal law keeps up with the rest of the world.
Two of the four bills from my subcommittee we will consider today
clarify the Federal Trade Commission's ability to stop certain
practices that have taken advantage of consumers over the Internet.
One of our bills, the BOTS Act, H.R. 5104, is a targeted measure to
ensure that consumers have fair access to tickets at reasonable prices.
The Internet has created great opportunities for fans to engage with
their favorite teams, their favorite performers, and their favorite
artists; but ticket bots have detracted from these relationships and,
in fact, thwarted the efforts to obtain event tickets at their intended
prices. The BOTS Act is necessary to ensure that consumers reap the
full benefits of having online access to event tickets. I thank
Congresswoman Blackburn for her leadership in authoring this bill and
pushing it forward through our subcommittee.
Another bill, H.R. 5111, would ensure that online consumer reviews
are no longer subject to gag orders. Some bad actors have penalized
consumers for giving their products or services a bad review. This is
holding back progress and accountability; and our legislation, the
Consumer Review Fairness Act, would help put a stop to it. Congressman
Lance is the author of this legislation, and I thank him for his work
in making certain that this becomes law.
We also have before us H. Res. 847, a measure that recognizes the
potential of the Internet of things. A national strategy is needed for
the Internet of things. In order to reap the potentially enormous
benefits of connected devices, we must ensure that the bureaucracy
stays out of the way of innovation, stays out of the way of progress in
the marketplace, but that the government is also using the technology
to reduce costs to taxpayers.
Similarly, we are putting forward a resolution authored by Mr.
Kinzinger of Illinois and Mr. Cardenas, H. Res. 835. This measure
recognizes the growing importance of advanced financial technology,
what they call fintech. Fintech has driven forward the development of
blockchain technologies, which are poised to revolutionize several
economic sectors.
Blockchain technology may help solve problems related to transaction
costs and is especially well suited to address security concerns in
cyberspace.
{time} 1700
In addition to the four bills from subcommittee, we will also be
considering three bills from other subcommittees within Energy and
Commerce. The Amateur Radio Parity Act would require the Federal
Communications Commission to adopt rules that allow amateur radio
operators to use their equipment in deed-restricted communities. The
Advanced Nuclear Technology Development Act would provide certainty for
scientists and industry that advance nuclear technologies that can be
reviewed, licensed, and commercially deployed, helping the United
States remain the world leader in nuclear technology development.
Finally, the Sports Medicine Licensure Clarity Act would ensure doctors
traveling with athletic teams across State borders are properly covered
by malpractice insurance.
Again, I want to thank all Members of the subcommittee and the full
committee who sponsored these measures and the stakeholders who helped
us perfect them.
Mr. Speaker, I reserve the balance of my time.
Ms. SCHAKOWSKY. Mr. Speaker, I rise today because this is a
bipartisan day where we have a number of pieces of legislation we
agreed to. I will talk about each of them, but I do want to say that I
am a bit disappointed that my chairman decided to focus on a partisan
bill on which there is a good deal of disagreement, H.R. 5510, the FTC
Process and Transparency Reform Act. The bill, in the view of the
Democrats, would undermine consumer protections at the FTC and it would
make it harder for the FTC to take action in the case of noneconomic
harm, like privacy violations, such as a 2012 cyber peeping case that
we have been talking about. So I am hoping that we can, from now on,
focus on bills that we, fortunately, do agree on and move them forward.
I am talking now about H.R. 5104, the Better On-line Ticket Sales
Act, the BOTS Act, sponsored by Marsha Blackburn. I thank
Representative Blackburn for authoring the legislation and
Representative Tonko for cosponsoring that legislation.
The legislation addresses a real problem in the ticket marketplace.
Anyone who has tried to buy tickets, let's say, to Adele, Beyonce, or
Hamilton knows how difficult it can be to buy online. The Chicago
production of Hamilton, I'm sorry to say, sold out almost immediately
when tickets were put on sale this summer, and that is not just because
everybody was ahead of me online.
Ticket buyers are competing not only against other fans, but in many
cases, they are up against sophisticated bots that buy up tickets to
resell on the secondary market at a jacked-up price. The BOTS Act
empowers the Federal Trade Commission to go after these bots, and I
support that.
However, there is more we could do to help consumers in the ticket
marketplace. Not only are tickets scooped up by bots, but a significant
share of seats is held back for the artist, fan clubs, promotions, and
other special groups. There is little transparency about what is
actually being put up for general sale.
When you buy a ticket online, the first price you see is often not
the price you end up paying. Service and convenience charges can
surprise consumers, adding several dollars to the end price.
[[Page H5294]]
In subcommittee and full committee, we considered a Democratic
amendment based on Congressman Pascrell's BOSS Act to create more
transparency on the price and availability of tickets. This would
improve the overall environment for ticket buyers. The committee also
considered, but did not adopt, an amendment to have the Government
Accountability Office study the ticket market.
The ticket market has changed a lot in recent years, and more tickets
are being sold in secondary markets online. Ticket sellers are
experimenting with nontransferable tickets.
We need to better understand this market if we are going to
adequately protect consumers. The BOTS Act will do some good to prevent
tickets from being scooped up right away for resale.
I see this legislation as a first step, and I hope my colleagues
across the aisle would agree. It is not the only improvement that we
need to make to help ticket buyers.
I reserve the balance of my time, Mr. Speaker.
Mr. BURGESS. Mr. Speaker, I yield 5 minutes to the gentlewoman from
Tennessee (Mrs. Blackburn), the author of this legislation.
Mrs. BLACKBURN. Mr. Speaker, I do rise today to support the Better
On-line Ticket Sales Act, H.R. 5104, or as you have heard it called
today, the BOTS Act. It is bipartisan legislation. Mr. Tonko of New
York has done a tremendous job working on this with me. Together, we
have worked with the Senators to make certain that we have legislation
that can be signed into law that will address a problem that so many of
our constituents face. Now, we know it is not going to be something
that does everything everyone would want, but we do know this is the
first step in working with the FTC making certain that we address these
bots.
The problem is this: we have some individuals or groups that deploy
hacking software--it is called bots. Short for robots, of course--that
launch thousands of simultaneous requests for tickets on a ticket site.
Now, I am certain many of us have tried to buy a ticket as soon as
they go on sale, just as Ms. Schakowsky was talking about the
performance of Hamilton. We see this a lot with concerts that are
coming into Nashville. You go on. You log on. You want to buy that
ticket for that sporting event or for that concert, and the bots
overwhelm the site and cherry-pick the very best tickets. Then what do
you find? You don't have the ability to purchase a ticket.
This has become so frustrating to consumers because they do plan to
go on and they do plan to buy that ticket. The site just slows to a
crawl, and then when they get through, the tickets are sold out.
This is something that has been very frustrating not only to
consumers, but to artists, to entertainers, to fans of live
entertainment, and to sports teams.
The artists and the teams often price tickets well below the highest
possible price they might be able to get from the fans for any
particular event. They do this as a way to invest in that long-term
relationship with their fans.
The BOTS Act would make it an unfair and deceptive practice under the
FTC Act to use a bot to violate both the terms and conditions of the
ticketing site. Also, it creates a mechanism where the State Attorneys
General can bring a cause of action against the botsters.
The BOTS Act will stop people from gaming the ticketing system, and
it will increase access to events for fans of live entertainment.
Ms. SCHAKOWSKY. Mr. Speaker, I yield such time as he may consume to
the gentleman from New York (Mr. Tonko).
Mr. TONKO. Mr. Speaker, I rise in strong support of H.R. 5104, the
Better On-line Ticket Sales Act, on which I joined in introducing with
my colleague and friend from Tennessee, Mrs. Blackburn.
This bill would target the unfair practice of using software bots by
scalpers to automate the process of purchasing event tickets from
online vendor platforms.
As we saw at our legislative hearing on the matter in the Energy and
Commerce Committee, the current lack of any Federal statute to deter
the practice of using bots has turned the ticket industry in the United
States into a rigged system.
For instance on December 8, 2014, a single broker used a bot to
purchase over 1,000 tickets for a U2 concert at Madison Square Garden
within the first minute of sale. By the end of that day, the same
broker and one other had amassed more than 15,000 tickets to U2 shows
across North America.
According to an exhaustive investigation by New York State Attorney
General Eric Schneiderman, tickets purchased in this manner are then
resold on secondary markets at an average of 49 percent above face
value, though there are plenty of examples where the markup was more
than 1,000 percent.
The people in the capital region of New York and across the rest of
our great country worked far too hard to save money enough to see a
performance or a game. They should not be shut out from buying tickets
online at a reasonable price because a computer program beats them to
the punch.
By following the example set by States like New York where unlawful
ticket brokers have had to pay stiff penalties for their given actions,
we can start to reel in these unfair practices and make sure that
Americans have the access to events that they truly deserve.
The BOTS Act expands upon the work of these States by prohibiting the
intentional use or the sale of bots software and by barring any tickets
acquired in this manner from entry into an event.
This legislation would also establish civil penalties for this
behavior on a national level, instructing the FTC or the Attorney
General of a State to bring civil action against any persons found in
violation.
There is clearly a great deal more that can be done to protect
consumers and bring more transparency to the ticket market, but I do
believe the BOTS Act represents an excellent step in the right
direction for bringing accountability and trust to this industry.
I thank my colleague, Mrs. Blackburn, for her hard work on this
measure. We have enjoyed working together to come together with this
bill, and look forward to continued progress.
I encourage my colleagues to support the measure.
Mr. BURGESS. Mr. Speaker, I reserve the balance of my time.
Ms. SCHAKOWSKY. Mr. Speaker, I yield myself such time as I may
consume.
Well, as I said earlier, the BOTS Act is a positive step to improve
the ticket market. Today we will advance this bill on a bipartisan
basis, which is always good; but I certainly do hope we can work
together on further changes to increase transparency and fairness for
ticket buyers.
I yield back the balance of my time.
Mr. BURGESS. Mr. Speaker, I yield myself the balance of my time.
I urge our colleagues to support this important legislation. I thank
the gentlewoman from Tennessee for bringing it forward. I thank the
members of the subcommittee for helping us get it to the floor, and I
urge adoption of the bill.
I yield back the balance of my time.
Mr. CARTER of Georgia. Mr. Speaker, I rise today in support of H.R.
5104, the Better On-line Ticket Sales Act, and to discuss what it means
for consumers.
Congresswoman Blackburn introduced this legislation to combat an
issue that many of us are probably very familiar with if you attend
entertainment events. Too often, consumers are left in the dust as
outside groups take advantage of the system and buy up tickets in large
blocks. This results in fans not having access to those events or
having to pay more to purchase tickets from a third party vendor. This
harms the industry and fans looking to enjoy it on their free time.
Under this bill, software that enables this circumvention of those
checks would be prohibited from being sold and tickets purchased in
this manner would also be prohibited from being sold. The FTC would
enforce these new requirements and people who were affected by these
profiteering ventures would be able to bring a civil suit. For too
long, these organization and individuals have sidestepped the system
with the fan being the one that is most impacted.
Congresswoman Blackburn's legislation would overhaul this broken
system and punish those who are unwilling to play by the rules. I
applaud her work on this issue and the work of the Energy and Commerce
Committee to rein in these actions and urge passage of this important
legislation.
Mr. UPTON. Mr. Speaker, today I rise in support of seven bipartisan
bills originating out
[[Page H5295]]
of four of our subcommittees that are direct evidence of a very busy
and productive session in the Energy and Commerce Committee.
This package includes several measures that protect consumers and set
Congress' sights forward to fostering next-generation technological
development.
We will consider a measure introduced by Full Committee Vice Chairman
Blackburn, to enhance penalties for the use of automated ticket
scalping software. For too long, consumers have been gouged, as
scalpers have used software to buy large numbers of event tickets--
oftentimes preventing consumers from purchasing them at face value and
then charging a 1,000 percent markup to resell those same tickets This
thoughtful legislation, the BOTS Act, is a targeted measure to prevent
this practice and to ensure that consumers have fair access to tickets
at reasonable prices.
We will also consider a measure authored by Mr. Lance, along with Mr.
Kennedy, to ensure that online consumer reviews are no longer subject
to gag orders--a practice ultimately affecting consumers as it hinders
transparency and accountability in product reviews. Our legislation,
the Consumer Review Fairness Act, does what it says and will help put a
stop to this bad practice.
We will also consider a resolution that makes some important findings
with respect to the Internet of Things. Back home in Michigan, folks
are turning to smart devices to improve their access to health care,
education, transportation, and other services that simplify their
lives. This resolution sets forth Congress' unified belief that
innovation in this space must be allowed to flourish and that the
government must also take advantage of technology.
Similarly, we are putting forward a resolution authored by committee
members Mr. Kinzinger and Mr. Cardenas that encourages a unified
strategy around advanced financial technologies. The FinTech industry
has changed how consumers engage in commerce and control their
financial information as it lowers cost and increases financial access
worldwide. This chamber's support for consumer empowerment through
innovation is solidified with this resolution.
On the Health front, today we are also considering Mr. Guthrie's
Sports Medicine Licensure Clarity Act. H.R. 921 would ensure that team
doctors, trainers, and other licensed health care professionals are
covered by their malpractice insurance when providing care to their
athletes outside of their primary state.
We will also vote on Mr. Kinzinger's H.R. 1301, which originated out
of the Communications and Technology subcommittee, and will ensure
amateur radio operators are not prohibited from pursuing their passion
simply because they live in a deed-restricted community. Amateur radio
plays an important role in emergency response, often able to establish
communication in disaster areas when traditional communications
networks fail. I urge my colleagues to support this common-sense bill.
Last, but certainly not least, we will consider a measure from Rep.
Bob Latta to help provide certainty for innovators and entrepreneurs
who are seeking to develop and license the next generation of nuclear
technologies. These technologies may provide breakthroughs in safety
and efficiency over the technology in use today. We should ensure that
the Nuclear Regulatory Commission has the expertise and resources to
review and license the latest in advanced reactor technologies and this
bill would do just that.
Individually, each of these bills are important but taken together
they are evidence of the fine, bipartisan lawmaking that has come to
define this committee, and further evidence of our ongoing bipartisan
record of success.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Burgess) that the House suspend the rules and
pass the bill, H.R. 5104, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________