[Congressional Record (Bound Edition), Volume 162 (2016), Part 9]
[House]
[Pages 12333-12336]
[From the U.S. 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

[[Page 12334]]

     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 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

[[Page 12335]]

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.
  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,

[[Page 12336]]

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 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.

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