BOTS Act Cracks Down on Cyber Scalpers

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The US government is cracking down on cyber scalpers.

Congress this week passed federal legislation prohibiting the use of online bots to stockpile event tickets for resale at marked-up prices.

The Better Online Ticket Sales (BOTS) Act of 2016 was introduced earlier this year by Sens. Chuck Schumer (D-NY), Deb Fischer (R-NE), and Richard Blumenthal (D-CT)—in partnership with award-winning composer, lyricist, performer, and Hamilton creator Lin-Manuel Miranda.

Automated bots can perform hundreds or thousands of transactions at lightning speed, often simultaneously, leaving human purchasers in the dust.

But while New York State currently outlaws the use of bots to circumvent security measures on vendor sites like Ticketmaster, it appears the benefits outweigh the possible consequences.

Now on its way to President Obama's desk for a final signature, the new national bill makes it illegal to bypass digital ticket purchasing limits for public events of more than 200 people.

"You shouldn't have to fight robots just to see something you love," Miranda wrote in a June NYT editorial about the bots killing Broadway.

The act does allow the use of software to investigate or defend against violations, or analyze vulnerabilities of current security systems in an effort to patch existing flaws. It also gives enforcement authority to the Federal Trade Commission.

"No ifs ands or bots about it," Schumer said in a Dec. 1 statement, released just after the BOTS Act passed the Senate.

"These bots have gotten completely out of control," he continued. "Their dominance in the market is denying countless fans access to shows and concerts and driving prices through the roof."

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The New York Times over the summer reported that scalpers collected more than $15.5 million from just 100 Hamilton performances; the 32 shows between the musical's June 12 Tony Awards sweep and July 9 brought in more than $10.5 million.

The fame and fortune derived by Miranda's musical about an American founding father is somewhat unique: It opened a new avenue to cyber scalpers previously focused on significant sports games and popular artists.

"By eliminating 'bots' and slapping hackers with a hefty fine, we can better ensure those who want to attend shows in the future will not have to pay outrageous, unfair prices," Schumer said.

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