Grinch bots targeted in new bill

(The Center Square) – Software programs that gobble up tickets and other in-demand items to profit off exorbitant resale prices, also known as Grinch Bots, may soon face legal action from a much wider swath of harmed consumers.

That’s the goal of House Bill 1378, that would expand the pool of those able to pursue legal action to include venues, artists, and other rights holders and allow for civil action to include damages, legal fees, and up to $1,000 per ticket.

“This island of misfit toys populated by bots is often passed off as the free market and consumer protection advocates as big government,” Attorney Chris Castle recently told the House Consumer Protection, Technology and Utilities Committee. “Unfortunately, neither cliché is true.”

Grinch bots circumvent security measures created to ensure human beings are at the other end of a purchase. This makes their work distinct from the inflated prices generated by the supply and demand of a typical market.

“Consumers will usually pay the markup because they have no other option due to artificially manipulated scarcity, and they lose out on the opportunity to buy things at a fair retail price,” explained the bill’s sponsor, state Rep. Steve Malagari, D-Lansdale.

Addressing what some legislators view as a significant gap in federal law, supporters hope to close some areas of opportunity left in legislation passed 13 years ago prohibiting the use of ticket-purchasing software and leveling a fine of up to $5,000 for violations.

The original act signed by former Gov. Ed Rendell was a first of its kind, but consumer advocates say it’s insufficient to combat the current ticket sales market. At the federal level, the Stopping Grinch Bots Act introduced in the Senate in 2021 did not progress.

Castle said bots that resell tickets should no longer be tolerated.

“It’s gone on long enough,” Castle said. “I don’t think we need to study a thing. Just read the newspaper.”

The problem isn’t reserved to concerts, either, despite ticket snafus for Taylor Swift and Bruce Springsteen performances that captured national attention in recent months. The bots also target popular toys and can bring about much darker consequences, warned Howard Waltzman, an attorney.

During his testimony, he described the software as “a scourge that undermines consumers’ use and enjoyment of the internet.”

Bots can buy up and hoard essentials, straining already taxed supply chains and endangering those most vulnerable during a crisis, circumstances seen in the beginning of the COVID-19 pandemic. Waltzman also noted bots’ role in disrupting the electoral process and spreading misinformation.