BOTS Act

Summary: (This measure has not been amended since it was reported to the House on September 9, 2016.  Better On-line Ticket Sales Act of 2016 or the BOTS Act (Sec. 2) This bill prohibits the sale of computer software that: (1) is primarily designed to circumvent technology that limits purchases made via an online ticket selling system, (2) has only a limited commercially significant purpose other than for such circumvention, or (3) is marketed to use for such circumvention. The bill also prohibits the use of such circumvention software in violation of a system operator's posted limits on: (1) the quantity of tickets purchased by a single user; (2) the sequence, number, or frequency of transactions; or (3) the geographic location of transactions.  In addition, the bill makes it unlawful to resell in commerce tickets that were acquired through such a prohibited use of circumvention software if the reseller participated in, had the ability to control, or should have known about the violation. It shall not be unlawful, however, to create or use software to: (1) investigate or further the enforcement or defense of any alleged violation of this bill, or (2) identify and analyze flaws and vulnerabilities of a computerized event ticketing system if these 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. Violations shall be treated as unfair and deceptive acts or practices under the Federal Trade Commission Act. The Federal Trade Commission and state attorneys general may enforce against violations.

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 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.

            Passed the House of Representatives September 12, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.