BOTS Act of 2016

Summary: (This measure has not been amended since it was reported to the Senate on September 27, 2016.  Better Online Ticket Sales Act of 2016 or the BOTS Act of 2016 (Sec. 2) This bill prohibits the circumvention of a security measure, access control system, or other technological measure on an Internet website or online service of a ticket issuer that is used to enforce posted event ticket purchasing limits or to maintain the integrity of posted online ticket purchasing order rules for a public event with an attendance capacity exceeding 200 persons. The bill also prohibits the sale of or offers to sell an event ticket in interstate commerce obtained through such a circumvention violation if the seller 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 or systems to: (1) investigate, or further the enforcement or defense of, alleged violations; or (2) identify and analyze flaws and vulnerabilities of security measures 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 or deceptive acts or practices under the Federal Trade Commission Act. The bill provides authority to the Federal Trade Commission and states to enforce against such violations. 

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Better Online Ticket Sales Act of 
2016'' or the ``BOTS Act of 2016''.
SEC. 2. UNFAIR AND DECEPTIVE ACTS AND PRACTICES RELATING TO 
CIRCUMVENTION OF TICKET ACCESS CONTROL MEASURES.
    (a) Conduct Prohibited.--
        (1) In general.--Except as provided in paragraph (2), it shall 
    be unlawful for any person--
            (A) to circumvent a security measure, access control 
        system, or other technological control or measure on an 
        Internet website or online service that is used by the ticket 
        issuer to enforce posted event ticket purchasing limits or to 
        maintain the integrity of posted online ticket purchasing order 
        rules; or
            (B) to sell or offer to sell any event ticket in interstate 
        commerce obtained in violation of subparagraph (A) if the 
        person selling or offering to sell the ticket either--
                (i) participated directly in or had the ability to 
            control the conduct in violation of subparagraph (A); or
                (ii) knew or should have known that the event ticket 
            was acquired in violation of subparagraph (A).
        (2) Exception.--It shall not be unlawful under this section for 
    a person to create or use any computer software or system--
            (A) to investigate, or further the enforcement or defense, 
        of any alleged violation of this section or other statute or 
        regulation; or
            (B) to engage in research necessary to identify and analyze 
        flaws and vulnerabilities of measures, systems, or controls 
        described in paragraph (1)(A), 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 product.
    (b) Enforcement by the Federal Trade Commission.--
        (1) Unfair or deceptive acts or practices.--A violation of 
    subsection (a) shall be treated as a violation of a rule defining 
    an unfair or a deceptive act or practice under section 18(a)(1)(B) 
    of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
        (2) Powers of commission.--
            (A) In general.--The Commission shall enforce this section 
        in the same manner, by the same means, and with the same 
        jurisdiction, powers, and duties as though all applicable terms 
        and provisions of the Federal Trade Commission Act (15 U.S.C. 
        41 et seq.) were incorporated into and made a part of this 
        section.
            (B) Privileges and immunities.--Any person who violates 
        subsection (a) shall be subject to the penalties and entitled 
        to the privileges and immunities provided in the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
            (C) Authority preserved.--Nothing in this section shall be 
        construed to limit the authority of the Federal Trade 
        Commission under any other provision of law.
    (c) Enforcement by States.--
        (1) In general.--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 the 
    engagement of any person subject to subsection (a) in a practice 
    that violates such subsection, 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--
            (A) to enjoin further violation of such subsection by such 
        person;
            (B) to compel compliance with such subsection; and
            (C) to obtain damages, restitution, or other compensation 
        on behalf of such residents.
        (2) Rights of federal trade commission.--
            (A) Notice to federal trade commission.--
                (i) In general.--Except as provided in clause (iii), 
            the attorney general of a State shall notify the Commission 
            in writing that the attorney general intends to bring a 
            civil action under paragraph (1) not later than 10 days 
            before initiating the civil action.
                (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 federal trade commission.--The 
        Commission may--
                (i) intervene in any civil action brought by the 
            attorney general of a State under paragraph (1); and
                (ii) upon intervening--

                    (I) be heard on all matters arising in the civil 
                action; and
                    (II) file petitions for appeal of a decision in the 
                civil action.

        (3) Investigatory powers.--Nothing in this subsection may be 
    construed to prevent the attorney general of a State from 
    exercising the powers conferred on the attorney general by the laws 
    of the State to conduct investigations, to administer oaths or 
    affirmations, or to compel the attendance of witnesses or the 
    production of documentary or other evidence.
        (4) Preemptive action by federal trade commission.--If the 
    Commission institutes a civil action or an administrative action 
    with respect to a violation of subsection (a), 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.
        (5) Venue; service of process.--
            (A) Venue.--Any action brought under paragraph (1) may be 
        brought in--
                (i) the district court of the United States that meets 
            applicable requirements relating to venue under section 
            1391 of title 28, United States Code; or
                (ii) another court of competent jurisdiction.
            (B) Service of process.--In an action brought under 
        paragraph (1), process may be served in any district in which 
        the defendant--
                (i) is an inhabitant; or
                (ii) may be found.
        (6) Actions by other state officials.--
            (A) In general.--In addition to civil actions brought by 
        attorneys general under paragraph (1), any other consumer 
        protection officer of a State who is authorized by the State to 
        do so may bring a civil action under paragraph (1), subject to 
        the same requirements and limitations that apply under this 
        subsection to civil actions brought by attorneys general.
            (B) Savings provision.--Nothing in this subsection may be 
        construed to prohibit an authorized official of a State from 
        initiating or continuing any proceeding in a court of the State 
        for a violation of any civil or criminal law of the State.
SEC. 3. DEFINITIONS.
    In this Act:
        (1) Commission.--The term ``Commission'' means the Federal 
    Trade Commission.
        (2) Event.--The term ``event'' means any concert, theatrical 
    performance, sporting event, show, or similarly scheduled activity, 
    taking place in a venue with a seating or attendance capacity 
    exceeding 200 persons that--
            (A) is open to the general public; and
            (B) is promoted, advertised, or marketed in interstate 
        commerce or for which event tickets are generally sold or 
        distributed in interstate commerce.
        (3) Event ticket.--The term ``event ticket'' means any 
    physical, electronic, or other form of a certificate, document, 
    voucher, token, or other evidence indicating that the bearer, 
    possessor, or person entitled to possession through purchase or 
    otherwise has--
            (A) a right, privilege, or license to enter an event venue 
        or occupy a particular seat or area in an event venue with 
        respect to one or more events; or
            (B) an entitlement to purchase such a right, privilege, or 
        license with respect to one or more future events.
        (4) Ticket issuer.--The term ``ticket issuer'' means any person 
    who makes event tickets available, directly or indirectly, to the 
    general public, and may include--
            (A) the operator of the venue;
            (B) the sponsor or promoter of an event;
            (C) a sports team participating in an event or a league 
        whose teams are participating in an event;
            (D) a theater company, musical group, or similar 
        participant in an event; and
            (E) an agent for any such person.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.