Congress Passes 'BOTS Act' to Crack Down on Broadway Cyber Scalpers

It was announced today that after a speedy seven days of bipartisan deliberation, the U.S. House of Representatives, by unanimous consent, will pass a bill intended to introduce federal legislation that would crack down on cyber scalpers and the use of 'bots' to snag thousands of popular theater, sports, and concert tickets. The bill's next stop will be the desk of President Barack Obama, where it will be signed into law.

Earlier this month, Senator Charles E. Schumer announced Senate passage of the "BOTS Act," after teaming up with award-winning composer, lyricist, performer and Hamilton creator, Lin-Manuel Miranda, this year to highlight the need for the legislation. Schumer said that, most recently, cyber scalpers have been using online computer programs, known as "bots," to purchase Hamilton tickets and reselling them anywhere between $500 to upwards of $2,000/ticket, up from approximately $189/ticket. Schumer's legislation would help fix the broken system of ticket purchasing. Now that the bill has passed the Senate, Schumer is calling on the House of Representatives to act before the end of this year.

"No ifs ands or bots about it, now that the 'BOTS Act' has passed the Senate, it's up to the House to sweep the stage of bots so that actual fans can enjoy Hamilton, other hit Broadway shows and major concerts," said U.S. Senator Charles Schumer. "These bots have gotten completely out of control and their dominance in the market is denying countless fans access to shows and concerts and driving prices through the roof. This legislation will finally crack down on online hackers and scalpers that use 'bots' to purchase thousands of tickets in a matter of milli-seconds, and then sell them at outrageously-inflated prices."

Schumer continued, "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. I hope that the House will pass this legislation before the end of the year so that Broadway and concertgoers in New York and across the country have equal access to these tickets."

"The Broadway League applauds Senator Schumer's leadership and for making the 'BOTS Act' happen in such a timely manner. Theatergoers from around the world are being defrauded by excessive mark-ups on tickets to their favorite shows, and we are pleased this legislation will give law enforcement and the Broadway community the ability to take steps to prevent this situation from affecting our patrons. Broadway is an iconic industry that entertains millions, supports our nation's cultural heritage and generates billions of dollars for America's economy. We are incredibly grateful to Senator Schumer for his continuous support," said Charlotte St. Martin, President of the Broadway League.

According to the New York Times, between 2012 and 2014, just three scalpers bought more than 140,000 tickets to New York shows using bots. Scalpers using bots have purchased more than 20,000 tickets to Hamilton. According to the New York Times, scalpers earned more than $15.5 million from the 100 Hamilton performances before Lin-Manuel Miranda's final performance. Schumer said cyber scalpers are making millions of dollars each year using bots to rip off fans, while also keeping millions of dollars in ticket revenue away from artists and performers and all those work on these live productions.

Schumer explained that "bots" are sophisticated computer programs often used by nefarious scalpers and brokers that plague the online sale of concert tickets. According to a 2013 New York Times report, while bots were once merely a nuisance to the live music industry, they have now become arguably its most reviled foe, as they are able to snatch up popular tickets within a matter of seconds, leaving fans with no choice but to buy tickets through derivative sites at much higher prices. Schumer said this practice leaves frustrated fans ticket-less and drives a resultant secondary ticket sale market, where tickets are sold at astronomical prices that most fans cannot afford.

In New York alone, hundreds of thousands of tickets are purchased any given day by scalpers using bots. For instance, at a U2 concert at Madison Square Garden, one scalper used a bot to buy more than one thousands tickets in the first minute after tickets went on sale, even though there was a four-ticket per fan limit. Between 2012 and 2014, just three scalpers bought more than 140,000 tickets to New York shows using bots. According to Ticketmaster, an estimated 60 percent of the most desirable tickets available for sale are purchased by bots.

Schumer said there is no fair way for a consumer to purchase a ticket online if they have to compete with bots that are capable of navigating through online ticket websites and purchasing tickets in the matter of seconds, jamming up the online ticketing system, and thereby leaving an unfair playing field for fans looking to purchase seats to an event or concert at the face value price.

Schumer's legislation would prohibit the unfair and deceptive act of using mechanisms such as bots in order to scoop up tickets before consumers are given a fair chance to buy them. Schumer said this legislation would help ensure consumers are given equitable access to tickets for events in the future and are not precluded from purchasing tickets at a fair price. Now that the bill has passed the Senate, Schumer is pushing the House of Representatives to pass the Better On-line Ticket Sales Act of 2016, or the BOTS Act, in order to increase fairness for consumers in the ticket-purchasing industry.

Artists, musicians, theater owners and concert promoters alike have led the charge against the bots used by online hackers and scalpers in an attempt to improve the ticket-buying experience for customers and guarantee increased transparency for fans. Schumer explained that many ticket reselling companies are hurt by bots, as frustrated consumers are often directed to their websites to purchase tickets from the online scalpers at overly inflated prices. In fact, in a 2012 post by Ticketmaster, the company stated that bots "hammer our system and website, they substantially increase our technology costs, they anger our customers and they keep us from building a direct relationship with fans." Schumer said his legislation would help crack down on this practice, which hurts both concertgoers and ticket companies.