H.R. 2713: Mitigating Automated Internet Networks for Event Ticketing Act

This bill, known as the Mitigating Automated Internet Networks for Event Ticketing Act, aims to enhance the regulation of online ticket sales and provide better protections for consumers in the event ticketing market. Below are the main provisions of the bill:

Strengthening the BOTS Act

The bill proposes to amend the Better Online Ticket Sales Act of 2016, commonly referred to as the BOTS Act, by clarifying and expanding definitions and responsibilities regarding automated software that can circumvent ticket purchasing limits. It specifically prohibits using automated applications to buy tickets in violation of posted rules on ticketing websites.

Requirements for Ticket Issuers

• Access Control Systems: Ticket issuers must put in place security measures to enforce ticket purchasing limits, ensuring that these systems effectively control access to ticket sales.
• Security Safeguards: Ticket issuers are required to establish comprehensive security safeguards to protect the security and confidentiality of their websites. This includes administrative, technical, and physical measures to safeguard user data and maintain the integrity of the ticketing process.

Incident Reporting and Consumer Complaints

Ticket issuers must report known incidents of circumvention (e.g., when automated software evades purchasing restrictions) to the relevant authorities. They are also required to create a mechanism for consumers to report violations, with the Federal Trade Commission (FTC) tasked with developing a public website for this purpose.

Improving Access Control Measures

In the event of known circumvention attempts, ticket issuers have a responsibility to enhance their access control systems to prevent further issues. They must continuously evaluate their security protocols and adjust them as necessary to deal with emerging threats.

Guidance and Oversight

The FTC will issue guidance for ticket issuers on how to comply with the new requirements within one year of the bill's enactment. This aims to ensure that issuers are adequately informed and equipped to address the new regulations.

Civil Penalties for Violations

The bill establishes civil penalties for violations of its provisions. Ticket issuers can be fined $10,000 for each day a violation occurs and additional penalties based on the number of violations. Intentional violations lead to steeper penalties.

Collaboration with Law Enforcement

Coordination between the FTC and relevant law enforcement agencies, including the FBI and Department of Justice, will be emphasized to combat cyber threats against ticketing platforms. This ensures a collaborative approach to share information on potential security breaches.

Congressional Oversight and Reporting

The FTC must report back to Congress on the enforcement actions taken in response to this Act and any challenges encountered. This oversight aims to enhance accountability and the effectiveness of the new regulations.

Relevant Companies

• LYV (Live Nation Entertainment, Inc.): As a major player in the ticketing industry, Live Nation might need to enhance their security measures and compliance procedures significantly under this bill.
• TKT (Ticketmaster): As a prominent online ticketing service, Ticketmaster will need to strengthen its ticket purchase control systems and may face penalties for non-compliance.