BILL ANALYSIS Ó
AB 1832
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Date of Hearing: March 25, 2014
ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND
INTERNET MEDIA
Ian C. Calderon, Chair
AB 1832 (Ian Calderon) - As Introduced: February 18, 2014
SUBJECT : Ticket sellers: equitable online ticket buying
process: sale or use of circumventing software.
SUMMARY : This bill would remove the limitation that software
be used to circumvent a security control or measure only on a
ticket seller's Internet Web site from the provisions in law
intended to ensure an equitable ticket buying process.
Specifically, this bill strikes the words, "on a ticket seller's
Internet Web site" from the provision in law which prohibits
circumvention of a Ticket Seller's measures designed to ensure
fair access to tickets.
EXISTING LAW :
1)Provides a broad regulatory scheme in the Business and
Professions Code for the conduct of the business of "Ticket
Seller."
2)Prohibits the using or selling of software to circumvent a
security measure, access control system, or other control or
measure on a ticket seller's Internet Web site that is used to
ensure an equitable ticket buying process, as specified.
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, this is a
technical clean-up bill to AB 329 (Pan) Chapter 325 Statutes
of 2013. He writes the committee to say, "Last year the
Legislature adopted and the Governor signed AB 329 (Pan),
which a made it a misdemeanor to intentionally use or sell
software to circumvent a security measure, access control
system, or other control or measure on a ticket seller's
Internet Web site that is used to ensure an equitable ticket
buying process.
AB 1832
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AB 329 was primarily targeted at "Bots", robotic ticket buying
software programs that allow users to quickly buy tickets
online or multi-line auto dialers, which flood box offices
with purchase requests. Typically, these devices are used by
unscrupulous individuals like ticket scalpers to buy tickets,
then turn around and sell the same tickets at much higher
prices.
When drafting the language of AB 329, Legislative Counsel
limited the application of the consumer protection language to
Bots targeting a seller's Internet Web site; however this
drafting could be read to limit the application of the
consumer protection fairness principles of the law to only
apply to transactions conducted online, and unintentionally
omits other media, such as mobile applications, smart TVs and
telecommunication devices. AB 1832 is a technical clean-up
bill which simply strikes the limitation in current law to
measures used to circumvent equitable ticket buying process
targeting Internet Web sites."
According to the author's office, there have been several
notable cases where laws or legislation design to protect
consumers have been found limited in application to the forum
or modality expressly stated in the statutes. "This requires
the Legislature to be hyper-vigilent when it comes to drafting
language covering new and emerging technologies. Simply
saying a bill applies to 'The Internet' can no longer be
trusted to ensure application software designed for mobile
telecommunications devices, or cloud programs designed for
laptops, smart TVs, or even gas pump charging stations are
encompassed by the law," the author claims.
He points to the Apple decision, where the California Supreme
Court considered whether the provisions of the Song-Beverly
Act applied to online businesses. [Apple v. Superior Court of
Los Angeles (Krescent).] A majority of justices held that it
did not. The majority opinion conceded that the statute does
not make any express exception for online business
transactions - applying as it does to any person, firm, etc.
that accepts credit cards. However, the court concluded that
both the legislative history and the overall statutory
framework strongly suggest that the statute was only meant to
apply to in-person transactions at 'brick and mortar'
businesses; online purchasers were not contemplated by the
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Act.
The author further notes that Attorney General Kamala D.
Harris had to forge an agreement committing the leading
operators of mobile application platforms to improve privacy
protections for consumers who use applications ("apps") on
their smartphones, tablets and other mobile devices, when many
consumer advocates thought that apps were already covered
under the California Online Privacy Protection Act (Cal OPPA,
Business & Professions Code Section 22575 et seq.), Cal OPPA
expressly regulates commercial websites and online services
but many app developers have stated that they do not believe
the mobile platforms falls under its provisions.
2)Statement in Support : According to a coalition of supporters,
"BOTs are an industry-wide problem that were created to bypass
ticketing security systems and create a substantial advantage
for unscrupulous ticket scalpers who grab countless numbers of
tickets as soon as the tickets hit the market during an
onsale. Then, once those tickets are procured by the ticket
scalpers, the tickets are often sold on ticket resale websites
at many times the face values. BOTs put undue pressure on
ticketing systems, substantially increase technology costs in
the fight against them, and anger consumers because the BOTs
impair the ability of real fans to get great seats at face
value. The impact BOTs have on fans is serious.
"It is important that the use of BOTs be prohibited by law,
that those laws are enforced rigorously, and that those who
use and profit from BOTs be held accountable. AB 1832 is
another step forward in the effort to protect fans."
3)Prior Related Legislation: AB 329 (Pan) : Last year this
committee heard and passed out AB 329 (Pan), Chapter 325,
Statutes of 2013, which in part made it a misdemeanor to
intentionally use or sell software to circumvent a security
measure, access control system, or other control or measure on
a ticket seller's Internet Web site that is used to ensure an
equitable ticket buying process. This provision of the bill
was designed to prevent the use of Bots from denying the
general public access to the first release of tickets, which
generally are sold at a much lower price than the same tickets
yield on the secondary market. At the time of hearing
committee staff recommended and the author agreed to amend the
bill, deleting the limitation of the provision to the Internet
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Web sites of sellers, but due to an oversight that change was
not made prior to the bill becoming law. AB 1832 corrects
this oversight.
4)Double referral : Should this bill pass out of this committee,
it will be re-referred to the Assembly Committee on Business,
Professions and Consumer Protection.
REGISTERED SUPPORT / OPPOSITION :
Support
Broadway Across America
Broadway Sacramento
Fans First Coalition
Feld Entertainment, Inc.
Feld Motor Sports
International Association of Venue Managers
Jonathan Reinis Productions
Live Nation Entertainment, Inc.
Red Light Management
Ringling Brothers and Barnum & Bailey
Shorenstein Hays-Nederlander Theatres
The Broadway League
Opposition
None on file
Analysis Prepared by : Dana Mitchell / A.,E.,S.,T. & I.M. /
(916) 319-3450