BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1832|
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CONSENT
Bill No: AB 1832
Author: Ian Calderon (D)
Amended: 4/10/14 in Assembly
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 9-0, 6/16/14
AYES: Lieu, Wyland, Berryhill, Block, Corbett, Galgiani,
Hernandez, Hill, Torres
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/8/14 - See last page for vote
SUBJECT : Ticket sellers: equitable ticket buying process:
sale or use of
circumventing software
SOURCE : Author
DIGEST : This bill makes technical changes to existing law
prohibiting software from circumventing ticket sellers equitable
ticket buying process to ensure the prohibition is not only
limited to Internet Web sites.
ANALYSIS :
Existing law:
1. Provides a broad regulatory scheme in the Business and
Professions Code for the conduct of the business of "Ticket
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Seller."
2. Prohibits using or selling 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.
This bill makes changes to existing law to provide that it is
unlawful for a person who intentionally uses or sells software
to circumvent a security measure, access control system, or
other control or measure that is used to ensure an equitable
ticket buying process.
Background
AB 329 (Pan, Chapter 325, Statutes of 2013) 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. 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. The author's office notes that 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's office also provided background about a recent
agreement forged between Attorney General Kamala D. Harris and
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 which
expressly regulates commercial Web sites and online services but
many app developers have stated that they do not believe the
mobile platforms falls under its provisions.
"Bots" and attempts to curb their use . "Bots" are robotic
ticket buying software programs that allow users to quickly buy
tickets online. Typically, these are used by unscrupulous
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actors like ticket scalpers to buy tickets, then turn around and
sell the same tickets at increasingly higher prices. Over the
past several years, numerous high profile concert ticket sales
have been impacted by the presumed use of "bots" in that
individuals wait online to purchase tickets while software
programs allow their users to jump to the front of the line and
purchase large numbers of tickets at one time. This scenario
often leads to concerts and other high profile events selling
out in a matter of minutes, leaving fans ticketless and forcing
them to spend more money to attend an event.
The ticket industry has attempted to combat problems caused by
"bots" by employing other technological means, such as
"Completely Automated Public Turing tests to tell Computers and
Humans Apart" (CAPTCHA), which include phrases and picture tests
at the point of sale during the online transaction to
differentiate between a human purchaser and a likely computer
program. CAPTCHA tests, such as typing characters into a box,
are designed to prevent the use of "bots" because the requested
task is typically one that can be completed by a person but
would be difficult for a robotic software program to accurately
perform.
Supporters of efforts to restrict the use of "bots" assert that
even these technological efforts are not completely successful
because the problem of instant sellouts and increased resale
prices for tickets continues to generate complaints from the
ticket-buying public. California is one of a number of states
including Tennessee, Michigan, New Jersey, New York, Connecticut
and Minnesota that have waded into the debate and considered or
passed legislation imposing bans on "bots" and establishing
stiff penalties to those who use these systems.
Comments
According to the author's office, this is a technical clean-up
bill which assures equal access to tickets for fans by ensuring
that the prohibition against robotic ticket buying software
programs ("bots") that allow users to quickly buy tickets
online, circumventing seller's equitable ticket buying process,
is not limited to Internet Web sites. According to the author's
office, language amended into AB 329 (Pan) inadvertently limited
the application of that bill's consumer protection language to
"bots" targeting a seller's "Internet Web site." The author's
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office contends that by doing so, the intended scope of these
protections were also limited and as such, the law could be read
to only applying these important fairness principles to online
transactions, and thinks it is important that these consumer
protections be applied to other media mobile applications, smart
TVs and telecommunication devices.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 6/30/14)
Broadway Across America
Broadway Sacramento
California Sports and Entertainment Industry Coalition
Fans First Coalition
Feld Entertainment, Inc.
Feld Motor Sports
International Association of Venue Managers
Jonathan Reinis Productions
Live Nation Entertainment, Inc.
Los Angeles Angels of Anaheim
Los Angeles Dodgers
MLB Advanced Media
Oakland Athletics
Red Light Management
Ringling Brothers and Barnum & Bailey
San Diego Padres
San Francisco Giants
Shorenstein Hays-Nederlander Theatres
The Broadway League
ARGUMENTS IN SUPPORT : A coalition of supporters writes that
this bill will give the state additional tools in the effort to
protect fans against the use of automated software hacking
programs. Supporters note that "bots" put undue pressure on
ticketing systems, substantially increase technology costs in
the fight against them, and anger consumers because bots render
real fans unable to get great seats. Supporters believe that
this bill is "another step forward in the effort to protect
fans" and that 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 these systems be held
accountable.
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The Major League Baseball entities listed write, that this bill
"will bring clarity to current law by making it illegal to also
use those other access points [mobile applications, smart TVs
and other telecommunications devices] to circumvent equitable
ticket buying process targeting Internet Web sites."
ASSEMBLY FLOOR : 73-0, 5/8/14
AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Grove,
Hagman, Hall, Harkey, Roger Hernández, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,
Olsen, Pan, Patterson, Perea, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
Pérez
NO VOTE RECORDED: Allen, Donnelly, Eggman, Gorell, Mansoor, V.
Manuel Pérez, Vacancy
MW:d 7/1/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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