BILL ANALYSIS �
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|Hearing Date:June 16, 2014 |Bill No:AB |
| |1832 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: AB 1832Author:Ian Calderon
As Amended:April 10, 2014 Fiscal: Yes
SUBJECT: Ticket sellers: equitable ticket buying process: sale or use
of circumventing software.
SUMMARY: 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.
Existing law:
1)Provides a broad regulatory scheme in the Business and Professions
Code for the conduct of the business of "Ticket Seller." (Business
and Professions Code (BPC) � 22505, et. seq.)
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. (BPC � 22505.5)
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.
FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.
According to the Assembly Committee on Appropriations analysis dated
April 30, 2014, this bill will result in "potential minor
non-reimbursable costs to cities and counties for enforcement, offset
to some extent by fine revenues."
COMMENTS:
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1. Purpose. The Author is the Sponsor of this measure. According to
the Author, this is a technical clean-up bill which assures equal
access to tickets for fans by ensuring that the prohibition against
"Bots", robotic ticket buying software programs 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, language amended into AB 329 (Pan, Chapter 325,
Statutes of 2013) inadvertently limited the application of that
bill's consumer protection language to Bots targeting a seller's
"Internet Web site". The Author 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. The Author thinks it is
important that these consumer protections be applied to other media
mobile applications, smart TVs and telecommunication devices.
2. Background. Last year's AB 329 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. According to
the Author, 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. The Author 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 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 (Cal OPPA, BPC � 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.
3. "Bots" and Attempts to Curb Their Use. "Bots" are robotic ticket
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buying software programs that allow users to quickly buy tickets
online. Typically, these are used by unscrupulous 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.
4. Prior Related Legislation. 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 Web site that is used to
ensure an equitable ticket buying process.
AB 2612 (Plescia, 2008) was a spot bill to amend the ticket
seller's provisions of the Business and Professions Code. ( Status:
The bill was held in the Assembly Committee on Rules without
referral.)
SB 1022 (Campbell, 2006) would have included Licensed Ticket
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Sellers, and other businesses, eligible to organize as Limited
Liability Corporations (LLC). ( Status: The bill was not ever
heard in a Senate policy committee.)
SB 1602 (Battin, 2006) would have expanded the definition of
scalping under the Penal Code, to extend the prohibition against
selling event tickets purchased for resale above market value on
the event premises, to any purchase of tickets for resale in an
amount over the limitation on the maximum number of tickets allowed
by the original ticket seller and for any amount of profit. The
bill also would have criminalized the use of automated computer
purchases of event tickets in order to accomplish the purchase
above the seller's limit, by defining the practice as "criminal
interference" with the seller's Web site. ( Status: The bill was
not heard on the Senate Floor at the request of the Author.)
5. 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 technology
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
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.
SUPPORT AND 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
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Opposition:
None on file as of June 11, 2014.
Consultant:Sarah Mason