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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
event online ticket sales
Purpose
Prohibits a person from using or creating a bot to purchase tickets for an event online ticket sale in excess of the posted limit or to circumvent or disable a system used to facilitate an online ticket sale or validate that a ticket is not fraudulent. Constitutes a violation of event online ticket sales regulations as an unlawful practice under Arizona's Consumer Fraud Act.
Background
The federal Better Online Ticket Sales Act of 2016 (BOTS Act) prohibits the circumvention of a ticket issuer's online security measure, access control system or other technological measure that is used to enforce posted event ticket purchasing limits or to maintain the integrity of posted online ticket purchasing order rules for a public event with an attendance capacity exceeding 200 persons. The BOTS Act prohibits the sale of an event ticket obtained through such a circumvention violation if the seller participated in, had the ability to control, or should have known about the violation. A violations of the BOTS Act is treated as an unfair or deceptive act or practice under the Federal Trade Commission Act and the Federal Trade Commission and each state is authorized to enforce violations (P.L. 114-274, 114th Congress, 2016).
Statute prohibits a person from selling an entertainment event ticket purchased for the purpose of resale for a price that exceeds the face value of the ticket, including taxes and other charges, while being within 200 feet of entry to the venue where the event is being held or the venue's parking area. Additionally, a person may not alter a ticket's printed price without the original vendor's written consent. A person who violates the prohibitions is guilty of a petty offense (A.R.S. § 13-3718).
The Consumer Fraud Act applies to almost every kind of consumer transaction and is enforced by the Attorney General (AG) and by county attorneys with enforcement authority granted by the AG. Enforcement of the Consumer Fraud Act is accomplished through the investigation of complaints filed by consumers, enforcement actions against persons who have violated the Consumer Fraud Act and public education. If a court finds that a person has wilfully violated consumer protection laws, the AG, upon petition to the court, may recover up to $10,000 in civil penalties for each violation (A.R.S. Title 44, Chapter 10, Article 7).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a person from using or creating a bot to:
a) purchase tickets in excess of the posted limit for an online ticket sale;
b) use multiple internet protocol addresses, multiple purchaser accounts or multiple email addresses to purchase tickets in excess of the posted limit for an online ticket sale;
c) circumvent or disable an electronic queue, waiting period, presale code or other sales volume limitation system associated with an online ticket sale; or
d) circumvent or disable a security measure, access control system or other control or measure that is used to validate that a ticket is not fraudulent.
2. Deems a violation of the event online ticket sales prohibition as an unlawful practice under the Consumer Fraud Act and authorizes the AG to investigate and bring appropriate action.
3. Specifies that each ticket acquired in violation of the event online ticket sales prohibition constitutes a separate violation for the purpose of assessing a civil penalty.
4. Defines bot as any automated software program that:
a) performs automatic and repetitive tasks and that is designed to impersonate or replicate human activity online; and
b) does not include autofill or password management features built into an internet browser or provided through separate software.
5. Defines event as a concert, theatrical performance, sporting event, exhibition, show or similar scheduled activity that:
a) is open to the public;
b) is held in a public or private venue; and
c) requires payment of an admission fee to attend the event.
6. Defines ticket as a physical or electronic certificate, voucher, document, token or other evidence of a right for admission to enter a place of entertainment for one or more events at one or more specified dates and times.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Specifies that a person may not use or create a bot to circumvent or disable a security measure, access control system or other control or measure used to validate that a ticket is not fraudulent, rather than a measure that facilitates authorized entry to an event.
2. Replaces the AG enforcement mechanism and prescribed civil penalty with a specification that a violation of event online ticket sales regulations is an unlawful practice under the Consumer Fraud Act and an authorization for the AG to investigate and bring appropriate action under existing consumer fraud statutes.
3. Specifies that each ticket acquired in violation of the outlined regulations constitutes a separate violation for the purpose of assessing a civil penalty.
House Action Senate Action
COM 1/23/24 DP 9-1-0-0 FICO 3/18/24 DPA 5-0-2
3rd Read 2/22/24 43-15-1-0-1
Prepared by Senate Research
March 19, 2024
MG/JC/cs