Bots are synonymous with empty shelves, sold-out retailers, and the overwhelming difficulty of getting your hands on next-gen consoles and other hot-ticket items before the shelves are swept bare. Repeat ad infinitum, and suddenly, US Congress is stepping in to ban the bots.
At least, that’s what they hope will happen. The proposed “Stopping Grinch Bots Act” will attempt to block bots and scalpers from hoovering up the hottest items before regular consumers can get their hands on them.
But in practical terms, how will the Stopping Grinch Bots Act actually work?
What Is the Stopping Grinch Bots Act?
In short, US lawmakers want to stop scalpers from using bots to buy up stock for premium items as they hit the market. Although using bots to target high-profile goods is nothing new, the combined pressures of the COVID-19 pandemic on supply chains, increased demand, and the ongoing chip shortage have seen their use skyrocket.
For example, it’s over one year from the launch of the PlayStation 5 and the Xbox Series X and Series S, and it’s still incredibly difficult for regular consumers to pick one up at MSRP. Scalpers use bots to scoop up stock as soon it becomes available before reselling for hundreds of dollars more, freezing out anyone without the funds to pay extra.
The proposed Stopping Grinch Bots Act, introduced by Representative Paul Tonko, will “prohibit manipulative technical practices that allow bad actors to use bots to circumvent control measures.” It would also make it a Federal Trade Commission violation to manipulate or circumvent site security to use a bot to make purchases and make it illegal to resell any goods gained through such methods.
Offering support for the bill, Senator Richard Blumenthal said:
Will the Stopping Grinch Bots Act Actually Stop the Bots?
Although the bill aims to take down scalpers and stop bots from buying up stock, there is some skepticism about its scope.
Similar laws already exist for other markets where bots have made consumer lives hell, particularly with concert and festival tickets. The BOTS Act (Better Online Ticket Sales Act) came into force in 2016, yet the FTC only brought its first lawsuit under the ruling in 2021. Even with the law on the FTC’s side, it still takes a long time for any active enforcement.
Anyone that’s attempted to buy tickets for a high-profile gig in the past five years will also tell you that the BOTS Act appears to have zero effect on ticket prices.
Furthermore, rolling more legislation designed to stop bots and bot activity won’t actually stop it from happening. It provides the FTC with a framework for prosecuting those who use them, but there is absolutely nothing in the bill designed to affect their use technically. As a result, bot use will remain rampant for premium goods until the actual issues affecting the matters are resolved, and those are much bigger issues that can’t be solved (or even pretend to be solved) by attacking the “Grinch” in the room.
And that’s not to mention that the bill is only applicable to the US. The FTC has no jurisdiction outside the US, and it’s incredibly easy to act as if you’re accessing and using a service from another location.
It’s Too Late to Save Christmas
What is clear is that the Stopping Grinch Bots Act will have a limited effect on the 2021 Holiday period. It’s already too late for the act to have any effect on this year’s holiday extravaganza, with people worldwide having to resort to paying scalper prices to pick up hot-ticket presents for loved ones.
