Source: United States House of Representatives – Representative Paul Tonko (Capital Region New York)
WASHINGTON, DC — Congressman Paul D. Tonko (NY-20), and U.S. Senator Richard Blumenthal (D-CT), today reintroduced their Stopping Grinch Bots Act, legislation which cracks down on cyber Grinches using bot technology to buy up entire inventories of popular goods only to resell them at exorbitant prices. These third-party sellers use bots to bypass security measures and manipulate online sales systems to buy toys, leading to some toys being almost impossible to buy online or in stores at retail prices.
Based on data from cybersecurity firm Imperva in its 2024 Bad Bot Report, bot-related hits on retail sites hit a record high last year, with almost 50 percent of internet traffic coming from non-human sources. These bots are also becoming increasingly sophisticated, using residential IP addresses and even AI to slip past security tools like CAPTCHAs, making this legislation more vital than ever.
“This holiday shopping season, Americans across the country are scouring stores, sites, and shelves for the perfect gift for their kids and loved ones,” Congressman Tonko said. “With prices already surging, the last thing parents, families, and small businesses need is cyber bot technology seizing the most popular items to sell them at outrageous costs. That’s where our Stopping Grinch Bots Act comes in. Our bill levels the playing field to prevent scalpers from sucking hardworking parents dry this holiday season. I urge my colleagues to join in supporting this bill and help ensure Americans can spend their time this holiday season with their loved ones, not competing against Grinches.”
“Grinch bots are squeezing holiday shoppers—automatically snapping up online inventory to resell popular products at predatory prices,” Senator Richard Blumenthal said. “Our measure blocks these bullying bots and gives parents a fair chance to buy gifts for loved ones at reasonable prices. By putting an end to bots’ holiday hijinks, our commonsense legislation will protect consumers, families, and small businesses from the cyber Grinches trying to steal Christmas.”
Bots are software programs that can automatically spot and snap up inventory on sale online. In a matter of seconds, third-party vendors can purchase hundreds of items, squeezing out parents and children. In 2016, Tonko, Blumenthal, and Majority Leader Charles E. Schumer’s (D-NY) Better Online Ticket Sales Act (BOTS Act) was signed into law to ban “ticket bots” that intentionally bypass security measures on online ticketing websites to unfairly outprice individual fans. This new legislation would apply the mechanism of the BOTS Act to e-commerce sites to ban bots bypassing security measures on online retail sites.
A fact-sheet of the bill can be found HERE.