On Wednesday, December 14, 2016, President Obama signed the “Better Online Ticket Sales Act of 2016” (the “BOTS Act” or the “Act”) into law. The Act prohibits the circumvention of a security measure, access control system, or other technological measure on an Internet website or online service of a ticket issuer 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 Act also prohibits the sale of or offers to sell an event ticket in interstate commerce obtained through such a circumvention violation if the seller participated in, had the ability to control, or should have known about the violation.

It shall not be unlawful under the BOTS Act to create or use software or systems to: (1) investigate, or further the enforcement or defense of, alleged violations; or (2) identify and analyze flaws and vulnerabilities of security measures to advance the state of knowledge in the field of computer system security or to assist in the development of computer security products.

Violations shall be treated as unfair or deceptive acts or practices under the Federal Trade Commission Act. The Act provides authority to the Federal Trade Commission and states to enforce against such violations.

A link to the legislation may be found here.