Bills of Congress by U.S. Congress

Stopping Grinch Bots Act of 2025

Summary

The Stopping Grinch Bots Act of 2025 aims to prevent the use of bots and other technological means to circumvent online retailers' security measures designed to ensure equitable consumer access to products. The bill targets individuals who bypass these measures to purchase products in bulk and then resell them at inflated prices.

The Act makes it unlawful to circumvent security measures on internet websites or online services that enforce purchasing limits or manage inventory. It also prohibits selling products obtained through such circumvention.

The Federal Trade Commission (FTC) and state attorneys general are empowered to enforce the Act, with the FTC having primary enforcement authority and states able to bring civil actions on behalf of their residents.

Expected Effects

This act will likely make it more difficult for individuals to use bots to purchase limited-availability items online. This could lead to a fairer distribution of these items to consumers.

It may also reduce the incentive for individuals to engage in this practice, as they would face legal consequences. The Act aims to level the playing field for consumers seeking to purchase popular items online.

Potential Benefits

  • Fairer Access to Products: Reduces the ability of bots to monopolize limited-stock items, giving regular consumers a better chance to purchase them.
  • Price Stability: Limits the artificial inflation of prices caused by resellers who use bots to acquire products and then resell them at a premium.
  • Consumer Protection: Empowers the FTC and state attorneys general to protect consumers from unfair and deceptive practices.
  • Market Integrity: Promotes a more equitable and transparent online marketplace by discouraging the use of unfair technological advantages.
  • Reduced Frustration: Decreases consumer frustration associated with attempting to purchase items that are quickly sold out due to bot activity.

Potential Disadvantages

  • Enforcement Challenges: Detecting and prosecuting individuals using sophisticated bot technology can be challenging and resource-intensive.
  • Potential for Overreach: The broad language of the Act could potentially be interpreted to cover legitimate research or security testing activities, despite the exception provided.
  • Compliance Costs: Online retailers may incur costs to implement and maintain security measures to prevent bot activity.
  • Limited Scope: The Act focuses specifically on online access control measures and may not address other forms of unfair competition or deceptive practices.
  • Possible Circumvention: Individuals may find new ways to circumvent the security measures, requiring ongoing updates to the law and enforcement strategies.

Constitutional Alignment

The Stopping Grinch Bots Act of 2025 aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By targeting the circumvention of online access control measures and the sale of products obtained through such means, the Act directly regulates commercial activities that cross state lines.

The Act also aligns with the general welfare clause (Preamble) by promoting a fairer marketplace for consumers. The enforcement mechanisms provided to the FTC and state attorneys general are consistent with the government's role in protecting consumers from unfair or deceptive practices.

However, the Act must be carefully interpreted and applied to avoid infringing on individual liberties or rights, such as freedom of speech or expression, as protected by the First Amendment. The exception for research and security testing activities helps to mitigate this risk.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).