Assigned to FICO AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR H.B. 2040
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.
FACT SHEET – Amended
H.B. 2040
Page 2
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. FACT SHEET – Amended
H.B. 2040
Page 3
House Action Senate Action
COM 1/23/24 DP 9-1-0-0 FICO 3/18/24 DPA 5-0-2
3
rd
Read 2/22/24 43-15-1-0-1
Prepared by Senate Research
March 19, 2024
MG/JC/cs