Stopping Grinch Bots Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5263 To prohibit the circumvention of control measures used by Internet retailers to ensure equitable consumer access to products, and for other purposes. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 22, 2019 Mr. TONKO introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To prohibit the circumvention of control measures used by Internet retailers to ensure equitable consumer access to products, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stopping Grinch Bots 4 Act of 2019’’. 5 SEC. 2. UNFAIR OR DECEPTIVE ACTS OR PRACTICES RE- 6 LATING TO CIRCUMVENTION OF ONLINE AC- 7 CESS CONTROL MEASURES. 8 (a) CONDUCT PROHIBITED.— 9 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 2 •HR 5263 IH (1) IN GENERAL.—Except as provided in para- 1 graph (2), it shall be unlawful for any person— 2 (A) to circumvent a security measure, ac- 3 cess control system, or other technological con- 4 trol or measure on an Internet website or online 5 service to enforce posted purchasing limits or to 6 manage inventory; or 7 (B) to sell or offer to sell any product or 8 service in interstate commerce obtained in viola- 9 tion of subparagraph (A) if the person selling 10 or offering to sell the product or service— 11 (i) participated directly in or had the 12 ability to control the conduct in violation of 13 subparagraph (A); or 14 (ii) knew or should have known that 15 the product or service was acquired in vio- 16 lation of subparagraph (A). 17 (2) EXCEPTION.—It shall not be unlawful 18 under this section for a person to create or use any 19 computer software or system— 20 (A) to investigate, or further the enforce- 21 ment or defense, of any alleged violation of this 22 section or other statute or regulation; or 23 (B) to engage in research necessary to 24 identify and analyze flaws and vulnerabilities of 25 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 3 •HR 5263 IH measures, systems, or controls described in 1 paragraph (1)(A), if these research activities 2 are conducted— 3 (i) to advance the state of knowledge 4 in the field of computer system security; or 5 (ii) to assist in the development of 6 computer security product. 7 (b) ENFORCEMENT BY THE FEDERAL TRADE COM- 8 MISSION.— 9 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC- 10 TICES.—A violation of subsection (a) shall be treated 11 as a violation of a rule defining an unfair or a de- 12 ceptive act or practice under section 18(a)(1)(B) of 13 the Federal Trade Commission Act (15 U.S.C. 14 57a(a)(1)(B)). 15 (2) POWERS OF COMMISSION.— 16 (A) IN GENERAL.—The Commission shall 17 enforce this section in the same manner, by the 18 same means, and with the same jurisdiction, 19 powers, and duties as though all applicable 20 terms and provisions of the Federal Trade 21 Commission Act (15 U.S.C. 41 et seq.) were in- 22 corporated into and made a part of this section. 23 (B) PRIVILEGES AND IMMUNITIES.—Any 24 person who violates subsection (a) shall be sub- 25 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 4 •HR 5263 IH ject to the penalties and entitled to the privi- 1 leges and immunities provided in the Federal 2 Trade Commission Act (15 U.S.C. 41 et seq.). 3 (C) AUTHORITY PRESERVED.—Nothing in 4 this Act shall be construed to limit the author- 5 ity of the Commission under any other provi- 6 sion of law. 7 (c) ENFORCEMENT BY STATES.— 8 (1) IN GENERAL.—In any case in which the at- 9 torney general of a State has reason to believe that 10 an interest of the residents of the State has been or 11 is threatened or adversely affected by the engage- 12 ment of any person subject to subsection (a) in a 13 practice that violates such subsection, the attorney 14 general of the State may, as parens patriae, bring 15 a civil action on behalf of the residents of the State 16 in an appropriate district court of the United 17 States— 18 (A) to enjoin further violation of such sub- 19 section by such person; 20 (B) to compel compliance with such sub- 21 section; and 22 (C) to obtain damages, restitution, or other 23 compensation on behalf of such residents. 24 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 5 •HR 5263 IH (2) RIGHTS OF FEDERAL TRADE COMMIS- 1 SION.— 2 (A) NOTICE TO FEDERAL TRADE COMMIS- 3 SION.— 4 (i) IN GENERAL.—Except as provided 5 in clause (iii), the attorney general of a 6 State shall notify the Commission in writ- 7 ing that the attorney general intends to 8 bring a civil action under paragraph (1) 9 not later than 10 days before initiating the 10 civil action. 11 (ii) CONTENTS.—The notification re- 12 quired by clause (i) with respect to a civil 13 action shall include a copy of the complaint 14 to be filed to initiate the civil action. 15 (iii) EXCEPTION.—If it is not feasible 16 for the attorney general of a State to pro- 17 vide the notification required by clause (i) 18 before initiating a civil action under para- 19 graph (1), the attorney general shall notify 20 the Commission immediately upon insti- 21 tuting the civil action. 22 (B) INTERVENTION BY FEDERAL TRADE 23 COMMISSION.—The Commission may— 24 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 6 •HR 5263 IH (i) intervene in any civil action 1 brought by the attorney general of a State 2 under paragraph (1); and 3 (ii) upon intervening— 4 (I) be heard on all matters aris- 5 ing in the civil action; and 6 (II) file petitions for appeal of a 7 decision in the civil action. 8 (3) INVESTIGATORY POWERS.—Nothing in this 9 subsection may be construed to prevent the attorney 10 general of a State from exercising the powers con- 11 ferred on the attorney general by the laws of the 12 State to conduct investigations, to administer oaths 13 or affirmations, or to compel the attendance of wit- 14 nesses or the production of documentary or other 15 evidence. 16 (4) ACTION BY FEDERAL TRADE COMMIS- 17 SION.—If the Commission institutes a civil action or 18 an administrative action with respect to a violation 19 of subsection (a), the attorney general of a State 20 may not, during the pendency of such action, bring 21 a civil action under paragraph (1) against any de- 22 fendant named in the complaint of the Commission 23 for the violation with respect to which the Commis- 24 sion instituted such action. 25 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 7 •HR 5263 IH (5) VENUE; SERVICE OF PROCESS.— 1 (A) VENUE.—Any action brought under 2 paragraph (1) may be brought in— 3 (i) the district court of the United 4 States that meets applicable requirements 5 relating to venue under section 1391 of 6 title 28, United States Code; or 7 (ii) another court of competent juris- 8 diction. 9 (B) SERVICE OF PROCESS.—In an action 10 brought under paragraph (1), process may be 11 served in any district in which the defendant— 12 (i) is an inhabitant; or 13 (ii) may be found. 14 (6) ACTIONS BY OTHER STATE OFFICIALS.— 15 (A) IN GENERAL.—In addition to civil ac- 16 tions brought by attorneys general under para- 17 graph (1), any other consumer protection offi- 18 cer of a State who is authorized by the State 19 to do so may bring a civil action under para- 20 graph (1), subject to the same requirements 21 and limitations that apply under this subsection 22 to civil actions brought by attorneys general. 23 (B) SAVINGS PROVISION.—Nothing in this 24 subsection may be construed to prohibit an au- 25 VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS 8 •HR 5263 IH thorized official of a State from initiating or 1 continuing any proceeding in a court of the 2 State for a violation of any civil or criminal law 3 of the State. 4 SEC. 3. DEFINITIONS. 5 In this Act: 6 (1) COMMISSION.—The term ‘‘Commission’’ 7 means the Federal Trade Commission. 8 (2) POSTED.—The term ‘‘posted’’ means clearly 9 and conspicuously published on an Internet website. 10 Æ VerDate Sep 11 2014 02:43 Dec 06, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H5263.IH H5263 kjohnson on DSK79L0C42 with BILLS