PUSHING LEGISLATION
U.S. Rep. Paul Tonko visits G. Willikers Toys to push Stopping Grinch Bots Act
SARATOGA SPRINGS, N.Y. » U. S. Rep. Paul Tonko ( D-NY) and others are on a mission to stop cyber grinches from ruining the holidays.
During a visit to local toy store G. Willikers Toys on Sunday in Saratoga Springs, Tonko discussed the threat cyber bots pose in inflating prices of popular toys this holiday season.
This issue has inspired the recent introduction of the Tonkosponsored Stopping Grinch Bots Act, which would prevent cyber bots from purchasing large quantities of trending holiday toys to resell at exorbitant prices. The act is also sponsored by Senate Minority Leader Charles Schumer (D-NY), Senator Richard Blumenthal (D- CT), and Senator Tom Udall (D-NM).
This legislation is meant to crack down on the use of what Tonko calls “unfair and devious” digital bot technology being used to buy up large batches of trending holiday toys in order to resell them at grossly inflated prices. These third-party sellers are using automated tools to manipulate online sales systems, making some toys nearly impossible to purchase anywhere at the original retail price.
In a matter of seconds, thirdparty vendors can purchase hundreds of items, squeezing out parents and children, as well as smaller retail shops.
“I think that it’s a real good way to give retail a fair shot and access to these items,” Tonko said on Sunday after touring the Spa City toy store, “and to be fair with consumers so that they’re not paying inflated prices because of the gamesmanship of these organizations that will take advantage of the way to access these sites.”
He continued, “We want to make certain that retailers have purchasing power, that Santa’s isn’t cut short because the product isn’t available on the shelf because of these practices that we believe, I believe, should be deemed illegal.”
“Grinch bots cannot be allowed to steal Christmas, or dollars, from the wallets of New Yorkers,” Schumer said in a press release. “Middle- class folks save up—a little here, a little there—working to afford the hottest gifts of the season for their kids, but ever- changing technology and its challenges are making that very difficult.
“It’s time we help restore an even playing field by blocking the bots. When it comes to purchasing products online, major retailers should put forth policies that will help prevent future Grinch bots from stealing the season’s hottest toys.”
Tonko predicts that the Stopping Grinch Bots Act will see the similar success as Blumenthal, Schumer, and Tonko’s Better Online Ticket Sales Act (BOTS Act), which was signed into law in 2016 banning “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.
“We want to be retailer friendly. We want to be small business-friendly. We want to be consumer-friendly, and I think the Stopping Grinch Bots
Act does that,” Tonko said while surrounded by some of Saratoga County’s local business leaders.
G. Willikers Toys owner Linda Ambrosino has owned and operated the 461 Broadway shop for 33 years. “I think everything that helps level playing field is good for the consumer, and it’s good for us,” she said of the Stopping Grinch Bots Act.
“I’m not only here to do business. I’m part of this community, and in a small business in a town like this, the consumer is extremely important,” continued Ambrosino, who believes it’s crucial to be able to get and sell products at the price for which they should be sold. “Wemake a concerted effort here to make sure that our prices are in line as much as we can, especially at Christmastime. These are toys that are for children.”
Saratoga County Chamber of Commerce President Todd Shimkus said what makes Saratoga Springs unique is its many locally owned, independently operated small businesses. “It’s unbelievable that you made it 33 years,” he said to Ambrosino. “What we want to make sure is that laws like this are changed so that she can be here 33 more because that’s what’s going to make Saratoga successful in the long term. Sustainable growth requires us to make sure we look out for the independent, local businesses here in Saratoga and across Saratoga County.”
Deann Devitt, president of the Saratoga Springs Downtown Business Association, also stressed the “hometown feeling of buy local” that consumers enjoy, thanking Tonko for his efforts in keeping that alive.
“One of my big concerns is making sure that the businesses that we have in our community are here and really part of what we’re doing,” added Tara Gaston, who represents the city of Saratoga Springs on the Saratoga County Board of Supervisors. “We need to make sure that these kinds of businesses stay in our community.”
The Stopping Grinch Bots Act has received support from national consumer organizations, including Consumer Reports, Consumer Federation of America and the National Consumer League.
“Consumers who are shopping for holiday gifts should not have to compete with automated ‘ Grinch Bots’ that can submit hundreds of orders in just a few seconds. The Stopping Grinch Bots Act will prevent unscrupulous scammers from using shopping bots to purchase and drive up prices for popular products, including toys, gaming equipment, and high- end sneakers. We urge Congress to swiftly take action to protect consumers against this unfair and predatory practice,” said Chuck Bell, program director at Consumer Reports, in the release.
“Consumers shouldn’t have to fight armies of bots to buy the products they want from the online retailers they want to do business with,” added Susan Grant, director of privacy and consumer protection at Consumer Federation of America. “We support outlawing sneaky tactics that shady operators use to corner the market on popular items and then charge consumers excessive prices for them.”