US Democrats Attempt to Use the Power of Christmas to Pass a Bill That’ll (Hopefully) Stop “Grinch Bots” From Buying Everything Up

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Democrats Attempt to Use the Power of Christmas to Pass a Bill That’ll (Hopefully) Stop “Grinch Bots” From Buying Everything Up​

On the first day of Christmas, democrats gave to me, a proposed bill that’ll stop bots from buying hot ticket items and reselling them at unreasonably high prices – in a pear tree.

While it is true that chip shortages have contributed to the rarity of things like the mirage that is the PS5, bots like the ones referred to in the Stopping Grinch Bots Act (yes, that is the name of the bill) aren’t helping matters, either.

Arguably, this has been an issue for as long as I can remember, and definitely an issue that exists beyond December 25th, but the holiday angle does add an extra sense of urgency, I suppose. It at least makes the issue more relatable, as politicians may not understand my mad dash to get a Funko of Fat Gum from My Hero Academia over the summer but I’m sure they understand getting a Christmas list from a tiny tot and balking at the price of their beloved (insert console or Cabbage Patch or whatever) because it’s only available at three times its actual price.

On Cyber Monday and with holiday shopping underway, Representative Paul Tonko (D-NY), Senator Richard Blumenthal (D-CT), Senate Majority Leader Charles E. Schumer (D-NY) and Senator Ben Ray Luján (D-NM) today announced the introduction of the Stopping Grinch Bots Act.Their bicameral bill will crack down on cyber Grinches using “bot” technology to quickly buy up whole inventories of popular holiday toys and resell them to parents at higher prices. These third-party sellers use bots to bypass security measures and manipulate online sales systems to buy toys, leading to some toys being almost impossible to buy online or in stores at retail prices, exacerbating shortages caused by stressed supply chains.
The Christmas analogy isn’t just in the name of the bill. Each representative made sure to keep the holiday theme going when discussing the proposed bill. “At a time when families should be able to spend time with their loved ones, digital ‘Grinch bots’ are forcing Americans to scour online sites in the hopes of finding an affordable gift or paying exorbitant prices for a single toy,” said Tonko. “These bots don’t just squeeze consumers, they pose a problem for small businesses, local retailers, and other entrepreneurs trying to ensure they have the best items in stock for their customers. Our Grinch Bots Act works to level the playing field and prevent scalpers from sucking hardworking parents dry this holiday season. I urge my colleagues to join me in passing this legislation immediately to stop these Grinch bots from stealing the holidays.”

The other representatives followed suit. Blumenthal, for instance, mentioned how these bots are ruining the holidays for kids because it’s near impossible to get these items before they’re marked up to ridiculously high prices. “New tools are needed to block cyber scammers who snap up supplies of popular toys and resell them at astronomic prices. Price gouging hot toys by Grinch bots should have zero tolerance.”

Schumer, working to add more oomph to the proposal, talked about how this has been a particularly trying year. Due to the extreme amount of exhaustion and stress 2020 the sequel has given us, “No parent or American should have to fork over hundreds – or even thousands – of dollars to buy Christmas and holiday gifts for their children and loved ones.”

Luján expressed similar sentiments but also added how the bill would help all year round and not just during the holidays. “This is a sacred time to be spent with family and loved ones. Americans should not be stressed financially by online algorithms that hoard high-demand toys and goods and resell them at huge margins. This critical legislation will protect New Mexico’s consumers during the holidays and year-round.”
Several organizations are in support of the bill, including Consumer Reports, the Consumer Federation of America, and the National Consumer League. The letter included data from 2017 that gave examples of items that had a tremendous markup after being sold out in stores.

● Fingerlings, which typically sell for $14.99, were out of stock online at Toys-“R”-Us, Walmart, and Target. However, the item was available for sale on Amazon and eBay for as much as $1,000 each.
● Super Nintendo entertainment system NES Classic Edition, which sells for $79.99, was out of stock online at BestBuy, Game Stop, and Target. However, the item was available on
Amazon and eBay for as much as $13,000.
● L.O.L. Surprise! Doll, which sells for $9.99, was out of stock online at Toys-“R”-Us, Target and Walmart. However, the item was available on Amazon and eBay for as much as $500.
● Barbie Hello Dreamhouse, which sells for $300, was out of stock online at Toys-“R”-Us.
Four years later and I’m sure we can all think of items that are going for thousands of dollars online when they are nowhere near that expensive.

I’m not sure how much progress will be made with this bill as this isn’t the first time it’s been introduced, according to PC Mag. However, reintroducing it during peak shopping season is smart, so I don’t blame them for the heavy-handed “Grinch” theme of it all. This is also hitting at a time during supply shortages, so it’s extra frustrating to have bots buying up everything 0.0001 seconds after a product goes live.

As an 80s kid who grew up in the “video games are pure evil” political era, I’m just amused at the idea of politicians getting Christmas lists from grandkids who want PS5s and waltzing into a store thinking that it’s readily available, only to be directed to an eBay listing that makes their wallet cry out for help. I imagine one of them going, “Someone should do something about this,” then realizing that, wait, they’re that somebody.

Hopefully.
 
The console scalping is pretty nuts. I wanted to get my parents a Switch OLED so they can play games with my sister and I online, but the prices are already $150 over MSRP everywhere I’ve looked online and I refuse to pay that.
 
The console scalping is pretty nuts. I wanted to get my parents a Switch OLED so they can play games with my sister and I online, but the prices are already $150 over MSRP everywhere I’ve looked online and I refuse to pay that.
Yeah, I really want to get another PS4 for streaming/bluray/dvd use only (because every bluray player I’ve tried has been complete shit, and I want to be able to be wired in and not dependant on wifi), and I figured with the PS5 available there’d be a glut of used ones.

Not so much…

Glad I got my PS4 in 2018, long before the insanity.
 
Ah, I remember when the government tried to pass a bill JUST like this one back in 2019...

That said, there's a LOT that could be done to counteract bots (Gov't-issued ID checks, credit card checks, shipping/billing address checks, discontinuation of guest purchasing, etc.) but the main issue is that, when it comes to the top brass, companies genuinely don't give a shit about who they're selling to since they're still making a sale.


If this NBC report is any indication then Ticketmaster being a bunch of scalping chucklefucks has been known since at least 2018.

Gamestop's also been doing bundles deals (specifically the system, a couple of games, a digital gift card, and occasionally some extra accessories) where it's far more difficult for scalpers to turn a profit. As far as the whole "tying access to certain products behind premium memberships" bit I know a few stores have been doing it in recent years: Walmart's been doing it too for some of their high-demand products (you need a Walmart+ membership to buy a system), Target occasionally locks products behind their Red Card, and Best Buy tested it out with their Best Buy TotalTech membership but they discontinued that offering after they got clowned for both the price of said membership ($199.99 a year) and tying certain products behind it (the most notable being a Pokemon TCG Elite Trainer Box that has an MSRP of $59.99).
I hate to be the r bearer of bad news but Walmart+ and Best Buy total tech are very much used by scalpers because their profit driven nature lets them afford multiple absurdly priced Best Buy rewards accounts. People that bot for a living are moving upwards of 20 grand in cash a day.
 
I hate to be the r bearer of bad news but Walmart+ and Best Buy total tech are very much used by scalpers because their profit driven nature lets them afford multiple absurdly priced Best Buy rewards accounts. People that bot for a living are moving upwards of 20 grand in cash a day.
Interesting, that would explain why Best Buy ditched the TotalTech-tied product priority for some products and instead opted for a queue system.
 
The console scalping is pretty nuts. I wanted to get my parents a Switch OLED so they can play games with my sister and I online, but the prices are already $150 over MSRP everywhere I’ve looked online and I refuse to pay that.
The 2019 model's screen is fine. Get that instead.
 
  • Agree
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I hate to be the r bearer of bad news but Walmart+ and Best Buy total tech are very much used by scalpers because their profit driven nature lets them afford multiple absurdly priced Best Buy rewards accounts. People that bot for a living are moving upwards of 20 grand in cash a day.
How? Not like, the specifics of how they run their nets per se, but I feel like at some point people will be like “fuck no, I’m not paying $900 for a $500 system”. I guess I just don’t understand how it’s a sustainable infrastructure at the scale it seems to be running at.
 
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How? Not like, the specifics of how they run their nets per se, but I feel like at some point people will be like “fuck no, I’m not paying $900 for a $500 system”. I guess I just don’t understand how it’s a sustainable infrastructure at the scale it seems to be running at.
There are people that simply won't pay scalped prices, it's true.
But there are more people than you think, tens to hundreds of thousands of people, that will.
The PS5 has purportedly sold 14,000,000 units. It only takes 1% of that buyer base being willing to pay scalped prices for entire restock shipments to be swallowed whole by botters that will be resold successfully for months on end.

It should also be noted that consoles are hot right now, but people that do retail arbitrage full time also buy other things like limited release dolls, trading cards, shoes, etc. When the console market dries up, they'll use all the money they earned to fuck over their usual markets even harder.
 
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