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Two recent Federal Trade Commission (FTC) enforcement actions reflect increased scrutiny of companies using algorithms, automated processes, and/or AI-enabled applications. In January 2021, the agency announced it had settled with a company using facial recognition technology that allowed consumers to organize online photo albums, and had filed a complaint against a company using automated processes (bots) to game the concert ticket system in alleged violation of the BOTS Act.
These enforcement actions follow the agency s recent informal guidance outlining principles and best practices surrounding transparency, explainability, bias, and robust data models. The ramifications of these enforcement actions are significant for two reasons:
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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory announcements, recap key enforcement actions, and preview upcoming deadlines and events. We also include links to our articles, blogs, and webinars with more analysis in these areas. We understand that keeping on top of the rapidly evolving regulatory landscape is more important than ever for businesses seeking to offer new and ground-breaking technologies.
Regulatory Announcements
Justice Department and FTC Announce First Enforcement Actions for Violations of the Better Online Ticket Sales Act Details Written by IVN
Washington, DC - The Department of Justice, together with the Federal Trade Commission (FTC), today announced three settlements resolving alleged violations of the Better Online Ticket Sales (BOTS) Act. These are the first enforcement actions that the department and the FTC have brought under the BOTS Act.
Enacted in 2016, the BOTS Act aims to prevent ticket brokers from buying large numbers of event tickets and reselling them to interested customers at inflated prices. To achieve that goal, the BOTS Act prohibits a person from circumventing access controls or measures used by online ticket sellers (such as Ticketmaster) to enforce ticket-purchasing limits. It also prevents the resale of tickets obtained by knowingly circumventing access controls.
FTC Fines Online Ticket Scammers In Trio of First-Time BOTS Act Cases
January 25, 2021
The Federal Trade Commission (FTC) has requested the judicial approval of three agreements reached with ticket scalpers concerning their orchestration of an online scheme that earned the New York men and their companies millions in allegedly ill-gotten proceeds. The FTC’s legal action against Cartisim Corp. and Simon Ebrani, Just In Time Tickets, Inc. and Evan Kohanian, and Concert Specials, Inc. and Steven Ebrani began with complaints filed earlier this month alleging that the defendants illegally purchased more than 150,000 tickets to concert and sporting events and resold them at a higher price, violating of the 2016-enacted Better Online Ticket Sales (BOTS) Act.