Blumenthal, Udall, Schumer to FTC: Don't Let Grinch Bots Steal Christmas

WASHINGTON —U.S. Senators Richard Blumenthal (D-Conn.), Tom Udall (D-N.M.) and Charles E. Schumer (D-N.Y.) urged the Federal Trade Commission (FTC) to take action to protect kids and not let “Grinch Bots” steal Christmas toys. So-called Grinch Bots are algorithms and software deployed by online scammers to buy up popular toys and merchandise at lightning speed, and then re-sell those items at wildly inflated prices on websites like Ebay. After The New York Times reported that Grinch Bots have caused a shortage of Fingerlings, the Barbie Hello Dreamhouse and the Vampirina Scare B&B, among other toys, Blumenthal, Udall, and Schumer called on the FTC to convene a workshop to assess and address the damage these scammers have caused to kids and families this holiday season. 

The senators also wrote that they plan to introduce legislation to combat Grinch Bots in the coming week.

“Millions of Americans are turning to online retailers in search of hard-to-find gifts for their family and friends this holiday season. Unfortunately, unscrupulous scammers are also taking note of the limited availability of popular items online, and are succeeding at gaming the system by aggressively deploying cyber bots that automatically spot and snap up the most popular products,” the senators wrote. “These bots are able to scoop up the season’s hottest toys before the typical consumer can even log on. They will then turn around and sell these limited availability items at large markups in the remaining shopping days of the holiday season. The profiteers behind these programs are becoming the Grinch bots of the 2017 holiday season."

“We respectfully request that the Federal Trade Commission convene a workshop on the use of bots that usurp technology and purchase large quantities of a particular product, including in-demand toys, with the intent to resell them. We request that you and your staff work with retailers, both online and traditional, to determine ways to protect consumers from high-speed purchases made by bots designed to game the system and take advantage and deprive consumers of online discounts,” the senators continued. "The commission should also collaborate with the nation’s 51 attorneys general to share information and best practices about how to protect consumers from these unfair practices. Such a workshop can help bring much needed attention to this issue, and help retailers and consumers assess the full extent of damage caused by these bad actors."  

The full text of Blumenthal, Udall and Schumer’s letter can be found below and here. 

Dear Acting Chairman Ohlhausen and Commissioner McSweeny:

Millions of Americans are turning to online retailers in search of hard-to-find gifts for their family and friends this holiday season. Unfortunately, unscrupulous scammers are also taking note of the limited availability of popular items online, and are succeeding at gaming the system by aggressively deploying cyber bots that automatically spot and snap up the most popular products. 

As reported by the New York Times, these bots are able to scoop up the season’s hottest toys before the typical consumer can even log on. They will then turn around and sell these limited availability items at large markups in the remaining shopping days of the holiday season. The profiteers behind these programs are becoming the Grinch bots of the 2017 holiday season – making it more difficult than ever for parents hoping to surprise their children with the ultimate gift at a reasonable price.

We respectfully request that the Federal Trade Commission convene a workshop on the use of bots that usurp technology and purchase large quantities of a particular product, including in-demand toys, with the intent to resell them. We request that you and your staff work with retailers, both online and traditional, to determine ways to protect consumers from high-speed purchases made by bots designed to game the system and take advantage and deprive consumers of online discounts. The Commission should also collaborate with the nation’s 51 Attorneys General to share information and best practices about how to protect consumers from these unfair practices. Such a workshop can help bring much needed attention to this issue, and help retailers and consumers assess the full extent of damage caused by these bad actors. Additionally, we will be introducing legislation in the coming week and hope that we can gain your support for it.   

We urge you to act quickly to prevent cyber Grinches from ruining the holiday season this year, and take the necessary steps to prevent these kinds of scams from occurring in the future.