BILL NUMBER: S5419
SPONSOR: LANZA
 
TITLE OF BILL:
An act to amend the general business law and the executive law, in
relation to automated purchasing software
 
PURPOSE OF BILL:
This bill would prohibit any person, firm, corporation or other entity
from using automated purchasing software to purchase large quantities of
goods for the purposes of resale to the public.
 
SUMMARY OF SPECIFIC PROVISIONS:
§ 1 adds a new section 390-d, which prohibits and fines automated
purchasing software from purchasing large quantities goods for the
purposes of resale.
§ 2 amends subdivision 3 of section 94-a a new paragraph 13-a.
§ 3 is the effective date.
 
JUSTIFICATION:
So-called 'Grinch bots' are algorithms and software deployed by online
scammers to buy up popular toys and merchandise at lightning speed,
which gives them an unfair advantage over consumers who want to purchase
certain items. The scammers then re-sell those items at inflated prices
on websites like EBay. Grinch bots have caused shortages of some high-
demand toys and merchandise that places the general public at a disad-
vantage to purchase items for themselves and their families.
 
LEGISLATIVE HISTORY:
2024: S.4114- Referred to Internet
2023: S.4114- Referred to Internet
2022: S.4913- Referred to Internet
2021: S.4913- Referred to Internet
2020: S.2628- Referred to Internet
2019: S.2628- Committed to Rules
2018: S.7530- Referred to Consumer and Technology Protection / A.9621 -
Referred to Consumer Affairs & Protection
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day it shall have become a
law.

Statutes affected:
S5419: 94-a executive law, 94-a(3) executive law