S. 196 would prohibit individuals from using automated software to purchase event tickets from an online website or service and require the Federal Trade Commission (FTC) to enforce that prohibition. In addition, the bill would direct online ticket issuers to establish, maintain, and improve security measures to enforce limits on ticket purchasing. Ticket issuers would be required to report to the FTC if purchasers circumvented those measures. The bill would require the FTC to issue guidance to online ticket issuers on how to comply with the security standards set by the bill. S. 196 also would require the FTC to coordinate with the Department of Justice about any known instances of cyberattacks on security measures used to enforce limits on ticket purchasing. Finally, the FTC would be required to report to the Congress on the status of any enforcement actions.

Using information from the FTC and based on the cost of similar requirements, CBO estimates that implementing S. 196 would cost $4 million over the 2025-2030 period. Any related spending would be subject to the availability of appropriated funds.

S. 196 would authorize the FTC to collect civil monetary penalties from businesses that violate the new provisions. Civil monetary penalties generally are remitted to the Treasury and recorded as revenues. Whether the FTC would pursue civil penalties or some other remedy for violations is unclear. In any event, CBO expects that companies would generally comply with the new requirements and that any additional revenues collected over the 2025-2030 period would be insignificant.

S. 196 would impose a private-sector mandate, as defined in the Unfunded Mandates Reform Act (UMRA), on online ticket issuers by requiring them to implement security measures to enforce ticket purchasing rules and to report to the FTC if any of those measures are circumvented. Because much of the ticket issuing industry already maintains such security measures, CBO estimates that the cost to comply with this mandate will be well below the threshold established in UMRA for private-sector mandates ($206 million in 2025, adjusted annually for inflation).

S. 196 contains no intergovernmental mandates as defined in UMRA.

The CBO staff contacts for this estimate are David Hughes (for federal costs) and Rachel Austin (for mandates). The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.