How 'Grinch Bots' Are Ruining Online Christmas Shopping (nypost.com)
Yes, U.S. Senator Chuck Schumer actually called them "Grinch bots." From the New York Post:
The senator said as soon as a retailer puts a hard-to-get toy -- like Barbie's Dreamhouse or Nintendo game systems -- for sale on a website, a bot can snatch it up even before a kid's parents finish entering their credit card information... "Bots come in and buy up all the toys and then charge ludicrous prices amidst the holiday shopping bustle," the New York Democrat said on Sunday... For example, Schumer said, the popular Fingerlings -- a set of interactive baby monkey figurines that usually sell for around $15 -- are being snagged by the scalping software and resold on secondary websites for as much as $1,000 a pop...
In December 2016, Congress passed the Better Online Ticket Sales (BOTS) Act, which Schumer sponsored, to crack down on their use to buy concert tickets, but the measure doesn't apply to other consumer products. He wants that law expanded but knows that won't happen in time for this holiday season. In the meantime, Schumer wants the National Retail Federation and the Retail Industry Leaders Association to block the bots and lead the effort to stop them from buying toys at fair retail prices and then reselling them at outrageous markups.
In December 2016, Congress passed the Better Online Ticket Sales (BOTS) Act, which Schumer sponsored, to crack down on their use to buy concert tickets, but the measure doesn't apply to other consumer products. He wants that law expanded but knows that won't happen in time for this holiday season. In the meantime, Schumer wants the National Retail Federation and the Retail Industry Leaders Association to block the bots and lead the effort to stop them from buying toys at fair retail prices and then reselling them at outrageous markups.
The shoppers are idiots, and they largely get what they deserve - anyone paying more than retail is exacerbating the problem, but god forbid your child doesn't get the latest gadget for Christmas. Anyone who has paid more than retail for a gaming system, or anything else that will eventually be available for the retail cost, is NOT A VICTIM, they are the PROBLEM.
Stupid sexy Flanders.
No toy commercials and a quicker hatred of government so we can bitch about it together.
This kind of arbitrage is only possible if the original price was far too low compared to the supply/demand. If there is demand at $1000/ea, and you are selling at $15/ea, then something will fill that void. If not bots, then just people buying and immediately reselling.
I have no idea what a "Barbie Dreamhouse" is or why it could possibly be worth $1000 to somebody, but if that's where the market values it, you can either (a) produce more to drive the supply/demand intersection point down closer to what you feel it should be, or (b) sell closer to the current intersection point, which takes the wind out of arbitrage, which also becomes very risky.
These things are matters of basic economics, and have simple solutions.
I have to wonder who wrote Schumer's BOTS act. cuz you know damned well neither he nor his staff don't understand the issue, let alone legislate it. It was written by lobbyists who paid the most the Chucky's attention.
Screw that.... ANOTHER attempt by government to manipulate the free market economy, with the flawed idea it will improve anything.
You can blame these scripts/bots all you like for product shortages, but I guarantee they'll continue to happen even if all of them are somehow magically prevented from running.
The companies actually building the products are known to limit how many are produced after doing the marketing, knowing full well that shortages drum up more interest and free publicity than making sure there's plenty of supply. (When supply is plentiful, a lot of people decide to buy some other product instead that they feel is going to be harder to obtain as a gift. They figure, "Eh... I can easily get one of THOSE things any time, and judging by how many are on shelves? It'll probably go on sale by then too.")
Doesn't the good Senator from New York have more pressing issues demanding his attention these days?
Beware of the Leopard.
Let's try something novel - if you can't find it in stores, just don't buy it.
Trust me, your little darlings aren't going to be scarred for life.
And even better, the so-called Grinch-bots will then be left holding the toys when noone is willing to pay $1K price tags for a $15 toy....
"I do not agree with what you say, but I will defend to the death your right to say it"
Actually, Smith warned that this sort of rent seeking needs to be regulated lest the economy go in the dumper.
Retailers/Manufactures love getting their customers spun up. Hey let's not mark up something to a realistic price so that demand is strong but not insane. They mark it down to say 1/10 of what the "gotta have my precious NOW!" are willing to pay (initial launch 3 weeks out from Christmas), and watch the customers eat each other, while knowing they won't be able to satisfy initial demand for the item for another 6 months into next year.
Its kind of evil if you ask me.
Considering that we're about to add $1.5 tn in deficit spending to make the ultra-wealthy just that much more wealthy on the poor's dime, I think that the people paying those markups probably don't feel bad about screwing the poorer out of buying them for what the manufacturer and retailers are asking.
We live in a winner take all society where the rich are so completely oblivious that it's going to take literal lynch mobs of villagers carrying torches and pitchforks to get them to see that being greedy bastards has consequences.
And thus we learned that the true meaning of Christmas is not in buying whatever mass-produced junk is trendy at the moment, but in joining together in anger on the internet.
Why do kids need the latest plastic toy fad made by $1/hr workers in some sweatshop? Buy them toys that make them THINK creatively and allow them to build. Paints and a canvas, electronics set, chemistry set, Legos, Erector sets, Capsela (yep, re-released), electric trains. Those kinds of things seldom go through fads, so bots are unlikely to be a problem. And you can buy them in brick 'n mortar shops.
He was thinking of absolutely anything that might sell in the marketplace. If scalpers were creating a toothpick shortage, that would also be proper subject for regulation.
Tell them that Santa was fired by his employers (Coca-Cola) because there were accusations of him sexually harassing the female elves Apparently he would get them to sit on his lap while telling them what he wanted for Christmas.
I sympathize with many of you who are concerned about free market manipulation and the relative unimportant nature of toy sales. Your not wrong. When it comes to toys for children, we can solve this "problem" with a little wisdom and self control.
However, let's look at this like technology people (slashdot, right?). Toys today could be something else tomorrow?
Those mandatory for school TI calculators?
Chemicals necessary to produce certain kinds of 3D print material used in every household?
Important drugs that are hard to produce?
Preparation H?!? (Hey,when you need it and it is not there, then you will understand)
I'm not sure if this is possible today, but when I think about how the market has changed over the past 10 or 20 years and imagine how it might change over the next 10 or 20, I'm not sure this "abuse" is going to be limited to rich people and their spoiled children's toy fetishes. When I combine a little imagination with the history of technology and its evolution, this practice makes me a little nervous.
I don't know if Schumer has thought about this or even cares, but shouldn't we give it a little more thought before discounting this out of hand?
How could bots disrupt the free market and legitimately hurt people by limiting access to stuff?
And so, overproduce, There is no ACTUAL shortage, they're all in a tent in the scalper's back yard. Enough to last the whole population for a year.
If they still want X in a year, fine, otherwise there's a life lesson about marketing, peer pressure, and temporality to be taught, which is far more valuable than a Cabbage Patch doll or Pet Rock.
On the other hand, this lesson comes at the price of being the only single kid who received it, and being ostracized by the rest of the school's kid for being weird by not following the same trends as every body else "normal", by not having the same outfit, the same popular toys, etc.
Basically, by making the kid more aware and more immune of the above marketing/peer pressure/etc. problems, you're also pushing them into becoming social outcasts and being percieved as "that weird kid".
There's a sweet spot of weirdness were the kid actually doesn't even give a damn about not fitting in the group, is creative enough to find their own interests in life (without needing group approval) while still being a tiny bit social enough to have a very interesting clique of other non-conforming friends.
(And, personal experience, it also helps a lot when the kid happens to be quite a bit taller then any potential bully...)
But that might not be the case of everyone. Some kids might be actively trying to resist your lessons about not needing to fit in because of sheer fear of rejection by the others.
The part of the lesson about "peer pressure" actually goes much deeper than just "you'll see, in a couple of months you won't even want the toy anymore".
It is a very valuable lesson, but it take quite some work to get there depending on the kid.
"Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
Funny how the chest-thumpers of modern capitalism sob into their hands when the free market does something they *don't* like...