S. 3516 — Stopping Grinch Bots Act of 2025

This section prohibits persons from circumventing technological measures (i.e., security measures, access control systems, or other controls) on internet websites or online services that enforce posted purchasing limits or manage inventory, or from selling or offering to sell in interstate commerce any product or service obtained in violation thereof if the seller participated in, controlled, or knew or should have known of the violation (with exceptions for software or systems used to investigate or enforce violations or to conduct computer security research). It treats such violations as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)), enforceable by the Federal Trade Commission (FTC) using all powers, jurisdiction, penalties, privileges, and immunities under the FTC Act (15 U.S.C. 41 et seq.). The section also authorizes state attorneys general (or other authorized state officials) to bring civil actions in federal or state court on behalf of state residents to enjoin violations, compel compliance, and obtain damages, restitution, or other compensation, subject to (1) advance notice to the FTC (or immediate notice if infeasible), (2) FTC rights to intervene and appeal, (3) state investigatory powers, (4) prohibition on parallel state actions during FTC proceedings against the same defendant for the same violation, and (5) specified venue and service of process rules.