th st congress session h. r. 3900

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I 116TH CONGRESS 1ST SESSION H. R. 3900 To amend the Children’s Online Privacy Protection Act of 1998 to strengthen protections relating to the online collection, use, and disclosure of per- sonal information of children and minors, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 23, 2019 Mr. RUSH introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend the Children’s Online Privacy Protection Act of 1998 to strengthen protections relating to the online collection, use, and disclosure of personal information of children and minors, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. TABLE OF CONTENTS. 3 The table of contents for this Act is as follows: 4 Sec. 1. Table of contents. Sec. 2. Definitions. Sec. 3. Online collection, use, and disclosure of personal information of children and minors. Sec. 4. Fair Information Practices Principles. Sec. 5. Digital Marketing Bill of Rights for Minors. Sec. 6. Targeted marketing to children or minors. Sec. 7. Removal of content. Sec. 8. Privacy dashboard for connected devices for children and minors. VerDate Sep 11 2014 22:08 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H3900.IH H3900 kjohnson on DSK79L0C42 with BILLS

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Page 1: TH ST CONGRESS SESSION H. R. 3900

I

116TH CONGRESS 1ST SESSION H. R. 3900

To amend the Children’s Online Privacy Protection Act of 1998 to strengthen

protections relating to the online collection, use, and disclosure of per-

sonal information of children and minors, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 23, 2019

Mr. RUSH introduced the following bill; which was referred to the Committee

on Energy and Commerce

A BILL To amend the Children’s Online Privacy Protection Act of

1998 to strengthen protections relating to the online

collection, use, and disclosure of personal information

of children and minors, and for other purposes.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled, 2

SECTION 1. TABLE OF CONTENTS. 3

The table of contents for this Act is as follows: 4

Sec. 1. Table of contents.

Sec. 2. Definitions.

Sec. 3. Online collection, use, and disclosure of personal information of children

and minors.

Sec. 4. Fair Information Practices Principles.

Sec. 5. Digital Marketing Bill of Rights for Minors.

Sec. 6. Targeted marketing to children or minors.

Sec. 7. Removal of content.

Sec. 8. Privacy dashboard for connected devices for children and minors.

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Sec. 9. Prohibition on sale of connected devices for children and minors that

fail to meet appropriate cybersecurity and data security stand-

ards.

Sec. 10. Rule for treatment of users of websites, services, and applications di-

rected to children or minors.

Sec. 11. Study of mobile and online application oversight.

Sec. 12. Youth Privacy and Marketing Division.

Sec. 13. Enforcement and applicability.

SEC. 2. DEFINITIONS. 1

(a) IN GENERAL.—In this Act: 2

(1) COMMISSION.—The term ‘‘Commission’’ 3

means the Federal Trade Commission. 4

(2) STANDARDS.—The term ‘‘standards’’ means 5

benchmarks, guidelines, best practices, methodolo-6

gies, procedures, and processes. 7

(b) OTHER DEFINITIONS.—The definitions set forth 8

in section 1302 of the Children’s Online Privacy Protec-9

tion Act of 1998 (15 U.S.C. 6501), as amended by section 10

3(a) of this Act, shall apply in this Act, except to the ex-11

tent the Commission provides otherwise by regulations 12

issued under section 553 of title 5, United States Code. 13

SEC. 3. ONLINE COLLECTION, USE, AND DISCLOSURE OF 14

PERSONAL INFORMATION OF CHILDREN AND 15

MINORS. 16

(a) DEFINITIONS.—Section 1302 of the Children’s 17

Online Privacy Protection Act of 1998 (15 U.S.C. 6501) 18

is amended— 19

(1) by amending paragraph (2) to read as fol-20

lows: 21

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‘‘(2) OPERATOR.—The term ‘operator’— 1

‘‘(A) means any person— 2

‘‘(i) who, for commercial purposes, in 3

interstate or foreign commerce operates or 4

provides a website on the internet, an on-5

line service, an online application, or a mo-6

bile application; and 7

‘‘(ii) who— 8

‘‘(I) collects or maintains, either 9

directly or through a service provider, 10

personal information from or about 11

the users of that website, service, ap-12

plication, or connected device; 13

‘‘(II) allows another person to 14

collect personal information directly 15

from users of that website, service, 16

application, or connected device (in 17

which case, the operator is deemed to 18

have collected the information); or 19

‘‘(III) allows users of that 20

website, service, application, or con-21

nected device to publicly disclose per-22

sonal information (in which case, the 23

operator is deemed to have collected 24

the information); and 25

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‘‘(B) does not include any nonprofit entity 1

that would otherwise be exempt from coverage 2

under section 5 of the Federal Trade Commis-3

sion Act (15 U.S.C. 45).’’; 4

(2) in paragraph (4)— 5

(A) by amending subparagraph (A) to read 6

as follows: 7

‘‘(A) the release of personal information 8

collected from a child or minor for any purpose, 9

except where the personal information is pro-10

vided to a person other than an operator who— 11

‘‘(i) provides support for the internal 12

operations of the website, online service, 13

online application, or mobile application of 14

the operator, excluding any activity relat-15

ing to targeted marketing directed to chil-16

dren, minors, or connected devices; and 17

‘‘(ii) does not disclose or use that per-18

sonal information for any other purpose; 19

and’’; and 20

(B) in subparagraph (B)— 21

(i) by inserting ‘‘or minor’’ after 22

‘‘child’’ each place the term appears; 23

(ii) by inserting ‘‘or minors’’ after 24

‘‘children’’; and 25

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(iii) by striking ‘‘website or online 1

service’’ and inserting ‘‘website, online 2

service, online application, or mobile appli-3

cation’’; 4

(3) in paragraph (8), by striking subparagraphs 5

(F) and (G) and inserting the following: 6

‘‘(F) geolocation information; 7

‘‘(G) information used for biometric identi-8

fication, as defined in section 70123 of title 46, 9

United States Code, of an individual; 10

‘‘(H) information reasonably associated 11

with or attributed to an individual; 12

‘‘(I) information (including an internet 13

protocol address) that permits the identification 14

of— 15

‘‘(i) an individual; or 16

‘‘(ii) any device used by an individual 17

to directly or indirectly access the internet 18

or an online service, online application, or 19

mobile application; or 20

‘‘(J) information concerning a child or 21

minor or the parents of that child or minor (in-22

cluding any unique or substantially unique iden-23

tifier, such as a customer number) that an op-24

erator collects online from the child or minor 25

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and combines with an identifier described in 1

this paragraph.’’; 2

(4) by amending paragraph (9) to read as fol-3

lows: 4

‘‘(9) VERIFIABLE CONSENT.—The term 5

‘verifiable consent’ means any reasonable effort (tak-6

ing into consideration available technology), includ-7

ing a request for authorization for future collection, 8

use, and disclosure described in the notice, to ensure 9

that, in the case of a child, a parent of the child, 10

or, in the case of a minor, the minor— 11

‘‘(A) receives specific notice of the personal 12

information collection, use, and disclosure prac-13

tices of the operator; and 14

‘‘(B) before the personal information of the 15

child or minor is collected, freely and unambig-16

uously authorizes— 17

‘‘(i) the collection, use, and disclosure, 18

as applicable, of that personal information; 19

and 20

‘‘(ii) any subsequent use of that per-21

sonal information.’’; 22

(5) by striking paragraph (10) and redesig-23

nating paragraphs (11) and (12) as paragraphs (10) 24

and (11), respectively; and 25

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(6) by adding at the end the following: 1

‘‘(12) CONNECTED DEVICE.—The term ‘con-2

nected device’ means a device that is capable of con-3

necting to the internet, directly or indirectly, or to 4

another connected device. 5

‘‘(13) ONLINE.—The term ‘online’ means— 6

‘‘(A) connected to or compatible with the 7

internet; or 8

‘‘(B) via the internet. 9

‘‘(14) ONLINE APPLICATION.—The term ‘online 10

application’— 11

‘‘(A) means an internet-connected software 12

program; and 13

‘‘(B) includes a service or application of-14

fered via a connected device. 15

‘‘(15) ONLINE SERVICE.—The term ‘online 16

service’— 17

‘‘(A) means broadband internet access 18

service, as defined in the Report and Order on 19

Remand, Declaratory Ruling, and Order in the 20

matter of protecting and promoting the open 21

internet, adopted by the Federal Communica-22

tions Commission on February 26, 2015 (FCC 23

15–24); and 24

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‘‘(B) includes a service or application of-1

fered via a connected device. 2

‘‘(16) DIRECTED TO A CHILD OR MINOR.— 3

‘‘(A) IN GENERAL.—The terms ‘directed to 4

a child’ or ‘directed to a minor’ means, with re-5

spect to a website, online service, online applica-6

tion, or mobile application, the website, online 7

service, online application, or mobile application 8

is targeted to children or minors, as the case 9

may be, as demonstrated by— 10

‘‘(i) the subject matter of the website, 11

online service, online application, or mobile 12

application; 13

‘‘(ii) the visual content of the website, 14

online service, online application, or mobile 15

application; 16

‘‘(iii) the use of animated characters 17

or child-oriented activities for children, or 18

the use of minor-oriented characters or 19

minor-oriented activities for minors, and 20

related incentives on the website, online 21

service, online application, or mobile appli-22

cation; 23

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‘‘(iv) the music or other audio content 1

on the website, online service, online appli-2

cation, or mobile application; 3

‘‘(v) the age of models on the website, 4

online service, online application, or mobile 5

application; 6

‘‘(vi) the presence, on the website, on-7

line service, online application, or mobile 8

application, of— 9

‘‘(I) child celebrities; 10

‘‘(II) celebrities who appeal to 11

children; 12

‘‘(III) teen celebrities; or 13

‘‘(IV) celebrities who appeal to 14

minors; 15

‘‘(vii) the language used on the 16

website, online service, online application, 17

or mobile application; 18

‘‘(viii) advertising content used on, or 19

used to advertise, the website, online serv-20

ice, online application, or mobile applica-21

tion; or 22

‘‘(ix) reliable empirical evidence relat-23

ing to— 24

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‘‘(I) the composition of the audi-1

ence of the website, online service, on-2

line application, or mobile application; 3

and 4

‘‘(II) the intended audience of 5

the website, online service, online ap-6

plication, or mobile application. 7

‘‘(B) RULES OF CONSTRUCTION.— 8

‘‘(i) SERVICES DEEMED DIRECTED TO 9

CHILDREN OR MINORS.—For the purposes 10

of this title, a website, online service, on-11

line application, or mobile application shall 12

be deemed to be directed to children or mi-13

nors if the operator of the website, online 14

service, online application, or mobile appli-15

cation has actual knowledge that the 16

website, online service, online application, 17

or mobile application collects personal in-18

formation directly from users of any other 19

website, online service, online application, 20

or mobile application that is directed to 21

children or minors under the criteria de-22

scribed in subparagraph (A). 23

‘‘(ii) SERVICES DEEMED DIRECTED TO 24

MIXED AUDIENCES.— 25

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‘‘(I) IN GENERAL.—A website, 1

online service, online application, or 2

mobile application that is directed to 3

children or minors under the criteria 4

described in subparagraph (A), but 5

that does not target children or mi-6

nors as the primary audience of the 7

website, online service, online applica-8

tion, or mobile application, shall not 9

be deemed to be directed to children 10

or minors for purposes of this title if 11

the website, online service, online ap-12

plication, or mobile application— 13

‘‘(aa) does not collect per-14

sonal information from any user 15

of the website, online service, on-16

line application, or mobile appli-17

cation before verifying age infor-18

mation of the user; and 19

‘‘(bb) does not, without first 20

complying with any relevant no-21

tice and consent provision under 22

this title, collect, use, or disclose 23

personal information of any user 24

who identifies themselves to the 25

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website, online service, online ap-1

plication, or mobile application as 2

an individual who is under the 3

age of 16. 4

‘‘(II) USE OF CERTAIN TOOLS.— 5

For purposes of this title, a website, 6

online service, online application, or 7

mobile application, shall not be 8

deemed directed to children or minors 9

solely because the website, online serv-10

ice, online application, or mobile appli-11

cation refers or links to any other 12

website, online service, online applica-13

tion, or mobile application directed to 14

children or minors by using informa-15

tion location tools, including— 16

‘‘(aa) a directory; 17

‘‘(bb) an index; 18

‘‘(cc) a reference; 19

‘‘(dd) a pointer; or 20

‘‘(ee) a hypertext link. 21

‘‘(17) MOBILE APPLICATION.—The term ‘mo-22

bile application’— 23

‘‘(A) means a software program that runs 24

on the operating system of— 25

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‘‘(i) a cellular telephone; 1

‘‘(ii) a tablet computer; or 2

‘‘(iii) a similar portable computing de-3

vice that transmits data over a wireless 4

connection; and 5

‘‘(B) includes a service or application of-6

fered via a connected device. 7

‘‘(18) GEOLOCATION INFORMATION.—The term 8

‘geolocation information’ means information suffi-9

cient to identify a street name and name of a city 10

or town. 11

‘‘(19) MINOR.—The term ‘minor’ means an in-12

dividual over the age of 12 and under the age of 16. 13

‘‘(20) TARGETED MARKETING.—The term ‘tar-14

geted marketing’ means advertising or any other ef-15

fort to market a product or service that is directed 16

to a specific individual or device— 17

‘‘(A) based on— 18

‘‘(i) the personal information of— 19

‘‘(I) the individual; or 20

‘‘(II) a group of individuals who 21

are similar in gender, age, income 22

level, race, or ethnicity to the specific 23

individual to whom the product or 24

service is marketed; 25

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‘‘(ii) psychological profiling; or 1

‘‘(iii) a unique identifier of the device; 2

and 3

‘‘(B) as a result of use by the individual, 4

access by any device of the individual, or use by 5

a group of individuals who are similar to the 6

specific individual, of— 7

‘‘(i) a website; 8

‘‘(ii) an online service; 9

‘‘(iii) an online application; 10

‘‘(iv) a mobile application; or 11

‘‘(v) an operating system.’’. 12

(b) ONLINE COLLECTION, USE, AND DISCLOSURE OF 13

PERSONAL INFORMATION OF CHILDREN AND MINORS.— 14

Section 1303 of the Children’s Online Privacy Protection 15

Act of 1998 (15 U.S.C. 6502) is amended— 16

(1) by striking the heading and inserting the 17

following: ‘‘ONLINE COLLECTION, USE, AND DIS-18

CLOSURE OF PERSONAL INFORMATION OF 19

CHILDREN AND MINORS.’’; 20

(2) in subsection (a)— 21

(A) by amending paragraph (1) to read as 22

follows: 23

‘‘(1) IN GENERAL.—It is unlawful for an oper-24

ator of a website, online service, online application, 25

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or mobile application directed to a child or minor, or 1

an operator having constructive knowledge that per-2

sonal information being collected is from a child or 3

minor, to collect personal information from a child 4

or minor in a manner that violates the regulations 5

prescribed under subsection (b).’’; and 6

(B) in paragraph (2)— 7

(i) by striking ‘‘of such a website or 8

online service’’; and 9

(ii) by striking ‘‘subsection 10

(b)(1)(B)(iii) to the parent of a child’’ and 11

inserting ‘‘subsection (b)(1)(A)(iii) to the 12

parent of a child or under subsection 13

(b)(1)(A)(iv) to a minor’’; and 14

(3) in subsection (b)— 15

(A) by amending paragraph (1) to read as 16

follows: 17

‘‘(1) REGULATIONS.— 18

‘‘(A) IN GENERAL.—Not later than 1 year 19

after the date of the enactment of the Act enti-20

tled ‘An Act to amend the Children’s Online 21

Privacy Protection Act of 1998 to strengthen 22

protections relating to the online collection, use, 23

and disclosure of personal information of chil-24

dren and minors, and for other purposes’, the 25

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Commission shall promulgate, under section 1

553 of title 5, United States Code, regulations 2

to require an operator of a website, online serv-3

ice, online application, or mobile application di-4

rected to children or minors, or an operator 5

having constructive knowledge that personal in-6

formation being collected is from a child or 7

minor— 8

‘‘(i) to provide clear and conspicuous 9

notice in clear and plain language of— 10

‘‘(I) the types of personal infor-11

mation the operator collects; 12

‘‘(II) how the operator uses the 13

information; 14

‘‘(III) whether and why the oper-15

ator discloses the information; and 16

‘‘(IV) the procedures or mecha-17

nisms the operator uses to ensure that 18

personal information is not collected 19

from children or minors except in ac-20

cordance with the regulations promul-21

gated under this paragraph; 22

‘‘(ii) to obtain verifiable consent for 23

the collection, use, or disclosure of personal 24

information of a child or minor; 25

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‘‘(iii) to provide to a parent whose 1

child has provided personal information to 2

the operator, upon request by and proper 3

identification of the parent— 4

‘‘(I) a description of the specific 5

types of personal information collected 6

from the child by the operator; 7

‘‘(II) the opportunity at any time 8

to delete personal information col-9

lected from the child; and 10

‘‘(III) a means that is reasonable 11

under the circumstances for the par-12

ent to obtain any personal information 13

collected from the child, if such infor-14

mation is available to the operator at 15

the time the parent makes the re-16

quest; 17

‘‘(iv) to provide to a minor who has 18

provided personal information to the oper-19

ator, upon request by and proper identi-20

fication of the minor— 21

‘‘(I) a description of the specific 22

types of personal information collected 23

from the minor by the operator; 24

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‘‘(II) the opportunity at any time 1

to delete personal information col-2

lected from the minor; and 3

‘‘(III) a means that is reasonable 4

under the circumstances for the minor 5

to obtain any personal information 6

collected from the minor, if such in-7

formation is available to the operator 8

at the time the minor makes the re-9

quest; 10

‘‘(v) not to condition participation in 11

a game, or use of a website, service, or ap-12

plication, by a child or minor on the provi-13

sion by the child or minor of more personal 14

information than is reasonably required to 15

participate in the game or use the website, 16

service, or application; and 17

‘‘(vi) to establish and maintain rea-18

sonable procedures to protect the confiden-19

tiality, security, and integrity of personal 20

information collected from children and mi-21

nors. 22

‘‘(B) UPDATES.—Not less frequently than 23

once every 4 years after the date on which reg-24

ulations are promulgated under subparagraph 25

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(A), the Commission shall update those regula-1

tions as necessary.’’; 2

(B) in paragraph (2)— 3

(i) in the matter preceding subpara-4

graph (A), by striking ‘‘verifiable parental 5

consent’’ and inserting ‘‘verifiable con-6

sent’’; 7

(ii) in subparagraph (A)— 8

(I) by inserting ‘‘or minor’’ after 9

‘‘collected from a child’’; 10

(II) by inserting ‘‘or minor’’ after 11

‘‘request from the child’’; and 12

(III) by inserting ‘‘or minor or to 13

contact a different child or minor’’ 14

after ‘‘to recontact the child’’; 15

(iii) in subparagraph (B)— 16

(I) by striking ‘‘parent or child’’ 17

and inserting ‘‘parent, child, or 18

minor’’; and 19

(II) by striking ‘‘parental con-20

sent’’ each place the term appears and 21

inserting ‘‘verifiable consent’’; 22

(iv) in subparagraph (C)— 23

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(I) in the matter preceding clause 1

(i), by inserting ‘‘or minor’’ after 2

‘‘child’’ each place the term appears; 3

(II) in clause (i)— 4

(aa) by inserting ‘‘or minor’’ 5

after ‘‘child’’ each place the term 6

appears; and 7

(bb) by inserting ‘‘or minor, 8

as applicable,’’ after ‘‘parent’’ 9

each place the term appears; and 10

(III) in clause (ii)— 11

(aa) by inserting ‘‘or minor, 12

as applicable,’’ after ‘‘parent’’; 13

and 14

(bb) by inserting ‘‘or minor’’ 15

after ‘‘child’’ each place the term 16

appears; and 17

(v) in subparagraph (D)— 18

(I) in the matter preceding clause 19

(i), by inserting ‘‘or minor’’ after 20

‘‘child’’ each place the term appears; 21

(II) in clause (ii), by inserting 22

‘‘or minor’’ after ‘‘child’’; and 23

(III) in the flush text following 24

clause (iii)— 25

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(aa) by inserting ‘‘or minor, 1

as applicable,’’ after ‘‘parent’’ 2

each place the term appears; and 3

(bb) by inserting ‘‘or minor’’ 4

after ‘‘child’’; and 5

(C) by amending paragraph (3) to read as 6

follows: 7

‘‘(3) CONTINUATION OF SERVICE.—The regula-8

tions shall prohibit an operator from discontinuing 9

service provided to a child or minor on the basis of 10

a request by the parent of the child or by the minor, 11

under the regulations prescribed under clauses 12

(iii)(II) and (iv)(II), respectively, of paragraph 13

(1)(A) to delete personal information collected from 14

the child or minor, to the extent that the operator 15

is capable of providing such service without such in-16

formation.’’. 17

(c) SAFE HARBORS.—Section 1304 of the Children’s 18

Online Privacy Protection Act of 1998 (15 U.S.C. 6503) 19

is amended— 20

(1) in subsection (b)(1), by inserting ‘‘and mi-21

nors’’ after ‘‘children’’; and 22

(2) by adding at the end the following: 23

‘‘(d) PUBLICATION.—The Commission shall publish 24

on the internet website of the Commission any report or 25

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documentation required by regulation to be submitted to 1

the Commission to carry out this section, except to the 2

extent that the report or documentation contains propri-3

etary information, which the Commission may in its dis-4

cretion redact.’’. 5

(d) ADMINISTRATION AND APPLICABILITY OF ACT.— 6

Section 1306 of the Children’s Online Privacy Protection 7

Act of 1998 (15 U.S.C. 6505) is amended— 8

(1) in subsection (b)— 9

(A) in paragraph (1), by striking ‘‘, in the 10

case of’’ and all that follows and inserting the 11

following: ‘‘by the appropriate Federal banking 12

agency, with respect to any insured depository 13

institution (as those terms are defined in sec-14

tion 3 of that Act (12 U.S.C. 1813));’’; and 15

(B) by striking paragraph (2) and redesig-16

nating paragraphs (3) through (6) as para-17

graphs (2) through (5), respectively; and 18

(2) by adding at the end the following new sub-19

section: 20

‘‘(f) TELECOMMUNICATIONS CARRIERS AND CABLE 21

OPERATORS.— 22

‘‘(1) ENFORCEMENT BY COMMISSION.—Not-23

withstanding section 5(a)(2) of the Federal Trade 24

Commission Act (15 U.S.C. 45(a)(2)), compliance 25

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with the requirements imposed under this title shall 1

be enforced by the Commission with respect to any 2

telecommunications carrier (as defined in section 3 3

of the Communications Act of 1934 (47 U.S.C. 4

153)). 5

‘‘(2) RELATIONSHIP TO OTHER LAW.—To the 6

extent that section 222, 338(i), or 631 of the Com-7

munications Act of 1934 (47 U.S.C. 222; 338(i); 8

551) is inconsistent with this title, this title con-9

trols.’’. 10

SEC. 4. FAIR INFORMATION PRACTICES PRINCIPLES. 11

The Fair Information Practices Principles described 12

in this section are the following: 13

(1) COLLECTION LIMITATION PRINCIPLE.—Ex-14

cept as provided in paragraph (3), personal informa-15

tion should be collected from a child or minor only 16

when collection of the personal information is— 17

(A) consistent with the context of a par-18

ticular transaction or service or the relationship 19

of the child or minor with the operator, includ-20

ing collection necessary to fulfill a transaction 21

or provide a service requested by the child or 22

minor; or 23

(B) required or specifically authorized by 24

law. 25

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(2) DATA QUALITY PRINCIPLE.—The personal 1

information of a child or minor should be accurate, 2

complete, and kept up-to-date to the extent nec-3

essary to fulfill the purposes described in subpara-4

graphs (A) through (D) of paragraph (3). 5

(3) PURPOSE SPECIFICATION PRINCIPLE.—The 6

purposes for which personal information is collected 7

should be specified to the parent of a child or to a 8

minor not later than at the time of the collection of 9

the information. The subsequent use or disclosure of 10

the information should be limited to— 11

(A) fulfillment of the transaction or service 12

requested by the child or minor; 13

(B) support for the internal operations of 14

the website, service, or application, as described 15

in section 312.2 of title 16, Code of Federal 16

Regulations, excluding any activity relating to 17

targeted marketing directed to children, minors, 18

or a device of a child or minor; 19

(C) compliance with legal process or other 20

purposes expressly authorized under specific 21

legal authority; or 22

(D) other purposes— 23

(i) that are specified in a notice to the 24

child or minor; and 25

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(ii) to which the child or minor has 1

consented under paragraph (7) before the 2

information is used or disclosed for such 3

other purposes. 4

(4) RETENTION LIMITATION PRINCIPLE.— 5

(A) IN GENERAL.—The personal informa-6

tion of a child or minor should not be retained 7

for longer than is necessary to fulfill a trans-8

action or provide a service requested by the 9

child or minor or such other purposes specified 10

in subparagraphs (A) through (D) of paragraph 11

(3). 12

(B) DATA DISPOSAL.—The operator should 13

implement a reasonable and appropriate data 14

disposal policy based on the nature and sensi-15

tivity of personal information described in sub-16

paragraph (A). 17

(5) SECURITY SAFEGUARDS PRINCIPLE.—The 18

personal information of a child or minor should be 19

protected by reasonable and appropriate security 20

safeguards against risks such as loss or unauthor-21

ized access, destruction, use, modification, or disclo-22

sure. 23

(6) OPENNESS PRINCIPLE.— 24

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(A) GENERAL PRINCIPLE.—The operator 1

should maintain a general policy of openness 2

about developments, practices, and policies with 3

respect to the personal information of a child or 4

minor. 5

(B) PROVISION OF INFORMATION.—The 6

operator should provide to each parent of a 7

child, or to each minor, using the website, on-8

line service, online application, or mobile appli-9

cation of the operator with a clear and promi-10

nent means— 11

(i) to identify and contact the oper-12

ator, by, at a minimum, disclosing, clearly 13

and prominently, the identity of the oper-14

ator and— 15

(I) in the case of an operator 16

who is an individual, the address of 17

the principal residence of the operator 18

and an email address and telephone 19

number for the operator; or 20

(II) in the case of any other op-21

erator, the address of the principal 22

place of business of the operator and 23

an email address and telephone num-24

ber for the operator; 25

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(ii) to determine whether the operator 1

possesses any personal information of the 2

child or minor, the nature of any such in-3

formation, and the purposes for which the 4

information was collected and is being re-5

tained; 6

(iii) to obtain any personal informa-7

tion of the child or minor that is in the 8

possession of the operator from the oper-9

ator, or from a person specified by the op-10

erator, within a reasonable time after mak-11

ing a request, at a charge (if any) that is 12

not excessive, in a reasonable manner, and 13

in a form that is readily intelligible to the 14

child or minor; 15

(iv) to challenge the accuracy of per-16

sonal information of the child or minor 17

that is in the possession of the operator; 18

(v) to determine if the child or minor 19

has established the inaccuracy of personal 20

information in a challenge under clause 21

(iv) in order to have such information 22

erased, corrected, completed, or otherwise 23

amended; and 24

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(vi) to determine the method by which 1

the operator obtains data relevant to the 2

child or minor. 3

(C) LIMITATION.—Nothing in this para-4

graph shall be construed to permit an operator 5

to erase or otherwise modify personal informa-6

tion requested by a law enforcement agency 7

pursuant to legal authority. 8

(7) INDIVIDUAL PARTICIPATION PRINCIPLE.— 9

The operator should— 10

(A) obtain consent from a parent of a child 11

or from a minor before using or disclosing the 12

personal information of the child or minor for 13

any purpose other than the purposes described 14

in subparagraphs (A) through (C) of paragraph 15

(3); and 16

(B) obtain affirmative express consent 17

from a parent of a child or from a minor before 18

using or disclosing previously collected personal 19

information of the child or minor for purposes 20

that constitute a material change in practice 21

from the original purposes specified to the child 22

or minor under paragraph (3). 23

(8) RACIAL AND SOCIOECONOMIC PROFILING.— 24

The personal information of a child or minor shall 25

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not be used to direct content to the child or minor, 1

or a group of individuals similar to the child or 2

minor, on the basis of race, socioeconomic factors, or 3

any proxy thereof. 4

SEC. 5. DIGITAL MARKETING BILL OF RIGHTS FOR MINORS. 5

(a) ACTS PROHIBITED.— 6

(1) PROHIBITION.— 7

(A) IN GENERAL.—Except as provided in 8

subparagraph (B), it shall be unlawful for an 9

operator of a website, online service, online ap-10

plication, or mobile application to collect per-11

sonal information from a minor if— 12

(i)(I) the minor is a user of the 13

website, online service, online application, 14

or mobile application; and 15

(II) the operator has constructive 16

knowledge that the minor is a minor; or 17

(ii) the website, online service, online 18

application, or mobile application is di-19

rected to minors. 20

(B) EXCEPTION.—Subparagraph (A) shall 21

not apply to an operator that has adopted and 22

complies with a Digital Marketing Bill of 23

Rights for Minors that is consistent with the 24

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Fair Information Practices Principles described 1

in section 4. 2

(2) EFFECTIVE DATE.—This subsection shall 3

take effect on the date that is 180 days after the 4

promulgation of regulations under subsection (b). 5

(b) REGULATIONS.— 6

(1) IN GENERAL.—Not later than 1 year after 7

the date of enactment of this Act, the Commission 8

shall promulgate, under section 553 of title 5, 9

United States Code, regulations to implement this 10

section, including regulations further defining the 11

Fair Information Practices Principles described in 12

section 4. 13

(2) UPDATES.—Not less frequently than once 14

every 4 years after the date on which regulations are 15

promulgated under paragraph (1), the Commission 16

shall update those regulations as necessary. 17

SEC. 6. TARGETED MARKETING TO CHILDREN OR MINORS. 18

(a) ACTS PROHIBITED.— 19

(1) CHILDREN.—It shall be unlawful for an op-20

erator of a website, online service, online application, 21

or mobile application to use, disclose to third par-22

ties, or compile personal information of a child for 23

purposes of targeted marketing if— 24

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(A)(i) the child is a user of the website, 1

online service, online application, or mobile ap-2

plication; and 3

(ii) the operator has constructive knowl-4

edge that the child is a child; or 5

(B) the website, online service, online ap-6

plication, or mobile application is directed to a 7

child. 8

(2) MINORS.— 9

(A) PROHIBITION.—Except as provided in 10

subparagraph (B), it shall be unlawful for an 11

operator of a website, online service, online ap-12

plication, or mobile application to use, disclose 13

to third parties, or compile personal informa-14

tion of a minor for purposes of targeted mar-15

keting if— 16

(i)(I) the minor is a user of the 17

website, online service, online application, 18

or mobile application; and 19

(II) the operator has constructive 20

knowledge that the minor is a minor; or 21

(ii) the website, online service, online 22

application, or mobile application is di-23

rected to a minor. 24

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(B) EXCEPTION.—Subparagraph (A) shall 1

not apply to an operator that has obtained the 2

verifiable consent of the relevant minor. 3

(3) EFFECTIVE DATE.—This subsection shall 4

take effect on the date that is 180 days after the 5

promulgation of regulations under subsection (b). 6

(b) REGULATIONS.— 7

(1) IN GENERAL.—Not later than 1 year after 8

the date of enactment of this Act, the Commission 9

shall promulgate, under section 553 of title 5, 10

United States Code, regulations to implement this 11

section. 12

(2) UPDATES.—Not less frequently than once 13

every 4 years after the date on which regulations are 14

promulgated under paragraph (1), the Commission 15

shall update those regulations as necessary. 16

SEC. 7. REMOVAL OF CONTENT. 17

(a) ACTS PROHIBITED.—It is unlawful for an oper-18

ator to make publicly available through a website, online 19

service, online application, or mobile application content 20

or information that contains or displays personal informa-21

tion of children or minors in a manner that violates sub-22

section (b). 23

(b) REQUIREMENT.— 24

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(1) IN GENERAL.—An operator, to the extent 1

technologically feasible, shall— 2

(A) implement mechanisms that permit a 3

user of the website, online service, online appli-4

cation, or mobile application of the operator to 5

erase or otherwise eliminate content or informa-6

tion that is— 7

(i) submitted to the website, online 8

service, online application, or mobile appli-9

cation by that user; 10

(ii) publicly available through the 11

website, online service, online application, 12

or mobile application; and 13

(iii) contains or displays personal in-14

formation of children or minors; and 15

(B) take appropriate steps to— 16

(i) make users aware of the mecha-17

nisms described in subparagraph (A); and 18

(ii) provide notice to users that the 19

mechanisms described in subparagraph (A) 20

do not necessarily provide comprehensive 21

removal of the content or information sub-22

mitted by users. 23

(2) EXCEPTIONS.—Paragraph (1) shall not be 24

construed to require an operator or third party to 25

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erase or otherwise eliminate content or information 1

that— 2

(A) any other provision of Federal or State 3

law requires the operator or third party to 4

maintain; or 5

(B) was submitted to the website, online 6

service, online application, or mobile application 7

of the operator by any person other than the 8

user who is attempting to erase or otherwise 9

eliminate the content or information, including 10

content or information submitted by the user 11

that was republished or resubmitted by another 12

person. 13

(c) LIMITATION.—Nothing in this section shall be 14

construed to limit the authority of a law enforcement 15

agency to obtain any content or information from an oper-16

ator as authorized by law or pursuant to an order of a 17

court of competent jurisdiction. 18

(d) EFFECTIVE DATE.—This section shall take effect 19

on the date that is 180 days after the date of enactment 20

of this Act. 21

SEC. 8. PRIVACY DASHBOARD FOR CONNECTED DEVICES 22

FOR CHILDREN AND MINORS. 23

(a) IN GENERAL.—A manufacturer of a connected 24

device directed to a child or minor shall prominently dis-25

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play on the packaging for the connected device a standard-1

ized and easy-to-understand privacy dashboard, detailing 2

whether, what, and how personal information of a child 3

or minor is— 4

(1) collected from the connected device; 5

(2) transmitted from the connected device; 6

(3) retained on the connected device; 7

(4) retained by the manufacturer or affiliated 8

person; 9

(5) used by the manufacturer or affiliated per-10

son; and 11

(6) protected. 12

(b) FEATURES.—A privacy dashboard under sub-13

section (a) shall inform a consumer of— 14

(1) the extent to which the connected device 15

meets the highest cybersecurity and data security 16

standards, including if and how to obtain security 17

patches; 18

(2) the extent to which the connected device 19

gives— 20

(A) a parent meaningful control over the 21

information of a child of the parent; and 22

(B) a minor meaningful control over the 23

information of the minor; 24

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(3) the extent to which the device minimizes the 1

collection, retention, and use of information from a 2

child or minor; 3

(4) the location of privacy policies; 4

(5) the type of personal information the con-5

nected device may collect; 6

(6) the minimum length of time during which 7

a connected device will received security patches and 8

software updates; 9

(7) whether the connected device can be used 10

without being connected to the internet; and 11

(8) any other information as the Commission 12

considers appropriate. 13

(c) REGULATIONS.— 14

(1) IN GENERAL.—Not later than 1 year after 15

the date of enactment of this Act, the Commission 16

shall promulgate, under section 553 of title 5, 17

United States Code, regulations to implement this 18

section. 19

(2) UPDATES.—Not less frequently than once 20

every 4 years after the date on which regulations are 21

promulgated under paragraph (1), the Commission 22

shall update those regulations as necessary. 23

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(d) EFFECTIVE DATE.—Subsections (a) and (b) shall 1

take effect on the date that is 180 days after the promul-2

gation of regulations under subsection (c). 3

SEC. 9. PROHIBITION ON SALE OF CONNECTED DEVICES 4

FOR CHILDREN AND MINORS THAT FAIL TO 5

MEET APPROPRIATE CYBERSECURITY AND 6

DATA SECURITY STANDARDS. 7

(a) PROHIBITION.—Beginning 1 year after the date 8

of enactment of this Act, no person may sell a connected 9

device unless the connected device meets appropriate cy-10

bersecurity and data security standards established by the 11

Commission. 12

(b) CYBERSECURITY AND DATA SECURITY STAND-13

ARDS.— 14

(1) IN GENERAL.—The Commission shall pro-15

mulgate, under section 553 of title 5, United States 16

Code, cybersecurity and data security standards de-17

scribed in subsection (a). 18

(2) CONSIDERATIONS.—In promulgating cyber-19

security and data security standards under para-20

graph (1), the Commission shall— 21

(A) create cybersecurity and data security 22

standards for different subsets of connected de-23

vices based on the varying degrees of— 24

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(i) cybersecurity and data security 1

risk associated with each subset of con-2

nected device; 3

(ii) sensitivity of information collected, 4

stored, or transmitted by each subset of 5

connected device; and 6

(iii) functionality of each subset of 7

connected device; 8

(B) consider incorporating, to the extent 9

practicable, existing cybersecurity and data se-10

curity standards; and 11

(C) ensure that the cybersecurity and data 12

security standards— 13

(i) are consistent with Fair Informa-14

tion Practice Principles described in sec-15

tion 4; and 16

(ii) promote data minimization. 17

SEC. 10. RULE FOR TREATMENT OF USERS OF WEBSITES, 18

SERVICES, AND APPLICATIONS DIRECTED TO 19

CHILDREN OR MINORS. 20

For the purposes of this Act, an operator of a 21

website, online service, online application, or mobile appli-22

cation that is directed to children or minors shall treat 23

each user of that website, online service, online applica-24

tion, or mobile application as a child or minor, except as 25

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permitted by the Commission pursuant to a regulation 1

promulgated under this Act. 2

SEC. 11. STUDY OF MOBILE AND ONLINE APPLICATION 3

OVERSIGHT. 4

Not later than 2 years after the date of enactment 5

of this Act, the Commission shall submit to each com-6

mittee of the Senate and each committee of the House 7

of Representatives that has jurisdiction over the Commis-8

sion a report on the processes of platforms that offer mo-9

bile and online applications for ensuring that, of those ap-10

plications that are directed to children or minors, the ap-11

plications operate in accordance with— 12

(1) this Act, the amendments made by this Act, 13

and rules promulgated under this Act; 14

(2) rules promulgated by the Commission under 15

section 5 of the Federal Trade Commission Act (15 16

U.S.C. 45) relating to unfair or deceptive acts or 17

practices in marketing; and 18

(3) any other Federal or State law relating to 19

the privacy of children or minors. 20

SEC. 12. YOUTH PRIVACY AND MARKETING DIVISION. 21

(a) ESTABLISHMENT.—There is established within 22

the Commission a division to be known as the Youth Pri-23

vacy and Marketing Division. 24

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(b) DIRECTOR.—The Youth Privacy and Marketing 1

Division shall be headed by a Director, who shall be ap-2

pointed by the Chairman of the Commission. 3

(c) DUTIES.—The Youth Privacy and Marketing Di-4

vision established under subsection (a) shall be responsible 5

for addressing, as it relates to this Act and the amend-6

ments made by this Act— 7

(1) the privacy of children and minors; and 8

(2) marketing directed at children and minors. 9

(d) STAFF.—The Director of the Youth Privacy and 10

Marketing Division shall hire adequate staff to carry out 11

the duties under subsection (c), including individuals who 12

are experts in data protection, digital advertising, data 13

analytics, and youth development. 14

(e) REPORTS.—Not later than 1 year after the date 15

of enactment of this Act, and each year thereafter, the 16

Director of the Youth and Privacy Marketing Division 17

shall submit to the Committee on Commerce, Science, and 18

Transportation of the Senate and the Committee on En-19

ergy and Commerce of the House of Representatives a re-20

port that includes— 21

(1) a description of the work of the Youth Pri-22

vacy and Marketing Division on emerging concerns 23

relating to youth privacy and marketing practices; 24

and 25

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(2) an assessment of how effectively the Com-1

mission has, during the period for which the report 2

is submitted, addressed youth privacy and marketing 3

practices. 4

SEC. 13. ENFORCEMENT AND APPLICABILITY. 5

(a) ENFORCEMENT BY THE COMMISSION.— 6

(1) IN GENERAL.—Except as otherwise pro-7

vided, this Act and the regulations prescribed under 8

this Act shall be enforced by the Commission under 9

the Federal Trade Commission Act (15 U.S.C. 41 et 10

seq.). 11

(2) UNFAIR OR DECEPTIVE ACTS OR PRAC-12

TICES.—Subject to subsection (b), a violation of this 13

Act or a regulation prescribed under this Act shall 14

be treated as a violation of a rule defining an unfair 15

or deceptive act or practice prescribed under section 16

18(a)(1)(B) of the Federal Trade Commission Act 17

(15 U.S.C. 57a(a)(1)(B)). 18

(3) ACTIONS BY THE COMMISSION.— 19

(A) IN GENERAL.—Subject to subsection 20

(b), and except as provided in subsection (d)(1), 21

the Commission shall prevent any person from 22

violating this Act or a regulation prescribed 23

under this Act in the same manner, by the 24

same means, and with the same jurisdiction, 25

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powers, and duties as though all applicable 1

terms and provisions of the Federal Trade 2

Commission Act (15 U.S.C. 41 et seq.) were in-3

corporated into and made a part of this Act, 4

and any person who violates this Act or such 5

regulation shall be subject to the penalties and 6

entitled to the privileges and immunities pro-7

vided in the Federal Trade Commission Act. 8

(B) VIOLATIONS.— 9

(i) IN GENERAL.—In an action 10

brought by the Commission to enforce this 11

Act and the regulations prescribed under 12

this Act, each connected device that fails to 13

meet a standard promulgated under this 14

Act shall be treated as a separate violation. 15

(ii) CIVIL PENALTY.—Notwith-16

standing section 5(m) of the Federal Trade 17

Commission Act (15 U.S.C. 45(m)), a civil 18

penalty recovered for a violation of this Act 19

or a regulation prescribed under this Act 20

may be in excess of the amounts provided 21

for in that section as the court finds ap-22

propriate to deter violations of this Act 23

and regulations prescribed under this Act. 24

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(iii) FIRST VIOLATIONS.—In an action 1

brought by the Commission to enforce this 2

Act and the regulations prescribed under 3

this Act, the Commission may seek a civil 4

penalty for any violation of this Act or reg-5

ulation prescribed under this Act, including 6

any violation that is the first violation of 7

this Act or a regulation prescribed under 8

this Act that a person against whom the 9

action is brought has committed. 10

(b) ENFORCEMENT BY CERTAIN OTHER AGEN-11

CIES.—Notwithstanding subsection (a), compliance with 12

the requirements imposed under this Act shall be enforced 13

as follows: 14

(1) Under section 8 of the Federal Deposit In-15

surance Act (12 U.S.C. 1818) by the appropriate 16

Federal banking agency, with respect to an insured 17

depository institution (as such terms are defined in 18

section 3 of such Act (12 U.S.C. 1813)). 19

(2) Under the Federal Credit Union Act (12 20

U.S.C. 1751 et seq.) by the National Credit Union 21

Administration Board, with respect to any Federal 22

credit union. 23

(3) Under part A of subtitle VII of title 49, 24

United States Code, by the Secretary of Transpor-25

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tation, with respect to any air carrier or foreign air 1

carrier subject to such part. 2

(4) Under the Packers and Stockyards Act, 3

1921 (7 U.S.C. 181 et seq.) (except as provided in 4

section 406 of that Act (7 U.S.C. 226; 227)) by the 5

Secretary of Agriculture, with respect to any activi-6

ties subject to that Act. 7

(5) Under the Farm Credit Act of 1971 (12 8

U.S.C. 2001 et seq.) by the Farm Credit Adminis-9

tration, with respect to any Federal land bank, Fed-10

eral land bank association, Federal intermediate 11

credit bank, or production credit association. 12

(c) ENFORCEMENT BY STATE ATTORNEYS GEN-13

ERAL.— 14

(1) IN GENERAL.— 15

(A) CIVIL ACTIONS.—In any case in which 16

the attorney general of a State has reason to 17

believe that an interest of the residents of that 18

State has been or is threatened or adversely af-19

fected by the engagement of any person in a 20

practice that violates this Act or a regulation 21

prescribed under this Act, the State, as parens 22

patriae, may bring a civil action on behalf of 23

the residents of the State in a district court of 24

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the United States of appropriate jurisdiction 1

to— 2

(i) enjoin that practice; 3

(ii) enforce compliance with this Act 4

or such regulation; 5

(iii) obtain damages, restitution, or 6

other compensation on behalf of residents 7

of the State; or 8

(iv) obtain such other relief as the 9

court may consider to be appropriate. 10

(B) NOTICE.— 11

(i) IN GENERAL.—Before filing an ac-12

tion under subparagraph (A), the attorney 13

general of the State involved shall provide 14

to the Commission— 15

(I) written notice of that action; 16

and 17

(II) a copy of the complaint for 18

that action. 19

(ii) EXEMPTION.— 20

(I) IN GENERAL.—Clause (i) 21

shall not apply with respect to the fil-22

ing of an action by an attorney gen-23

eral of a State under this paragraph 24

if the attorney general of the State 25

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determines that it is not feasible to 1

provide the notice described in that 2

clause before the filing of the action. 3

(II) NOTIFICATION.—In an ac-4

tion described in subclause (I), the at-5

torney general of a State shall provide 6

notice and a copy of the complaint to 7

the Commission at the same time as 8

the attorney general files the action. 9

(2) INTERVENTION.— 10

(A) IN GENERAL.—On receiving notice 11

under paragraph (1)(B), the Commission shall 12

have the right to intervene in the action that is 13

the subject of the notice. 14

(B) EFFECT OF INTERVENTION.—If the 15

Commission intervenes in an action under para-16

graph (1), it shall have the right— 17

(i) to be heard with respect to any 18

matter that arises in that action; and 19

(ii) to file a petition for appeal. 20

(3) CONSTRUCTION.—For purposes of bringing 21

any civil action under paragraph (1), nothing in this 22

Act shall be construed to prevent an attorney gen-23

eral of a State from exercising the powers conferred 24

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on the attorney general by the laws of that State 1

to— 2

(A) conduct investigations; 3

(B) administer oaths or affirmations; or 4

(C) compel the attendance of witnesses or 5

the production of documentary and other evi-6

dence. 7

(4) ACTIONS BY THE COMMISSION.—In any 8

case in which an action is instituted by or on behalf 9

of the Commission for violation of this Act or a reg-10

ulation prescribed under this Act, no State may, 11

during the pendency of that action, institute an ac-12

tion under paragraph (1) against any defendant 13

named in the complaint in the action instituted by 14

or on behalf of the Commission for that violation. 15

(5) VENUE; SERVICE OF PROCESS.— 16

(A) VENUE.—Any action brought under 17

paragraph (1) may be brought in the district 18

court of the United States that meets applicable 19

requirements relating to venue under section 20

1391 of title 28, United States Code. 21

(B) SERVICE OF PROCESS.—In an action 22

brought under paragraph (1), process may be 23

served in any district in which the defendant— 24

(i) is an inhabitant; or 25

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(ii) may be found. 1

(d) TELECOMMUNICATIONS CARRIERS AND CABLE 2

OPERATORS.— 3

(1) ENFORCEMENT BY COMMISSION.—Notwith-4

standing section 5(a)(2) of the Federal Trade Com-5

mission Act (15 U.S.C. 45(a)(2)), compliance with 6

the requirements imposed under this Act shall be en-7

forced by the Commission with respect to any tele-8

communications carrier (as defined in section 3 of 9

the Communications Act of 1934 (47 U.S.C. 153)). 10

(2) RELATIONSHIP TO OTHER LAWS.—To the 11

extent that section 222, 338(i), or 631 of the Com-12

munications Act of 1934 (47 U.S.C. 222; 338(i); 13

551) is inconsistent with this Act, this Act controls. 14

(e) SAFE HARBORS.— 15

(1) DEFINITION.—In this subsection— 16

(A) the term ‘‘applicable section’’ means 17

section 5, 6, 7, 8, or 9 of this Act; 18

(B) the term ‘‘covered operator’’ means an 19

operator subject to guidelines approved under 20

paragraph (2); 21

(C) the term ‘‘requesting entity’’ means an 22

entity that submits a safe harbor request to the 23

Commission; and 24

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(D) the term ‘‘safe harbor request’’ means 1

a request to have self-regulatory guidelines de-2

scribed in paragraph (2)(A) approved under 3

that paragraph. 4

(2) GUIDELINES.— 5

(A) IN GENERAL.—An operator may sat-6

isfy the requirements of regulations issued 7

under an applicable section by following a set of 8

self-regulatory guidelines, issued by representa-9

tives of the marketing or online industries, or 10

by other persons, that, after notice and an op-11

portunity for comment, are approved by the 12

Commission upon making a determination that 13

the guidelines meet the requirements of the reg-14

ulations issued under that applicable section. 15

(B) EXPEDITED RESPONSE TO RE-16

QUESTS.—Not later than 180 days after the 17

date on which a safe harbor request is filed 18

under subparagraph (A), the Commission shall 19

act upon the request set forth in writing the 20

conclusions of the Commission with regard to 21

the request. 22

(C) APPEALS.—A requesting entity may 23

appeal the final action of the Commission under 24

subparagraph (B), or a failure by the Commis-25

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sion to act in the period described in that para-1

graph, to a district court of the United States 2

of appropriate jurisdiction, as provided for in 3

section 706 of title 5, United States Code. 4

(3) INCENTIVES.— 5

(A) SELF-REGULATORY INCENTIVES.—In 6

prescribing regulations under an applicable sec-7

tion, the Commission shall provide incentives 8

for self-regulation by covered operators to im-9

plement the protections afforded children and 10

minors, as applicable, under the regulatory re-11

quirements described in those sections. 12

(B) DEEMED COMPLIANCE.—The incen-13

tives under subparagraph (A) shall include pro-14

visions for ensuring that a covered operator will 15

be deemed to be in compliance with the require-16

ments of the regulations under an applicable 17

section if that person complies with guidelines 18

approved under paragraph (2). 19

(4) REGULATIONS.—In prescribing regulations 20

relating to safe harbor guidelines under an applica-21

ble section, the Commission shall— 22

(A) establish criteria for the approval of 23

guidelines that will ensure that a covered oper-24

ator provides substantially the same or greater 25

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protections for children and minors, as applica-1

ble, as those contained in the regulations issued 2

under the applicable section; and 3

(B) require that any report or documenta-4

tion required to be submitted to the Commis-5

sion by a covered operator or requesting entity 6

will be published on the internet website of the 7

Commission, except to the extent that the re-8

port or documentation contains proprietary in-9

formation, which the Commission may in its 10

discretion redact. 11

(5) REPORT BY THE INSPECTOR GENERAL.— 12

(A) IN GENERAL.—Not later than 2 years 13

after the date of enactment of this Act, and 14

once each 2 years thereafter, the Inspector Gen-15

eral of the Commission shall submit to the 16

Commission and each committee of the Senate 17

and each committee of the House of Represent-18

atives that has jurisdiction over the Commission 19

a report regarding the safe harbor provisions 20

under this subparagraph, which shall include— 21

(i) an analysis of whether the safe 22

harbor provisions are— 23

(I) operating fairly and effec-24

tively; and 25

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(II) effectively protecting the in-1

terests of children and minors; and 2

(ii) proposals for policy changes that 3

would improve the effectiveness of the safe 4

harbor provisions. 5

(B) PUBLICATION.—Not later than 10 6

days after the date on which a report under 7

subparagraph (A) is submitted, the Commission 8

shall publish the report on the internet website 9

of the Commission. 10

(f) EFFECTIVE DATE.—This section shall take effect 11

on the date that is 90 days after the date of enactment 12

of this Act. 13

Æ

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