Communications Privacy and Consumer Empowerment Act

Summary: Communications Privacy and Consumer Empowerment Act - Directs the Federal Trade Commission and the Federal Communications Commission to take action through proceedings to ensure that consumer privacy rights are protected in new telecommunications services and systems.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Communications Privacy and Consumer 
Empowerment Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) As our Nation's communications networks continue to 
        grow and become ever more sophisticated, more individuals and 
        industries will be using such networks to conduct commercial 
        transactions.
            (2) It is important to establish personal privacy rights 
        and industry obligations now so that consumers have confidence 
        that their personal privacy is fully protected in our Nation's 
        telecommunications networks.
            (3) The information superhighway must be safe and secure 
        for all its travellers so that economic growth is not 
        threatened due to consumer concern over the electronic ethics 
        of certain cyberspace marketers.
            (4) The Telecommunications Act of 1996 (Public Law 104-104) 
        contains expanded privacy protections for consumers by 
        requiring that telecommunications carriers under the 
        jurisdiction of the Federal Communications Commission obtain 
        consumer approval prior to reusing or selling certain personal 
        information.
            (5) It is becoming increasingly apparent that the existing 
        privacy protections accorded consumers with respect to 
        information gathered by telecommunications carriers are not 
        alone sufficient to protect consumer privacy rights and that 
        further protections are needed to ensure that such rights are 
        retained and respected on the information superhighway by other 
        entities doing business in cyberspace.
            (6) In addition to the growing number of businesses and 
        adults getting online, some 2,000,000 kids currently use the 
        Internet and this number is expected to grow to more than 
        15,000,000 by the year 2000.
            (7) Recent media reports indicate that online marketers are 
        gathering personal information from children, in some cases in 
        a deceptive manner.
            (8) In addition to the work performed by the Federal 
        Communications Commission in regulating our Nation's 
        telecommunications networks, the Federal Trade Commission 
        continues to have the task of ensuring that online marketers 
        and businesses at the ends of the line do not engage in 
        deceptive or fraudulent practices.
            (9) The ease of gathering and compiling personal 
        information, both overtly and surreptitiously, in cyberspace is 
        becoming increasingly efficient and almost effortless due to 
        advances in digital telecommunications technology. As a result, 
        digital technology allows information gatherers to compile 
        highly detailed personal histories of both children and adults 
        who are network users.
            (10) Regardless of the technology that consumers use, their 
        privacy rights and expectations remain a constant. Consumers 
        must have knowledge that personal information is being 
        collected about them; consumers must be given conspicuous 
        notice if the recipient of that information intends to reuse it 
        for other purposes, or disclose, or sell it; and finally, 
        consumers must have the right to prohibit or curtail any reuse 
        or sale of their personal information.
            (11) Our Nation's communications networks, including the 
        Internet, have developed extremely rapidly over the last 2 
        years, and changes in standards, protocols, and digital 
        technologies have enabled consumers to make decisions about 
        access to information and services, such as the types of 
        content on the Internet.
            (12) New innovative technology may empower consumers and 
        parents to better control dissemination of personal information 
        by restoring decisionmaking power to the consumer or parent.
            (13) Industry efforts, with Government encouragement and 
        oversight, to assist consumers through the development of 
standards, protocols, and practices for the collection and 
dissemination of personal information is critical to help parents and 
consumers better control dissemination of their personal information.
            (14) Adoption of strong, fair information policies, 
        standards, and practices, along with the widespread 
        implementation and utilization of consumer empowerment tools, 
        may limit the need for Government regulation of personal 
        information collection and dissemination practices on the 
        Internet.

SEC. 3. FEDERAL TRADE COMMISSION EXAMINATION.

    (a) Proceeding Required.--Within 6 months after the date of 
enactment of this Act, the Federal Trade Commission shall commence a 
proceeding--
            (1) to determine whether consumers are able, and, if not, 
        the methods by which consumers may be enabled--
                    (A) to have knowledge that consumer information is 
                being collected about them through their utilization of 
                various telecommunications services and systems;
                    (B) to have conspicuous notice that such 
                information could be used, or is intended to be used, 
                by the entity collecting the data for reasons unrelated 
                to the original communications, or that such 
                information could be sold (or is intended to be sold) 
                to other companies or entities; and
                    (C) to stop the reuse, disclosure, or sale of that 
                information;
            (2) to determine whether, in the case of consumers who are 
        children, the abilities described in subparagraphs (A), (B), 
        and (C) of paragraph (1) are or can be exercised by their 
        parents;
            (3) to propose changes in the Commission's regulations as 
        necessary to correct any defects identified pursuant to this 
        section in the privacy rights and remedies of parents and 
        consumers generally;
            (4) to review responses and suggestions from affected 
        commercial and nonprofit entities, as well as from the National 
        Telecommunication and Information Administration, to the 
        proposed changes made pursuant to paragraph (3); and
            (5) to prepare recommendations to the Congress for any 
        legislative changes required to correct such defects.
    (b) Schedule for Federal Trade Commission Responses.--The Federal 
Trade Commission shall, within 1 year after the date of enactment of 
this Act--
            (1) complete any rulemaking required to revise Commission 
        regulations to correct any defects in such regulations 
        identified pursuant to subsection (a); and
            (2) submit to Congress a report containing the 
        recommendations required by subsection (a)(5).

SEC. 4. FEDERAL COMMUNICATIONS COMMISSION EXAMINATION.

    (a) Proceeding Required.--Within 6 months after the date of 
enactment of this Act, the Federal Communications Commission shall 
commence a proceeding--
            (1) to examine the impact of interconnected communications 
        networks of telephone, cable, satellite, wireless devices, and 
        other technologies on the privacy rights and remedies of the 
        consumers of those technologies, as described in paragraphs (1) 
        and (2) of section 3(a);
            (2) to determine whether consumers are able, and, if not, 
        the methods by which consumers may be enabled to exercise such 
        rights and remedies;
            (3) to propose changes in the Commission's regulations to 
        ensure that the effect on consumer privacy rights is considered 
        in the introduction of new telecommunications services and that 
        the protection of such privacy rights is incorporated as 
        necessary in the design of such services or the rules 
        regulating such services;
            (4) to propose changes in the Commission's regulations as 
        necessary to correct any defects identified pursuant to this 
        section in such rights and remedies;
            (5) to review responses and suggestions from affected 
        commercial and nonprofit entities, as well as from the National 
        Telecommunications and Information Administration, to the 
        proposed changes made pursuant to paragraph (4); and
            (6) to prepare recommendations to the Congress for any 
        legislative changes required to correct such defects.
    (b) Schedule for Federal Communications Commission Responses.--The 
Federal Communications Commission shall, within 1 year after the date 
of enactment of this Act--
            (1) complete any rulemaking required to revise Commission 
        regulations to correct defects in such regulations identified 
        pursuant to subsection (a); and
            (2) submit to the Congress a report containing the 
        recommendations required by subsection (a)(6).