I 

114TH CONGRESS 

2D SESSION H. R. 4516 

To require data brokers to establish procedures to ensure the accuracy of 

collected personal information, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 10, 2016 

Mr. JOHNSON of Georgia (for himself, Ms. JACKSON LEE, Mr. CICILLINE, and 

Mr. COHEN) introduced the following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To require data brokers to establish procedures to ensure 

the accuracy of collected personal information, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Data Broker Account5 ability and Transparency Act of 2016’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The privacy of an individual is directly af2 fected by the collection, maintenance, use, and dis3 semination of personal information by data brokers. 

4 (2) An individual rarely has any knowledge 

5 about the processing of the individual’s personal in6 formation by data brokers. 

7 (3) The processing of personal information by 

8 data brokers and the commercial clients of data bro9 kers affects economic marketplace opportunities 

10 available to individuals. 

11 (4) The use of data broker information by Fed12 eral, State, and local agencies can affect the ability 

13 of an individual to travel, work, obtain government 

14 benefits, and receive government services. 

15 (5) An individual does not always have a right 

16 to access or seek correction of personal information 

17 maintained by data brokers. 

18 (6) Data brokers operate in interstate com19 merce, and it is necessary and proper for Congress 

20 to regulate the processing of information by data 

21 brokers. 

22 (7) Existing law does not provide an individual 

23 with sufficient privacy or due process protections. 

24 (8) Requiring data brokers to provide an indi25 vidual with fair information practices will increase 


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1 fairness, improve privacy, promote economic growth, 

2 and limit identity theft and other criminal activity 

3 by increasing the accuracy and quality of informa4 tion relied upon by governments and businesses. 

5 SEC. 3. DEFINITIONS. 

6 In this Act: 

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

8 means the Federal Trade Commission. 

9 (2) COVERED DATA BROKER.— 

10 (A) IN GENERAL.—The term ‘‘covered 

11 data broker’’ includes all data brokers except 

12 those data brokers excepted under subpara13 graph (B). 

14 (B) EXCEPTIONS.—The Commission may 

15 except a data broker if the Commission con16 siders, by rule, a data broker outside the scope 

17 of this Act, such as a data broker who proc18 esses information collected by or on behalf of 

19 and received from or on behalf of a non20 affiliated third party concerning an individual 

21 who is a customer or an employee of that third 

22 party to enable that third party, directly or 

23 through parties acting on its behalf, to provide 

24 benefits for its employees or directly transact 

25 business with its customers. 


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1 (3) DATA BROKER.—The term ‘‘data broker’’ 

2 means a commercial entity that collects, assembles, 

3 or maintains personal information concerning an in4 dividual who is not a customer or an employee of 

5 that entity in order to sell the information or provide 

6 third party access to the information. 

7 (4) NON-PUBLIC INFORMATION.—The term 

8 ‘‘non-public information’’ means information about 

9 an individual that is— 

10 (A) of a private nature; 

11 (B) not available to the general public; and 

12 (C) not public record information. 

13 (5) PERSONAL INFORMATION.— 

14 (A) DEFINITION.—The term ‘‘personal in15 formation’’ means an individual’s first name or 

16 initial and last name, or address, or phone 

17 number, in combination with any one or more 

18 of the following data elements for that indi19 vidual: 

20 (i) Social Security number. 

21 (ii) Driver’s license number, passport 

22 number, military identification number, or 

23 other similar number issued on a govern24 ment document used to verify identity. 


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1 (iii) Financial account number, or 

2 credit or debit card number, and any re3 quired security code, access code, or pass4 word that is necessary to permit access to 

5 an individual’s financial account. 

6 (B) MODIFIED DEFINITION BY RULE7 MAKING.—The Commission may, by rule pro8 mulgated under section 553 of title 5, United 

9 States Code, modify the definition of ‘‘personal 

10 information’’ under subparagraph (A) to the ex11 tent that such modification is necessary to ac12 commodate changes in technology or practices 

13 and will accomplish the purposes of this Act. 

14 (6) PUBLIC RECORD INFORMATION.—The term 

15 ‘‘public record information’’ means information 

16 about an individual that has been obtained originally 

17 from records of a Federal, State, or local govern18 ment entity that are available for public inspection. 

19 SEC. 4. PROHIBITION ON OBTAINING OR SOLICITATION TO 

20 OBTAIN PERSONAL INFORMATION BY FALSE 

21 PRETENSES. 

22 (a) IN GENERAL.—A covered data broker may not 

23 obtain or attempt to obtain, or cause to be disclosed or 

24 attempt to cause to be disclosed to any person, personal 

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1 son by making a false, fictitious, or fraudulent statement 

2 or representation to any person, including by providing 

3 any document to any person, that the covered data broker 

4 knows or should know— 

5 (1) to be forged, counterfeit, lost, stolen, or 

6 fraudulently obtained; or 

7 (2) contains a false, fictitious, or fraudulent 

8 statement or representation. 

9 (b) SOLICITATION.—A covered data broker may not 

10 request a person to obtain personal information, or any 

11 other information, relating to any other person if the cov12 ered data broker knows or should know that the person 

13 to whom the request is made will obtain or attempt to 

14 obtain that information in the manner described in sub15 section (a). 

16 SEC. 5. REQUIREMENTS CONCERNING ACCURACY OF AND 

17 ACCESS TO PERSONAL INFORMATION. 

18 (a) ACCURACY.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), a covered data broker shall establish pro21 cedures to ensure, to the maximum extent prac22 ticable, the accuracy of— 

23 (A) the personal information it collects, as24 sembles, or maintains; and 


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1 (B) any other information it collects, as2 sembles, or maintains that specifically identifies 

3 an individual, unless the information only iden4 tifies an individual’s name or address. 

5 (2) EXCEPTION.—A covered data broker may 

6 collect or maintain information that may be inac7 curate with respect to a particular individual if that 

8 information is being collected or maintained solely 

9 for the purpose of— 

10 (A) indicating whether there may be a dis11 crepancy or irregularity in the personal infor12 mation that is associated with an individual; 

13 (B) helping to identify, or to authenticate 

14 the identity of, an individual; or 

15 (C) helping to protect against or inves16 tigate fraud or other unlawful conduct. 

17 (b) CONSUMER ACCESS.— 

18 (1) IN GENERAL.—Subject to paragraph (4), a 

19 covered data broker shall provide an individual a 

20 means to review any personal information, or other 

21 information that specifically identifies that indi22 vidual, that the covered data broker collects, assem23 bles, or maintains on that individual. 

24 (2) REVIEW REQUIREMENTS.—The means for 

25 review under paragraph (1) shall be provided— 


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1 (A) at an individual’s request; 

2 (B) after verifying the identity of the indi3 vidual; 

4 (C) at least 1 time per year; 

5 (D) at no cost to the individual; and 

6 (E) in a format that can be readily under7 stood by a consumer, as determined by the 

8 Commission. 

9 (3) PERIOD OF REVIEW.—A covered data 

10 broker shall provide an individual the means re11 quired under paragraph (1) within such period after 

12 receiving a request from such individual as the Com13 mission shall determine, by rule, is appropriate. 

14 (4) EXCEPTIONS.—The Commission may, by 

15 rule, establish such exceptions to paragraph (1) as 

16 the Commission considers appropriate, such as for 

17 child protection, law enforcement, fraud prevention, 

18 or other government purposes. 

19 (5) LIMITATION ON USE OF VERIFYING INFOR20 MATION.—If a covered data broker collects informa21 tion from an individual to verify the identity of the 

22 individual under paragraph (2)(B) that the data 

23 broker did not have before such collection, the data 

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1 pose other than for purposes of verifying the identity 

2 of the individual under such paragraph. 

3 (c) DISPUTED INFORMATION.— 

4 (1) IN GENERAL.—An individual whose per5 sonal information is maintained by a covered data 

6 broker may dispute the accuracy of any information 

7 described under subsection (b)(1) by requesting, in 

8 writing, that the covered data broker correct the in9 formation. 

10 (2) CORRECTION REQUIREMENTS.—A covered 

11 data broker, after verifying the identity of an indi12 vidual making a request under paragraph (1) to cor13 rect information, and unless there are reasonable 

14 grounds to believe the request is frivolous or irrele15 vant, shall— 

16 (A) with regard to public record informa17 tion— 

18 (i) inform the individual of the source 

19 of the information and, if reasonably avail20 able, where to direct the individual’s re21 quest for correction; or 

22 (ii) if the individual provides proof 

23 that the public record has been corrected 

24 or that the covered data broker was report25 ing the information incorrectly, correct the 


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1 inaccuracy in the covered data broker’s 

2 records; and 

3 (B) with regard to non-public informa4 tion— 

5 (i) note the information that is dis6 puted, including the individual’s written re7 quest; 

8 (ii) if the information can be inde9 pendently verified, use the procedures es10 tablished under subsection (a) to independ11 ently verify the information; and 

12 (iii) if the covered data broker was re13 porting the information incorrectly, correct 

14 the inaccuracy in the covered data broker’s 

15 records. 

16 (3) PERIOD OF CORRECTION.—In a case in 

17 which a covered data broker is subject to a require18 ment under paragraph (2) due to a request made by 

19 an individual under paragraph (1), such covered 

20 data broker shall take such action as may be re21 quired to satisfy such requirement within such pe22 riod as the Commission shall determine, by rule, is 

23 appropriate. 

24 (d) NOTICE.— 


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1 (1) IN GENERAL.—A covered data broker shall 

2 maintain an Internet website and place a clear and 

3 conspicuous notice on that Internet website instruct4 ing an individual how— 

5 (A) to review information under subsection 

6 (b)(1); and 

7 (B) to express a preference under sub8 section (e)(2). 

9 (2) FORM.—A covered data broker shall ensure 

10 that the notice the covered data broker places under 

11 paragraph (1) conforms to such model form as the 

12 Commission shall promulgate for purposes of this 

13 subsection. 

14 (e) CERTAIN MARKETING INFORMATION.— 

15 (1) IN GENERAL.—A covered data broker may 

16 not use, share, or sell any information for marketing 

17 purposes that is subject to an expressed preference 

18 under paragraph (2). 

19 (2) EXPRESSION OF PREFERENCES.—A covered 

20 data broker that maintains any information de21 scribed under subsection (a) and that uses, shares, 

22 or sells that information for marketing purposes 

23 shall provide each individual whose information the 

24 covered data broker maintains with a reasonable 


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1 means of expressing a preference not to have that 

2 individual’s information used for those purposes. 

3 (f) AUDITING.— 

4 (1) IN GENERAL.—Subject to paragraph (2), 

5 each covered data broker shall establish measures 

6 that facilitate the auditing or retracing of any inter7 nal or external access to, or transmission of, any 

8 data containing personal information collected, as9 sembled, or maintained by the covered data broker. 

10 (2) EXCEPTIONS.—The Commission may estab11 lish, by rule, such exceptions to paragraph (1) as the 

12 Commission considers appropriate to further or pro13 tect law enforcement or national security activities. 

14 (g) PERSONS REGULATED BY THE FAIR CREDIT RE15 PORTING ACT.—A covered data broker shall be considered 

16 to be in compliance with this section with respect to infor17 mation that is subject to the Fair Credit Reporting Act 

18 (15 U.S.C. 1681 et seq.) if the covered data broker is in 

19 compliance with sections 609, 610, and 611 of that Act 

20 (15 U.S.C. 1681g, 1681h, 1681i). 

21 SEC. 6. REGULATIONS. 

22 (a) IN GENERAL.—Not later than 1 year after the 

23 date of the enactment of this Act, the Commission shall 

24 promulgate regulations under section 553 of title 5, 

25 United States Code, to carry out this Act. 


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1 (b) ELEMENTS.—The regulations promulgated under 

2 subsection (a) shall include the following: 

3 (1) Such exceptions the Commission considers 

4 appropriate to promulgate under section 3(2)(B). 

5 (2) The period of review required under section 

6 5(b)(3). 

7 (3) Such exceptions as the Commission con8 siders appropriate to promulgate under section 

9 5(b)(4). 

10 (4) The period of correction required under sec11 tion 5(c)(3). 

12 (5) The model form required by section 5(d)(2). 

13 (6) Requirements for auditing under paragraph 

14 (1) of section 5(f) and such exceptions under para15 graph (2) of such section as the Commission con16 siders appropriate. 

17 (7) Establishment of a centralized Internet 

18 website for the benefit of consumers that— 

19 (A) lists the covered data brokers that are 

20 subject to a requirement of section 5; and 

21 (B) provides information to consumers 

22 about their rights under this Act. 

23 (8) Such other regulations as the Commission 

24 considers appropriate to carry out this Act. 


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1 SEC. 7. ENFORCEMENT. 

2 (a) ENFORCEMENT BY FEDERAL TRADE COMMIS3 SION.— 

4 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC5 TICES.—A violation of section 4 or 5 or a regulation 

6 promulgated under this Act shall be treated as a vio7 lation of a rule defining an unfair or a deceptive act 

8 or practice under section 18(a)(1)(B) of the Federal 

9 Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). 

10 (2) POWERS OF COMMISSION.— 

11 (A) IN GENERAL.—The Commission shall 

12 enforce this Act in the same manner, by the 

13 same means, and with the same jurisdiction, 

14 powers, and duties as though all applicable 

15 terms and provisions of the Federal Trade 

16 Commission Act (15 U.S.C. 41 et seq.) were in17 corporated into and made a part of this Act. 

18 (B) PRIVILEGES AND IMMUNITIES.—Any 

19 person who violates section 4 or 5 or a regula20 tion prescribed under this Act shall be subject 

21 to the penalties and entitled to the privileges 

22 and immunities provided in the Federal Trade 

23 Commission Act (15 U.S.C. 41 et seq.). 

24 (b) ENFORCEMENT BY STATES.— 

25 (1) CIVIL ACTION.—Except as provided under 

26 paragraph (5), in any case in which the attorney 


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1 general of a State has reason to believe that an in2 terest of the residents of that State has been or is 

3 threatened or adversely affected by any person sub4 ject to a provision of section 4 or 5 or a regulation 

5 promulgated under this Act in a practice that vio6 lates such provision or regulation, the attorney gen7 eral of the State may, as parens patriae, bring a 

8 civil action on behalf of the residents of the State in 

9 an appropriate district court of the United States— 

10 (A) to enjoin further violation of such pro11 vision or regulation by such person; 

12 (B) to compel compliance with such provi13 sion or regulation; 

14 (C) to obtain damages, restitution, or other 

15 compensation on behalf of such residents; 

16 (D) to obtain such other relief as the court 

17 considers appropriate; or 

18 (E) to obtain civil penalties in the amount 

19 determined under paragraph (2). 

20 (2) CIVIL PENALTIES.— 

21 (A) CALCULATION.—For purposes of im22 posing a civil penalty under paragraph (1)(E), 

23 the amount determined under this paragraph is 

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1 ber of separate violations of a rule by an 

2 amount not greater than $16,000. 

3 (B) ADJUSTMENT FOR INFLATION.—Be4 ginning on the date that the Consumer Price 

5 Index is first published by the Bureau of Labor 

6 Statistics that is after 1 year after the date of 

7 enactment of this Act, and each year thereafter, 

8 the amount specified in subparagraph (A) shall 

9 be increased by the percentage increase in the 

10 Consumer Price Index published on that date 

11 from the Consumer Price Index published the 

12 previous year. 

13 (3) RIGHTS OF FEDERAL TRADE COMMIS14 SION.— 

15 (A) NOTICE TO FEDERAL TRADE COMMIS16 SION.— 

17 (i) IN GENERAL.—Except as provided 

18 in clause (iii), the attorney general of a 

19 State shall notify the Commission in writ20 ing that the attorney general intends to 

21 bring a civil action under paragraph (1) 

22 before initiating the civil action. 

23 (ii) CONTENTS.—The notification re24 quired by clause (i) with respect to a civil 


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1 action shall include a copy of the complaint 

2 to be filed to initiate the civil action. 

3 (iii) EXCEPTION.—If it is not feasible 

4 for the attorney general of a State to pro5 vide the notification required by clause (i) 

6 before initiating a civil action under para7 graph (1), the attorney general shall notify 

8 the Commission immediately upon insti9 tuting the civil action. 

10 (B) INTERVENTION BY FEDERAL TRADE

11 COMMISSION.—The Commission may— 

12 (i) intervene in any civil action 

13 brought by the attorney general of a State 

14 under paragraph (1); and 

15 (ii) upon intervening— 

16 (I) be heard on all matters aris17 ing in the civil action; and 

18 (II) file petitions for appeal of a 

19 decision in the civil action. 

20 (4) INVESTIGATORY POWERS.—Nothing in this 

21 subsection may be construed to prevent the attorney 

22 general of a State from exercising the powers con23 ferred on the attorney general by the laws of the 

24 State to conduct investigations, to administer oaths 

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1 nesses or the production of documentary or other 

2 evidence. 

3 (5) PREEMPTIVE ACTION BY FEDERAL TRADE

4 COMMISSION.—If the Commission institutes a civil 

5 action or an administrative action with respect to a 

6 violation of a provision of section 4 or 5 or a regula7 tion promulgated under this Act, the attorney gen8 eral of a State may not, during the pendency of such 

9 action, bring a civil action under paragraph (1) 

10 against any defendant named in the complaint of the 

11 Commission for the violation with respect to which 

12 the Commission instituted such action. 

13 (6) ACTIONS BY OTHER STATE OFFICIALS.— 

14 (A) IN GENERAL.—In addition to civil ac15 tions brought by attorneys general under para16 graph (1), any other officer of a State who is 

17 authorized by the State to do so may bring a 

18 civil action under paragraph (1), subject to the 

19 same requirements and limitations that apply 

20 under this subsection to civil actions brought by 

21 attorneys general. 

22 (B) SAVINGS PROVISION.—Nothing in this 

23 subsection may be construed to prohibit an au24 thorized official of a State from initiating or 

25 continuing any proceeding in a court of the 


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1 State for a violation of any civil or criminal law 

2 of the State. 

3 SEC. 8. EFFECT ON OTHER LAWS. 

4 (a) PRESERVATION OF COMMISSION AUTHORITY.— 

5 Nothing in this Act may be construed in any way to limit 

6 or affect the Commission’s authority under any other pro7 vision of law. 

8 (b) PRESERVATION OF OTHER FEDERAL LAW.— 

9 Nothing in this Act may be construed in any way to super10 sede, restrict, or limit the application of the Fair Credit 

11 Reporting Act (15 U.S.C. 1681 et seq.) or any other Fed12 eral law. 

Æ 


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