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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3975 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 3975

To require companies to receive consent from consumers to having their 
         data used to train an artificial intelligence system.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 19, 2024

 Mr. Welch (for himself and Mr. Lujan) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
To require companies to receive consent from consumers to having their 
         data used to train an artificial intelligence system.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Artificial Intelligence Consumer 
Opt-in, Notification, Standards, and Ethical Norms for Training Act'' 
or the ``AI CONSENT Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Artificial intelligence system.--The term ``artificial 
        intelligence system'' means a machine-based system that--
                    (A) is capable of influencing the environment by 
                producing an output, including predictions, 
                recommendations or decisions, for a given set of 
                objectives; and
                    (B) uses machine or human-based data and inputs 
                to--
                            (i) perceive real or virtual environments;
                            (ii) abstract these perceptions into models 
                        through analysis in an automated manner (such 
                        as by using machine learning) or manually; and
                            (iii) use model inference to formulate 
                        options for outcomes.
            (2) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (3) Covered data.--The term ``covered data'' means 
        information relating to an individual that--
                    (A) is collected by a covered entity in the course 
                of the individual using a product, tool, platform, or 
                service offered by the covered entity; and
                    (B) identifies or is linked or reasonably linkable, 
                alone or in combination with other information, to the 
                individual or a device that identifies or is linked or 
                reasonably linkable to the individual, and shall 
                include derived data and unique persistent identifiers.
            (4) Covered entity.--The term ``covered entity'' means a 
        person, partnership, or corporation subject to the jurisdiction 
        of the Commission under section 5(a)(2) of the Federal Trade 
        Commission Act (15 U.S.C. 45(a)(2)).
            (5) De-identified data.--The term ``de-identified data'' 
        means information that has been processed such that the 
        information does not identify and is not linked or reasonably 
        linkable to a distinct individual or a device, regardless of 
        whether the information is aggregated, and if the covered 
        entity holding such information--
                    (A) takes reasonable technical measures to ensure 
                that the information cannot, at any point, be used to 
                re-identify any individual or device that identifies or 
                is linked or reasonably linkable to an individual;
                    (B) publicly commits in a clear and conspicuous 
                manner--
                            (i) to process and transfer the information 
                        solely in a de-identified form without any 
                        reasonable means for re-identification; and
                            (ii) to not attempt to re-identify the 
                        information with any individual or device that 
                        identifies or is linked or reasonably linkable 
                        to an individual; and
                    (C) contractually obligates any person or entity 
                that receives the information from the covered entity--
                            (i) to comply with all of the provisions of 
                        this paragraph with respect to the information; 
                        and
                            (ii) to require that such contractual 
                        obligations be included contractually in all 
                        subsequent instances for which the data may be 
                        received.
            (6) Derived data.--The term ``derived data'' means covered 
        data that is created by the derivation of information, data, 
        assumptions, correlations, inferences, predictions, or 
        conclusions from facts, evidence, or another source of 
        information or data about an individual or an individual's 
        device.
            (7) Device.--The term ``device'' means any electronic 
        equipment capable of collecting, processing, or transferring 
        covered data that is used by one or more individuals.
            (8) Transfer.--The term ``transfer'' means to disclose, 
        release, disseminate, make available, license, rent, or share 
        covered data orally, in writing, electronically, or by any 
        other means.
            (9) Unique persistent identifier.--The term ``unique 
        persistent identifier''--
                    (A) means an identifier to the extent that such 
                identifier is reasonably linkable to an individual or 
                device that identifies or is linked or reasonably 
                linkable to 1 or more individuals, including a device 
                identifier, Internet Protocol address, cookie, beacon, 
                pixel tag, mobile ad identifier, or similar technology, 
                customer number, unique pseudonym, user alias, 
                telephone number or other form of persistent or 
                probabilistic identifier that is linked or reasonably 
                linkable to an individual or device; and
                    (B) does not include an identifier assigned by a 
                covered entity for the specific purpose of giving 
                effect to an individual's exercise of express informed 
                consent or revocation of consent to the collection of 
                covered data to train an artificial intelligence 
                system.

SEC. 3. DISCLOSURE AND OPT-IN REQUIREMENTS FOR ENTITIES THAT USE DATA 
              TO TRAIN ARTIFICIAL INTELLIGENCE SYSTEMS.

    (a) Prohibition.--Not later than 1 year after the date of enactment 
of this Act, the Commission shall promulgate regulations under section 
553 of title 5, United States Code, to prohibit covered entities from 
using or selling or transferring to a third party any covered data of 
an individual that is collected by the covered entity to train an 
artificial intelligence system except as provided in subsection (b).
    (b) Use of Covered Data To Train Artificial Intelligence Systems 
Pursuant To Express Informed Consent.--The regulations promulgated by 
the Commission under subsection (a) shall include the following:
            (1) The regulations permit a covered entity to use covered 
        data of an individual to train an artificial intelligence 
        system or to sell or transfer such data to a third party for 
        such purpose if the covered entity first--
                    (A) provides the individual with a clear and 
                conspicuous disclosure of how the covered entity or 
                third party will use the individual's covered data; and
                    (B) obtains the express informed consent of the 
                individual for the covered entity or third party to use 
                the individual's covered data for such purpose.
            (2) For purposes of the disclosure required under paragraph 
        (1)(A), the regulations shall--
                    (A) provide a standard for what constitutes a clear 
                and conspicuous disclosure that takes into account--
                            (i) different platform types, including 
                        websites, mobile applications, and search 
                        engines;
                            (ii) the size, font, color, or other visual 
                        affects of such a disclosure;
                            (iii) the brevity, accessibility, and 
                        clarity of such a disclosure such that it may 
                        be understood by a reasonable person;
                            (iv) the medium of such a disclosure--
                        including text, audio, and video components--
                        and the efficacy of these media to ensure the 
                        individual's attention and information;
                            (v) the timeliness and location of such a 
                        disclosure; and
                            (vi) any other criteria determined 
                        appropriate by the Commission;
                    (B) consider the possibility of consumer fatigue 
                toward such disclosures and minimize its impact;
                    (C) require that the disclosure clearly explains 
                the individual's applicable rights related to consent, 
                including that service shall not be conditioned on the 
                granting of consent by the individual;
                    (D) require that the disclosure state how an 
                individual's covered data may be used to train 
                artificial intelligence systems by the covered entity 
                or sold or transferred to third parties that may do the 
                same; and
                    (E) require that the disclosure offer instructions 
                on how an individual may grant or revoke consent.
            (3) For purposes of the consent required under paragraph 
        (1)(B), the regulations shall require that--
                    (A) individuals may grant or revoke consent at any 
                time through an accessible and easily navigable 
                mechanism;
                    (B) the option to withhold or revoke consent shall 
                be at least as prominent as the option to accept and 
                shall take the same number of steps or fewer as the 
                option to accept;
                    (C) such consent is obtained independently from the 
                covered entities' terms of service agreement;
                    (D) such consent cannot be inferred from an 
                individual's action or inaction, such as hovering over 
                or closing a window or piece of content;
                    (E) services provided by a covered entity may not 
                be reduced, restricted, or made conditional on whether 
                an individual withholds consent; and
                    (F) should an individual revoke consent, all 
                covered data of the individual shall be expunged from 
                datasets used to train an artificial intelligence 
                system following the revocation of consent.

SEC. 4. FTC STUDY ON DATA DE-IDENTIFICATION METHODS.

    Not later than 1 year after the date of enactment of this Act, the 
Commission shall submit to the Committee on Commerce, Science, and 
Technology of the Senate and the Committee on Energy and Commerce of 
the House of Representatives a report on methods used by covered 
entities to convert covered data into de-identified data. Such report 
shall include an evaluation of whether, given advancements in 
artificial intelligence technology, there are any reasonable technical 
measures covered entities could take, in addition to those measures 
currently used by covered entities, to ensure that covered data that 
has been converted to de-identified data cannot at any point be used to 
re-identify an individual or their device.

SEC. 5. ENFORCEMENT.

    (a) Unfair and Deceptive Acts or Practices.--A violation of a 
regulation promulgated under this Act shall be treated as a violation 
of a rule defining an unfair or deceptive act or practice prescribed 
under section 18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(1)(B)).
    (b) Powers of the Commission.--
            (1) In general.--The Commission shall enforce regulations 
        promulgated under this Act in the same manner, by the same 
        means, and with the same jurisdiction, powers, and duties as 
        though all applicable terms and provisions of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
        and made a part of such regulations.
            (2) Privileges and immunities.--Any person that violates a 
        regulation promulgated under this Act shall be subject to the 
        penalties, and entitled to the privileges and immunities, 
        provided in the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.).
            (3) Regulations.--The Commission shall, pursuant to section 
        553 of title 5, United States Code, promulgate such regulations 
        as the Commission determines necessary to carry out the 
        provisions of this Act.
            (4) Authority preserved.--Nothing in this Act shall be 
        construed to limit the authority of the Commission under any 
        other provision of law.

SEC. 6. PREEMPTION.

    (a) In General.--Nothing in this Act shall be construed to preempt 
the law of any State that provides greater protections to users of the 
services provided by covered entities and individuals generally than 
the protections provided by the regulations promulgated under this Act.
    (b) Definition of State.--In this section, the term ``State'' means 
any of the 50 states, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, American 
Samoa, or the Commonwealth of the Northern Mariana Islands.
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