```

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7012 Introduced in House (IH)]

<DOC>

116th CONGRESS
  2d Session
                                H. R. 7012

 To amend the Federal Election Campaign Act of 1971 to prohibit online 
 platforms and certain intermediaries from targeting the dissemination 
 of political advertisements to a specific group of individuals on the 
    basis of online behavioral data or on the basis of demographic 
   characteristics shared by members of the group, to require online 
  platforms and certain intermediaries to maintain public records of 
       certain political advertisements, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2020

Mr. Cicilline (for himself, Mr. Casten of Illinois, Mr. Hastings, Mrs. 
Hayes, Mr. Johnson of Georgia, and Mr. Lynch) introduced the following 
   bill; which was referred to the Committee on House Administration

_______________________________________________________________________

                                 A BILL

 
 To amend the Federal Election Campaign Act of 1971 to prohibit online 
 platforms and certain intermediaries from targeting the dissemination 
 of political advertisements to a specific group of individuals on the 
    basis of online behavioral data or on the basis of demographic 
   characteristics shared by members of the group, to require online 
  platforms and certain intermediaries to maintain public records of 
       certain political advertisements, and for other purposes.

    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 ``Protecting Democracy From 
Disinformation Act''.

SEC. 2. REQUIREMENTS FOR POLITICAL ADVERTISEMENTS DISSEMINATED BY 
              ONLINE PLATFORMS OR ARRANGED FOR DISSEMINATION BY CERTAIN 
              INTERMEDIARIES.

    (a) Requirements.--Title III of the Federal Election Campaign Act 
of 1971 (52 U.S.C. 30101 et seq.) is amended by adding at the end the 
following new section:

``SEC. 325. REQUIREMENTS FOR POLITICAL ADVERTISEMENTS DISSEMINATED BY 
              ONLINE PLATFORMS OR ARRANGED FOR DISSEMINATION BY CERTAIN 
              INTERMEDIARIES.

    ``(a) Restrictions on Microtargeting.--
            ``(1) Restrictions on advertisements targeted at group of 
        individuals on basis of online behavioral data.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), a covered online platform may not target the 
                dissemination of a qualified political advertisement, 
                and a covered intermediary may not arrange for the 
                dissemination of a qualified political advertisement, 
                to a specific group of individuals on the basis of any 
                online behavioral data of such individuals.
                    ``(B) Special rule for dissemination to individuals 
                on list provided by sponsor of advertisement.--
                            ``(i) In general.--A covered online 
                        platform which targets the dissemination of a 
                        qualified political advertisement to a specific 
                        group of individuals on a list provided by the 
                        sponsor of the advertisement, and a covered 
                        intermediary which arranges for the 
                        dissemination of a qualified political 
                        advertisement to a specific group of 
                        individuals on a list provided by the sponsor 
                        of the advertisement, shall not be considered 
                        to be in violation of this paragraph if the 
                        platform or intermediary made a good faith 
                        effort to ensure that individuals are not 
                        included on the list on the basis of their 
                        online behavioral data.
                            ``(ii) Safe harbor for platforms and 
                        intermediaries requiring certification by 
                        advertiser.--For purposes of clause (i), a 
                        covered online platform and a covered 
                        intermediary shall be considered to have made a 
                        good faith effort to ensure that the 
                        individuals on a list provided by the sponsor 
                        of a qualified political advertisement are not 
                        included on the list on the basis of their 
                        online behavioral data if the platform or 
                        intermediary requires the advertiser to certify 
                        that each individual on the list subscribed to 
                        the list or consented to being included on the 
                        list.
                    ``(C) Online behavioral data defined.--In this 
                paragraph, the term `online behavioral data' means, 
                with respect to an individual, information that is 
                tracked, collected, or maintained about an individual's 
                actions or activities online, including information 
                relating to an individual's activity across businesses, 
                distinctly branded websites, applications, or services, 
                but does not include information relating to an 
                individual's activity with a business, distinctly 
                branded website, application, or service with which the 
                individual intentionally interacts.
            ``(2) Restrictions on advertisements targeted at group of 
        individuals on basis of shared demographic characteristic.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), a covered online platform may not target the 
                dissemination of a qualified political advertisement, 
                and a covered intermediary may not arrange for the 
                dissemination of a qualified political advertisement, 
                to a specific group of individuals on the basis of any 
                demographic characteristic shared by members of such 
                group unless--
                            ``(i) the demographic characteristic is 
                        described in subparagraph (B); and
                            ``(ii) in the case of a covered online 
                        platform, the platform disseminates with the 
                        advertisement the accompanying statement 
                        described in paragraph (4).
                    ``(B) Demographic characteristics described.--The 
                demographic characteristics described in this 
                subparagraph with respect to a group of individuals are 
                the following:
                            ``(i) The age of the members of the group.
                            ``(ii) The gender of the members of the 
                        group.
                            ``(iii) The geographic area in which the 
                        members of the group reside, except that such 
                        area may not be smaller than the ZIP Code in 
                        which the members of the group reside.
                    ``(C) Rule of construction.--Nothing in paragraph 
                (1) shall be construed to prohibit a covered online 
                platform or a covered intermediary from using online 
                behavioral data (as described in such paragraph) with 
                respect to an individual to determine the demographic 
                characteristics described in subparagraph (B) which 
                apply to such individual.
            ``(3) Exception for targeting on a contextual basis.--
                    ``(A) Exception.--Paragraphs (1) and (2) do not 
                apply if--
                            ``(i) a covered online platform targets the 
                        dissemination of a qualified political 
                        advertisement, or a covered intermediary 
                        arranges for the dissemination of a qualified 
                        political advertisement, to a specific group of 
                        individuals on a contextual basis as described 
                        in subparagraph (B); and
                            ``(ii) in the case of a covered online 
                        platform, the platform disseminates with the 
                        advertisement the accompanying statement 
                        described in paragraph (4).
                    ``(B) Dissemination of advertisements on contextual 
                basis.--For purposes of subparagraph (A), a covered 
                online platform disseminates a qualified political 
                advertisement on a contextual basis, and a covered 
                intermediary arranges for the dissemination of a 
                qualified political advertisement on a contextual 
                basis, if the advertisement involved is disseminated 
                solely on the basis of the content that the individual 
                is viewing on the covered online platform at the same 
                time the advertisement appears on the covered online 
                platform and is not otherwise disseminated on the basis 
                of online behavioral data with respect to such 
                individual.
            ``(4) Accompanying statement described.--
                    ``(A) In general.--The accompanying statement 
                described in this paragraph is, with respect to a 
                qualified political advertisement, a statement made in 
                a clear and conspicuous manner which states that the 
                dissemination of the advertisement is targeted to a 
                specific group of individuals and which includes--
                            ``(i) in the case of the statement required 
                        under paragraph (2)(A), a description of the 
                        demographic characteristic on which the group 
                        was targeted; and
                            ``(ii) in the case of the statement 
                        required under paragraph (3)(A), a description 
                        of the content on which the dissemination of 
                        the advertisement is based.
                    ``(B) Safe harbor for determining clear and 
                conspicuous manner.--For purposes of subparagraph (A), 
                a statement shall be considered to be made in a clear 
                and conspicuous manner if the statement is displayed 
                onscreen above the qualified political advertisement in 
                the format in which the advertisement appears.
            ``(5) Availability of private right of action.--
                    ``(A) Right to file action.--An aggrieved person 
                alleging a violation of this subsection may bring a 
                civil action against any covered online platform or 
                covered intermediary in an appropriate district court 
                for damages, declaratory, injunctive relief, or any 
                other relief the court deems appropriate with respect 
                to the violation.
                    ``(B) Damages.--(i) If the court finds that the 
                defendant violated this subsection or the regulations 
                prescribed under this subsection, the court may, in its 
                discretion, award up to $100,000 in damages to 
                plaintiff per violation.
                    ``(ii) If the court finds that the defendant 
                knowingly and willfully violated this subsection or the 
                regulations prescribed under this subsection, the court 
                may, in its discretion, increase the amount of the 
                award to an amount equal to not more than 3 times the 
                amount per violation available under clause (i).
                    ``(C) Attorney's fees.--In a civil action under 
                this paragraph, the court may allow the prevailing 
                party (other than the United States) reasonable 
                attorney fees, including litigation expenses, and 
                costs.
                    ``(D) Relation to other remedies.--The remedy 
                established by this paragraph is in addition to all 
                other rights and remedies provided under this Act.
                    ``(E) Injury in fact.--If a court finds that the 
                defendant violated this section, the court shall find 
                that such violation constitutes a concrete and 
                particularized injury in fact to the plaintiff.
                    ``(F) Treatment of mandatory predispute arbitration 
                agreements and predispute joint action waivers.--Any 
                agreement to arbitrate an alleged dispute of this 
                subsection that has not yet arisen at the time of 
                making the agreement or any agreement that would 
                otherwise prohibit, or waive the right of, one of the 
                parties to the agreement to participate in a joint, 
                class, or collection action in federal court, 
                concerning a dispute due to an alleged violation of 
                this subsection that has not yet arisen at the time of 
                making the agreement shall be deemed invalid and 
                unenforceable for purposes of civil action arising out 
                of an alleged violation of this subsection, 
                notwithstanding any other provision of law.
    ``(b) Maintenance of Records of Qualified Political 
Advertisements.--
            ``(1) In general.--
                    ``(A) Requirements for online platforms and covered 
                intermediaries.--
                            ``(i) Records of requests to purchase 
                        advertisements.--A covered online platform and 
                        a covered intermediary shall maintain, and make 
                        available for online public inspection in a 
                        machine readable format which is searchable on 
                        the basis of any of the information described 
                        in paragraph (2), a complete record of any 
                        request to purchase on such platform (or, in 
                        the case of a covered intermediary, of any 
                        request to purchase an arrangement for the 
                        dissemination by the intermediary of) a 
                        qualified political advertisement which is made 
                        by a person the value of whose aggregate 
                        requests to purchase qualified political 
                        advertisements on such online platform or to 
                        purchase arrangements for the dissemination of 
                        qualified political advertisements by the 
                        intermediary (as the case may be) during the 
                        calendar year exceeds $500.
                            ``(ii) Assignment of unique identification 
                        number.--The covered online platform and the 
                        covered intermediary shall assign a unique 
                        identification number to each person described 
                        in clause (i), and shall use that same number 
                        with respect to all information relating to 
                        such person which is included in the record the 
                        platform or intermediary maintains and makes 
                        available under this subsection. If the person 
                        is a candidate, the platform or intermediary 
                        shall assign to the person the same 
                        identification number assigned to the person by 
                        the Commission for purposes of filing reports 
                        under this Act.
                    ``(B) Requirements for advertisers.--
                            ``(i) Provision of information.--Any person 
                        who requests to purchase a qualified political 
                        advertisement on a covered online platform, or 
                        who requests to purchase an arrangement for the 
                        dissemination of a qualified political 
                        advertisement by a covered intermediary, shall 
                        provide the online platform or intermediary 
                        with such information as is necessary for the 
                        online platform or intermediary to comply with 
                        the requirements of subparagraph (A).
                            ``(ii) Assistance from platforms.--Each 
                        covered online platform and covered 
                        intermediary shall provide such assistance as 
                        may be required to enable a person to provide 
                        the platform or intermediary with the 
                        information required under clause (i).
            ``(2) Contents of record.--A record maintained under 
        paragraph (1)(A) shall contain--
                    ``(A) the unique identification number assigned 
                under such paragraph to the person making the request 
                (and, if the person is a candidate, a statement that 
                such number is the same identification number assigned 
                to the person by the Commission for purposes of filing 
                reports under this Act);
                    ``(B) a digital copy of the qualified political 
                advertisement;
                    ``(C) a description of the advertisement's targeted 
                audience, including information on the audience's age, 
                gender, and geographic location;
                    ``(D) a description of the advertisement's audience 
                as predicted by an algorithm, including information on 
                the audience's age, gender, geographic location, race, 
                ethnicity, and political affiliation, except that a 
                covered online platform or a covered intermediary may 
                exclude this information from the record maintained 
                under paragraph (1)(A) with respect to an advertisement 
                if the platform or intermediary does not, in the 
                ordinary course of business, collect such information 
                with respect to such an advertisement;
                    ``(E) a description of the advertisement's actual 
                audience as determined on the basis of data provided in 
                an online platform user's profile, including 
                information on the audience's age, gender, geographic 
                location, race, ethnicity, and political affiliation, 
                except that a covered online platform or a covered 
                intermediary may exclude this information from the 
                record maintained under paragraph (1)(A) with respect 
                to an advertisement if the platform or intermediary 
                does not, in the ordinary course of business, collect 
                such information with respect to such an advertisement;
                    ``(F) the number of views generated from the 
                advertisement;
                    ``(G) the date and time that the advertisement is 
                first displayed and last displayed; and
                    ``(H) information regarding--
                            ``(i) the average rate charged for the 
                        advertisement;
                            ``(ii) the name of the candidate to which 
                        the advertisement refers and the office to 
                        which the candidate is seeking election, the 
                        election to which the advertisement refers, or 
                        the national legislative issue to which the 
                        advertisement refers (as applicable); and
                            ``(iii) the amount such person budgeted for 
                        the purchase of the advertisement on the 
                        platform, as well as the amount such person 
                        paid for the purchase of the advertisement on 
                        the platform.
            ``(3) Time to maintain file.--The information required 
        under this subsection shall be made available as soon as 
        possible and shall be retained by the covered online platform 
        or covered intermediary for a period of not less than 4 years.
            ``(4) Safe harbor for platforms and intermediaries making 
        best efforts to identify requests which are subject to record 
        maintenance requirements.--
                    ``(A) Availability of safe harbor.--In accordance 
                with rules established by the Commission, if a covered 
                online platform or covered intermediary shows that the 
                platform or intermediary used best efforts to determine 
                whether or not a request to purchase a qualified 
                political advertisement or a request to purchase an 
                arrangement for the dissemination of a qualified 
                political advertisement (as the case may be) was 
                subject to the requirements of this subsection, the 
                platform or intermediary shall not be considered to be 
                in violation of such requirements.
                    ``(B) Special rules for disbursement paid with 
                credit card.--For purposes of subparagraph (A), a 
                covered online platform or a covered intermediary shall 
                be considered to have used best efforts in the case of 
                a purchase of a qualified political advertisement, or a 
                purchase of an arrangement for the dissemination of a 
                qualified political advertisement (as the case may be), 
                which is made with a credit card if--
                            ``(i) the individual or entity making such 
                        purchase is required, at the time of making 
                        such purchase, to disclose the credit 
                        verification value of such credit card; and
                            ``(ii) the billing address associated with 
                        such credit card is located in the United 
                        States or, in the case of a purchase made by an 
                        individual who is a United States citizen 
                        living outside of the United States, the 
                        individual provides the platform or 
                        intermediary with the United States mailing 
                        address the individual uses for voter 
                        registration purposes.
    ``(c) Covered Online Platform Defined.--In this section, the term 
`covered online platform' means any public facing website, web 
application, or digital application (including a social network or 
search engine) which sells qualified political advertisements and has 
50,000,000 or more unique monthly United States visitors or users for a 
majority of months during the preceding 12 months, except that such 
term does not include a website or application that displays qualified 
political advertisements solely pursuant to an arrangement entered into 
with a covered intermediary between the website or application and the 
sponsor of the qualified political advertisement.
    ``(d) Covered Intermediary Defined.--In this section, the term 
`covered intermediary' means a digital advertising platform or 
advertising system (including an ad server, ad network, ad exchange, 
and any other advertising technology intermediary) which participates 
in the delivery of 100,000,000 advertisements that can be viewed in the 
United States for a majority of months during the preceding 12 months.
    ``(e) Qualified Political Advertisement Defined.--In this section, 
the term `qualified political advertisement' means any advertisement 
(including search engine marketing, display advertisements, video 
advertisements, native advertisements, and sponsorships) that--
            ``(1) is made by or on behalf of a candidate; or
            ``(2) communicates a message relating to any political 
        matter of national importance, including--
                    ``(A) a candidate;
                    ``(B) any election to Federal office; or
                    ``(C) a national legislative issue of public 
                importance.''.
    (b) Enhanced Criminal Penalty for Violations.--Section 309(d)(1) of 
such Act (52 U.S.C. 30109(d)(1)) is amended by adding at the end the 
following new subparagraph:
    ``(E) Any covered online platform or covered intermediary, or an 
officer or director of a covered online platform or covered 
intermediary, who knowingly and willfully commits a violation of 
section 325 shall be imprisoned not more than 5 years, fined under 
title 18, United States Code, or both.''.
    (c) Rulemaking.--
            (1) Responsibilities of federal election commission.--Not 
        later than 90 days after the date of the enactment of this Act, 
        the Federal Election Commission shall establish rules--
                    (A) regarding the definition of any term whose 
                definition is set forth in section 325 of the Federal 
                Election Campaign Act of 1971 (as added by subsection 
                (a));
                    (B) regarding the restrictions established under 
                section 325(a) of such Act (as added by subsection (a)) 
                on targeting the dissemination of qualified political 
                advertisements to a specific group of individuals on 
                the basis of any demographic characteristic shared by 
                members of such group, including establishing the 
                criteria for the safe harbors described in paragraphs 
                (1)(B)(ii) and (4)(B) of such section;
                    (C) requiring common data formats for the record 
                required to be maintained under section 325(b) of such 
                Act (as added by subsection (a)) so that all online 
                platforms and intermediaries submit and maintain data 
                online in a common, machine-readable and publicly 
                accessible format;
                    (D) establishing search interface requirements 
                relating to such record, including searches by 
                candidate name, issue, purchaser, and date; and
                    (E) establishing the criteria for the safe harbor 
                exception provided under paragraph (4) of section 
                325(b) of such Act (as added by subsection (a)).
            (2) Revision.--After the Commission first establishes rules 
        pursuant to this subsection, the Commission shall revise the 
        rules every 5 years thereafter.
    (d) Reporting.--Not later than 2 years after the date of the 
enactment of this Act, and biannually thereafter, the Chairman of the 
Federal Election Commission shall submit a report to Congress on--
            (1) matters relating to compliance with and the enforcement 
        of the requirements of section 325(b) of the Federal Election 
        Campaign Act of 1971, as added by subsection (a);
            (2) recommendations for any modifications to such section 
        to assist in carrying out its purposes; and
            (3) identifying ways to bring transparency and 
        accountability to political advertisements distributed online 
        for free.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to qualified political advertisements disseminated 
after the expiration of the 120-day period which begins on the date of 
the enactment of this Act.
                                 <all>
```