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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2025 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2025

To require data brokers to establish procedures to ensure the accuracy 
       of collected personal information, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 12, 2014

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

_______________________________________________________________________

                                 A BILL

 
To require data brokers to establish procedures to ensure the accuracy 
       of collected personal information, 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 ``Data Broker Accountability and 
Transparency Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Data broker.--The term ``data broker'' means a 
        commercial entity that collects, assembles, or maintains 
        personal information concerning an individual who is not a 
        customer or an employee of that entity in order to sell the 
        information or provide third party access to the information.
            (3) Non-public information.--The term ``non-public 
        information'' means information about an individual that is of 
        a private nature, not available to the general public, and not 
        obtained from a public record.
            (4) Public record information.--The term ``public record 
        information'' means information about an individual that has 
        been obtained originally from records of a Federal, State, or 
        local government entity that are available for public 
        inspection.

SEC. 3. PROHIBITION ON OBTAINING OR SOLICITATION TO OBTAIN PERSONAL 
              INFORMATION BY FALSE PRETENSES.

    (a) In General.--It shall be unlawful for a data broker to obtain 
or attempt to obtain, or cause to be disclosed or attempt to cause to 
be disclosed to any person, personal information or any other 
information relating to any person by making a false, fictitious, or 
fraudulent statement or representation to any person, including by 
providing any document to any person, that the data broker knows or 
should know to be forged, counterfeit, lost, stolen, or fraudulently 
obtained, or contains a false, fictitious, or fraudulent statement or 
representation.
    (b) Solicitation.--It shall be unlawful for a data broker to 
request a person to obtain personal information, or any other 
information, relating to any other person if the data broker knows or 
should know that the person to whom the request is made will obtain or 
attempt to obtain that information in the manner described in 
subsection (a).

SEC. 4. PERSONAL INFORMATION.

    (a) Accuracy.--A data broker shall establish reasonable procedures 
to ensure the maximum possible accuracy of the personal information it 
collects, assembles, or maintains, and any other information it 
collects, assembles, or maintains that specifically identifies an 
individual, unless the information only identifies an individual's name 
or address.
    (b) Exception; Fraud Databases.--Notwithstanding subsection (a), a 
data broker may collect or maintain information that may be inaccurate 
with respect to a particular individual if that information is being 
collected or maintained solely for the purpose of--
            (1) indicating whether there may be a discrepancy or 
        irregularity in the personal information that is associated 
        with an individual;
            (2) helping to identify, or to authenticate the identity 
        of, an individual; or
            (3) helping to protect against or investigate fraud or 
        other unlawful conduct.
    (c) Consumer Access.--A data broker shall provide an individual a 
means to review any personal information or other information that 
specifically identifies that individual, that the data broker collects, 
assembles, or maintains on that individual, unless an exception applies 
under section 5.
    (d) Review Requirements.--The means for review under subsection (c) 
shall be provided--
            (1) at an individual's request;
            (2) after verifying the identity of the individual;
            (3) at least 1 time per year; and
            (4) at no cost to the individual.
    (e) Notice.--A data broker shall maintain an Internet Web site and 
place a clear and conspicuous notice on that Internet Web site 
instructing an individual--
            (1) how to review the information described under 
        subsection (c); and
            (2) how to express a preference with respect to the use of 
        personal information for marketing purposes under subsection 
        (g).
    (f) Disputed Information.--An individual whose personal information 
is maintained by a data broker may dispute the accuracy of any 
information described under subsection (c) by requesting, in writing, 
that the data broker correct the information. A data broker, after 
verifying the identity of the individual making the request, and unless 
there are reasonable grounds to believe the request is frivolous or 
irrelevant, shall--
            (1) with regard to public record information--
                    (A) inform the individual of the source of the 
                information and, if reasonably available, where to 
                direct the individual's request for correction; or
                    (B) if the individual provides proof that the 
                public record has been corrected or that the data 
                broker was reporting the information incorrectly, 
                correct the inaccuracy in the data broker's records; 
                and
            (2) with regard to non-public information--
                    (A) note the information that is disputed, 
                including the individual's written request;
                    (B) if the information can be independently 
                verified, use the reasonable procedures established 
                under subsection (a) to independently verify the 
                information; and
                    (C) if the data broker was reporting the 
                information incorrectly, correct the inaccuracy in the 
                data broker's records.
    (g) Certain Marketing Information.--A data broker that maintains 
any information described under subsection (a) and that uses, shares, 
or sells that information for marketing purposes shall provide each 
individual whose information it maintains with a reasonable means of 
expressing a preference not to have that individual's information used 
for those purposes. If an individual expresses such a preference, the 
data broker may not use, share, or sell that individual's information 
for marketing purposes.
    (h) Persons Regulated by the Fair Credit Reporting Act.--A data 
broker shall be deemed in compliance with this section with respect to 
information that is subject to the Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) if the data broker is in compliance with sections 609, 
610, and 611 of that Act (15 U.S.C. 1681g, 1681h, 1681i).

SEC. 5. REGULATIONS.

    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 implement and enforce the requirements of this 
Act, including--
            (1) a requirement that a data broker establish measures 
        that facilitate the auditing or retracing of any internal or 
        external access to, or transmission of, any data containing 
        personal information collected, assembled, or maintained by the 
        data broker;
            (2) the establishment of a centralized Internet Web site 
        for the benefit of consumers that lists the data brokers 
        subject to section 4 and provides additional information to 
        consumers about their rights under this Act;
            (3) if the Commission considers a data broker outside the 
        scope of the purposes of this Act, the exclusion of that data 
        broker from the applicability of this Act, such as, if the 
        Commission considers it appropriate for exclusion, a data 
        broker who processes information collected by or on behalf of 
        and received from or on behalf of a nonaffiliated third party 
        concerning an individual who is a customer or an employee of 
        that third party to enable that third party, directly or 
        through parties acting on its behalf, to provide benefits for 
        its employees or directly transact business with its customers;
            (4) any exceptions, that the Commission considers 
        necessary, to the auditing and retracing requirements under 
        paragraph (1) to further or protect law enforcement or national 
        security activities; and
            (5) any exceptions, that the Commission considers 
        necessary, to an individual's right to review the information 
        described under section 4(c), such as for child protection, law 
        enforcement, fraud prevention, or other legitimate government 
        purposes.

SEC. 6. ENFORCEMENT.

    (a) In General.--A violation of a regulation prescribed under this 
Act shall be treated as a violation of a rule defining an unfair or a 
deceptive act or practice under section 18(a)(1)(B) of the Federal 
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
    (b) Powers of Commission.--The Commission shall enforce 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 this Act. Any data broker who violates a 
regulation prescribed 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.).
    (c) Enforcement by State Attorneys General.--
            (1) Civil action.--Except as provided under paragraph 
        (3)(B), in any case in which the attorney general of a State, 
        or an official or agency of a State, has reason to believe that 
        an interest of the residents of that State has been or is 
        threatened or adversely affected by a data broker who violates 
        a regulation prescribed under this Act, the attorney general, 
        official, or agency of the State, as parens patriae, may bring 
        a civil action on behalf of the residents of the State in a 
        district court of the United States of appropriate 
        jurisdiction--
                    (A) to enjoin further violation of this Act by the 
                defendant;
                    (B) to compel compliance with this Act;
                    (C) to obtain damages, restitution, or other 
                compensation on behalf of such residents, or to obtain 
                such further and other relief as the court may deem 
                appropriate; or
                    (D) to obtain civil penalties in the amount 
                determined under paragraph (2).
            (2) Civil penalties.--
                    (A) Calculation.--For purposes of imposing a civil 
                penalty under paragraph (1)(D), the amount determined 
                under this paragraph is the amount calculated by 
                multiplying the number of separate violations of a rule 
                by an amount not greater than $16,000.
                    (B) Adjustment for inflation.--Beginning on the 
                date that the Consumer Price Index is first published 
                by the Bureau of Labor Statistics that is after 1 year 
                after the date of enactment of this Act, and each year 
                thereafter, the amount specified in subparagraph (A) 
                shall be increased by the percentage increase in the 
                Consumer Price Index published on that date from the 
                Consumer Price Index published the previous year.
            (3) Intervention by the commission.--
                    (A) Notice.--A State shall provide prior written 
                notice of any civil action under paragraph (1) to the 
                Commission and provide the Commission with a copy of 
                its complaint, except in any case in which such prior 
                notice is not feasible, in which case the State shall 
                serve such notice immediately upon instituting such 
                action.
                    (B) Intervention by the commission.--The Commission 
                shall have the right--
                            (i) to intervene in the civil action under 
                        paragraph (1);
                            (ii) upon so intervening, to be heard on 
                        all matters arising in that civil action; and
                            (iii) to file petitions for appeal of a 
                        decision in that civil action.
                    (C) Limitation on state action while federal action 
                is pending.--If the Commission has instituted a civil 
                action for violation of this Act, no State attorney 
                general, or official or agency of a State, may bring an 
                action under this subsection during the pendency of 
                that action against any defendant named in the 
                complaint of the Commission for any violation of this 
                Act alleged in the complaint.
            (4) Construction.--For purposes of bringing any civil 
        action under paragraph (1), nothing in this Act shall be 
        construed to prevent an attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of that State--
                    (A) to conduct investigations;
                    (B) to administer oaths or affirmations; or
                    (C) to compel the attendance of witnesses or the 
                production of documentary and other evidence.

SEC. 7. EFFECT ON OTHER LAWS.

    (a) Preservation of Commission Authority.--Nothing in this Act may 
be construed in any way to limit or affect the Commission's authority 
under any other provision of law.
    (b) Preservation of Other Federal Law.--Nothing in this Act may be 
construed in any way to supersede, restrict, or limit the application 
of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) or any other 
Federal law.
                                 <all>
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