I 

116TH CONGRESS 

2D SESSION H. R. 8372 

To keep children safe and protect their interests on the internet, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 24, 2020 

Ms. CASTOR of Florida (for herself, Ms. CLARKE of New York, and Ms. 

WEXTON) introduced the following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To keep children safe and protect their interests on the 

internet, 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 ‘‘Kids Internet Design 

5 and Safety Act’’ or the ‘‘KIDS Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Children increasingly consume digital enter9 tainment on the internet and are uniquely suscep10 tible to manipulation online, given their lack of imVerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8372.IH H8372

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1 portant neurological and psychological mechanisms 

2 which are developed later in adulthood. 

3 (2) Today’s digital media environment, which is 

4 constantly evolving and now includes high-tech expe5 riences, such as augmented reality and virtual re6 ality, is largely designed in non-transparent ways to 

7 ensure children interact with content that reflect the 

8 interests and goals of content creators, platforms, 

9 and marketers. 

10 (3) Artificial intelligence, machine learning, and 

11 other complex systems are used to make continuous 

12 decisions about how online content for children can 

13 be personalized to increase engagement. 

14 (4) Online companies gather, analyze, and use 

15 data for behavioral marketing directed at children. 

16 (5) Companies employ sophisticated strategies, 

17 including neuromarketing, to affect consumer behav18 ior and manipulate decision making. 

19 (6) Branded content in various forms of multi20 media, including native advertising and influencer 

21 marketing, exposes children to marketing that is in22 herently manipulative or purposely disguised as en23 tertainment or other information. 

24 SEC. 3. DEFINITIONS. 

25 (a) IN GENERAL.—In this Act: 


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1 (1) AUGMENTED REALITY.—The term ‘‘aug2 mented reality’’ means an application or web-based 

3 experience utilizing a camera to change or enhance 

4 the user’s view of the real world. 

5 (2) BRANDED CONTENT.—The term ‘‘branded 

6 content’’ means commercial content created for, and 

7 distributed on, a platform in such a way that the 

8 line between entertainment and advertising becomes 

9 unclear in order to generate a positive view of the 

10 brand. 

11 (3) COMMISSION.—The term ‘‘Commission’’ 

12 means the Federal Trade Commission. 

13 (4) COVERED USER.—The term ‘‘covered user’’ 

14 means an individual under the age of 16. 

15 (5) DIRECTED TO CHILDREN.—The term ‘‘di16 rected to children’’ means the targeting of covered 

17 users by a platform, as demonstrated by, with re18 spect to such platform— 

19 (A) its subject matter; 

20 (B) its visual content; 

21 (C) the use of animated characters or 

22 child-oriented activities for children and related 

23 incentives; 

24 (D) music or other audio content; 

25 (E) the age of models used; 


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1 (F) the presence of— 

2 (i) child celebrities; or 

3 (ii) celebrities who appeal to covered 

4 users; 

5 (G) the language used; 

6 (H) advertising content used on, or used to 

7 advertise, such platform; or 

8 (I) reliable empirical evidence relating to— 

9 (i) the composition of the audience of 

10 such platform; and 

11 (ii) the intended audience of such 

12 platform. 

13 (6) HOST-SELLING.—The term ‘‘host-selling’’ 

14 refers to commercial video content that features the 

15 same characters or individuals as in the adjacent 

16 noncommercial content. 

17 (7) INFLUENCER MARKETING.—The term 

18 ‘‘influencer marketing’’ means a tactic by which a 

19 brand or agency or publisher works with individuals 

20 who are deemed to have the potential to create en21 gagement, drive conversation, or sell products or 

22 services with the intended target audience, in order 

23 to drive brand messages. 

24 (8) MANIPULATION.—The term ‘‘manipulation’’ 

25 means design strategies, product settings, and prodVerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8372.IH H8372

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1 uct architecture targeted to cognitive vulnerabilities 

2 with the intention or effect of pushing the user to 

3 make choices to their detriment and the operator’s 

4 benefit. 

5 (9) NATIVE ADVERTISING.—The term ‘‘native 

6 advertising’’ means a form of paid media where the 

7 advertising experience follows the natural form and 

8 function of the user experience in which it is placed. 

9 (10) NEUROMARKETING.—The term ‘‘neuro10 marketing’’ means a subfield of marketing that at11 tempts to predict and potentially manipulate con12 sumer behavior and decision making based on anal13 ysis of brain patterns. 

14 (11) OPERATOR.— 

15 (A) IN GENERAL.—The term ‘‘operator’’ 

16 means any person who operates a platform, in17 cluding any person offering products or services 

18 for sale through that platform, involving com19 merce— 

20 (i) among the several States or with 

21 one or more foreign nations; 

22 (ii) in any territory of the United 

23 States or in the District of Columbia, or 

24 between any such territory and— 

25 (I) another such territory; or 


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1 (II) any State or foreign nation; 

2 or 

3 (iii) between the District of Columbia 

4 and any State, territory, or foreign nation. 

5 (B) EXCEPTION.—The term ‘‘operator’’ 

6 does not include any nonprofit entity that would 

7 otherwise be exempt from coverage under sec8 tion 5 of the Federal Trade Commission Act 

9 (15 U.S.C. 45). 

10 (12) PERSON.—The term ‘‘person’’ means any 

11 individual, partnership, corporation, trust, estate, co12 operative, association, or other entity. 

13 (13) PLATFORM.—The term ‘‘platform’’ means 

14 a website, online service, online application, or mo15 bile application which is operated for commercial 

16 purposes. 

17 (14) VIRTUAL REALITY.—The term ‘‘virtual re18 ality’’ means an application or web-based experience 

19 utilizing a camera to create an immersive environ20 ment that mimics the real world, usually via a head21 set. 


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1 SEC. 4. REGULATION OF ACTS AND PRACTICES ON CHILD2 DIRECTED PLATFORMS. 

3 (a) PROHIBITION ON CERTAIN FEATURES.—It is un4 lawful for an operator of a platform directed to children 

5 to incorporate any of the following features: 

6 (1) Any auto-play setting that, without input 

7 from the covered user, commences additional video 

8 content directly following the video content initially 

9 selected by the user. 

10 (2) Push alerts that urge a covered user to 

11 spend more time engaged with the platform when 

12 they are not actively using it. 

13 (3) Displaying the quantity of positive engage14 ment or feedback that a covered user has received 

15 from other users. 

16 (4) Any design feature or setting that unfairly 

17 encourages a covered user, due to their age or inex18 perience, to make purchases, submit content, or 

19 spend more time engaging with the platform. 

20 (5) Any feature that provides a covered user 

21 with badges or other visual award symbols based on 

22 elevated levels of engagement with the platform. 

23 (b) PROHIBITION ON AMPLIFICATION OF CERTAIN

24 CONTENT; USER REPORTING MECHANISM.—It shall be 

25 unlawful for an operator of a platform directed to children, 


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1 or a platform for which the operator has constructive 

2 knowledge that covered users use its platform, to— 

3 (1) amplify, promote, or encourage covered 

4 users’ consumption of videos and other forms of con5 tent that involve— 

6 (A) sexual material; 

7 (B) physical or emotional violence, includ8 ing bullying; 

9 (C) adult activities, including gambling; or 

10 (D) other dangerous, abusive, exploitative, 

11 or wholly commercial content; or 

12 (2) fail to implement a mechanism for users to 

13 report suspected violations of any requirement under 

14 paragraph (1). 

15 (c) PROHIBITION ON CERTAIN ADVERTISING METH16 ODS.— 

17 (1) IN GENERAL.—It shall be unlawful for an 

18 operator of a platform directed to children to— 

19 (A) direct content that includes host-selling 

20 to covered users; 

21 (B) expose covered users to program22 length advertisements; 

23 (C) direct branded content or native adver24 tising to covered users; 


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1 (D) direct online advertising or material 

2 with considerable commercial content involving 

3 alcohol, nicotine, or tobacco to covered users; 

4 (E) expose covered users to online adver5 tising or material with considerable commercial 

6 content with any imbedded interactive elements 

7 that take advantage of covered users’ inexperi8 ence or credulity in noncommercial child-di9 rected content; or 

10 (F) direct content that includes product 

11 placement to covered users. 

12 (2) PROGRAM-LENGTH ADVERTISEMENT.—The 

13 term ‘‘program-length advertisement’’ shall be de14 fined by the Commission through regulation or other 

15 public guidance. 

16 (d) PROHIBITION ON USE OF PERSONAL INFORMA17 TION.—It shall be unlawful for an operator of a platform 

18 directed to children to use age verification information col19 lected from covered users for any commercial purpose. 

20 (e) REGULATIONS.—The Commission shall promul21 gate regulations in accordance with section 553 of title 

22 5, United States Code, to require any operator of a plat23 form directed to children to incorporate online visual ele24 ments or other indicators that distinguish commercial con25 tent from noncommercial content. 


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1 SEC. 5. MARKETING AND COMMERCIALIZATION. 

2 (a) CONTENT LABELING SYSTEM REPORT.—Not 

3 later than the date that is 1 year after the date of enact4 ment of this Act, the Commission shall submit to Congress 

5 a report— 

6 (1) containing recommendations for a labeling 

7 system to allow parents to identify noncommercial, 

8 educational, and enriching content for covered users 

9 online; and 

10 (2) address considerations regarding how such 

11 labeling system should— 

12 (A) analyze content based on evidence13 based criteria; 

14 (B) employ an easy-to-understand visual 

15 cue for parents to identify content described in 

16 paragraph (1); 

17 (C) receive regular review to determine its 

18 effectiveness; and 

19 (D) develop a mechanism for users to re20 port to the Commission complaints of mis21 labeled content and for the Commission to rem22 edy such instances of mislabeled content. 

23 (b) CONSULTATION.—The report described in sub24 section (a) shall be developed by the Commission in con25 sultation with an advisory board, to be created and conVerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8372.IH H8372

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1 vened by the Commission, which is comprised of experts 

2 in child development, child health, education, and media. 

3 SEC. 6. TRANSPARENCY AND AUDITING. 

4 (a) TRANSPARENCY.—The Commission shall promul5 gate regulations in accordance with section 553 of title 

6 5, United States Code, requiring an operator of a platform 

7 which is directed to children to publish and maintain a 

8 publicly accessible digital record of the viewable or play9 able content of each such platform. 

10 (b) ANNUAL PLATFORM AUDITS.—The regulations 

11 promulgated pursuant to subsection (a) shall include the 

12 establishment of an annual audit process, to be conducted 

13 during the 5-year period subsequent to the date of enact14 ment of this Act, for each of the 25 platforms directed 

15 to children with the highest total number of child users, 

16 to evaluate the level of compliance by each such platform 

17 with respect to the requirements under this Act. 

18 (c) REPORT.—The Commission shall issue annual re19 ports to Congress based on the audits described in sub20 section (b) that— 

21 (1) describe the level of compliance by the plat22 forms described in such subsection with respect to 

23 the requirements under this Act; and 


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1 (2) provide recommendations for such legisla2 tion and administrative actions as the Commission 

3 determines appropriate based on the audit findings. 

4 SEC. 7. GRANT PROGRAM. 

5 (a) ESTABLISHMENT.— 

6 (1) IN GENERAL.—The Secretary of Commerce 

7 shall provide grants to eligible persons to foster the 

8 creation and promotion of advertisement-free and 

9 educational online content for covered users, such as 

10 videos and applications. 

11 (2) ELIGIBLE PERSON.—For purposes of this 

12 section, the term ‘‘eligible person’’ means a person 

13 that has submitted an application, as approved by 

14 the Secretary of Commerce pursuant to the eligi15 bility requirements developed under subsection (b), 

16 for the creation and promotion of advertisement-free 

17 and educational online content for covered users. 

18 (b) ADVISORY COUNCIL.—The Secretary shall estab19 lish and convene an Advisory Council on Children’s Online 

20 Content, which shall be— 

21 (1) comprised of experts in education, child de22 velopment, psychology, online media, and other re23 lated disciplines; and 

24 (2) tasked with developing evidence-based cri25 teria for grant eligibility and grant distribution. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.— 

2 (1) IN GENERAL.—To carry out this section, 

3 there is authorized to be appropriated— 

4 (A) for fiscal year 2021, $4,000,000; 

5 (B) for fiscal year 2022, $8,000,000; 

6 (C) for fiscal year 2023, $10,000,000; and 

7 (D) for fiscal year 2024, $12,000,000. 

8 (2) AVAILABILITY OF FUNDS.—Any amount ap9 propriated under this subsection for any fiscal year 

10 shall remain available for the purposes of carrying 

11 out any application approved during such fiscal year 

12 for an additional period of 1 year after the end of 

13 such fiscal year. 

14 SEC. 8. ADMINISTRATION AND ENFORCEMENT. 

15 (a) IN GENERAL.—This Act shall be enforced by the 

16 Commission under the Federal Trade Commission Act (15 

17 U.S.C. 41 et seq.). 

18 (b) ACTIONS BY COMMISSION.— 

19 (1) IN GENERAL.—The Commission shall pre20 vent any person from violating this Act or any regu21 lation promulgated by the Commission under this 

22 Act in the same manner, by the same means, and 

23 with the same jurisdiction, powers, and duties, as 

24 though all applicable terms and provisions of the 

25 Federal Trade Commission Act (15 U.S.C. 41 et 


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1 seq.) were incorporated into and made a part of this 

2 Act. 

3 (2) PENALTIES AND PRIVILEGES.—Any person 

4 that violates this Act or any regulation promulgated 

5 under the Act shall be subject to the penalties and 

6 entitled to the privileges and immunities provided in 

7 the Federal Trade Commission Act in the same 

8 manner, by the same means, and with the same ju9 risdiction, power, and duties, as though all applica10 ble terms and provisions of the Federal Trade Com11 mission Act were incorporated into and made a part 

12 of this Act. 

13 (c) CIVIL PENALTY.—A violation of the Act, or a rule 

14 promulgated under the Act, shall be treated as a violation 

15 of a rule defining an unfair or deceptive act or practice 

16 prescribed under section 18(a)(1)(B) of the Federal Trade 

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

18 (d) EFFECT ON OTHER LAWS.—Nothing contained 

19 in this Act shall be construed to limit the authority of the 

20 Commission under any other provisions of law. 

Æ 


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