I 

116TH CONGRESS 

2D SESSION H. R. 8512 

To require the Securities and Exchange Commission to promulgate regulations 

relating to the disclosure of certain commercial data, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 2, 2020 

Mr. FOSTER (for himself and Mr. MOULTON) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To require the Securities and Exchange Commission to promulgate regulations relating to the disclosure of certain 

commercial data, 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 ‘‘Designing Accounting 

5 Safeguards To Help Broaden Oversight and Regulations 

6 on Data’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 


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

2 means the Securities and Exchange Commission. 

3 (2) ISSUER.—The term ‘‘issuer’’ has the mean4 ing given the term in section 3(a) of the Securities 

5 and Exchange Act of 1934 (15 U.S.C. 78c(a)). 

6 (3) OTHER DEFINITIONS.—The terms ‘‘com7 mercial data operator’’, ‘‘user’’, and ‘‘user data’’ 

8 have the meaning given those terms, respectively, 

9 under section 13(s)(1) of the Securities Exchange 

10 Act of 1934. 

11 SEC. 3. COMMERCIAL DATA OPERATORS. 

12 (a) REQUIREMENTS.— 

13 (1) IN GENERAL.—A commercial data operator 

14 shall— 

15 (A) on a routine basis, and not less fre16 quently than once every 90 days— 

17 (i) provide each user of the commer18 cial data operator with an assessment of 

19 the economic value that the commercial 

20 data operator places on the data of that 

21 user; and 

22 (ii) in a clear and conspicuous man23 ner, in accordance with paragraph (3), 

24 identify to each user of the commercial 

25 data operator— 


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1 (I) the types of data collected 

2 from users of the commercial data op3 erator, whether by the commercial 

4 data operator or another person pur5 suant to an agreement with the com6 mercial data operator; and 

7 (II) the ways that the data of a 

8 user of the commercial data operator 

9 is used if the use is not directly or ex10 clusively related to the online service 

11 that the commercial data operator 

12 provides to the user; and 

13 (B) except as provided in paragraph (2), 

14 provide a user of the commercial data operator 

15 with the ability to delete all data, in the aggre16 gate and for an individual field, that the com17 mercial data operator possesses, or maintains 

18 control or access to with respect to the user, 

19 through— 

20 (i) a single setting; or 

21 (ii) another clear and conspicuous 

22 mechanism by which the user may make 

23 such a deletion. 

24 (2) DELETION EXCEPTIONS.— 


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1 (A) IN GENERAL.—A commercial data op2 erator shall comply with a user directive to de3 lete, in whole or in part, the data of the user 

4 except— 

5 (i) in cases where there is a legal obli6 gation of the commercial data operator to 

7 maintain the data; 

8 (ii) for the establishment, exercise, or 

9 defense of legal claims; or 

10 (iii) if the data is necessary to detect 

11 security incidents, protect against mali12 cious, deceptive, fraudulent, or illegal activ13 ity, or assist in the prosecution of those re14 sponsible for such activity. 

15 (B) RETENTION.—A commercial data op16 erator may not retain any more user data than 

17 is necessary to carry out an activity described 

18 in clauses (i) through (iii) of subparagraph (A). 

19 (3) AVAILABILITY.—A commercial data oper20 ator shall ensure that all disclosures required under 

21 paragraph (1) are available to a user of the commer22 cial data operator— 

23 (A) on and after the date on which the 

24 commercial data operator makes the identifica25 tion; and 


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1 (B) through any normal mechanism by 

2 which a user may interact with the online serv3 ice provided by the commercial data operator. 

4 (4) UNFAIR AND DECEPTIVE ACTS OR PRAC5 TICES.— 

6 (A) UNFAIR OR DECEPTIVE ACTS OR PRAC7 TICES.—A violation of this subsection shall be 

8 treated as a violation of a rule defining an un9 fair or deceptive act or practice prescribed 

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

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

12 (B) POWERS OF FEDERAL TRADE COMMIS13 SION.— 

14 (i) IN GENERAL.—The Federal Trade 

15 Commission shall enforce this subsection in 

16 the same manner, by the same means, and 

17 with the same jurisdiction, powers, and du18 ties as though all applicable terms and pro19 visions of the Federal Trade Commission 

20 Act (15 U.S.C. 41 et seq.) were incor21 porated into and made a part of this sub22 section. 

23 (ii) PRIVILEGES AND IMMUNITIES.— 

24 Any person who violates this subsection 

25 shall be subject to the penalties and entiVerDate Sep 11 2014 04:19 Oct 29, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8512.IH H8512

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1 tled to the privileges and immunities pro2 vided in the Federal Trade Commission 

3 Act (15 U.S.C. 41 et seq.). 

4 (b) REGULATIONS.—Not later than 1 year after the 

5 date of enactment of this Act, the Federal Trade Commis6 sion shall promulgate regulations carrying out subsection 

7 (a). 

8 SEC. 4. SEC DISCLOSURES. 

9 (a) IN GENERAL.—Section 13 of the Securities Ex10 change Act of 1934 (15 U.S.C. 78m) is amended by add11 ing at the end the following: 

12 ‘‘(s) DISCLOSURE RELATING TO AGGREGATE VALUE

13 OF USER DATA HELD BY COMMERCIAL DATA OPERA14 TORS.— 

15 ‘‘(1) DEFINITIONS.—In this subsection: 

16 ‘‘(A) COMMERCIAL DATA OPERATOR.—The 

17 term ‘commercial data operator’ means an enti18 ty acting in its capacity as a consumer online 

19 services provider or data broker that— 

20 ‘‘(i) generates a material amount of 

21 revenue directly from the use, collection, 

22 processing, sale, or sharing of the user 

23 data; and 

24 ‘‘(ii) has more than 100,000,000 

25 unique monthly visitors or users in the 


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1 United States for a majority of months 

2 during the previous 1-year period; 

3 ‘‘(B) USER.—The term ‘user’ means an in4 dividual consumer who uses an online service 

5 designed for consumer use by a commercial 

6 data operator. 

7 ‘‘(C) USER DATA.—The term ‘user data’ 

8 means any information that identifies, relates 

9 to, describes, is capable of being associated 

10 with, or could reasonably be linked with an in11 dividual user, whether directly submitted to the 

12 commercial data operator by the user or derived 

13 from the observed activity of the user by the 

14 commercial data operator. 

15 ‘‘(2) DISCLOSURE.—Each issuer that is, or is a 

16 consolidated subsidiary of, a commercial data oper17 ator and is required to file an annual or quarterly 

18 report under subsection (a) shall disclose in that re19 port the aggregate value, if material, of— 

20 ‘‘(A) user data that the commercial data 

21 operator holds; 

22 ‘‘(B) contracts with third parties for the 

23 collection of user data through the online serv24 ice provided by the commercial data operator; 

25 and 


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1 ‘‘(C) any other item that the Commission 

2 determines, by rule, is necessary or useful for 

3 the protection of investors and in the public in4 terest. 

5 ‘‘(3) VALUATION METHODOLOGY.— 

6 ‘‘(A) IN GENERAL.—The Commission, in 

7 consultation with appropriate standards set8 tings organizations, shall develop a method or 

9 methods for calculating the value of user data 

10 required to be disclosed under paragraph (2). 

11 ‘‘(B) CONSIDERATIONS.—In developing the 

12 method under subparagraph (A), the Commis13 sion shall promote comparability in calculating 

14 the value of data across commercial data opera15 tors that utilize user data in a similar manner 

16 while taking into account the potential need to 

17 develop distinct methods for calculating the 

18 value of data for different uses, sectors, and 

19 business models.’’. 

20 (b) QUALITATIVE DISCLOSURE.—Not later than 1 

21 year after the date of enactment of this subsection, the 

22 Commission shall amend section 229.306 of title 17, Code 

23 of Federal Regulations, to require a commercial data oper24 ator that is an issuer subject to section 13 or 15(d) of 

25 the Securities Exchange Act of 1934 (15 U.S.C. 78m, 


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1 78o(d)) to provide quantitative and qualitative disclosures 

2 about the value of user data held, including— 

3 (1) technical and legal measures in place to 

4 protect user data held by the commercial data oper5 ator; 

6 (2) an assessment of financial and legal risks 

7 associated with storing the type and quantity of user 

8 data held by the commercial data operator; 

9 (3) each source of user data held by the com10 mercial data operator, whether by sale, a direct con11 sumer relationship, an indirect consumer relation12 ship, or other means; 

13 (4) each discrete revenue generating operation 

14 of the commercial data operator and any subsidiary 

15 or affiliate that relies on user data; 

16 (5) the entry into any contract valued at more 

17 than $10,000,000 with a third party for the collec18 tion, licensing, or sharing by the third party pursu19 ant to an agreement with the commercial data oper20 ator; 

21 (6) the amount of revenue derived from obtain22 ing, collecting, processing, selling, using or sharing 

23 user data during the reporting period; 


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1 (7) how changes in the measurement of aggre2 gate fair value of user data affect the reported per3 formance and cash flows of the issuer; and 

4 (8) any acquisition of user data in the pre5 ceding reporting period valued at more than 

6 $100,000,000. 

7 (c) REPORT.— 

8 (1) IN GENERAL.—Not later than 3 years after 

9 the date of enactment of this Act, the Commission 

10 shall submit to the Committee on Banking, Housing, 

11 and Urban Affairs of the Senate and the Committee 

12 on Financial Services of the House of Representa13 tives a report on— 

14 (A) the nature, timing, and extent of the 

15 disclosure practices of commercial data opera16 tors; 

17 (B) an assessment of the valuation meth18 odologies and practices employed by commercial 

19 data operators in developing and submitting 

20 disclosures to the public; 

21 (C) an evaluation of the methods of deliv22 ery and presentation of the disclosures required 

23 by this Act, and the amendments made by this 

24 Act; and 


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1 (D) recommendations for the improvement 

2 of the methods described in subparagraph (C), 

3 including developing standards to enhance com4 parability and utility for investors. 

5 (2) RULEMAKING.—Not later than 180 days 

6 after the date on which the report required under 

7 paragraph (1) is submitted, the Commission shall 

8 promulgate a proposed regulation implementing the 

9 recommendations described in paragraph (1)(D). 

Æ 


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