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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2378 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2378

To establish a regulatory framework for the comprehensive protection of 
  personal data for individuals under the aegis of the Federal Trade 
 Commission, to amend the Children's Online Privacy Protection Act of 
1998 to improve provisions relating to collection, use, and disclosure 
      of personal information of children, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2014

 Mr. Menendez introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
To establish a regulatory framework for the comprehensive protection of 
  personal data for individuals under the aegis of the Federal Trade 
 Commission, to amend the Children's Online Privacy Protection Act of 
1998 to improve provisions relating to collection, use, and disclosure 
      of personal information of children, 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. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
                      TITLE I--COMMERCIAL PRIVACY

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
            Subtitle A--Right to Security and Accountability

Sec. 111. Security.
Sec. 112. Accountability.
Sec. 113. Privacy by design.
        Subtitle B--Right to Notice and Individual Participation

Sec. 121. Transparent notice of practices and purposes.
Sec. 122. Individual participation.
   Subtitle C--Rights Relating to Data Minimization, Constraints on 
                    Distribution, and Data Integrity

Sec. 131. Data minimization.
Sec. 132. Constraints on distribution of information.
Sec. 133. Data integrity.
          Subtitle D--Right to Notice of Breaches of Security

Sec. 141. Definitions.
Sec. 142. Notice to individuals.
Sec. 143. Notice to law enforcement.
                        Subtitle E--Enforcement

Sec. 151. General application.
Sec. 152. Enforcement by the Federal Trade Commission.
Sec. 153. Enforcement by Attorney General.
Sec. 154. Enforcement by States.
Sec. 155. Civil penalties.
Sec. 156. Effect on other laws.
Sec. 157. No private right of action.
             Subtitle F--Co-Regulatory Safe Harbor Programs

Sec. 161. Establishment of safe harbor programs.
Sec. 162. Participation in safe harbor program.
            Subtitle G--Application With Other Federal Laws

Sec. 171. Application with other Federal laws.
   Subtitle H--Development of Commercial Data Privacy Policy in the 
                         Department of Commerce

Sec. 181. Direction to develop commercial data privacy policy.
                  TITLE II--ONLINE PRIVACY OF CHILDREN

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Definitions.
Sec. 204. Online collection, use, and disclosure of personal 
                            information of children.
Sec. 205. Targeted marketing to children or minors.
Sec. 206. Digital Marketing Bill of Rights for Teens and Fair 
                            Information Practices Principles.
Sec. 207. Online collection of geolocation information of children and 
                            minors.
Sec. 208. Removal of content.
Sec. 209. Enforcement and applicability.
Sec. 210. Rule for treatment of users of websites, services, and 
                            applications directed to children or 
                            minors.
Sec. 211. Effective dates.

                      TITLE I--COMMERCIAL PRIVACY

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Commercial Privacy Bill of Rights 
Act of 2014''.

SEC. 102. FINDINGS.

    The Congress finds the following:
            (1) Personal privacy is worthy of protection through 
        appropriate legislation.
            (2) Trust in the treatment of personally identifiable 
        information collected on and off the Internet is essential for 
        businesses to succeed.
            (3) Persons interacting with others engaged in interstate 
        commerce have a significant interest in their personal 
        information, as well as a right to control how that information 
        is collected, used, stored, or transferred.
            (4) Persons engaged in interstate commerce and collecting 
        personally identifiable information on individuals have a 
        responsibility to treat that information with respect and in 
        accordance with common standards.
            (5) On the day before the date of the enactment of this 
        Act, the laws of the Federal Government and State and local 
        governments provided inadequate privacy protection for 
        individuals engaging in and interacting with persons engaged in 
        interstate commerce.
            (6) As of the day before the date of the enactment of this 
        Act, with the exception of Federal Trade Commission enforcement 
        of laws against unfair and deceptive practices, the Federal 
        Government has eschewed general commercial privacy laws in 
        favor of industry self-regulation, which has led to several 
        self-policing schemes, some of which are enforceable, and some 
        of which provide insufficient privacy protection to 
        individuals.
            (7) As of the day before the date of the enactment of this 
        Act, many collectors of personally identifiable information 
        have yet to provide baseline fair information practice 
        protections for individuals.
            (8) The ease of gathering and compiling personal 
        information on the Internet and off, both overtly and 
        surreptitiously, is becoming increasingly efficient and 
        effortless due to advances in technology which have provided 
        information gatherers the ability to compile seamlessly highly 
        detailed personal histories of individuals.
            (9) Personal information requires greater privacy 
        protection than is available on the day before the date of the 
        enactment of this Act. Vast amounts of personal information, 
        including sensitive information, about individuals are 
        collected on and off the Internet, often combined and sold or 
        otherwise transferred to third parties, for purposes unknown to 
        an individual to whom the personally identifiable information 
        pertains.
            (10) Toward the close of the 20th century, as individuals' 
        personal information was increasingly collected, profiled, and 
        shared for commercial purposes, and as technology advanced to 
        facilitate these practices, Congress enacted numerous statutes 
        to protect privacy.
            (11) Those statutes apply to the government, telephones, 
        cable television, e-mail, video tape rentals, and the Internet 
        (but only with respect to children and law enforcement 
        requests).
            (12) As in those instances, the Federal Government has a 
        substantial interest in creating a level playing field of 
        protection across all collectors of personally identifiable 
        information, both in the United States and abroad.
            (13) Enhancing individual privacy protection in a balanced 
        way that establishes clear, consistent rules, both domestically 
        and internationally, will stimulate commerce by instilling 
        greater consumer confidence at home and greater confidence 
        abroad as more and more entities digitize personally 
        identifiable information, whether collected, stored, or used 
        online or offline.

SEC. 103. DEFINITIONS.

    (a) In General.--Subject to subsection (b), in this title:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Covered entity.--The term ``covered entity'' means any 
        person to whom this title applies under section 151.
            (3) Covered information.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``covered information'' means only the 
                following:
                            (i) Personally identifiable information.
                            (ii) Unique identifier information.
                            (iii) Any information that is collected, 
                        used, or stored in connection with personally 
                        identifiable information or unique identifier 
                        information in a manner that may reasonably be 
                        used by the party collecting the information to 
                        identify a specific individual.
                    (B) Exception.--The term ``covered information'' 
                does not include the following:
                            (i) Personally identifiable information 
                        obtained from public records that is not merged 
                        with covered information gathered elsewhere.
                            (ii) Personally identifiable information 
                        that is obtained from a forum--
                                    (I) where the individual 
                                voluntarily shared the information or 
                                authorized the information to be 
                                shared; and
                                    (II) that--
                                            (aa) is widely and publicly 
                                        available and was not made 
                                        publicly available in bad 
                                        faith; and
                                            (bb) contains no 
                                        restrictions on who can access 
                                        and view such information.
                            (iii) Personally identifiable information 
                        reported in public media.
                            (iv) Personally identifiable information 
                        dedicated to contacting an individual at the 
                        individual's place of work.
            (4) Established business relationship.--The term 
        ``established business relationship'' means, with respect to a 
        covered entity and a person, a relationship formed with or 
        without the exchange of consideration, involving the 
        establishment of an account by the person with the covered 
        entity for the receipt of products or services offered by the 
        covered entity.
            (5) Personally identifiable information.--The term 
        ``personally identifiable information'' means only the 
        following:
                    (A) Any of the following information about an 
                individual:
                            (i) The first name (or initial) and last 
                        name of an individual, whether given at birth 
                        or time of adoption, or resulting from a lawful 
                        change of name.
                            (ii) The postal address of a physical place 
                        of residence of such individual.
                            (iii) An e-mail address.
                            (iv) A telephone number or mobile device 
                        number.
                            (v) A social security number or other 
                        government issued identification number issued 
                        to such individual.
                            (vi) The account number of a credit card 
                        issued to such individual.
                            (vii) Unique identifier information that 
                        alone can be used to identify a specific 
                        individual.
                            (viii) Biometric data about such 
                        individual, including fingerprints and retina 
                        scans.
                    (B) If used, transferred, or stored in connection 
                with 1 or more of the items of information described in 
                subparagraph (A), any of the following:
                            (i) A date of birth.
                            (ii) The number of a certificate of birth 
                        or adoption.
                            (iii) A place of birth.
                            (iv) Unique identifier information that 
                        alone cannot be used to identify a specific 
                        individual.
                            (v) Precise geographic location, at the 
                        same degree of specificity as a global 
                        positioning system or equivalent system, and 
                        not including any general geographic 
                        information that may be derived from an 
                        Internet Protocol address.
                            (vi) Information about an individual's 
                        quantity, technical configuration, type, 
                        destination, location, and amount of uses of 
                        voice services, regardless of technology used.
                            (vii) Any other information concerning an 
                        individual that may reasonably be used by the 
                        party using, collecting, or storing that 
                        information to identify that individual.
            (6) Sensitive personally identifiable information.--The 
        term ``sensitive personally identifiable information'' means--
                    (A) personally identifiable information which, if 
                lost, compromised, or disclosed without authorization 
                either alone or with other information, carries a 
                significant risk of economic or physical harm; or
                    (B) information related to--
                            (i) a particular medical condition or a 
                        health record; or
                            (ii) the religious affiliation of an 
                        individual.
            (7) Third party.--
                    (A) In general.--The term ``third party'' means, 
                with respect to a covered entity, a person that--
                            (i) is--
                                    (I) not related to the covered 
                                entity by common ownership or corporate 
                                control; or
                                    (II) related to the covered entity 
                                by common ownership or corporate 
                                control and an ordinary consumer would 
                                not understand that the covered entity 
                                and the person were related by common 
                                ownership or corporate control;
                            (ii) is not a service provider used by the 
                        covered entity to receive personally 
                        identifiable information or sensitive 
                        personally identifiable information in 
                        performing services or functions on behalf of 
                        and under the instruction of the covered 
                        entity; and
                            (iii) with respect to the collection of 
                        covered information of an individual, does not 
                        have an established business relationship with 
                        the individual and does not identify itself to 
                        the individual at the time of such collection 
                        in a clear and conspicuous manner that is 
                        visible to the individual.
                    (B) Common brands.--The term ``third party'' may 
                include, with respect to a covered entity, a person who 
                operates under a common brand with the covered entity.
            (8) Unauthorized use.--
                    (A) In general.--The term ``unauthorized use'' 
                means the use of covered information by a covered 
                entity or its service provider for any purpose not 
                authorized by the individual to whom such information 
                relates.
                    (B) Exceptions.--Except as provided in subparagraph 
                (C), the term ``unauthorized use'' does not include use 
                of covered information relating to an individual by a 
                covered entity or its service provider as follows:
                            (i) To process and enforce a transaction or 
                        deliver a service requested by that individual.
                            (ii) To operate the covered entity that is 
                        providing a transaction or delivering a service 
                        requested by that individual, such as inventory 
                        management, financial reporting and accounting, 
                        planning, and product or service improvement or 
                        forecasting.
                            (iii) To prevent or detect fraud or to 
                        provide for a physically or virtually secure 
                        environment.
                            (iv) To investigate a possible crime.
                            (v) That is required by a provision of law 
                        or legal process.
                            (vi) To market or advertise to an 
                        individual from a covered entity within the 
                        context of a covered entity's own Internet 
                        website, services, or products if the covered 
                        information used for such marketing or 
                        advertising was--
                                    (I) collected directly by the 
                                covered entity; or
                                    (II) shared with the covered 
                                entity--
                                            (aa) at the affirmative 
                                        request of the individual; or
                                            (bb) by an entity with 
                                        which the individual has an 
                                        established business 
                                        relationship.
                            (vii) Use that is necessary for the 
                        improvement of transaction or service delivery 
                        through research, testing, analysis, and 
                        development.
                            (viii) Use that is necessary for internal 
                        operations, including the following:
                                    (I) Collecting customer 
                                satisfaction surveys and conducting 
                                customer research to improve customer 
                                service information.
                                    (II) Information collected by an 
                                Internet website about the visits to 
                                such website and the click-through 
                                rates at such website--
                                            (aa) to improve website 
                                        navigation and performance; or
                                            (bb) to understand and 
                                        improve the interaction of an 
                                        individual with the advertising 
                                        of a covered entity.
                            (ix) Use--
                                    (I) by a covered entity with which 
                                an individual has an established 
                                business relationship;
                                    (II) which the individual could 
                                have reasonably expected, at the time 
                                such relationship was established, was 
                                related to a service provided pursuant 
                                to such relationship; and
                                    (III) which does not constitute a 
                                material change in use or practice from 
                                what could have reasonably been 
                                expected.
                    (C) Savings.--A use of covered information 
                regarding an individual by a covered entity or its 
                service provider may only be excluded under 
                subparagraph (B) from the definition of ``unauthorized 
                use'' under subparagraph (A) if the use is reasonable 
                and consistent with the practices and purposes 
                described in the notice given the individual in 
                accordance with section 121(a)(1).
            (9) Unique identifier information.--The term ``unique 
        identifier information'' means a unique persistent identifier 
        associated with an individual or a networked device, including 
        a customer number held in a cookie, a user ID, a processor 
        serial number, or a device serial number.
    (b) Modified Definition by Rulemaking.--If the Commission 
determines that a term defined in any of paragraphs (3) through (8) is 
not reasonably sufficient to protect an individual from unfair or 
deceptive acts or practices, the Commission may by rule modify such 
definition as the Commission considers appropriate to protect such 
individual from an unfair or deceptive act or practice to the extent 
that the Commission determines will not unreasonably impede interstate 
commerce.

            Subtitle A--Right to Security and Accountability

SEC. 111. SECURITY.

    (a) Rulemaking Required.--Not later than 180 days after the date of 
the enactment of this Act, the Commission shall initiate a rulemaking 
proceeding to require each covered entity to carry out security 
measures to protect the covered information it collects and maintains.
    (b) Proportion.--The requirements prescribed under subsection (a) 
shall provide for security measures that are proportional to the size, 
type, nature, and sensitivity of the covered information a covered 
entity collects.
    (c) Consistency.--The requirements prescribed under subsection (a) 
shall be consistent with guidance provided by the Commission and 
recognized industry practices for safety and security on the day before 
the date of the enactment of this Act.
    (d) Technological Means.--In a rule prescribed under subsection 
(a), the Commission may not require a specific technological means of 
meeting a requirement.

SEC. 112. ACCOUNTABILITY.

    Each covered entity shall, in a manner proportional to the size, 
type, and nature of the covered information it collects--
            (1) have managerial accountability, proportional to the 
        size and structure of the covered entity, for the adoption and 
        implementation of policies consistent with this title;
            (2) have a process to respond to non-frivolous inquiries 
        from individuals regarding the collection, use, transfer, or 
        storage of covered information relating to such individuals; 
        and
            (3) describe the means of compliance of the covered entity 
        with the requirements of this Act upon request from--
                    (A) the Commission; or
                    (B) an appropriate safe harbor program established 
                under section 151.

SEC. 113. PRIVACY BY DESIGN.

    Each covered entity shall, in a manner proportional to the size, 
type, and nature of the covered information that it collects, implement 
a comprehensive information privacy program by--
            (1) incorporating necessary development processes and 
        practices throughout the product life cycle that are designed 
        to safeguard the personally identifiable information that is 
        covered information of individuals based on--
                    (A) the reasonable expectations of such individuals 
                regarding privacy; and
                    (B) the relevant threats that need to be guarded 
                against in meeting those expectations; and
            (2) maintaining appropriate management processes and 
        practices throughout the data life cycle that are designed to 
        ensure that information systems comply with--
                    (A) the provisions of this title;
                    (B) the privacy policies of a covered entity; and
                    (C) the privacy preferences of individuals that are 
                consistent with the consent choices and related 
                mechanisms of individual participation as described in 
                section 122.

        Subtitle B--Right to Notice and Individual Participation

SEC. 121. TRANSPARENT NOTICE OF PRACTICES AND PURPOSES.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Commission shall initiate a rulemaking 
proceeding to require each covered entity--
            (1) to provide accurate, clear, concise, and timely notice 
        to individuals of--
                    (A) the practices of the covered entity regarding 
                the collection, use, transfer, and storage of covered 
                information; and
                    (B) the specific purposes of those practices;
            (2) to provide accurate, clear, concise, and timely notice 
        to individuals before implementing a material change in such 
        practices; and
            (3) to maintain the notice required by paragraph (1) in a 
        form that individuals can readily access.
    (b) Compliance and Other Considerations.--In the rulemaking 
required by subsection (a), the Commission--
            (1) shall consider the types of devices and methods 
        individuals will use to access the required notice;
            (2) may provide that a covered entity unable to provide the 
        required notice when information is collected may comply with 
        the requirement of subsection (a)(1) by providing an 
        alternative time and means for an individual to receive the 
        required notice promptly;
            (3) may draft guidance for covered entities to use in 
        designing their own notice and may include a draft model 
        template for covered entities to use in designing their own 
        notice; and
            (4) may provide guidance on how to construct computer-
        readable notices or how to use other technology to deliver the 
        required notice.

SEC. 122. INDIVIDUAL PARTICIPATION.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Commission shall initiate a rulemaking 
proceeding to require each covered entity--
            (1) to offer individuals a clear and conspicuous mechanism 
        for opt-in consent for any use of their covered information 
        that would otherwise be unauthorized use;
            (2) to offer individuals a robust, clear, and conspicuous 
        mechanism for opt-in consent for the use by third parties of 
        the individuals' covered information for behavioral advertising 
        or marketing;
            (3) to provide any individual to whom the personally 
        identifiable information that is covered information pertains, 
        and which the covered entity or its service provider stores, 
        appropriate and reasonable--
                    (A) access to such information; and
                    (B) mechanisms to correct such information to 
                improve the accuracy of such information; and
            (4) in the case that a covered entity enters bankruptcy or 
        an individual requests the termination of a service provided by 
        the covered entity to the individual or termination of some 
        other relationship with the covered entity, to permit the 
        individual to easily request that--
                    (A) all of the personally identifiable information 
                that is covered information that the covered entity 
                maintains relating to the individual, except for 
                information the individual authorized the sharing of or 
                which the individual shared with the covered entity in 
                a forum that is widely and publicly available, be 
                rendered not personally identifiable; or
                    (B) if rendering such information not personally 
                identifiable is not possible, to cease the unauthorized 
                use or transfer to a third party for an unauthorized 
                use of such information or to cease use of such 
                information for marketing, unless such unauthorized use 
                or transfer is otherwise required by a provision of 
                law.
    (b) Unauthorized Use Transfers.--In the rulemaking required by 
subsection (a), the Commission shall provide that with respect to 
transfers of covered information to a third party for which an 
individual provides opt-in consent, the third party to which the 
information is transferred may not use such information for any 
unauthorized use other than a use--
            (1) specified pursuant to the purposes stated in the 
        required notice under section 121(a); and
            (2) authorized by the individual when the individual 
        granted consent for the transfer of the information to the 
        third party.
    (c) Alternative Means To Terminate Use of Covered Information.--In 
the rulemaking required by subsection (a), the Commission shall allow a 
covered entity to provide individuals an alternative means, in lieu of 
the access, consent, and correction requirements, of prohibiting a 
covered entity from use or transfer of that individual's covered 
information.
    (d) Service Providers.--
            (1) In general.--The use of a service provider by a covered 
        entity to receive covered information in performing services or 
        functions on behalf of and under the instruction of the covered 
        entity does not constitute an unauthorized use of such 
        information by the covered entity if the covered entity and the 
        service provider execute a contract that requires the service 
        provider to collect, use, and store the information on behalf 
        of the covered entity in a manner consistent with--
                    (A) the requirements of this title; and
                    (B) the policies and practices related to such 
                information of the covered entity.
            (2) Transfers between service providers for a covered 
        entity.--The disclosure by a service provider of covered 
        information pursuant to a contract with a covered entity to 
        another service provider in order to perform the same service 
        or functions for that covered entity does not constitute an 
        unauthorized use.
            (3) Liability remains with covered entity.--A covered 
        entity remains responsible and liable for the protection of 
        covered information that has been transferred to a service 
        provider for processing, notwithstanding any agreement to the 
        contrary between a covered entity and the service provider.

   Subtitle C--Rights Relating to Data Minimization, Constraints on 
                    Distribution, and Data Integrity

SEC. 131. DATA MINIMIZATION.

    Each covered entity shall--
            (1) collect only as much covered information relating to an 
        individual as is reasonably necessary--
                    (A) to process or enforce a transaction or deliver 
                a service requested by such individual;
                    (B) for the covered entity to provide a transaction 
                or delivering a service requested by such individual, 
                such as inventory management, financial reporting and 
                accounting, planning, product or service improvement or 
                forecasting, and customer support and service;
                    (C) to prevent or detect fraud or to provide for a 
                secure environment;
                    (D) to investigate a possible crime;
                    (E) to comply with a provision of law;
                    (F) for the covered entity to market or advertise 
                to such individual if the covered information used for 
                such marketing or advertising was collected directly by 
                the covered entity; or
                    (G) for internal operations, including--
                            (i) collecting customer satisfaction 
                        surveys and conducting customer research to 
                        improve customer service; and
                            (ii) collection from an Internet website of 
                        information about visits and click-through 
                        rates relating to such website to improve--
                                    (I) website navigation and 
                                performance; and
                                    (II) the customer's experience;
            (2) retain covered information for only such duration as--
                    (A) with respect to the provision of a transaction 
                or delivery of a service to an individual--
                            (i) is necessary to provide such 
                        transaction or deliver such service to such 
                        individual; or
                            (ii) if such service is ongoing, is 
                        reasonable for the ongoing nature of the 
                        service; or
                    (B) is required by a provision of law;
            (3) retain covered information only for the purpose it was 
        collected, or reasonably related purposes; and
            (4) exercise reasonable data retention procedures with 
        respect to both the initial collection and subsequent 
        retention.

SEC. 132. CONSTRAINTS ON DISTRIBUTION OF INFORMATION.

    (a) In General.--Each covered entity shall--
            (1) require by contract that any third party to which it 
        transfers covered information use the information only for 
        purposes that are consistent with--
                    (A) the provisions of this title; and
                    (B) as specified in the contract;
            (2) require by contract that such third party may not 
        combine information that the covered entity has transferred to 
        it, that relates to an individual, and that is not personally 
        identifiable information with other information in order to 
        identify such individual, unless the covered entity has 
        obtained the opt-in consent of such individual for such 
        combination and identification; and
            (3) before executing a contract with a third party--
                    (A) assure through due diligence that the third 
                party is a legitimate organization; and
                    (B) in the case of a material violation of the 
                contract, at a minimum notify the Commission of such 
                violation.
    (b) Transfers to Unreliable Third Parties Prohibited.--A covered 
entity may not transfer covered information to a third party that the 
covered entity knows--
            (1) has intentionally or willfully violated a contract 
        required by subsection (a); and
            (2) is reasonably likely to violate such contract.
    (c) Application of Rules to Third Parties.--
            (1) In general.--Except as provided in paragraph (2), a 
        third party that receives covered information from a covered 
        entity shall be subject to the provisions of this Act as if it 
        were a covered entity.
            (2) Exemption.--The Commission may, as it determines 
        appropriate, exempt classes of third parties from liability 
        under any provision of subtitle B if the Commission finds 
        that--
                    (A) such class of third parties cannot reasonably 
                comply with such provision; or
                    (B) with respect to covered information relating to 
                individuals that is transferred to such class, 
                compliance by such class with such provision would not 
                sufficiently benefit such individuals.

SEC. 133. DATA INTEGRITY.

    (a) In General.--Each covered entity shall attempt to establish and 
maintain reasonable procedures to ensure that personally identifiable 
information that is covered information and maintained by the covered 
entity is accurate in those instances where the covered information 
could be used to deny consumers benefits or cause significant harm.
    (b) Exception.--Subsection (a) shall not apply to covered 
information of an individual maintained by a covered entity that is 
provided--
            (1) directly to the covered entity by the individual;
            (2) to the covered entity by another entity at the request 
        of the individual;
            (3) to prevent or detect fraud; or
            (4) to provide for a secure environment.

          Subtitle D--Right to Notice of Breaches of Security

SEC. 141. DEFINITIONS.

    In this subtitle:
            (1) Breach of security.--
                    (A) In general.--The term ``breach of security'' 
                means compromise of the security, confidentiality, or 
                integrity of, or loss of, data in electronic form that 
                results in, or there is a reasonable basis to conclude 
                has resulted in, unauthorized access to or acquisition 
                of personally identifiable information from a covered 
                entity.
                    (B) Exclusions.--The term ``breach of security'' 
                does not include--
                            (i) a good faith acquisition of personally 
                        identifiable information by a covered entity, 
                        or an employee or agent of a covered entity, if 
                        the personally identifiable information is not 
                        subject to further use or unauthorized 
                        disclosure;
                            (ii) any lawfully authorized investigative, 
                        protective, or intelligence activity of a law 
                        enforcement or an intelligence agency of the 
                        United States, a State, or a political 
                        subdivision of a State; or
                            (iii) the release of a public record not 
                        otherwise subject to confidentiality or 
                        nondisclosure requirements.
            (2) Data in electronic form.--The term ``data in electronic 
        form'' means any data stored electronically or digitally on any 
        computer system or other database, including recordable tapes 
        and other mass storage devices.
            (3) Designated entity.--The term ``designated entity'' 
        means the Federal Government entity designated by the Secretary 
        of Homeland Security under section 143(a).
            (4) Identity theft.--The term ``identity theft'' means the 
        unauthorized use of another person's personally identifiable 
        information for the purpose of engaging in commercial 
        transactions under the identity of such other person, including 
        any contact that violates section 1028A of title 18, United 
        States Code.
            (5) Major credit reporting agency.--The term ``major credit 
        reporting agency'' means a consumer reporting agency that 
        compiles and maintains files on consumers on a nationwide basis 
        within the meaning of section 603(p) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681a(p)).
            (6) Service provider.--The term ``service provider'' means 
        a person that provides electronic data transmission, routing, 
        intermediate and transient storage, or connections to its 
        system or network, where the person providing such services 
        does not select or modify the content of the electronic data, 
        is not the sender or the intended recipient of the data, and 
        does not differentiate personally identifiable information from 
        other information that such person transmits, routes, or 
        stores, or for which such person provides connections. Any such 
        person shall be treated as a service provider under this 
        subtitle only to the extent that it is engaged in the provision 
        of such transmission, routing, intermediate and transient 
        storage, or connections.

SEC. 142. NOTICE TO INDIVIDUALS.

    (a) In General.--A covered entity that owns or possesses data in 
electronic form containing personally identifiable information, 
following the discovery of a breach of security of the system 
maintained by the covered entity that contains such information, shall 
notify--
            (1) each individual who is a citizen or resident of the 
        United States and whose personally identifiable information has 
        been, or is reasonably believed to have been, acquired or 
        accessed from the covered entity as a result of the breach of 
        security; and
            (2) the Commission, unless the covered entity has notified 
        the designated entity under section 143.
    (b) Special Notification Requirements.--
            (1) Third parties.--In the event of a breach of security of 
        a system maintained by a third party that has been contracted 
        to maintain or process data in electronic form containing 
        personally identifiable information on behalf of a covered 
        entity who owns or possesses such data, the third party shall 
        notify the covered entity of the breach of security.
            (2) Service providers.--If a service provider becomes aware 
        of a breach of security of data in electronic form containing 
        personally identifiable information that is owned or possessed 
        by another covered entity that connects to or uses a system or 
        network provided by the service provider for the purpose of 
        transmitting, routing, or providing intermediate or transient 
        storage of such data, the service provider shall notify of the 
        breach of security only the covered entity who initiated such 
        connection, transmission, routing, or storage if such covered 
        entity can be reasonably identified.
            (3) Coordination of notification with credit reporting 
        agencies.--
                    (A) In general.--If a covered entity is required to 
                provide notification to more than 5,000 individuals 
                under subsection (a)(1), the covered entity also shall 
                notify each major credit reporting agency of the timing 
                and distribution of the notices, except when the only 
                personally identifiable information that is the subject 
                of the breach of security is the individual's first 
                name or initial and last name, or address, or phone 
                number, in combination with a credit or debit card 
                number, and any required security code.
                    (B) Notice to credit reporting agencies before 
                individuals.--Such notice shall be given to each credit 
                reporting agency without unreasonable delay and, if it 
                will not delay notice to the affected individuals, 
                prior to the distribution of notices to the affected 
                individuals.
    (c) Timeliness of Notification.--
            (1) In general.--All notifications required under this 
        section shall be made without unreasonable delay following the 
        discovery by the covered entity of a security breach.
            (2) Reasonable delay.--
                    (A) In general.--Reasonable delay under this 
                subsection may include any time necessary to determine 
                the scope of the security breach, prevent further 
                disclosures, restore the reasonable integrity of the 
                data system, and provide notice to law enforcement when 
                required.
                    (B) Extension.--
                            (i) In general.--Except as provided in 
                        subsection (d), delay of notification shall not 
                        exceed 60 days following the discovery of the 
                        security breach, unless the covered entity 
                        requests an extension of time and the 
                        Commission determines in writing that 
                        additional time is reasonably necessary to 
                        determine the scope of the security breach, 
                        prevent further disclosures, restore the 
                        reasonable integrity of the data system, or to 
                        provide notice to the designated entity.
                            (ii) Approval of request.--If the 
                        Commission approves the request for delay, the 
                        covered entity may delay the period for 
                        notification for additional periods of up to 30 
                        days.
            (3) Burden of production.--The covered entity, third party, 
        or service provider required to provide notice under this title 
        shall, upon the request of the Commission provide records or 
        other evidence of the notifications required under this 
        subtitle, including to the extent applicable, the reasons for 
        any delay of notification.
    (d) Method and Content of Notification.--
            (1) Direct notification.--
                    (A) Method of direct notification.--Except as 
                provided in paragraph (2), a covered entity shall be in 
                compliance with the notification requirement under 
                subsection (a)(1) if--
                            (i) the covered entity provides conspicuous 
                        and clearly identified notification--
                                    (I) in writing; or
                                    (II) by e-mail or other electronic 
                                means if--
                                            (aa) the covered entity's 
                                        primary method of communication 
                                        with the individual is by e-
                                        mail or such other electronic 
                                        means; or
                                            (bb) the individual has 
                                        consented to receive 
                                        notification by e-mail or such 
                                        other electronic means and such 
                                        notification is provided in a 
                                        manner that is consistent with 
                                        the provisions permitting 
                                        electronic transmission of 
                                        notices under section 101 of 
                                        the Electronic Signatures in 
                                        Global and National Commerce 
                                        Act (15 U.S.C. 7001); and
                            (ii) the method of notification selected 
                        under clause (i) can reasonably be expected to 
                        reach the intended individual.
                    (B) Content of direct notification.--Each method of 
                notification under subparagraph (A) shall include the 
                following:
                            (i) The date, estimated date, or estimated 
                        date range of the breach of security.
                            (ii) A description of the personally 
                        identifiable information that was or is 
                        reasonably believed to have been acquired or 
                        accessed as a result of the breach of security.
                            (iii) A telephone number that an individual 
                        can use at no cost to the individual to contact 
                        the covered entity to inquire about the breach 
                        of security or the information the covered 
                        entity maintained about that individual.
                            (iv) Notice that the individual may be 
                        entitled to consumer credit reports under 
                        subsection (e)(1).
                            (v) Instructions how an individual can 
                        request consumer credit reports under 
                        subsection (e)(1).
                            (vi) A telephone number, that an individual 
                        can use at no cost to the individual, and an 
                        address to contact each major credit reporting 
                        agency.
                            (vii) A telephone number, that an 
                        individual can use at no cost to the 
                        individual, and an Internet website address to 
                        obtain information regarding identity theft 
                        from the Commission.
            (2) Substitute notification.--
                    (A) Circumstances giving rise to substitute 
                notification.--A covered entity required to provide 
                notification to individuals under subsection (a)(1) may 
                provide notification under this paragraph instead of 
                paragraph (1) of this subsection if--
                            (i) notification under paragraph (1) is not 
                        feasible due to lack of sufficient contact 
                        information for the individual required to be 
                        notified; or
                            (ii) the covered entity owns or possesses 
                        data in electronic form containing personally 
                        identifiable information of fewer than 10,000 
                        individuals and direct notification is not 
                        feasible due to excessive cost to the covered 
                        entity required to provide such notification 
                        relative to the resources of such covered 
                        entity, as determined in accordance with the 
                        regulations issued by the Commission under 
                        paragraph (3)(A).
                    (B) Method of substitute notification.--
                Notification under this paragraph shall include the 
                following:
                            (i) Conspicuous and clearly identified 
                        notification by e-mail to the extent the 
                        covered entity has an e-mail address for an 
                        individual who is entitled to notification 
                        under subsection (a)(1).
                            (ii) Conspicuous and clearly identified 
                        notification on the Internet website of the 
                        covered entity if the covered entity maintains 
                        an Internet website.
                            (iii) Notification to print and to 
                        broadcast media, including major media in 
                        metropolitan and rural areas where the 
                        individuals whose personally identifiable 
                        information was acquired or accessed reside.
                    (C) Content of substitute notification.--Each 
                method of notification under this paragraph shall 
                include the following:
                            (i) The date, estimated date, or estimated 
                        date range of the breach of security.
                            (ii) A description of the types of 
                        personally identifiable information that were 
                        or are reasonably believed to have been 
                        acquired or accessed as a result of the breach 
                        of security.
                            (iii) Notice that an individual may be 
                        entitled to consumer credit reports under 
                        subsection (e)(1).
                            (iv) Instructions how an individual can 
                        request consumer credit reports under 
                        subsection (e)(1).
                            (v) A telephone number that an individual 
                        can use at no cost to the individual to learn 
                        whether the individual's personally 
                        identifiable information is included in the 
                        breach of security.
                            (vi) A telephone number, that an individual 
                        can use at no cost to the individual, and an 
                        address to contact each major credit reporting 
                        agency.
                            (vii) A telephone number, that an 
                        individual can use at no cost to the 
                        individual, and an Internet website address to 
                        obtain information from the Commission 
                        regarding identity theft.
            (3) Regulations and guidance.--
                    (A) Regulations concerning substitute 
                notification.--
                            (i) In general.--Not later than 1 year 
                        after the date of the enactment of this Act, 
                        the Commission shall prescribe criteria for 
                        determining circumstances under which 
                        notification may be provided under paragraph 
                        (2), including criteria for determining whether 
                        providing notification under paragraph (1) is 
                        not feasible due to excessive costs to the 
                        covered entity required to provide such 
                        notification relative to the resources of such 
                        covered entity.
                            (ii) Other circumstances.--The regulations 
                        required by clause (i) may also identify other 
                        circumstances in which notification under 
                        paragraph (2) would be appropriate, including 
                        circumstances under which the cost of providing 
                        direct notification exceeds the benefits to 
                        individuals.
                    (B) Guidance.--
                            (i) In general.--The Commission, in 
                        consultation with the Administrator of the 
                        Small Business Administration, shall publish 
                        and otherwise make available general guidance 
                        with respect to compliance with this 
                        subsection.
                            (ii) Contents.--The guidance required by 
                        clause (i) shall include the following:
                                    (I) A description of written or e-
                                mail notification that complies with 
                                paragraph (1).
                                    (II) Guidance on the content of 
                                notification under paragraph (2), 
                                including the extent of notification to 
                                print and broadcast media that complies 
                                with subparagraph (B)(iii) of such 
                                paragraph.
    (e) Other Obligations Following Breach.--
            (1) In general.--Subject to the provisions of this 
        subsection, not later than 60 days after the date of a request 
        by an individual who received notification under subsection 
        (a)(1) and quarterly thereafter for 2 years, a covered entity 
        required to provide notification under such subsection to such 
        individual shall provide, or arrange for the provision of, to 
        such individual at no cost to such individual, consumer credit 
        reports from at least 1 major credit reporting agency.
            (2) Limitation.--Paragraph (1) shall not apply if the only 
        personally identifiable information that is the subject of the 
        breach of security is the individual's first name or initial 
        and last name, or address, or phone number, in combination with 
        a credit or debit card number, and any required security code.
            (3) Rulemaking.--Not later than 1 year after the date of 
        the enactment of this Act, the Commission shall prescribe the 
        following:
                    (A) Criteria for determining the circumstances 
                under which a covered entity required to provide 
                notification under subsection (a)(1) must provide or 
                arrange for the provision of free consumer credit 
                reports under this subsection.
                    (B) A simple process under which a covered entity 
                that is a small business concern or small nonprofit 
                organization may request a full or a partial waiver or 
                a modified or an alternative means of complying with 
                this subsection if providing free consumer credit 
                reports is not feasible due to excessive costs relative 
                to the resources of such covered entity and relative to 
                the level of harm, to affected individuals, caused by 
                the breach of security.
            (4) Definitions.--In this subsection:
                    (A) Small business concern.--The term ``small 
                business concern'' has the meaning given such term 
                under section 3 of the Small Business Act (15 U.S.C. 
                632).
                    (B) Small nonprofit organization.--The term ``small 
                nonprofit organization'' has the meaning the Commission 
                shall give such term for purposes of this subsection.
    (f) Delay of Notification Authorized for National Security and Law 
Enforcement Purposes.--
            (1) In general.--If the United States Secret Service or the 
        Federal Bureau of Investigation determines that notification 
        under this section would impede a criminal investigation or a 
        national security activity, such notification shall be delayed 
        upon written notice from the United States Secret Service or 
        the Federal Bureau of Investigation to the covered entity that 
        experienced the breach of security. The notification from the 
        United States Secret Service or the Federal Bureau of 
        Investigation shall specify the period of delay requested for 
        national security or law enforcement purposes.
            (2) Subsequent delay of notification.--
                    (A) In general.--If the notification required under 
                subsection (a)(1) is delayed pursuant to paragraph (1), 
                a covered entity shall give notice not more than 30 
                days after the day such law enforcement or national 
                security delay was invoked unless a Federal law 
                enforcement or intelligence agency provides written 
                notification that further delay is necessary.
                    (B) Written justification requirements.--
                            (i) United states secret service.--If the 
                        United States Secret Service instructs a 
                        covered entity to delay notification under this 
                        section beyond the 30-day period set forth in 
                        subparagraph (A) (referred to in this clause as 
                        ``subsequent delay''), the United States Secret 
                        Service shall submit written justification for 
                        the subsequent delay to the Secretary of 
                        Homeland Security before the subsequent delay 
                        begins.
                            (ii) Federal bureau of investigation.--If 
                        the Federal Bureau of Investigation instructs a 
                        covered entity to delay notification under this 
                        section beyond the 30-day period set forth in 
                        subparagraph (A) (referred to in this clause as 
                        ``subsequent delay''), the Federal Bureau of 
                        Investigation shall submit written 
                        justification for the subsequent delay to the 
                        Attorney General before the subsequent delay 
                        begins.
            (3) Law enforcement immunity.--No cause of action shall lie 
        in any court against any Federal agency for acts relating to 
        the delay of notification for national security or law 
        enforcement purposes under this subtitle.
    (g) General Exemption.--
            (1) In general.--A covered entity shall be exempt from the 
        requirements under this section if, following a breach of 
        security, the covered entity reasonably concludes that there is 
        no reasonable risk of identity theft, fraud, or other unlawful 
        conduct.
            (2) FTC guidance.--Not later than 1 year after the date of 
        the enactment of this Act, the Commission, after consultation 
        with the Director of the National Institute of Standards and 
        Technology, shall issue guidance regarding the application of 
        the exemption under paragraph (1).
    (h) Exemptions for National Security and Law Enforcement 
Purposes.--
            (1) In general.--A covered entity shall be exempt from the 
        notice requirements under this section if--
                    (A) a determination is made--
                            (i) by the United States Secret Service or 
                        the Federal Bureau of Investigation that 
                        notification of the breach of security could be 
                        reasonably expected to reveal sensitive sources 
                        and methods or similarly impede the ability of 
                        the Government to conduct law enforcement or 
                        intelligence investigations; or
                            (ii) by the Federal Bureau of Investigation 
                        that notification of the breach of security 
                        could be reasonably expected to cause damage to 
                        the national security; and
                    (B) the United States Secret Service or the Federal 
                Bureau of Investigation, as the case may be, provides 
                written notice of its determination under subparagraph 
                (A) to the covered entity.
            (2) United states secret service.--If the United States 
        Secret Service invokes an exemption under paragraph (1), the 
        United States Secret Service shall submit written justification 
        for invoking the exemption to the Secretary of Homeland 
        Security before the exemption is invoked.
            (3) Federal bureau of investigation.--If the Federal Bureau 
        of Investigation invokes an exemption under paragraph (1), the 
        Federal Bureau of Investigation shall submit written 
        justification for invoking the exemption to the Attorney 
        General before the exemption is invoked.
            (4) Immunity.--No cause of action shall lie in any court 
        against any Federal agency for acts relating to the exemption 
        from notification for national security or law enforcement 
        purposes under this subtitle.
            (5) Reports.--Not later than 540 days after the date of the 
        enactment of this Act, and upon request by Congress thereafter, 
        the United States Secret Service and the Federal Bureau of 
        Investigation shall submit to Congress a report on the number 
        and nature of breaches of security subject to the exemptions 
        for national security and law enforcement purposes under this 
        subsection.
    (i) Financial Fraud Prevention Exemption.--
            (1) In general.--A covered entity shall be exempt from the 
        notice requirements under this section if the covered entity 
        utilizes or participates in a security program that--
                    (A) effectively blocks the use of the personally 
                identifiable information to initiate an unauthorized 
                financial transaction before it is charged to the 
                account of the individual; and
                    (B) provides notice to each affected individual 
                after a breach of security that resulted in attempted 
                fraud or an attempted unauthorized transaction.
            (2) Limitations.--An exemption under paragraph (1) shall 
        not apply if--
                    (A) the breach of security includes personally 
                identifiable information, other than a credit card 
                number or credit card security code, of any type; or
                    (B) the breach of security includes both the 
                individual's credit card number and the individual's 
                first and last name.
    (j) Financial Institutions Regulated by Federal Functional 
Regulators.--
            (1) In general.--A covered financial institution shall be 
        deemed in compliance with this section if--
                    (A) the Federal functional regulator with 
                jurisdiction over the covered financial institution has 
                issued a standard by regulation or guideline under 
                title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 
                et seq.) that--
                            (i) requires financial institutions within 
                        its jurisdiction to provide notification to 
                        individuals following a breach of security; and
                            (ii) provides protections substantially 
                        similar to, or greater than, those required 
                        under this Act; and
                    (B) the covered financial institution is in 
                compliance with the standard under subparagraph (A).
            (2) Definitions.--In this subsection:
                    (A) Covered financial institution.--The term 
                ``covered financial institution'' means a financial 
                institution that is subject to--
                            (i) the data security requirements of the 
                        Gramm-Leach-Bliley Act (15 U.S.C. 6801 et 
                        seq.);
                            (ii) any implementing standard issued by 
                        regulation or guideline issued under that Act; 
                        and
                            (iii) the jurisdiction of a Federal 
                        functional regulator under that Act.
                    (B) Federal functional regulator.--The term 
                ``Federal functional regulator'' has the meaning given 
                the term in section 509 of the Gramm-Leach-Bliley Act 
                (15 U.S.C. 6809).
                    (C) Financial institution.--The term ``financial 
                institution'' has the meaning given the term in section 
                509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809).
    (k) Exemption; Health Privacy.--
            (1) Covered entity or business associate under hitech 
        act.--To the extent that a covered entity under this section 
        acts as a covered entity or a business associate under section 
        13402 of the Health Information Technology for Economic and 
        Clinical Health Act (42 U.S.C. 17932), has the obligation to 
        provide notification to individuals following a breach of 
        security under that Act or its implementing regulations, and is 
        in compliance with that obligation, the covered entity shall be 
        deemed in compliance with this section.
            (2) Entity subject to hitech act.--To the extent that a 
        covered entity under this section acts as a vendor of personal 
        health records, a third party service provider, or other entity 
        subject to section 13407 of the Health Information Technology 
        for Economical and Clinical Health Act (42 U.S.C. 17937), has 
        the obligation to provide notification to individuals following 
        a breach of security under that Act or its implementing 
        regulations, and is in compliance with that obligation, the 
        covered entity shall be deemed in compliance with this section.
            (3) Limitation of statutory construction.--Nothing in this 
        subtitle may be construed in any way to give effect to the 
        sunset provision under section 13407(g)(2) of the Health 
        Information Technology for Economic and Clinical Health Act (42 
        U.S.C. 17937(g)(2)) or to otherwise limit or affect the 
        applicability, under section 13407 of that Act, of the 
        requirement to provide notification to individuals following a 
        breach of security for vendors of personal health records and 
        each entity described in clause (ii), (iii), or (iv) of section 
        13424(b)(1)(A) of that Act (42 U.S.C. 17953(b)(1)(A)).
    (l) Internet Website Notice of Federal Trade Commission.--If the 
Commission, upon receiving notification of any breach of security that 
is reported to the Commission, finds that notification of the breach of 
security via the Commission's Internet website would be in the public 
interest or for the protection of consumers, the Commission shall place 
such a notice in a clear and conspicuous location on its Internet 
website.
    (m) FTC Study on Notification in Languages in Addition to 
English.--Not later than 1 year after the date of the enactment of this 
Act, the Commission shall conduct a study on the feasibility and 
advisability of requiring notification provided pursuant to subsection 
(d)(1) to be provided in a language in addition to English to 
individuals known to speak only such other language.

SEC. 143. NOTICE TO LAW ENFORCEMENT.

    (a) Designation of Government Entity To Receive Notice.--Not later 
than 60 days after the date of the enactment of this Act, the Secretary 
of Homeland Security shall designate a Federal Government entity to 
receive notice under this section.
    (b) Notice to Designated Entity.--A covered entity shall notify the 
designated entity of a breach of security if--
            (1) the number of individuals whose personally identifiable 
        information was, or is reasonably believed to have been, 
        acquired or accessed as a result of the breach of security 
        exceeds 10,000;
            (2) the breach of security involves a database, networked 
        or integrated databases, or other data system containing the 
        personally identifiable information of more than 1,000,000 
        individuals;
            (3) the breach of security involves databases owned by the 
        Federal Government; or
            (4) the breach of security involves primarily personally 
        identifiable information of individuals known to the covered 
        entity to be employees or contractors of the Federal Government 
        involved in national security or law enforcement.
    (c) Content of Notices.--
            (1) In general.--Each notice under subsection (b) shall 
        contain the following:
                    (A) The date, estimated date, or estimated date 
                range of the breach of security.
                    (B) A description of the nature of the breach of 
                security.
                    (C) A description of each type of personally 
                identifiable information that was or is reasonably 
                believed to have been acquired or accessed as a result 
                of the breach of security.
                    (D) A statement of each paragraph under subsection 
                (b) that applies to the breach of security.
            (2) Construction.--Nothing in this section shall be 
        construed to require a covered entity to reveal specific or 
        identifying information about an individual as part of the 
        notice under paragraph (1).
    (d) Notice by Designated Entity.--The designated entity shall 
promptly provide each notice it receives under subsection (b) to the 
following:
            (1) The United States Secret Service.
            (2) The Federal Bureau of Investigation.
            (3) The Commission.
            (4) The United States Postal Inspection Service, if the 
        breach of security involves mail fraud.
            (5) The attorney general of each State affected by the 
        breach of security.
            (6) Such other Federal agencies as the designated entity 
        considers appropriate for law enforcement, national security, 
        or data security purposes.
    (e) Timing of Notices.--Notice under this section shall be 
delivered as follows:
            (1) Notice under subsection (b) shall be delivered as 
        promptly as possible, but--
                    (A) not less than 3 business days before 
                notification to an individual under section 142(a)(1); 
                and
                    (B) not later than 10 days after the date of 
                discovery of the events requiring notice.
            (2) Notice under subsection (d) shall be delivered as 
        promptly as possible, but not later than 1 business day after 
        the date that the designated entity receives notice of a breach 
        of security from a covered entity.

                        Subtitle E--Enforcement

SEC. 151. GENERAL APPLICATION.

    The requirements of this title shall apply to any person who--
            (1) collects, uses, transfers, or stores covered 
        information concerning more than 5,000 individuals during any 
        consecutive 12-month period; and
            (2) is--
                    (A) a person over which the Commission has 
                authority pursuant to section 5(a)(2) of the Federal 
                Trade Commission Act (15 U.S.C. 45(a)(2));
                    (B) a common carrier subject to the Communications 
                Act of 1934 (47 U.S.C. 151 et seq.), notwithstanding 
                the definition of the term ``Acts to regulate 
                commerce'' in section 4 of the Federal Trade Commission 
                Act (15 U.S.C. 44) and the exception provided by 
                section 5(a)(2) of the Federal Trade Commission Act (15 
                U.S.C. 45(a)(2)) for such carriers; or
                    (C) a nonprofit organization, including any 
                organization described in section 501(c) of the 
                Internal Revenue Code of 1986 that is exempt from 
                taxation under section 501(a) of such Code, 
                notwithstanding the definition of the term ``Acts to 
                regulate commerce'' in section 4 of the Federal Trade 
                Commission Act (15 U.S.C. 44) and the exception 
                provided by section 5(a)(2) of the Federal Trade 
                Commission Act (15 U.S.C. 45(a)(2)) for such 
                organizations.

SEC. 152. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Unfair or Deceptive Acts or Practices.--A reckless or 
repetitive violation of a provision of this title, except section 143, 
shall be treated as an unfair or deceptive act or practice in violation 
of a regulation under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive 
acts or practices.
    (b) Powers of Commission.--
            (1) In general.--Except as provided in paragraph (3), the 
        Commission shall enforce this title, except section 143, 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 title.
            (2) Privileges and immunities.--Except as provided in 
        paragraph (3), any person who violates a provision of this 
        title, except section 143, 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) Common carriers and nonprofit organizations.--The 
        Commission shall enforce this title, except section 143, with 
        respect to common carriers and nonprofit organizations 
        described in section 151 to the extent necessary to effectuate 
        the purposes of this title as if such carriers and nonprofit 
        organizations were persons over which the Commission has 
        authority pursuant to section 5(a)(2) of the Federal Trade 
        Commission Act (15 U.S.C. 45(a)(2)).
    (c) Rulemaking Authority.--
            (1) Limitation.--In promulgating rules under this title, 
        the Commission may not require the deployment or use of any 
        specific products or technologies, including any specific 
        computer software or hardware.
            (2) Administrative procedure.--The Commission shall 
        promulgate regulations under this title in accordance with 
        section 553 of title 5, United States Code.
    (d) Rule of Construction.--Nothing in this title shall be construed 
to limit the authority of the Commission under any other provision of 
law.

SEC. 153. ENFORCEMENT BY ATTORNEY GENERAL.

    (a) In General.--The Attorney General may bring a civil action in 
the appropriate United States district court against any covered entity 
that engages in conduct constituting a violation of section 143.
    (b) Penalties.--
            (1) In general.--Upon proof of such conduct by a 
        preponderance of the evidence, a covered entity shall be 
        subject to a civil penalty of not more than $1,000 per 
        individual whose personally identifiable information was or is 
        reasonably believed to have been accessed or acquired as a 
        result of the breach of security that is the basis of the 
        violation, up to a maximum of $100,000 per day while such 
        violation persists.
            (2) Limitations.--The total amount of the civil penalty 
        assessed under this subsection against a covered entity for 
        acts or omissions relating to a single breach of security shall 
        not exceed $3,000,000, unless the conduct constituting a 
        violation of subtitle D was reckless or repeated, in which case 
        an additional civil penalty of up to $3,000,000 may be imposed.
            (3) 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 the 
        enactment of this Act, and each year thereafter, the amounts 
        specified in paragraphs (1) and (2) 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.
    (c) Injunctive Actions.--If it appears that a covered entity has 
engaged, or is engaged, in any act or practice that constitutes a 
violation of subtitle D, the Attorney General may petition an 
appropriate United States district court for an order enjoining such 
practice or enforcing compliance with such subtitle.
    (d) Issuance of Order.--A court may issue such an order under 
paragraph (c) if it finds that the conduct in question constitutes a 
violation of subtitle D.

SEC. 154. ENFORCEMENT BY STATES.

    (a) Civil Action.--In any case in which the attorney general of a 
State has reason to believe that an interest of the residents of that 
State has been or is adversely affected by a covered entity who 
violates any part of this title in a manner that results in economic or 
physical harm to an individual or engages in a pattern or practice that 
violates any part of this title other than section 143, the attorney 
general may, as parens patriae, bring a civil action on behalf of the 
residents of the State in an appropriate district court of the United 
States--
            (1) to enjoin further violation of this title or a 
        regulation promulgated under this title by the defendant;
            (2) to compel compliance with this title or a regulation 
        promulgated under this title; or
            (3) for violations of this title or a regulation 
        promulgated under this title to obtain civil penalties in the 
        amount determined under section title.
    (b) Rights of Federal Trade Commission.--
            (1) Notice to federal trade commission.--
                    (A) In general.--Except as provided in subparagraph 
                (C), the attorney general of a State shall notify the 
                Commission in writing of any civil action under 
                subsection (b), prior to initiating such civil action.
                    (B) Contents.--The notice required by subparagraph 
                (A) shall include a copy of the complaint to be filed 
                to initiate such civil action.
                    (C) Exception.--If it is not feasible for the 
                attorney general of a State to provide the notice 
                required by subparagraph (A), the State shall provide 
                notice immediately upon instituting a civil action 
                under subsection (b).
            (2) Intervention by federal trade commission.--Upon 
        receiving notice required by paragraph (1) with respect to a 
        civil action, the Commission may--
                    (A) intervene in such action; and
                    (B) upon intervening--
                            (i) be heard on all matters arising in such 
                        civil action; and
                            (ii) file petitions for appeal of a 
                        decision in such action.
    (c) Preemptive Action by Federal Trade Commission.--If the 
Commission institutes a civil action for violation of this title or a 
regulation promulgated under this title, no attorney general of a State 
may bring a civil action under subsection (a) against any defendant 
named in the complaint of the Commission for violation of this title or 
a regulation promulgated under this title that is alleged in such 
complaint.
    (d) Investigatory Powers.--Nothing in this section may be construed 
to prevent the attorney general of a State from exercising the powers 
conferred on such attorney general by the laws of such State to conduct 
investigations or to administer oaths or affirmations or to compel the 
attendance of witnesses or the production of documentary and other 
evidence.
    (e) Venue; Service of Process.--
            (1) Venue.--Any action brought under subsection (a) may be 
        brought in--
                    (A) the district court of the United States that 
                meets applicable requirements relating to venue under 
                section 1391 of title 28, United States Code; or
                    (B) another court of competent jurisdiction.
            (2) Service of process.--In an action brought under 
        subsection (a), process may be served in any district in which 
        the defendant--
                    (A) is an inhabitant; or
                    (B) may be found.
    (f) Actions by Other State Officials.--
            (1) In general.--In addition to civil actions brought by 
        attorneys general under subsection (a), any other officer of a 
        State who is authorized by the State to do so may bring a civil 
        action under subsection (a), subject to the same requirements 
        and limitations that apply under this section to civil actions 
        brought by attorneys general.
            (2) Savings provision.--Nothing in this section may be 
        construed to prohibit an authorized official of a State from 
        initiating or continuing any proceeding in a court of the State 
        for a violation of any civil or criminal law of the State.

SEC. 155. CIVIL PENALTIES.

    (a) In General.--In an action brought under section 154, in 
addition to any other penalty otherwise applicable to a violation of 
this title or any regulation promulgated under this title, the 
following civil penalties shall apply:
            (1) Subtitle a violations.--A covered entity that 
        recklessly or repeatedly violates subtitle A is liable for a 
        civil penalty equal to the amount calculated by multiplying the 
        number of days that the entity is not in compliance with such 
        subtitle by an amount not to exceed $33,000.
            (2) Subtitle b violations.--A covered entity that 
        recklessly or repeatedly violates subtitle B is liable for a 
        civil penalty equal to the amount calculated by multiplying the 
        number of days that such an entity is not in compliance with 
        such subtitle, or the number of individuals for whom the entity 
        failed to obtain consent as required by such subtitle, 
        whichever is greater, by an amount not to exceed $33,000.
            (3) Subtitle d violations.--A covered entity that 
        recklessly or repeatedly violates section 142 is liable for a 
        civil penalty equal to the amount calculated by multiplying the 
        number of violations of such section by an amount not to exceed 
        $33,000. Each failure to send notification as required under 
        such section to a resident of the State shall be treated as a 
        separate violation.
    (b) Adjustment for Inflation.--Beginning on the date that the 
Consumer Price Index for All Urban Consumers is first published by the 
Bureau of Labor Statistics that is after 1 year after the date of the 
enactment of this Act, and each year thereafter, each of the amounts 
specified in subsection (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.
    (c) Maximum Total Liability.--Notwithstanding the number of actions 
which may be brought against a covered entity under section 154, the 
maximum civil penalty for which any covered entity may be liable under 
this section in such actions shall not exceed--
            (1) $6,000,000 for any related series of violations of any 
        rule promulgated under subtitle A;
            (2) $6,000,000 for any related series of violations of 
        subtitle B; and
            (3) $6,000,000 for any related series of violations of 
        section 142.

SEC. 156. EFFECT ON OTHER LAWS.

    (a) Preemption of State Laws.--The provisions of this title shall 
supersede any provisions of the law of any State relating to those 
entities covered by the regulations issued pursuant to this title, to 
the extent that such provisions relate to the collection, use, or 
disclosure of--
            (1) covered information addressed in this title; or
            (2) personally identifiable information or personal 
        identification information addressed in provisions of the law 
        of a State.
    (b) Unauthorized Civil Actions; Certain State Laws.--
            (1) Unauthorized actions.--No person other than a person 
        specified in section 154 may bring a civil action under the 
        laws of any State if such action is premised in whole or in 
        part upon the defendant violating this title or a regulation 
        promulgated under this title.
            (2) Protection of certain state laws.--This title shall not 
        be construed to preempt the applicability of--
                    (A) State laws that address the collection, use, or 
                disclosure of health information or financial 
                information; or
                    (B) other State laws to the extent that those laws 
                relate to acts of fraud.
    (c) Rule of Construction Relating to Required Disclosures to 
Government Entities.--This title shall not be construed to expand or 
limit the duty or authority of a covered entity or third party to 
disclose personally identifiable information to a government entity 
under any provision of law.

SEC. 157. NO PRIVATE RIGHT OF ACTION.

    This title may not be construed to provide any private right of 
action.

             Subtitle F--Co-Regulatory Safe Harbor Programs

SEC. 161. ESTABLISHMENT OF SAFE HARBOR PROGRAMS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Commission shall initiate a rulemaking 
proceeding to establish requirements for the establishment and 
administration of safe harbor programs under which a nongovernmental 
organization will administer a program that--
            (1) establishes a mechanism for participants to implement 
        the requirements of this title with regards to--
                    (A) certain types of unauthorized uses of covered 
                information as described in paragraph (2); or
                    (B) any unauthorized use of covered information; 
                and
            (2) offers consumers a clear, conspicuous, persistent, and 
        effective means of opting out of the transfer of covered 
        information by a covered entity participating in the safe 
        harbor program to a third party for--
                    (A) behavioral advertising purposes;
                    (B) location-based advertising purposes;
                    (C) other specific types of unauthorized use; or
                    (D) any unauthorized use.
    (b) Selection of Nongovernmental Organizations To Administer 
Program.--
            (1) Submittal of applications.--An applicant seeking to 
        administer a program under the requirements established 
        pursuant to subsection (a) shall submit to the Commission an 
        application therefor at such time, in such manner, and 
        containing such information as the Commission may require.
            (2) Notice and receipt of applications.--Upon completion of 
        the rulemaking proceedings required by subsection (a), the 
        Commission shall--
                    (A) publish a notice in the Federal Register that 
                it will receive applications for approval of safe 
                harbor programs under this subtitle; and
                    (B) begin receiving applications under paragraph 
                (1).
            (3) Selection.--Not later than 270 days after the date on 
        which the Commission receives a completed application under 
        this subsection, the Commission shall grant or deny the 
        application on the basis of the Commission's evaluation of the 
        applicant's capacity to provide protection of individuals' 
        covered information with regard to specific types of 
        unauthorized uses of covered information as described in 
        subsection (a)(2) that is substantially equivalent to or 
        superior to the protection otherwise provided under this title.
            (4) Written findings.--Any decision reached by the 
        Commission under this subsection shall be accompanied by 
        written findings setting forth the basis for and reasons 
        supporting such decision.
    (c) Scope of Safe Harbor Protection.--The scope of protection 
offered by safe harbor programs approved by the Commission that 
establish mechanisms for participants to implement the requirements of 
the title only for certain uses of covered information as described in 
subsection (a)(2) shall be limited to participating entities' use of 
those particular types of covered information.
    (d) Supervision by Federal Trade Commission.--
            (1) In general.--The Commission shall exercise oversight 
        and supervisory authority of a safe harbor program approved 
        under this section through--
                    (A) ongoing review of the practices of the 
                nongovernmental organization administering the program;
                    (B) the imposition of civil penalties on the 
                nongovernmental organization if it is not compliant 
                with the requirements established under subsection (a); 
                and
                    (C) withdrawal of authorization to administer the 
                safe harbor program under this subtitle.
            (2) Annual reports by nongovernmental organizations.--Each 
        year, each nongovernmental organization administering a safe 
        harbor program under this section shall submit to the 
        Commission a report on its activities under this subtitle 
        during the preceding year.

SEC. 162. PARTICIPATION IN SAFE HARBOR PROGRAM.

    (a) Exemption.--Any covered entity that participates in, and 
demonstrates compliance with, a safe harbor program administered under 
section 161 shall be exempt from any provision of subtitle B or 
subtitle C if the Commission finds that the requirements of the safe 
harbor program are substantially the same as or more protective of 
privacy of individuals than the requirements of the provision from 
which the exemption is granted.
    (b) Limitation.--Nothing in this subtitle shall be construed to 
exempt any covered entity participating in a safe harbor program from 
compliance with any other requirement of the regulations promulgated 
under this title for which the safe harbor does not provide an 
exception.

            Subtitle G--Application With Other Federal Laws

SEC. 171. APPLICATION WITH OTHER FEDERAL LAWS.

    (a) Qualified Exemption for Persons Subject to Other Federal 
Privacy Laws.--If a person is subject to a provision of this title and 
a provision of a Federal privacy law described in subsection (d), such 
provision of this title shall not apply to such person to the extent 
that such provision of Federal privacy law applies to such person.
    (b) Protection of Other Federal Privacy Laws.--Nothing in this 
title may be construed to modify, limit, or supersede the operation of 
the Federal privacy laws described in subsection (d) or the provision 
of information permitted or required, expressly or by implication, by 
such laws, with respect to Federal rights and practices.
    (c) Communications Infrastructure and Privacy.--If a person is 
subject to a provision of section 222 or 631 of the Communications Act 
of 1934 (47 U.S.C. 222 and 551) and a provision of this title, such 
provision of such section 222 or 631 shall not apply to such person to 
the extent that such provision of this title applies to such person.
    (d) Other Federal Privacy Laws Described.--The Federal privacy laws 
described in this subsection are as follows:
            (1) Section 552a of title 5, United States Code (commonly 
        known as the Privacy Act of 1974).
            (2) The Right to Financial Privacy Act of 1978 (12 U.S.C. 
        3401 et seq.).
            (3) The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
            (4) The Fair Debt Collection Practices Act (15 U.S.C. 1692 
        et seq.).
            (5) The Children's Online Privacy Protection Act of 1998 
        (15 U.S.C. 6501 et seq.).
            (6) Title V of the Gramm-Leach-Bliley Act of 1999 (15 
        U.S.C. 6801 et seq.).
            (7) Chapters 119, 123, and 206 of title 18, United States 
        Code.
            (8) Section 2710 of title 18, United States Code.
            (9) Section 444 of the General Education Provisions Act (20 
        U.S.C. 1232g) (commonly referred to as the ``Family Educational 
        Rights and Privacy Act of 1974'').
            (10) Section 445 of the General Education Provisions Act 
        (20 U.S.C. 1232h).
            (11) The Privacy Protection Act of 1980 (42 U.S.C. 2000aa 
        et seq.).
            (12) The regulations promulgated under section 264(c) of 
        the Health Insurance Portability and Accountability Act of 1996 
        (42 U.S.C. 1320d-2 note), as such regulations relate to a 
        person described in section 1172(a) of the Social Security Act 
        (42 U.S.C. 1320d-1(a)) or to transactions referred to in 
        section 1173(a)(1) of such Act (42 U.S.C. 1320d-2(a)(1)).
            (13) The Communications Assistance for Law Enforcement Act 
        (47 U.S.C. 1001 et seq.).
            (14) Section 227 of the Communications Act of 1934 (47 
        U.S.C. 227).

   Subtitle H--Development of Commercial Data Privacy Policy in the 
                         Department of Commerce

SEC. 181. DIRECTION TO DEVELOP COMMERCIAL DATA PRIVACY POLICY.

    The Secretary of Commerce shall contribute to the development of 
commercial data privacy policy by--
            (1) convening private sector stakeholders, including 
        members of industry, civil society groups, academia, in open 
        forums, to develop codes of conduct in support of applications 
        for safe harbor programs under subtitle F;
            (2) expanding interoperability between the United States 
        commercial data privacy framework and other national and 
        regional privacy frameworks;
            (3) conducting research related to improving privacy 
        protection under this title; and
            (4) conducting research related to improving data sharing 
        practices, including the use of anonymised data, and growing 
        the information economy.

                  TITLE II--ONLINE PRIVACY OF CHILDREN

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Do Not Track Kids Act of 2014''.

SEC. 202. FINDINGS.

    Congress finds the following:
            (1) Since the enactment of the Children's Online Privacy 
        Protection Act of 1998, the World Wide Web has changed 
        dramatically, with the creation of tens of millions of 
        websites, the proliferation of entirely new media platforms, 
        and the emergence of a diverse ecosystem of services, devices, 
        and applications that enable users to connect wirelessly within 
        an online environment without being tethered to a desktop 
        computer.
            (2) The explosive growth of the Internet ecosystem has 
        unleashed a wide array of opportunities to learn, communicate, 
        participate in civic life, access entertainment, and engage in 
        commerce.
            (3) In addition to these significant benefits, the Internet 
        also presents challenges, particularly with respect to the 
        efforts of entities to track the online activities of children 
        and minors and to collect, use, and disclose personal 
        information about them, including their geolocation, for 
        commercial purposes.
            (4) Children and teens are visiting numerous companies' 
        websites, and marketers are using multimedia games, online 
        quizzes, and mobile phone and tablet applications to create 
        ties to children and teens.
            (5) According to a study by the Wall Street Journal in 
        2010, websites directed to children and teens were more likely 
        to use cookies and other tracking tools than sites directed to 
        a general audience.
            (6) This study examined 50 popular websites for children 
        and teens in the United States and found that these 50 sites 
        placed 4,123 cookies, beacons, and other tracking tools on the 
        test computer used for the study.
            (7) This is 30 percent greater than the number of such 
        tracking tools that were placed on the test computer in a 
        similar study of the 50 overall most popular websites in the 
        United States, which are generally directed to adults.
            (8) Children and teens lack the cognitive ability to 
        distinguish advertising from program content and to understand 
        that the purpose of advertising is to persuade them, making 
        them unable to activate the defenses on which adults rely.
            (9) Children and teens are less able than adults to 
        understand the potential long-term consequences of having their 
        information available to third parties, including advertisers, 
        and other individuals.
            (10) According to Common Sense Media and the Center for 
        Digital Democracy, 90 percent of teens have used some form of 
        social media, 75 percent have a social networking site, and 51 
        percent check their social networking site at least once a day.
            (11) Ninety-one percent of parents and 91 percent of adults 
        believe it is not okay for advertisers to collect information 
        about a child's location from that child's mobile phone.
            (12) Ninety-four percent of parents and 91 percent of 
        adults agree that advertisers should receive the parent's 
        permission before putting tracking software on a child's 
        computer.
            (13) Ninety-six percent of parents and 94 percent of adults 
        expressed disapproval when asked if it is ``okay for a website 
        to ask children for personal information about their friends''.
            (14) Eighty-eight percent of parents would support a law 
        that requires search engines and social networking sites to get 
        users' permission before using their personal information.
            (15) A Commonsense Media/Zogby poll found that 94 percent 
        of parents and 94 percent of adults believe individuals should 
        have the ability to request the deletion, after a specific 
        period of time, of all of their personal information held by an 
        online search engine, social networking site, or marketing 
        company.
            (16) According to a Pew/Berkman Center poll, 69 percent of 
        parents of teens who engage in online activity are concerned 
        about how that activity might affect their children's future 
        academic or employment opportunities.
            (17) Eighty-one percent of parents of teens who engage in 
        online activity say they are concerned about how much 
        information advertisers can learn about their children's online 
        activity.

SEC. 203. DEFINITIONS.

    (a) In General.--In this title:
            (1) Minor.--The term ``minor'' means an individual over the 
        age of 12 and under the age of 16.
            (2) Targeted marketing.--The term ``targeted marketing'' 
        means advertising or other efforts to market a product or 
        service that are directed to a specific individual or device--
                    (A) based on the personal information of the 
                individual or a unique identifier of the device; and
                    (B) as a result of use by the individual, or access 
                by the device, of a website, online service, online 
                application, or mobile application.
    (b) Terms Defined by Commission.--In this title, the terms 
``directed to minors'' and ``geolocation information'' shall have the 
meanings given such terms by the Commission by regulation. Not later 
than 1 year after the date of the enactment of this Act, the Commission 
shall promulgate, under section 553 of title 5, United States Code, 
regulations that define such terms broadly enough so that they are not 
limited to current technology, consistent with the principles 
articulated by the Commission regarding the definition of the term 
``Internet'' in its statement of basis and purpose on the final rule 
under the Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
6501 et seq.) promulgated on November 3, 1999 (64 Fed. Reg. 59891).
    (c) Other Definitions.--The definitions set forth in section 1302 
of the Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
6501), as amended by section 3(a), shall apply in this title, except to 
the extent the Commission provides otherwise by regulations issued 
under section 553 of title 5, United States Code.

SEC. 204. ONLINE COLLECTION, USE, AND DISCLOSURE OF PERSONAL 
              INFORMATION OF CHILDREN.

    (a) Definitions.--Section 1302 of the Children's Online Privacy 
Protection Act of 1998 (15 U.S.C. 6501) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) Operator.--The term `operator'--
                    ``(A) means any person who, for commercial 
                purposes, in interstate or foreign commerce, operates 
                or provides a website on the Internet, online service, 
                online application, or mobile application, and who--
                            ``(i) collects or maintains, either 
                        directly or through a service provider, 
                        personal information from or about the users of 
                        such website, service, or application;
                            ``(ii) allows another person to collect 
                        personal information directly from users of 
                        such website, service, or application (in which 
                        case the operator is deemed to have collected 
                        the information); or
                            ``(iii) allows users of such website, 
                        service, or application to publicly disclose 
                        personal information (in which case the 
                        operator is deemed to have collected the 
                        information); and
                    ``(B) does not include any nonprofit entity that 
                would otherwise be exempt from coverage under section 5 
                of the Federal Trade Commission Act (15 U.S.C. 45).'';
            (2) in paragraph (4)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) the release of personal information for any 
                purpose, except where such information is provided to a 
                person other than an operator who provides support for 
                the internal operations of the website, online service, 
                online application, or mobile application of the 
                operator and does not disclose or use that information 
                for any other purpose; and''; and
                    (B) in subparagraph (B), by striking ``website or 
                online service'' and inserting ``website, online 
                service, online application, or mobile application'';
            (3) in paragraph (8)--
                    (A) by amending subparagraph (G) to read as 
                follows:
                    ``(G) information concerning a child or the parents 
                of that child (including any unique or substantially 
                unique identifier, such as a customer number) that an 
                operator collects online from the child and combines 
                with an identifier described in subparagraphs (A) 
                through (G).'';
                    (B) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (G) and (H), respectively; and
                    (C) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) information (including an Internet protocol 
                address) that permits the identification of an 
                individual, the computer of an individual, or any other 
                device used by an individual to access the Internet or 
                an online service, online application, or mobile 
                application;'';
            (4) by striking paragraph (10) and redesignating paragraphs 
        (11) and (12) as paragraphs (10) and (11), respectively; and
            (5) by adding at the end the following new paragraph:
            ``(12) Online, online service, online application, mobile 
        application, directed to children.--The terms `online', `online 
        service', `online application', `mobile application', and 
        `directed to children' shall have the meanings given such terms 
        by the Commission by regulation. Not later than 1 year after 
        the date of the enactment of the Commercial Privacy Bill of 
        Rights Act of 2014, the Commission shall promulgate, under 
        section 553 of title 5, United States Code, regulations that 
        define such terms broadly enough so that they are not limited 
        to current technology, consistent with the principles 
        articulated by the Commission regarding the definition of the 
        term `Internet' in its statement of basis and purpose on the 
        final rule under this title promulgated on November 3, 1999 (64 
        Fed. Reg. 59891). The definition of the term `online service' 
        in such regulations shall include broadband Internet access 
        service (as defined in the Report and Order of the Federal 
        Communications Commission relating to the matter of preserving 
        the open Internet and broadband industry practices (FCC 10-201, 
        adopted by the Commission on December 21, 2010)).''.
    (b) Online Collection, Use, and Disclosure of Personal Information 
of Children.--Section 1303 of the Children's Online Privacy Protection 
Act of 1998 (15 U.S.C. 6502) is amended--
            (1) by striking the heading and inserting the following: 
        ``online collection, use, and disclosure of personal 
        information of children.'';
            (2) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--It is unlawful for an operator of a 
        website, online service, online application, or mobile 
        application directed to children, or an operator having actual 
        knowledge that personal information being collected is from a 
        child, to collect personal information from a child in a manner 
        that violates the regulations prescribed under subsection 
        (b).''; and
                    (B) in paragraph (2)--
                            (i) by striking ``of such a website or 
                        online service''; and
                            (ii) by striking ``subsection 
                        (b)(1)(B)(iii)'' and inserting ``subsection 
                        (b)(1)(C)(iii)''; and
            (3) in subsection (b)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Not later than 1 year after the date of 
        the enactment of the Commercial Privacy Bill of Rights Act of 
        2014, the Commission shall promulgate, under section 553 of 
        title 5, United States Code, regulations to require an operator 
        of a website, online service, online application, or mobile 
        application directed to children, or an operator having actual 
        knowledge that personal information being collected is from a 
        child--
                    ``(A) to provide clear and conspicuous notice in 
                clear and plain language of the types of personal 
                information the operator collects, how the operator 
                uses such information, whether the operator discloses 
                such information, and the procedures or mechanisms the 
                operator uses to ensure that personal information is 
                not collected from children except in accordance with 
                the regulations promulgated under this paragraph;
                    ``(B) to obtain verifiable parental consent for the 
                collection, use, or disclosure of personal information 
                of a child;
                    ``(C) to provide to a parent whose child has 
                provided personal information to the operator, upon 
                request by and proper identification of the parent--
                            ``(i) a description of the specific types 
                        of personal information collected from the 
                        child by the operator;
                            ``(ii) the opportunity at any time to 
                        refuse to permit the further use or maintenance 
                        in retrievable form, or future collection, by 
                        the operator of personal information collected 
                        from the child; and
                            ``(iii) a means that is reasonable under 
                        the circumstances for the parent to obtain any 
                        personal information collected from the child, 
                        if such information is available to the 
                        operator at the time the parent makes the 
                        request;
                    ``(D) not to condition participation in a game, or 
                use of a website, service, or application, by a child 
                on the provision by the child of more personal 
                information than is reasonably required to participate 
                in the game or use the website, service, or 
                application; and
                    ``(E) to establish and maintain reasonable 
                procedures to protect the confidentiality, security, 
                and integrity of personal information collected from 
                children.'';
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``paragraph (1)(A)(ii)'' and 
                        inserting ``paragraph (1)(B)''; and
                            (ii) in subparagraph (A), by inserting ``or 
                        to contact a different child'' after ``to 
                        recontact the child'';
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Continuation of service.--The regulations shall 
        prohibit an operator from discontinuing service provided to a 
        child on the basis of refusal by the parent of the child, under 
        the regulations prescribed under paragraph (1)(C)(ii), to 
        permit the further use or maintenance in retrievable form, or 
        future collection, by the operator of personal information 
        collected from the child, to the extent that the operator is 
        capable of providing such service without such information.''; 
        and
                    (D) by adding at the end the following:
            ``(4) Rule for treatment of users of websites, services, 
        and applications directed to children.--An operator of a 
        website, online service, online application, or mobile 
        application that is directed to children shall treat all users 
        of such website, service, or application as children for 
        purposes of this title, except as permitted by the Commission 
        by a regulation promulgated under this title.''.
    (c) Administration and Applicability of Act.--Section 1306 of the 
Children's Online Privacy Protection Act of 1998 (15 U.S.C. 6505) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``, in the case 
                of'' and all that follows and inserting the following: 
                ``by the appropriate Federal banking agency with 
                respect to any insured depository institution (as such 
                terms are defined in section 3 of such Act (12 U.S.C. 
                1813));''; and
                    (B) by striking paragraph (2) and redesignating 
                paragraphs (3) through (6) as paragraphs (2) through 
                (5), respectively; and
            (2) by adding at the end the following new subsection:
    ``(f) Telecommunications Carriers and Cable Operators.--
            ``(1) Enforcement by ftc.--Notwithstanding section 5(a)(2) 
        of the Federal Trade Commission Act (15 U.S.C. 45(a)(2)), 
        compliance with the requirements imposed under this title shall 
        be enforced by the Commission with respect to any 
        telecommunications carrier (as defined in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153)).
            ``(2) Relationship to other law.--To the extent that 
        sections 222, 338(i), and 631 of the Communications Act of 1934 
        (47 U.S.C. 222; 338(i); 551) are inconsistent with this title, 
        this title controls.''.

SEC. 205. TARGETED MARKETING TO CHILDREN OR MINORS.

    (a) Acts Prohibited.--It is unlawful for--
            (1) an operator of a website, online service, online 
        application, or mobile application directed to children, or an 
        operator having actual knowledge that personal information 
        being collected is from a child, to use, disclose to third 
        parties, or compile personal information for targeted marketing 
        purposes without verifiable parental consent; or
            (2) an operator of a website, online service, online 
        application, or mobile application directed to minors, or an 
        operator having actual knowledge that personal information 
        being collected is from a minor, to use, disclose to third 
        parties, or compile personal information for targeted marketing 
        purposes without the consent of the minor.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Commission shall promulgate, under section 
553 of title 5, United States Code, regulations to implement this 
section.

SEC. 206. DIGITAL MARKETING BILL OF RIGHTS FOR TEENS AND FAIR 
              INFORMATION PRACTICES PRINCIPLES.

    (a) Acts Prohibited.--It is unlawful for an operator of a website, 
online service, online application, or mobile application directed to 
minors, or an operator having actual knowledge that personal 
information being collected is from a minor, to collect personal 
information from a minor unless such operator has adopted and complies 
with a Digital Marketing Bill of Rights for Teens that is consistent 
with the Fair Information Practices Principles described in subsection 
(b).
    (b) Fair Information Practices Principles.--The Fair Information 
Practices Principles described in this subsection are the following:
            (1) Collection limitation principle.--Except as provided in 
        paragraph (3), personal information should be collected from a 
        minor only when collection of the personal information is--
                    (A) consistent with the context of a particular 
                transaction or service or the relationship of the minor 
                with the operator, including collection necessary to 
                fulfill a transaction or provide a service requested by 
                the minor; or
                    (B) required or specifically authorized by law.
            (2) Data quality principle.--The personal information of a 
        minor should be accurate, complete, and kept up-to-date to the 
        extent necessary to fulfill the purposes described in 
        subparagraphs (A) through (D) of paragraph (3).
            (3) Purpose specification principle.--The purposes for 
        which personal information is collected should be specified to 
        the minor not later than at the time of the collection of the 
        information. The subsequent use or disclosure of the 
        information should be limited to--
                    (A) fulfillment of the transaction or service 
                requested by the minor;
                    (B) support for the internal operations of the 
                website, service, or application, as described in 
                section 312.2 of title 16, Code of Federal Regulations;
                    (C) compliance with legal process or other purposes 
                expressly authorized under specific legal authority; or
                    (D) other purposes--
                            (i) that are specified in a notice to the 
                        minor; and
                            (ii) to which the minor has consented under 
                        paragraph (7) before the information is used or 
                        disclosed for such other purposes.
            (4) Retention limitation principle.--The personal 
        information of a minor should not be retained for longer than 
        is necessary to fulfill a transaction or provide a service 
        requested by the minor or such other purposes specified in 
        subparagraphs (A) through (D) of paragraph (3). The operator 
        should implement a reasonable and appropriate data disposal 
        policy based on the nature and sensitivity of such personal 
        information.
            (5) Security safeguards principle.--The personal 
        information of a minor should be protected by reasonable and 
        appropriate security safeguards against risks such as loss or 
        unauthorized access, destruction, use, modification, or 
        disclosure.
            (6) Openness principle.--
                    (A) In general.--The operator should maintain a 
                general policy of openness about developments, 
                practices, and policies with respect to the personal 
                information of a minor. The operator should provide 
                each minor using the website, online service, online 
                application, or mobile application of the operator with 
                a clear and prominent means--
                            (i) to identify and contact the operator, 
                        by, at a minimum, disclosing, clearly and 
                        prominently, the identity of the operator and--
                                    (I) in the case of an operator who 
                                is an individual, the address of the 
                                principal residence of the operator and 
                                an e-mail address and telephone number 
                                for the operator; or
                                    (II) in the case of any other 
                                operator, the address of the principal 
                                place of business of the operator and 
                                an e-mail address and telephone number 
                                for the operator;
                            (ii) to determine whether the operator 
                        possesses any personal information of the 
                        minor, the nature of any such information, and 
                        the purposes for which the information was 
                        collected and is being retained;
                            (iii) to obtain any personal information of 
                        the minor that is in the possession of the 
                        operator from the operator, or from a person 
                        specified by the operator, within a reasonable 
                        time after making a request, at a charge (if 
                        any) that is not excessive, in a reasonable 
                        manner, and in a form that is readily 
                        intelligible to the minor;
                            (iv) to challenge the accuracy of personal 
                        information of the minor that is in the 
                        possession of the operator; and
                            (v) if the minor establishes the inaccuracy 
                        of personal information in a challenge under 
                        clause (iv), to have such information erased, 
                        corrected, completed, or otherwise amended.
                    (B) Limitation.--Nothing in this paragraph shall be 
                construed to permit an operator to erase or otherwise 
                modify personal information requested by a law 
                enforcement agency pursuant to legal authority.
            (7) Individual participation principle.--The operator 
        should--
                    (A) obtain consent from a minor before using or 
                disclosing the personal information of the minor for 
                any purpose other than the purposes described in 
                subparagraphs (A) through (C) of paragraph (3); and
                    (B) obtain affirmative express consent from a minor 
                before using or disclosing previously collected 
                personal information of the minor for purposes that 
                constitute a material change in practice from the 
                original purposes specified to the minor under 
                paragraph (3).
    (c) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Commission shall promulgate, under section 
553 of title 5, United States Code, regulations to implement this 
section, including regulations further defining the Fair Information 
Practices Principles described in subsection (b).

SEC. 207. ONLINE COLLECTION OF GEOLOCATION INFORMATION OF CHILDREN AND 
              MINORS.

    (a) Acts Prohibited.--
            (1) In general.--It is unlawful for an operator of a 
        website, online service, online application, or mobile 
        application directed to children or minors, or an operator 
        having actual knowledge that geolocation information being 
        collected is from a child or minor, to collect geolocation 
        information from a child or minor in a manner that violates the 
        regulations prescribed under subsection (b).
            (2) Disclosure to parent or minor protected.--
        Notwithstanding paragraph (1), neither an operator nor the 
        operator's agent shall be held to be liable under any Federal 
        or State law for any disclosure made in good faith and 
        following reasonable procedures in responding to a request for 
        disclosure of geolocation information under subparagraph 
        (C)(ii)(III) or (D)(ii)(III) of subsection (b)(1).
    (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Commission shall promulgate, 
        under section 553 of title 5, United States Code, regulations 
        that require an operator of a website, online service, online 
        application, or mobile application directed to children or 
        minors, or an operator having actual knowledge that geolocation 
        information being collected is from a child or minor--
                    (A) to provide clear and conspicuous notice in 
                clear and plain language of any geolocation information 
                the operator collects, how the operator uses such 
                information, and whether the operator discloses such 
                information;
                    (B) to establish procedures or mechanisms to ensure 
                that geolocation information is not collected from 
                children or minors except in accordance with 
                regulations promulgated under this paragraph;
                    (C) in the case of collection of geolocation 
                information from a child--
                            (i) prior to collecting such information, 
                        to obtain verifiable parental consent; and
                            (ii) after collecting such information, to 
                        provide to the parent of the child, upon 
                        request by and proper identification of the 
                        parent--
                                    (I) a description of the 
                                geolocation information collected from 
                                the child by the operator;
                                    (II) the opportunity at any time to 
                                refuse to permit the further use or 
                                maintenance in retrievable form, or 
                                future collection, by the operator of 
                                geolocation information from the child; 
                                and
                                    (III) a means that is reasonable 
                                under the circumstances for the parent 
                                to obtain any geolocation information 
                                collected from the child, if such 
                                information is available to the 
                                operator at the time the parent makes 
                                the request; and
                    (D) in the case of collection of geolocation 
                information from a minor--
                            (i) prior to collecting such information, 
                        to obtain affirmative express consent from such 
                        minor; and
                            (ii) after collecting such information, to 
                        provide to the minor, upon request--
                                    (I) a description of the 
                                geolocation information collected from 
                                the minor by the operator;
                                    (II) the opportunity at any time to 
                                refuse to permit the further use or 
                                maintenance in retrievable form, or 
                                future collection, by the operator of 
                                geolocation information from the minor; 
                                and
                                    (III) a means that is reasonable 
                                under the circumstances for the minor 
                                to obtain any geolocation information 
                                collected from the minor, if such 
                                information is available to the 
                                operator at the time the minor makes 
                                the request.
            (2) When consent not required.--The regulations promulgated 
        under paragraph (1) shall provide that verifiable parental 
        consent under subparagraph (C)(i) of such paragraph or 
        affirmative express consent under subparagraph (D)(i) of such 
        paragraph is not required when the collection of the 
        geolocation information of a child or minor is necessary, to 
        the extent permitted under other provisions of law, to provide 
        information to law enforcement agencies or for an investigation 
        on a matter related to public safety.
            (3) Continuation of service.--The regulations promulgated 
        under paragraph (1) shall prohibit an operator from 
        discontinuing service provided to--
                    (A) a child on the basis of refusal by the parent 
                of the child, under subparagraph (C)(ii)(II) of such 
                paragraph, to permit the further use or maintenance in 
                retrievable form, or future online collection, of 
                geolocation information from the child by the operator, 
                to the extent that the operator is capable of providing 
                such service without such information; or
                    (B) a minor on the basis of refusal by the minor, 
                under subparagraph (D)(ii)(II) of such paragraph, to 
                permit the further use or maintenance in retrievable 
                form, or future online collection, of geolocation 
                information from the minor by the operator, to the 
                extent that the operator is capable of providing such 
                service without such information.
    (c) Inconsistent State Law.--No State or local government may 
impose any liability for commercial activities or actions by operators 
in interstate or foreign commerce in connection with an activity or 
action described in this section that is inconsistent with the 
treatment of those activities or actions under this section.

SEC. 208. REMOVAL OF CONTENT.

    (a) Acts Prohibited.--It is unlawful for an operator of a website, 
online service, online application, or mobile application to make 
publicly available through the website, service, or application content 
or information that contains or displays personal information of 
children or minors in a manner that violates the regulations prescribed 
under subsection (b).
    (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Commission shall promulgate, 
        under section 553 of title 5, United States Code, regulations 
        that require an operator--
                    (A) to the extent technologically feasible, to 
                implement mechanisms that permit a user of the website, 
                service, or application of the operator to erase or 
                otherwise eliminate content or information submitted to 
                the website, service, or application by such user that 
                is publicly available through the website, service, or 
                application and contains or displays personal 
                information of children or minors; and
                    (B) to take appropriate steps to make users aware 
                of such mechanisms and to provide notice to users that 
                such mechanisms do not necessarily provide 
                comprehensive removal of the content or information 
                submitted by such users.
            (2) Exception.--The regulations promulgated under paragraph 
        (1) may not require an operator or third party to erase or 
        otherwise eliminate content or information that--
                    (A) any other provision of Federal or State law 
                requires the operator or third party to maintain; or
                    (B) was submitted to the website, service, or 
                application of the operator by any person other than 
                the user who is attempting to erase or otherwise 
                eliminate such content or information, including 
                content or information submitted by such user that was 
                republished or resubmitted by another person.
            (3) Limitation.--Nothing in this section shall be construed 
        to limit the authority of a law enforcement agency to obtain 
        any content or information from an operator as authorized by 
        law or pursuant to an order of a court of competent 
        jurisdiction.

SEC. 209. ENFORCEMENT AND APPLICABILITY.

    (a) Enforcement by the Commission.--
            (1) In general.--Except as otherwise provided, this title 
        and the regulations prescribed under this title shall be 
        enforced by the Commission under the Federal Trade Commission 
        Act (15 U.S.C. 41 et seq.).
            (2) Unfair or deceptive acts or practices.--Subject to 
        subsection (b), a violation of this title or a regulation 
        prescribed under this title 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)).
            (3) Actions by the commission.--
                    (A) In general.--Subject to subsection (b), and 
                except as provided in subsection (d)(1), the Commission 
                shall prevent any person from violating this title or a 
                regulation prescribed under this title 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 title.
                    (B) Privileges and immunities.--Any person who 
                violates this title or a regulation prescribed under 
                this title 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.).
    (b) Enforcement by Certain Other Agencies.--Notwithstanding 
subsection (a), compliance with the requirements imposed under this 
title shall be enforced as follows:
            (1) Under section 8 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1818) by the appropriate Federal banking agency, 
        with respect to an insured depository institution (as such 
        terms are defined in section 3 of such Act (12 U.S.C. 1813)).
            (2) Under the Federal Credit Union Act (12 U.S.C. 1751 et 
        seq.) by the National Credit Union Administration Board, with 
        respect to any Federal credit union.
            (3) Under part A of subtitle VII of title 49, United States 
        Code, by the Secretary of Transportation, with respect to any 
        air carrier or foreign air carrier subject to such part.
            (4) Under the Packers and Stockyards Act, 1921 (7 U.S.C. 
        181 et seq.) (except as provided in section 406 of such Act (7 
        U.S.C. 226; 227)) by the Secretary of Agriculture, with respect 
        to any activities subject to such Act.
            (5) Under the Farm Credit Act of 1971 (12 U.S.C. 2001 et 
        seq.) by the Farm Credit Administration, with respect to any 
        Federal land bank, Federal land bank association, Federal 
        intermediate credit bank, or production credit association.
    (c) Enforcement by States.--
            (1) Civil actions.--In any case in which the attorney 
        general 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 the engagement of any person in a 
        practice that violates this title or a regulation prescribed 
        under this title, 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 
        to--
                    (A) enjoin that practice;
                    (B) enforce compliance with this title or such 
                regulation;
                    (C) obtain damages, restitution, or other 
                compensation on behalf of residents of the State; or
                    (D) obtain such other relief as the court may 
                consider to be appropriate.
            (2) Rights of federal trade commission.--
                    (A) Notice to federal trade commission.--
                            (i) In general.--Except as provided in 
                        clause (iii), the attorney general of a State 
                        shall notify the Federal Trade Commission in 
                        writing that the attorney general intends to 
                        bring a civil action under paragraph (1) before 
                        initiating the civil action.
                            (ii) Contents.--The notification required 
                        by clause (i) with respect to a civil action 
                        shall include a copy of the complaint to be 
                        filed to initiate the civil action.
                            (iii) Exception.--If it is not feasible for 
                        the attorney general of a State to provide the 
                        notification required by clause (i) before 
                        initiating a civil action under paragraph (1), 
                        the attorney general shall notify the Federal 
                        Trade Commission immediately upon instituting 
                        the civil action.
                    (B) Intervention by federal trade commission.--The 
                Federal Trade Commission may--
                            (i) intervene in any civil action brought 
                        by the attorney general of a State under 
                        paragraph (1); and
                            (ii) upon intervening--
                                    (I) be heard on all matters arising 
                                in the civil action; and
                                    (II) file petitions for appeal of a 
                                decision in the civil action.
            (3) Investigatory powers.--For purposes of bringing any 
        civil action under paragraph (1), nothing in this title 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 to--
                    (A) conduct investigations;
                    (B) administer oaths or affirmations; or
                    (C) compel the attendance of witnesses or the 
                production of documentary and other evidence.
            (4) Preemptive action by federal trade commission.--If the 
        Federal Trade Commission institutes a civil action or an 
        administrative action with respect to a violation of this 
        title, the attorney general of a State may not, during the 
        pendency of such action, bring a civil action under paragraph 
        (1) against any defendant named in the complaint of the 
        Commission for the violation with respect to which the 
        Commission instituted such action.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in the district court of the United 
                States that meets applicable requirements relating to 
                venue under section 1391 of title 28, United States 
                Code.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant; or
                            (ii) may be found.
            (6) Actions by other state officials.--
                    (A) In general.--In addition to civil actions 
                brought by attorneys general under paragraph (1), any 
                other officer of a State who is authorized by the State 
                to do so may bring a civil action under paragraph (1), 
                subject to the same requirements and limitations that 
                apply under this subsection to civil actions brought by 
                attorneys general.
                    (B) Savings provision.--Nothing in this subsection 
                may be construed to prohibit an authorized official of 
                a State from initiating or continuing any proceeding in 
                a court of the State for a violation of any civil or 
                criminal law of the State.
    (d) Telecommunications Carriers and Cable Operators.--
            (1) Enforcement by ftc.--Notwithstanding section 5(a)(2) of 
        the Federal Trade Commission Act (15 U.S.C. 45(a)(2)), 
        compliance with the requirements imposed under this title shall 
        be enforced by the Commission with respect to any 
        telecommunications carrier (as defined in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153)).
            (2) Relationship to other law.--To the extent that sections 
        222, 338(i), and 631 of the Communications Act of 1934 (47 
        U.S.C. 222; 338(i); 551) are inconsistent with this title, this 
        title controls.

SEC. 210. RULE FOR TREATMENT OF USERS OF WEBSITES, SERVICES, AND 
              APPLICATIONS DIRECTED TO CHILDREN OR MINORS.

    An operator of a website, online service, online application, or 
mobile application that is directed to children or minors shall treat 
all users of such website, service, or application as children or 
minors (as the case may be) for purposes of this title, except as 
permitted by the Commission by a regulation promulgated under this 
title.

SEC. 211. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsections (b) and (c), 
this title and the amendments made by this title shall take effect on 
the date that is 1 year after the date of the enactment of this Act.
    (b) Authority To Promulgate Regulations.--The following shall take 
effect on the date of the enactment of this Act:
            (1) The amendments made by subsections (a)(5) and (b)(3)(A) 
        of section 204.
            (2) Sections 205(b), 206(c), 207(b), and 208(b).
            (3) Subsections (b) and (c) of section 203.
    (c) Digital Marketing Bill of Rights for Teens.--Section 206, 
except for subsection (c) of such section, shall take effect on the 
date that is 180 days after the promulgation of regulations under such 
subsection.
                                 <all>
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