(d) REQUIRED FUNCTIONS.—The functions required 
under this subsection to be included in an information col-
lection program that executes any information collection 
functions with respect to a protected computer are as fol-
lows: 
(1) DISABLING FUNCTION.—With respect to any 
information collection program, a function of the pro-
gram that allows a user of the program to remove the 
program or disable operation of the program with re-
spect to such protected computer by a function that—
(A) is easily identifiable to a user of the 
computer; and 
(B) can be performed without undue effort 
or knowledge by the user of the protected com-
puter. 
(2) IDENTITY FUNCTION.—
(A) IN GENERAL.—With respect only to an 
information collection program that uses infor-
mation collected in the manner described in sub-
paragraph (A)(ii)(II) or (B)(ii) of subsection 
(b)(1) and subject to subparagraph (B) of this 
paragraph, a function of the program that pro-
vides that each display of an advertisement di-
rected or displayed using such information, when 
the owner or authorized user is accessing a Web
page or online location other than of the provider 
of the computer software, is accompanied by the 
name of the information collection program, a 
logogram or trademark used for the exclusive 
purpose of identifying the program, or a state-
ment or other information sufficient to clearly 
identify the program. 
(B) EXEMPTION
FOR
EMBEDDED
ADVER-
TISEMENTS.—The Commission shall, by regula-
tion, exempt from the applicability of subpara-
graph (A) the embedded display of any advertise-
ment on a Web page that contemporaneously dis-
plays other information. 
(3) RULEMAKING.—The Commission may issue 
regulations to carry out this subsection. 
(e) LIMITATION ON LIABILITY.—A telecommunications 
carrier, a provider of information service or interactive 
computer service, a cable operator, or a provider of trans-
mission capability shall not be liable under this section to 
the extent that the carrier, operator, or provider—
(1) transmits, routes, hosts, stores, or provides 
connections for an information collection program 
through a system or network controlled or operated by 
or for the carrier, operator, or provider; or
(2) provides an information location tool, such 
as a directory, index, reference, pointer, or hypertext 
link, through which the owner or user of a protected 
computer locates an information collection program. 
SEC. 4. ENFORCEMENT. 
(a) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—This 
Act shall be enforced by the Commission under the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.). A violation 
of any provision of this Act or of a regulation issued under 
this Act shall be treated as an unfair or deceptive act or 
practice violating a rule promulgated under section 18 of 
the Federal Trade Commission Act (15 U.S.C. 57a). 
(b) PENALTY
FOR PATTERN
OR PRACTICE VIOLA-
TIONS.—
(1) IN
GENERAL.—Notwithstanding subsection 
(a) and the Federal Trade Commission Act, in the 
case of a person who engages in a pattern or practice 
that violates section 2 or 3, the Commission may, in 
its discretion, seek a civil penalty for such pattern or 
practice of violations in an amount, as determined by 
the Commission, of not more than—
(A) $3,000,000 for each violation of section 
2; and 
(B) $1,000,000 for each violation of section 
3.
(2) TREATMENT
OF
SINGLE
ACTION
OR
CON-
DUCT.—In applying paragraph (1)—
(A) any single action or conduct that vio-
lates section 2 or 3 with respect to multiple pro-
tected computers shall be treated as a single vio-
lation; and 
(B) any single action or conduct that vio-
lates more than one paragraph of section 2(a) 
shall be considered multiple violations, based on 
the number of such paragraphs violated. 
(c) REQUIRED
SCIENTER.—Civil penalties sought 
under this section for any action may not be granted by 
the Commission or any court unless the Commission or 
court, respectively, establishes that the action was com-
mitted with actual knowledge or knowledge fairly implied 
on the basis of objective circumstances that such act is un-
fair or deceptive or violates this Act. 
(d) FACTORS
IN AMOUNT
OF PENALTY.—In deter-
mining the amount of any penalty pursuant to subsection 
(a) or (b), the court shall take into account the degree of 
culpability, any history of prior such conduct, ability to 
pay, effect on ability to continue to do business, and such 
other matters as justice may require. 
(e) EXCLUSIVENESS OF REMEDIES.—The remedies in 
this section (including remedies available to the Commis-
sion under the Federal Trade Commission Act) are the ex-
clusive remedies for violations of this Act. 
(f) EFFECTIVE DATE.—To the extent only that this sec-
tion applies to violations of section 2(a), this section shall 
take effect upon the expiration of the 6-month period that 
begins on the date of the enactment of this Act. 
SEC. 5. LIMITATIONS. 
(a) LAW ENFORCEMENT AUTHORITY.—Sections 2 and 
3 shall not apply to—
(1) any act taken by a law enforcement agent in 
the performance of official duties; or 
(2) the transmission or execution of an informa-
tion collection program in compliance with a law en-
forcement, investigatory, national security, or regu-
latory agency or department of the United States or 
any State in response to a request or demand made 
under authority granted to that agency or depart-
ment, including a warrant issued under the Federal 
Rules of Criminal Procedure, an equivalent State 
warrant, a court order, or other lawful process. 
(b) EXCEPTION RELATING TO SECURITY.—Nothing in 
this Act shall apply to—
(1) any monitoring of, or interaction with, a 
subscriber’s Internet or other network connection or 
service, or a protected computer, by a telecommuni-