SEC. 2. DISCLOSURE REQUIREMENT FOR INTERNET MER-
CHANTS. 
(a) RULEMAKING.—The Federal Trade Commission 
shall, not later than 180 days after the date of enactment 
of this Act, promulgate rules under section 553 of title 
5, United States Code, requiring an Internet merchant to 
disclose to each consumer, prior to the final purchase of 
any good or service, the use of a price-altering computer 
program. 
(b) CONTENT.—The rules promulgated by the Com-
mission under subsection (a) shall— 
(1) require, at a minimum, an Internet mer-
chant to clearly and prominently disclose the use of 
a price-altering computer program to a consumer 
prior to the final purchase of a good or service; and 
(2) provide an Internet merchant procedures 
for complying with the requirement under paragraph 
(1). 
(c) EXCEPTIONS.—The Commission shall provide for 
specific exceptions to the rules promulgated under sub-
section (a) when a consumer should reasonably expect the 
price to be altered based on the personal information of 
such consumer, including but not limited to for the cal-
culation of a shipping charge and for a financial service 
for which personal information is customarily used to for-
mulate a price. 
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(d) INTERNET MERCHANTS SUBJECT TO DISCLO-
SURE REQUIREMENT.—The rules promulgated under sub-
section (a) shall only apply to an Internet merchant that 
has a total annual gross revenue of more than $1,000,000, 
and such amount shall be indexed for inflation every 5 
years by the Commission to reflect the change in the Con-
sumer Price Index for All Urban Consumers published by 
the Bureau of Labor Statistics of the Department of 
Labor. 
(e) ENFORCEMENT.—A violation of a rule promul-
gated under subsection (a) 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)). The Commis-
sion shall enforce this Act in the same manner, by the 
same means, and with the same jurisdiction, powers, and 
duties, as though all applicable terms and provisions of 
the Federal Trade Commission Act were incorporated into 
and made a part of this Act. 
(f) DEFINITIONS.—In this Act: 
(1) INTERNET.—The term ‘‘Internet’’ has the 
meaning given the term in section 1101 of the Inter-
net Tax Freedom Act (47 U.S.C. 151 note). 
(2) INTERNET MERCHANT.—The term ‘‘Inter-
net merchant’’ means a person that sells or offers to 
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sell a good or service by way of an Internet trans-
action. 
(3) INTERNET PROTOCOL ADDRESS.—The term 
‘‘Internet Protocol address’’ means the numerical 
label assigned to a particular computer or other de-
vice that accesses the Internet. 
(4) PRICE-ALTERING
COMPUTER
PROGRAM.— 
The term ‘‘price-altering computer program’’ means 
a computer program that— 
(A) accesses a consumer’s personal infor-
mation, including but not limited to Internet 
browsing history, device type and manufacturer, 
operating system, and Internet Protocol ad-
dress; and 
(B) uses the information accessed under 
subparagraph (A) to alter the selling price of a 
good or service sold by an Internet merchant. 
Æ 
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