I
105TH CONGRESS
1ST SESSION
H. R. 1964
To protect consumer privacy, empower parents, enhance the telecommuni-
cations infrastructure for efficient electronic commerce, and safeguard
data security.
IN THE HOUSE OF REPRESENTATIVES
JUNE 19, 1997
Mr. MARKEY introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To protect consumer privacy, empower parents, enhance the
telecommunications infrastructure for efficient electronic
commerce, and safeguard data security.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Communications Pri-
vacy and Consumer Empowerment Act’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) As our Nation’s communications networks
continue to grow and become ever more sophisti-
cated, more individuals and industries will be using
such networks to conduct commercial transactions.
(2) It is important to establish personal privacy
rights and industry obligations now so that consum-
ers have confidence that their personal privacy is
fully protected in our Nation’s telecommunications
networks.
(3) The Nation’s telecommunications infra-
structure must be safe and secure so that economic
growth is not threatened due to consumer concern
over the electronic ethics of certain cyberspace mar-
keters.
(4) The Telecommunications Act of 1996 (Pub-
lic Law 104–104) contains expanded privacy protec-
tions for consumers by requiring that telecommuni-
cations carriers under the jurisdiction of the Federal
Communications Commission obtain consumer ap-
proval prior to reusing or selling certain personal in-
formation.
(5) It is becoming increasingly apparent that
the existing privacy protections accorded consumers
with respect to information gathered by tele-
communications carriers are not alone sufficient to
protect consumer privacy rights and that further
protections are needed to ensure that such rights are
retained and respected by other entities doing busi-
ness in cyberspace.
(6) In addition to the growing number of busi-
nesses and adults getting online, some 5,000,000
young Americans currently use the Internet and this
number is expected to grow to more than
15,000,000 by the year 2000.
(7) Recent media reports indicate that online
marketers are gathering personal information from
children, in some cases in a deceptive manner.
(8) Child advocacy groups have also charged
that liquor, beer, and tobacco companies are utiliz-
ing Web sites to entice children to visit and that
such sites’ cartoon characters, glitzy features,
games, music clips, and other characteristics pro-
mote their products and foster underage drinking
and smoking.
(9) In addition to the work performed by the
Federal Communications Commission in regulating
our Nation’s telecommunications networks, the Fed-
eral Trade Commission continues to have the task of
ensuring that online marketers and businesses do
not engage in deceptive or fraudulent practices. The
Commission’s privacy workshop in June 1997 has
developed a needed record of industry privacy prac-
tices that can serve as the basis for Commission ac-
tion, if needed.
(10) The ease of gathering and compiling per-
sonal information in cyberspace, both overtly and
surreptitiously, is becoming increasingly efficient
and almost effortless due to advances in digital tele-
communications technology. As a result, information
gatherers are able to compile highly detailed per-
sonal histories of both children and adults who are
network users.
(11) Regardless of the technology that consum-
ers use, their privacy rights and expectations remain
a constant. Consumers must have knowledge that
personal information is being collected about them;
consumers must be given conspicuous notice if the
recipient of that information intends to reuse it for
other purposes, or disclose, or sell it; and consumers
must have the ability to control the extent to which
personal information is collected about them and the
right to prohibit or curtail any unauthorized use,
reuse, disclosure, or sale of their personal informa-
tion.
(12) Our Nation’s communications networks,
including the Internet, have developed extremely
rapidly over recent years, and changes in standards,
protocols, and digital technologies have enabled con-
sumers to make decisions about access to informa-
tion and services, such as the types of content on
the Internet.
(13) New innovative technology may empower
consumers and parents to better control dissemina-
tion of personal information by restoring decision-
making power to the consumer or parent. Techno-
logical tools may also help parents block access to
Web sites containing inappropriate material for their
children.
(14) Industry efforts, with Government encour-
agement and oversight, to assist consumers through
the development of standards, protocols, and prac-
tices for the collection and dissemination of personal
information is critical to help parents and consumers
better control dissemination of their personal infor-
mation.
(15) Adoption of strong, fair information poli-
cies, standards, and practices, along with the wide-
spread implementation and utilization of consumer
empowerment tools, may limit the need for Govern-
ment regulation of personal information collection
and dissemination practices on the Internet or other
telecommunications media.
TITLE I—CONSUMER PRIVACY
AND PARENTAL EMPOWERMENT
SEC. 101. FEDERAL TRADE COMMISSION EXAMINATION.
(a) PROCEEDING REQUIRED.—Within 6 months after
the date of enactment of this Act, the Federal Trade Com-
mission shall commence a proceeding—
(1) to determine whether consumers are able,
and, if not, the methods by which consumers may be
enabled—
(A) to have knowledge that consumer in-
formation is being collected about them through
their utilization of various telecommunications
services and systems;
(B) to receive conspicuous notice that such
information could be used, or is intended to be
used, without authorization by the entity col-
lecting the data for reasons unrelated to the
original communications, or that such informa-
tion could be sold (or is intended to be sold) to
other companies or entities; and
(C) to exercise control over the collection
of personal information and to stop the unau-
thorized use, reuse, disclosure, or sale of that
information;
(2) to determine whether, in the case of con-
sumers who are children, the abilities described in
subparagraphs (A), (B), and (C) of paragraph (1)
are or can be exercised by their parents;
(3) to propose changes in the Commission’s reg-
ulations as necessary to correct any defects identi-
fied pursuant to this section in the privacy rights
and remedies of parents and consumers generally;
(4) to solicit and review comment from the pub-
lic and the National Telecommunication and Infor-
mation Administration on the changes proposed pur-
suant to paragraph (3);
(5) to prepare recommendations to the Con-
gress for any legislative changes required to correct
such defects; and
(6) to determine—
(A) whether parents are able, and if not,
the methods by which parents may be enabled,
to block access to content accessible via the
Internet, or other computer networks, that pro-
motes alcoholic products or tobacco products;
and
(B) whether alcohol and tobacco companies
maintain Internet sites that promote, glamorize,
and market alcohol and tobacco products in a
manner that is directed at children.
(b) SCHEDULE FOR FEDERAL TRADE COMMISSION
RESPONSES.—The Federal Trade Commission shall, with-
in 1 year after the date of enactment of this Act—
(1) complete any rulemaking required to revise
Commission regulations to correct any defects in
such regulations identified pursuant to subsection
(a); and
(2) submit to Congress a report containing the
recommendations required by subsection (a)(5).
SEC. 102. FEDERAL COMMUNICATIONS COMMISSION EXAM-
INATION.
(a) PROCEEDING REQUIRED.—Within 6 months after
the date of enactment of this Act, the Federal Commu-
nications Commission shall commence a proceeding—
(1) to examine the impact of interconnected
communications networks of telephone, cable, sat-
ellite, wireless devices, and other technologies on the
privacy rights and remedies of the consumers of
those technologies, as described in paragraphs (1)
and (2) of section 101(a);
(2) to determine whether consumers are able,
and, if not, the methods by which consumers may be
enabled to exercise such rights and remedies;
(3) to determine whether common carriers have
taken adequate steps to secure the communications
infrastructure and its components against unauthor-
ized interception of communications and other per-
sonal information;
(4) to propose changes in the Commission’s reg-
ulations to ensure that the effect on consumer pri-
vacy rights is considered in the introduction of new
telecommunications services and that the protection
of such privacy rights and network security is incor-
porated as necessary in the design of such services
or the rules regulating such services;
(5) to propose changes in the Commission’s reg-
ulations as necessary to correct any defects identi-
fied pursuant to this section in such rights, rem-
edies, and security;
(6) to solicit and review comment from the pub-
lic and the National Telecommunication and Infor-
mation Administration on the changes proposed pur-
suant to paragraph (5); and
(7) to prepare recommendations to the Con-
gress for any legislative changes required to correct
such defects.
(b) SCHEDULE
FOR FEDERAL COMMUNICATIONS
COMMISSION RESPONSES.—The Federal Communications
Commission shall, within 1 year after the date of enact-
ment of this Act—
(1) complete any rulemaking required to revise
Commission regulations to correct defects in such
regulations identified pursuant to subsection (a);
and
(2) submit to the Congress a report containing
the recommendations required by subsection (a)(6).
SEC. 103. PARENTAL EMPOWERMENT THROUGH MARKET-
PLACE SOLUTIONS.
(a) SOFTWARE
TO PROTECT CHILDREN.—Section
230 of the Communications Act of 1934 (47 U.S.C. 230)
is amended—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively;
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d) TECHNOLOGICAL TOOLS TO BLOCK ACCESS.—
An Internet access provider shall, at the time of entering
an agreement with a customer for the provision of Internet
access services, or at any subsequent time upon request,
offer such customer screening software that is designed
to permit the customer to limit access to material that
is inappropriate for children. Such software shall be pro-
vided either at no charge or for a fee that does not exceed
the cost of such software to such provider.’’; and
(3) by adding at the end of subsection (f) (as
redesignated by paragraph (1) of this subsection)
the following new paragraphs:
‘‘(5) INTERNET ACCESS PROVIDER.—The term
‘Internet access provider’ means a person engaged in
the business of providing a computer and commu-
nications facility through which a customer may ob-
tain access to the Internet, but does not include a
common carrier to the extent that it provides only
transmission and routing services.
‘‘(6) INTERNET ACCESS SERVICES.—The term
‘Internet access services’ means the provision of
computer and communications services through
which a customer using a computer and a modem or
other communications device may obtain access to
the Internet, but does not include transmission and
routing services provided by a common carrier.’’.
(b) CONFORMING AMENDMENT.—Section 223(h)(2)
of the Communications Act of 1934 (47 U.S.C. 223(h)(2))
is amended by striking ‘‘230(e)(2)’’ and inserting
‘‘230(f)(2)’’.
SEC. 104. EXTENSION OF SCANNER EQUIPMENT MANUFAC-
TURE PROHIBITIONS TO DIGITAL MOBILE
RADIO SERVICES.
(a) AMENDMENT.—Section 302(d) of the Commu-
nications Act of 1934 (47 U.S.C. 302(d)) is amended—
(1) in paragraph (1), by striking ‘‘(1) Within
180 days after the date of enactment of this sub-
section, the Commission’’ and inserting ‘‘The Com-
mission’’;
(2) in paragraph (1)(A), by striking ‘‘the do-
mestic cellular radio telecommunications service’’
and inserting ‘‘a commercial mobile service (as such
term is defined in section 332(d))’’;
(3) in paragraph (1)(C), by striking ‘‘digital
cellular transmissions’’ and inserting ‘‘digital com-
mercial mobiles service transmissions’’;
(4) by striking paragraph (2); and
(5) by redesignating subparagraphs (A), (B),
and (C) of paragraph (1) as paragraphs (1), (2),
and (3), respectively.
(b) EFFECTIVE DATE OF PROHIBITIONS ON REGU-
LATION AMENDMENTS.—The prohibitions contained in
section 302(b) of the Communications Act of 1934 shall
apply with respect to the changes made by the Federal
Communications Commission in its regulations to imple-
ment the amendments made by subsection (a) of this sec-
tion beginning 1 year after the effective date of such
changes.
TITLE 
II—INTERNET 
INFRA-
STRUCTURE ADVANCEMENT
SEC. 201. ACCESS AND INTERCONNECTION FOR INFORMA-
TION SERVICE PROVIDERS.
(a) INTERCONNECTION OBLIGATIONS OF INCUMBENT
LOCAL EXCHANGE CARRIERS.—Section 251(c) of the
Communications Act of 1934 (47 U.S.C. 251(c)) is
amended—
(1) in paragraph (2)—
(A) by inserting ‘‘or any requesting infor-
mation service provider’’ after ‘‘requesting tele-
communications carrier’’; and
(B) by inserting before the semicolon at
the end of subparagraph (A) the following: ‘‘, or
for the transmission of information services’’;
(2) in paragraph (3)—
(A) by inserting after ‘‘for the provision of
a telecommunications service’’ the following: ‘‘or
to any information service provider for the pro-
vision of information services’’;
(B) by inserting ‘‘and requesting informa-
tion service providers’’ after ‘‘requesting car-
riers’’; and
(C) by inserting before the period at the
end the following: ‘‘or information service’’; and
(3) in paragraph (6), by inserting ‘‘to any re-
questing carrier or any requesting information serv-
ice provider’’ after ‘‘the duty to provide’’.
(b) PROCEDURES
FOR
ADOPTION
OF
AGREE-
MENTS.—Section 252 of the Communications Act of 1934
(47 U.S.C. 252) is amended by adding at the end the fol-
lowing new subsection:
‘‘(k) TREATMENT OF INFORMATION SERVICE PRO-
VIDERS
AS REQUESTING CARRIERS.—Any information
service provider requesting interconnection or unbundled
access pursuant to paragraph (2) or (3), respectively, or
section 251(c) shall be treated as a requesting carrier for
the purposes of negotiation, mediation, arbitration, and
approval of agreements under this section.’’.
SEC. 202. CONSIDERATION OF INFORMATION SERVICES IN
COORDINATED NETWORK PLANNING.
(a) AMENDMENT.—Section 256 of the Communica-
tions Act of 1934 (47 U.S.C. 256) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by striking the period at the end of
paragraph (2) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) to promote commerce by facilitating the
development and adoption of technologies and meth-
ods for the secure conduct of commercial trans-
actions by use of telecommunications facilities, the
Internet, or other interactive computer systems.’’;
and
(2) in subsection (b)—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by striking the period at the end of
paragraph (2) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) shall establish procedures for Commission
oversight to ensure that the needs of information
service providers and their customers, and users of
the Internet and interactive computer services (as
such terms are defined in section 230), are consid-
ered during the coordinated network planning under
paragraph (1), including consideration of measures
that will ensure—
‘‘(A) efficient and effective interconnection
for packet-switched data networks, including
the Internet; and
‘‘(B) efficient and effective access by such
networks by their users.’’.
(b) DEADLINE
FOR
COMMISSION
IMPLEMENTA-
TION.—The Federal Communications Commission shall
prescribe procedures for purposes of section 256(b)(3) of
the Communications Act of 1934, as amended by sub-
section (a) of this section, within one year after the date
of enactment of this Act.
SEC. 203. REMOVAL OF IMPEDIMENTS TO DEPLOYMENT OF
IMPROVEMENTS IN NETWORK AND DATA SE-
CURITY.
(a) NTIA STUDY OF NETWORK AND DATA SECURITY
ISSUES.—Part C of the National Telecommunications and
Information Administration Organization Act is amended
by inserting after section 155 the following new section:
‘‘SEC. 156. STUDY OF NETWORK AND DATA SECURITY IS-
SUES.
‘‘(a) STUDY REQUIRED.—The NTIA shall conduct an
examination of the extent to which network reliability and
data security issues impair the conduct of transactions in
interstate commerce through the medium of the tele-
communications networks, the Internet, or other inter-
active computer systems.
‘‘(b) IDENTIFICATION
OF GENERALLY AVAILABLE
TECHNOLOGIES FOR THE IMPROVEMENT OF DATA SECU-
RITY.—In conducting the examination required by sub-
section (a), the NTIA shall identify generally available
technologies for the improvement of data security for the
conduct of the transactions described in such subsection.
‘‘(c) REPORT ON EXAMINATION.—Within one year
after the date of enactment of this section, the NTIA shall
submit to the Congress and the President a report on the
examination required by this section. Annually thereafter,
the NTIA shall submit to the Congress and the President
an update on such report. Such report and each such up-
date shall include—
‘‘(1) a description of any generally available
technologies for the improvement of data security;
and
‘‘(2) any privacy or data security limitations
identified with respect to any such generally avail-
able technologies that serve to limit or prevent the
effective and efficient conduct of transactions in
interstate commerce, except that the report or up-
date may restrict to a confidential appendix any dis-
cussion of such limitations which would itself present
or create a privacy or data security limitation.
‘‘(d) PREEMPTION OF DOMESTIC RESTRICTIONS ON
ENCRYPTION
AND
OTHER
DATA
SECURITY
TECH-
NOLOGIES.—No officer of the Federal or any State gov-
ernment shall—
‘‘(1) restrict or regulate the sale in interstate
commerce of any encryption or other product for the
improvement 
of 
data 
security, 
regardless 
of
encryption method chosen, length of encryption key,
or implementation technique or medium used;
‘‘(2) condition the issuance of certificates of au-
thentication or certificates of authority upon any
escrowing or other sharing of private encryption
keys, whether with private agents or government en-
tities; or
‘‘(3) establish a licensing, labeling, or other reg-
ulatory scheme that requires key escrow as a condi-
tion of licensing or regulatory approval.
‘‘(e) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘generally available technology
for the improvement of data security’ means any
computer hardware, encryption formula, code, or al-
gorithm (without regard to key length, implementa-
tion technique, or medium), or other device or tech-
nique used to protect data from unauthorized pene-
tration or disclosure that is generally available.
‘‘(2) The term ‘generally available’ means, in
the case of computer software (including software
with encryption capabilities), computer software
that—
‘‘(A) is distributed via the Internet or that
is widely offered for sale, license, or transfer
(without regard to whether it is offered for con-
sideration), including over-the-counter retail
sales, mail order transactions, telephone order
transactions, electronic distribution, or sale on
approval; or
‘‘(B) is preloaded on computer hardware
that is widely available.
‘‘(3) The terms ‘Internet’ and ‘interactive com-
puter systems’ have the meanings provided by sec-
tion 230(e) of the Communications Act of 1934 (47
U.S.C. 230(e)).’’.
(b) TRANSFER OF AUTHORITY.—Section 105(b) of
the National Telecommunications and Information Ad-
ministration Organization Act (47 U.S.C. 902(b)) is
amended by adding at the end the following new para-
graph:
‘‘(4) LICENSING OF COMMUNICATIONS TRANS-
ACTION TECHNOLOGIES.—There are transferred to
the NTIA the functions of the Secretary under Pub-
lic Law 96–72, as amended, with respect to gen-
erally available technologies for the improvement of
data security, as identified pursuant to section 156
of this Act.’’.
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