I 
117TH CONGRESS 
1ST SESSION H. R. 5439 
To keep children safe and protect their interests on the internet, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 30, 2021 
Ms. CASTOR of Florida (for herself, Ms. CLARKE of New York, Ms. WEXTON, 
and Mrs. TRAHAN) introduced the following bill; which was referred to 
the Committee on Energy and Commerce 
A BILL 
To keep children safe and protect their interests on the 
internet, and for other purposes. 
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 ‘‘Kids Internet Design 
and Safety Act’’ or the ‘‘KIDS Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Children increasingly consume digital enter-
tainment on the internet and are uniquely suscep-
tible to manipulation online, given their lack of im-
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portant neurological and psychological capabilities 
which are developed later in adulthood. 
(2) Today’s digital media environment, which is 
constantly evolving and now includes high-tech expe-
riences, such as augmented reality and virtual re-
ality, is largely designed in non-transparent ways to 
ensure children interact with content that reflect the 
interests and goals of content producers, online plat-
forms, and marketers. 
(3) Artificial intelligence, machine learning, and 
other complex systems are used to make continuous 
decisions about how online content for children can 
be personalized to increase engagement. 
(4) Online companies gather, analyze, and use 
data for behavioral marketing directed at children. 
(5) Companies employ sophisticated strategies, 
including neuromarketing, to affect consumer behav-
ior and manipulate online users’ decision making. 
(6) Branded content in various forms of multi-
media, including native advertising and influencer 
marketing, exposes children to marketing that is in-
herently manipulative or purposely disguised as en-
tertainment or other information. 
SEC. 3. DEFINITIONS. 
(a) IN GENERAL.—In this Act: 
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(1) ALGORITHMIC PROCESS.—The term ‘‘algo-
rithmic process’’ means a computational process, in-
cluding one derived from machine learning or other 
artificial intelligence techniques, that processes per-
sonal information or other data for the purpose of 
determining the order or manner that a set of infor-
mation is provided to a user of an online platform, 
including the provision of commercial content, the 
display of social media posts, or any other method 
of automated decision making, content selection, 
content recommendation, or content amplification. 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(3) CONSTRUCTIVE KNOWLEDGE.— 
(A) IN GENERAL.—The term ‘‘constructive 
knowledge’’ means, for purposes of section 4, 
with respect to knowledge that a user of an on-
line platform is a covered user, knowledge that 
is imputed to the operator of the online plat-
form if— 
(i) the operator directly or indirectly 
collects, uses, profiles, buys, sells, classi-
fies, or analyzes (using an algorithmic 
process or other form of data analytics) 
data about the user to estimate, identify, 
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or classify the age, age range, or proxy 
thereof; 
(ii) the operator has or receives data 
or reporting related to the age of the user 
on the online platform under the self-regu-
latory guidelines described in section 1304 
of the Children’s Online Privacy Protection 
Act of 1998 (15 U.S.C. 6503) that docu-
ments risks and controls, including the ex-
istence of operator-controlled data ana-
lytics and content analytics capabilities and 
functions or outputs; 
(iii) the operator has or receives com-
plaints from parents or other third parties 
about the age of the user, whether through 
the operator’s complaint mechanism, by 
email, or other means conveniently acces-
sible by such parents or third parties; 
(iv) the operator has or receives data 
or reporting or information from the oper-
ator’s internal communications, including 
documentation about its advertising prac-
tices, such as an advertisement insertion 
order, or other promotional material to 
marketers, that indicates that data is being 
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collected from the user because the user is 
within a particular age range; or 
(v) the operator knows that— 
(I) a provider of content on the 
platform communicates to an adver-
tising network that the content is in-
tended for users of a particular age 
range or likely to appeal to users of a 
particular age range, whether directly 
or indirectly; and 
(II) the user is shown that con-
tent. 
(B) ADDITIONAL FACTORS.—The Commis-
sion may issue guidance or promulgate rules in 
accordance with section 553 of title 5, United 
States Code, that indicate factors, in addition 
to those described in subparagraph (A), that 
should be considered to be constructive knowl-
edge for purposes of this Act. 
(4) COVERED USER.—The term ‘‘covered user’’ 
means an individual under the age of 16. 
(5) DIRECTED TO CHILDREN.—The term ‘‘di-
rected to children’’ means the targeting of covered 
users by an online platform or portion of an online 
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platform, as demonstrated by, with respect to such 
platform or portion of a platform— 
(A) its subject matter; 
(B) its visual content; 
(C) the use of animated characters or 
child-oriented activities for children and related 
incentives; 
(D) music or other audio content; 
(E) the age of models used; 
(F) the presence of— 
(i) child celebrities; or 
(ii) celebrities who appeal to covered 
users; 
(G) the language used; 
(H) advertising content used on, or used to 
advertise, such platform; or 
(I) reliable empirical evidence relating to— 
(i) the composition of the audience of 
such platform; and 
(ii) the intended audience of such 
platform. 
(6) HOST-SELLING.—The term ‘‘host-selling’’ 
refers to commercial video content that features the 
same characters or individuals as in the adjacent 
noncommercial content. 
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(7) 
INFLUENCER
MARKETING.—The 
term 
‘‘influencer marketing’’ means a tactic by which a 
company compensates individuals who are deemed to 
have the potential to review, promote, or sell a prod-
uct or service online to an intended target audience. 
(8) ONLINE
PLATFORM.—The term ‘‘online 
platform’’ means any public-facing website, online 
service, online application, or mobile application 
which is operated for commercial purposes. 
(9) OPERATOR.—The term ‘‘operator’’ means 
any person who, for commercial purposes, in inter-
state or foreign commerce, operates or provides an 
online platform. 
(10) PERSON.—The term ‘‘person’’ means any 
individual, partnership, corporation, trust, estate, co-
operative, association, or other entity. 
SEC. 4. REGULATION OF ACTS AND PRACTICES ON CHILD- 
DIRECTED PLATFORMS. 
(a) PROHIBITION
ON CERTAIN INTERFACE ELE-
MENTS.— 
(1) IN GENERAL.— 
(A) PROHIBITION.—It is unlawful for an 
operator to operate or provide— 
(i) an online platform or a portion of 
an online platform directed to children that 
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incorporates an interface element described 
in subparagraph (B); and 
(ii) any online platform that employs 
an interface element described in subpara-
graph (B) with respect to a user if the op-
erator has actual or constructive knowledge 
that the user is a covered user. 
(B) INTERFACE ELEMENTS DESCRIBED.— 
The interface elements described in this sub-
paragraph are the following: 
(i) Any auto-play setting that, without 
input from the covered user, commences 
additional video content directly following 
the video content initially selected by the 
user. 
(ii) Messages or alerts that encourage 
a covered user who is not actively using 
the platform to engage with the platform. 
(iii) Displaying the quantity of posi-
tive engagement or feedback that a covered 
user has received from other users. 
(iv) Any interface element or setting 
that unfairly encourages a covered user, 
due to their age or inexperience, to share 
personal information, submit content, or 
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spend more time engaging with the plat-
form. 
(v) Any interface element that pro-
vides a covered user with badges or other 
visual award symbols based on elevated 
levels of engagement with the platform. 
(vi) Any interface element that maxi-
mizes a covered user’s spending on the 
platform, unfairly encourages a covered 
user to spend money on the platform, fa-
cilitates a financial transaction by a cov-
ered user on the platform without notifica-
tion to the covered user’s parent, or facili-
tates a financial transaction by a covered 
user on the platform that is not in the in-
terest of the covered user. 
(2) RULEMAKING.—Not later than 1 year after 
the date of enactment of this Act and not less fre-
quently than every 5 years thereafter, the Commis-
sion shall promulgate regulations under section 553 
of title 5, United States Code, that establish any ad-
ditions or exceptions to the prohibitions under para-
graph (1). The Commission may only establish such 
an exception on the basis that the exception is nec-
essary to provide essential functionality for an online 
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platform and is consistent with the best interests of 
covered users. 
(b) PROHIBITION ON AMPLIFICATION OF CERTAIN 
CONTENT; USER REPORTING MECHANISM.— 
(1) IN GENERAL.—It shall be unlawful for an 
operator to operate or provide— 
(A) an online platform or portion of an on-
line platform directed to children that employs 
an algorithmic process described in paragraph 
(2) on the platform; 
(B) any online platform that employs an 
algorithmic process described in paragraph (2) 
with respect to a user of the platform if the op-
erator of the platform has actual or construc-
tive knowledge that the user is a covered user; 
and 
(C) an online platform that does not in-
clude a mechanism for users or other third par-
ties to report suspected violations of any re-
quirement of this paragraph. 
(2) ALGORITHMIC
PROCESS
DESCRIBED.—An 
algorithmic process described in this paragraph is an 
algorithmic process that amplifies, promotes, or en-
courages covered users’ consumption of videos and 
other forms of content that— 
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(A) are of a non-educational nature (as de-
termined by the Commission); and 
(B) involve— 
(i) sexual material; 
(ii) promotion of physical or emotional 
violence or activities that can reasonably be 
assumed to result in physical or emotional 
harm, including self-harm, use of weapons, 
and bullying; 
(iii) activities that are unlawful for 
covered users to engage in or the pro-
motion of such activities; or 
(iv) wholly commercial content that is 
not reasonably recognizable as such to a 
covered user. 
(c) PROHIBITION ON CERTAIN ADVERTISING METH-
ODS.— 
(1) IN GENERAL.—It shall be unlawful for an 
online operator to operate or provide— 
(A) an online platform or portion of an on-
line platform directed to children that employs 
an algorithmic process to present any of the 
content described in paragraph (2) to users of 
the platform; and 
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(B) any online platform that employs an 
algorithmic process to present any of the con-
tent described in paragraph (2) to a covered 
user if the operator of the platform has actual 
or constructive knowledge that the user is a 
covered user. 
(2) CONTENT
DESCRIBED.—The content de-
scribed in this paragraph is the following: 
(A) Content that includes host-selling. 
(B) Program-length advertisements. 
(C) Influencer marketing. 
(D) Online advertising or material with 
considerable commercial content involving alco-
hol, nicotine, or tobacco. 
(E) Online advertising or material with 
considerable commercial content with any 
imbedded interactive elements that take advan-
tage of covered users’ inexperience or credulity 
in noncommercial child-directed content. 
(F) Content that includes product place-
ment. 
(3) PROGRAM-LENGTH
ADVERTISEMENT.—For 
purposes of this subsection, the term ‘‘program- 
length advertisement’’ shall be defined by the Com-
mission through regulation or other public guidance. 
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(d) PROHIBITION ON USE OF PERSONAL INFORMA-
TION.—It shall be unlawful for an online platform to use 
age verification information collected from a covered user 
for any commercial purpose if— 
(1) the online platform is directed to children; 
or 
(2) the operator of the online platform has con-
structive knowledge that the user is a covered user. 
(e) REQUIREMENT TO DISTINGUISH COMMERCIAL 
CONTENT FROM NONCOMMERCIAL CONTENT.—The Com-
mission shall promulgate regulations in accordance with 
section 553 of title 5, United States Code, to require any 
online platform or portion of an online platform that is 
directed to children, or with respect to which the operator 
of the platform or portion of the platform has constructive 
knowledge that covered users use the platform or portion 
of the platform, to incorporate online visual elements or 
other indicators that distinguish commercial content from 
noncommercial content. 
(f) RULEMAKING.—The Commission shall promul-
gate, in accordance with section 553 of title 5, United 
States Code, such rules as may be necessary to carry out 
this section. 
(g) EFFECTIVE DATE.—The requirements of this 
section shall apply to online platforms beginning on the 
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date that is 1 year after the date of enactment of this 
Act. 
SEC. 5. ONLINE CONTENT LABELING. 
(a) CONTENT LABELING SYSTEM REPORT.—Not 
later than the date that is 1 year after the date of enact-
ment of this Act, the Commission shall submit to Congress 
a report— 
(1) containing recommendations for a labeling 
system to allow covered users and parents to identify 
noncommercial, educational, and enriching content 
for covered users online; and 
(2) addressing considerations regarding how 
such labeling system should— 
(A) analyze content based on evidence- 
based criteria; 
(B) employ an easy-to-understand visual 
cue for parents to identify content described in 
paragraph (1); 
(C) receive regular review to determine its 
effectiveness; and 
(D) include a mechanism for users to re-
port to the Commission complaints of mis-
labeled content and for the Commission to rem-
edy such instances of mislabeled content. 
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(b) CONSULTATION.—The report described in sub-
section (a) shall be developed by the Commission in con-
sultation with an advisory board, to be created and con-
vened by the Commission, which is comprised of experts 
in child development, child health, education, and media. 
SEC. 6. TRANSPARENCY AND AUDITING. 
(a) TRANSPARENCY.—The Commission shall promul-
gate regulations in accordance with section 553 of title 
5, United States Code, requiring an operator of an online 
platform which is directed to children to publish and main-
tain a publicly accessible digital record of the viewable or 
playable content of each such platform. Such regulations 
shall require the operator to ensure that such record does 
not include personal information (as defined in section 
1302 of the Children’s Online Privacy Protection Act of 
1998 (15 U.S.C. 6501)) or, as appropriate, user-generated 
content. 
(b) ANNUAL PLATFORM AUDITS.—The regulations 
promulgated pursuant to subsection (a) shall include the 
establishment of an annual audit process, to be conducted 
by the Commission during the 5-year period subsequent 
to the date of enactment of this Act, for each of the 25 
online platforms directed to children with the highest total 
number of covered users, to evaluate the level of compli-
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ance by each such platform with the requirements under 
this Act. 
(c) REPORT.—The Commission shall submit annual 
reports to Congress based on the audits described in sub-
section (b) that— 
(1) describe the level of compliance by the plat-
forms described in such subsection with the require-
ments under this Act; and 
(2) provide recommendations for such legisla-
tion and administrative actions as the Commission 
determines appropriate based on the audit findings. 
SEC. 7. GRANT PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary of Commerce 
(in this section referred to as the ‘‘Secretary’’) shall 
make grants to eligible persons to foster the creation 
and promotion of advertisement-free and educational 
online content (such as videos and applications) for 
covered users. 
(2) ELIGIBLE PERSON.—For purposes of this 
section, the term ‘‘eligible person’’ means a person 
that has submitted an application, as approved by 
the Secretary pursuant to the eligibility require-
ments developed under subsection (b), for the cre-
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ation and promotion of advertisement-free and edu-
cational online content for covered users. 
(b) ADVISORY COUNCIL.—The Secretary shall estab-
lish and convene an Advisory Council on Children’s Online 
Content, which shall be— 
(1) comprised of experts in education, child de-
velopment, psychology, online media, and other re-
lated disciplines; and 
(2) tasked with developing evidence-based cri-
teria for grant eligibility and grant distribution. 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—To carry out this section, 
there is authorized to be appropriated— 
(A) for fiscal year 2021, $4,000,000; 
(B) for fiscal year 2022, $8,000,000; 
(C) for fiscal year 2023, $10,000,000; and 
(D) for fiscal year 2024, $12,000,000. 
(2) AVAILABILITY OF FUNDS.—Any amount ap-
propriated under this subsection for any fiscal year 
shall remain available for the purposes of carrying 
out any application approved during such fiscal year 
for an additional period of 1 year after the end of 
such fiscal year. 
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SEC. 8. FEDERAL TRADE COMMISSION STUDY. 
Not later than 1 year after the date of enactment 
of this Act, the Commission shall conduct and publish a 
study, using any compulsory processes available to the 
Commission as necessary, relying on public data and infor-
mation if available and sufficient, and incorporating public 
comment, on harms resulting from interface elements and 
advertising methods on online platforms that are directed 
to children (and best practices for avoiding such harms), 
including the following: 
(1) The use of algorithmic processes and any 
other automated systems used for non-commercial 
content recommendation or amplification on plat-
forms that are directed to covered users. 
(2) The effect of algorithmic processes and any 
other automated systems used for non-commercial 
content recommendation or amplification on plat-
forms that are directed to covered users. 
SEC. 9. ADMINISTRATION AND ENFORCEMENT. 
(a) IN GENERAL.—This Act shall be enforced by the 
Commission under the Federal Trade Commission Act (15 
U.S.C. 41 et seq.). 
(b) ACTIONS BY COMMISSION.— 
(1) IN GENERAL.—The Commission shall pre-
vent any person from violating this Act or any regu-
lation promulgated by the Commission under this 
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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 (15 U.S.C. 41 et 
seq.) were incorporated into and made a part of this 
Act. 
(2) PENALTIES AND PRIVILEGES.—Any person 
that violates this Act or any regulation promulgated 
under this Act shall be subject to the penalties and 
entitled to the privileges and immunities provided in 
the Federal Trade Commission Act in the same 
manner, by the same means, and with the same ju-
risdiction, power, and duties, as though all applica-
ble terms and provisions of the Federal Trade Com-
mission Act were incorporated into and made a part 
of this Act. 
(c) CIVIL PENALTY.—A violation of this Act, or a 
regulation promulgated under this Act, 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)). 
(d) ENFORCEMENT BY STATES.— 
(1) IN GENERAL.—If the attorney general of a 
State has reason to believe that an interest of the 
residents of the State has been or is being threat-
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ened or adversely affected by a violation of this Act 
or a regulation promulgated under this Act, the at-
torney general of the State 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 to obtain appropriate relief. 
(2) RIGHTS OF COMMISSION.— 
(A) NOTICE TO COMMISSION.— 
(i) IN GENERAL.—Except as provided 
in clause (iii), the attorney general of a 
State, before initiating a civil action under 
paragraph (1), shall provide written notifi-
cation to the Commission that the attorney 
general intends to bring such civil action. 
(ii) CONTENTS.—The notification re-
quired under clause (i) 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 pro-
vide the notification required under clause 
(i) before initiating a civil action under 
paragraph (1), the attorney general shall 
notify the Commission immediately upon 
instituting the civil action. 
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(B) INTERVENTION BY COMMISSION.—The 
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 aris-
ing in the civil action; and 
(II) file petitions for appeal of a 
decision in the civil action. 
(3) INVESTIGATORY POWERS.—Nothing in this 
subsection may be construed to prevent the attorney 
general of a State from exercising the powers con-
ferred on the attorney general by the laws of the 
State to conduct investigations, to administer oaths 
or affirmations, or to compel the attendance of wit-
nesses or the production of documentary or other 
evidence. 
(e) EFFECT ON OTHER LAWS.— 
(1) AUTHORITY OF THE COMMISSION.—Nothing 
contained in this Act shall be construed to limit the 
authority of the Commission under any other provi-
sions of law. 
(2) RELATION TO STATE LAW.—Nothing in this 
Act may be construed to preempt any provision of 
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State law that provides greater protection to con-
sumers than is provided in this Act. 
Æ 
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