EAVESDROP Act
Bill: H.R.8543 | Sponsor: Rep. Scalise, Steve (R-LA)
Policy area: Commerce

Summary:
Earning Approval of Voice External Sound Databasing Retained on People Act or the EAVESDROP Act
This bill requires internet-connected devices that include a microphone to notify consumers how and under what circumstances the device collects information from ambient noise, such as human dialogue or any other sound that occurs in the range of the device's microphone.
Further, such devices must include a reasonable method to deactivate such collection.

To require notice regarding the collection of ambient noise by certain 
 internet-connected devices, to limit the disclosure and retention of 
information collected through such noise, and to require a mechanism by 
which such collection may be deactivated and reactivated, 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. SHORT TITLE.

    This Act may be cited as the ``Earning Approval of Voice External 
Sound Databasing Retained on People Act'' or the ``EAVESDROP Act''.

SEC. 2. NOTICES REQUIRED FOR COLLECTION OF AMBIENT NOISE BY COVERED 
              DEVICE.

    (a) One-Time Notice at First Power-On.--A manufacturer of a covered 
device shall provide to the user who powers on the device for the first 
time a notice that contains--
            (1) a description of how and under what circumstances 
        covered information is collected by the manufacturer through 
        the covered device; and
            (2) a description of the purposes for which the 
        manufacturer processes such covered information, including--
                    (A) a description of how long and the circumstances 
                under which the manufacturer retains such covered 
                information; and
                    (B) whether the manufacturer discloses such covered 
                information to third parties or processes such covered 
                information for targeted advertising.
    (b) Notice When Material Change to Operating System or Firmware.--
When there is a material change to the operating system or firmware of 
a covered device, the manufacturer of the covered device shall provide 
a notice that the covered device collects covered information. Such 
notice shall include--
            (1) a statement informing the user that the covered device 
        is collecting covered information;
            (2) a description of--
                    (A) the covered information collected by the 
                manufacturer through the covered device; and
                    (B) the covered information collected by the 
                manufacturer through the covered device that the 
                manufacturer processes; and
            (3) instructions on how an owner of the covered device can 
        deactivate the collection of covered information by the covered 
        device using the mechanism required by section 3.
    (c) Form.--The notices required by subsections (a) and (b)--
            (1) shall be provided electronically in--
                    (A) audio format; and
                    (B) text format, which may include providing a link 
                to a website or other means for accessing the notices 
                online;
            (2) shall be clear, easily understood, and provided in 
        plain and concise language; and
            (3) when a covered device is powered on for the first time, 
        may be provided to the user as a single, combined notice.
    (d) Subsequent Availability of Information Provided in Notices.--
The manufacturer of a covered device shall ensure that the notices 
required by subsections (a) and (b) are accessible at any time after 
being provided under such subsections.

SEC. 3. DEACTIVATION AND REACTIVATION OF COLLECTION OF AMBIENT NOISE.

    A manufacturer of a covered device shall provide a reasonable and 
easy mechanism by which an owner of the device may--
            (1) deactivate the ability of the device to collect covered 
        information; and
            (2) if the ability of the device to collect covered 
        information has been deactivated under paragraph (1), 
        reactivate such ability.

SEC. 4. AUTHORIZED DISCLOSURES OF COVERED INFORMATION.

    (a) In General.--A manufacturer of a covered device may disclose 
covered information to a third party only if the manufacturer is acting 
in good faith and only for the following purposes:
            (1) To respond to or comply with a valid subpoena, court 
        order, or warrant (including a subpoena or court order obtained 
        by a person that is not a government entity), or to provide 
        information as otherwise required by law.
            (2) To respond to a circumstance that would cause a 
        reasonable person to believe that disclosure of the covered 
        information to the third party is necessary to prevent physical 
        harm to an individual.
    (b) Notice of Disclosure.--
            (1) Requirement.--Unless prohibited by law, a manufacturer 
        of a covered device shall notify a user of such device whose 
        covered information is disclosed to a third party by such 
        manufacturer.
            (2) Contents.--The notice required by paragraph (1) shall 
        include--
                    (A) a description of the covered information 
                disclosed;
                    (B) a justification for the necessity of the 
                disclosure; and
                    (C) the name of the third party to which the 
                manufacturer disclosed the covered information.
            (3) Timing.--The notice required by paragraph (1) shall be 
        provided to the user not later than 7 days after such notice 
        can be legally, safely, and practicably provided.
            (4) Form.--The notice required by paragraph (1) shall be 
        provided to the user in a written form (such as by mail or e-
        mail), if the manufacturer has the necessary contact 
        information for the user. If the manufacturer does not have 
        such contact information, the manufacturer shall provide such 
        notice in a manner consistent with how a typical user interacts 
        with the covered device.
            (5) Rule of construction.--Nothing in this subsection shall 
        be construed to require a manufacturer of a covered device to--
                    (A) take an action that would convert information 
                that is not covered information into covered 
                information;
                    (B) collect or retain information that the 
                manufacturer would otherwise not collect or retain; or
                    (C) retain covered information longer than the 
                manufacturer would otherwise retain such information.

SEC. 5. RETENTION OF COVERED INFORMATION.

    A manufacturer of a covered device may not retain covered 
information for longer than is reasonably necessary for the express 
purposes for which the covered information is collected.

SEC. 6. SAFE HARBOR.

    (a) Deemed Compliance.--A manufacturer of a covered device shall be 
deemed to be in compliance with the requirements of this Act if such 
manufacturer complies with a set of self-regulatory guidelines, issued 
by representatives of the marketing or covered devices industries, or 
by other persons, that is approved under subsection (b).
    (b) Approval of Guidelines.--
            (1) In general.--Not later than 180 days after receiving a 
        request for approval of a set of self-regulatory guidelines 
        described in subsection (a), after notice and comment, the 
        Commission shall--
                    (A) if the Commission determines that such set of 
                guidelines meets the requirements of this Act, approve 
                such set of guidelines; and
                    (B) if the Commission determines that such set of 
                guidelines does not meet the requirements of this Act, 
                deny approval of such set of guidelines.
            (2) Written conclusions.--The Commission shall set forth in 
        writing its conclusions relating to a determination under 
        paragraph (1).
    (c) Appeals.--Final action by the Commission on a request for 
approval of a set of self-regulatory guidelines described in subsection 
(a), or the failure of the Commission to act on such a request by the 
time required by subsection (b)(1), may be appealed to a district court 
of the United States of appropriate jurisdiction as provided for in 
section 706 of title 5, United States Code.

SEC. 7. ENFORCEMENT.

    (a) Enforcement by Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        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)).
            (2) Actions by the commission.--The Commission 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 (15 U.S.C. 41 et seq.) were incorporated into and made a 
        part of this Act, and any person who violates this Act shall be 
        subject to the penalties and entitled to the privileges and 
        immunities provided in the Federal Trade Commission Act.
    (b) Enforcement by State Attorneys General.--
            (1) In general.--If the attorney general of a State has 
        reason to believe that any person has committed or is 
        committing a violation of this Act that affects one or more 
        residents of such State, such attorney general may bring a 
        civil action exclusively in an appropriate district court of 
        the United States to--
                    (A) enjoin further such violation by the defendant;
                    (B) enforce compliance with this Act;
                    (C) obtain civil penalties in the amount provided 
                for under subsection (a);
                    (D) obtain other remedies permitted under State 
                law; or
                    (E) obtain damages, restitution, or other 
                compensation on behalf of residents of such State.
            (2) Rule of construction.--For purposes of bringing a civil 
        action under paragraph (1), nothing in this subsection 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, administer oaths 
        or affirmations, or compel the attendance of witnesses or the 
        production of documentary and other evidence.
            (3) 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 such 
                State to do so, except for any private person on behalf 
                of such State, 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 such State for a violation of any civil or 
                criminal law of such State.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) Ambient noise.--The term ``ambient noise'' means human 
        dialogue or any other sound that occurs in the range of the 
        microphone of a covered device, other than during a period 
        that--
                    (A) begins when a user of the device says a wake 
                word or uses another mechanism (such as pressing a 
                button on the device) to activate any electronic 
                function of the device; and
                    (B) ends--
                            (i) when the performance of the task or 
                        assistance requested by the user has been 
                        completed; or
                            (ii) if the user activates an electronic 
                        function of the device as described in 
                        subparagraph (A) but does not request the 
                        performance of a task or assistance within a 
                        reasonable time thereafter, at the expiration 
                        of such reasonable time.
            (2) Collect.--The term ``collect'' means, with respect to 
        covered information, obtaining such information in any manner, 
        except when solely transmitting, routing, providing 
        intermediate storage for, or providing connections for such 
        covered information through a system or network.
            (3) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (4) Contents.--The term ``contents'', when used with 
        respect to a communication, has the meaning given such term in 
        section 2510 of title 18, United States Code.
            (5) Covered device.--The term ``covered device''--
                    (A) means an internet-connected device--
                            (i) a component of which is a microphone; 
                        and
                            (ii) that collects covered information; and
                    (B) does not include any device that is solely 
                marketed as a microphone.
            (6) Covered information.--The term ``covered information'' 
        means any information (including contents of a communication, 
        date of birth, sex, height, weight, and geolocation 
        information) that--
                    (A) is obtained through the collection of ambient 
                noise by a covered device; and
                    (B) is linked or reasonably linkable to an 
                individual.
            (7) Data broker.--The term ``data broker'' means a person 
        whose principal source of revenue is derived from processing or 
        transferring the covered information of individuals with whom 
        the person does not have a direct relationship on behalf of 
        third parties and for the use of third parties.
            (8) Disclose.--The term ``disclose'' means, with respect to 
        covered information, to sell, release, transfer, share, 
        disseminate, make available, or otherwise communicate or cause 
        to be communicated such information to a third party.
            (9) Government entity.--The term ``government entity'' 
        means a Federal agency, State, local government, or other 
        organization, as such terms are defined in section 3371 of 
        title 5, United States Code.
            (10) Material.--The term ``material'' means, with respect 
        to a change to the operating system or firmware of a covered 
        device, that--
                    (A) the change affects the treatment of covered 
                information by the covered device or the manufacturer; 
                and
                    (B) knowledge of the change may affect the decision 
                of an average consumer of whether or not to continue 
                using the device.
            (11) Owner.--The term ``owner'' means, with respect to a 
        covered device, any individual who is in possession of the 
        device.
            (12) Process.--The term ``process'' means to perform or 
        cause to be performed any operation or set of operations on 
        covered information, whether or not by automated means.
            (13) Retain.--The term ``retain'' means, with respect to 
        covered information, to store, secure, or otherwise maintain or 
        cause the maintenance of such information.
            (14) Service provider.--
                    (A) In general.--The term ``service provider'' 
                means a person who collects, uses, or discloses covered 
                information for the sole purpose of, and only to the 
                extent that such person is, conducting business 
                activities on behalf of, for the benefit of, under 
                instruction of, and under contractual agreement with 
                another person.
                    (B) Limitation of application.--A person shall only 
                be considered a service provider in the course of 
                activities described in subparagraph (A).
                    (C) Exclusion.--The term ``service provider'' does 
                not include a data broker.
            (15) State.--The term ``State'' means each State of the 
        United States, the District of Columbia, each commonwealth, 
        territory, or possession of the United States, and each 
        federally recognized Indian Tribe.
            (16) Third party.--The term ``third party'' means, with 
        respect to a person, another person (including a government 
        entity) that--
                    (A) does not (directly or indirectly) control, is 
                not (directly or indirectly) controlled by, and is not 
                (directly or indirectly) under common control with the 
                first person; and
                    (B) is not a service provider of the first person.
            (17) Wake word.--The term ``wake word'' means a word or 
        phrase used to initiate an electronic function of a covered 
        device.

SEC. 9. EFFECTIVE DATE.

    This Act (except for section 6) shall take effect--
            (1) if the Commission first approves a set of self-
        regulatory guidelines under section 6 before the date that is 1 
        year after the date of the enactment of this Act, on the date 
        that is 1 year after the date of the enactment of this Act;
            (2) if the Commission first approves a set of self-
        regulatory guidelines under section 6 on or after the date that 
        is 1 year after the date of the enactment of this Act but 
        before the date that is 2 years after the date of the enactment 
        of this Act, on the date on which the Commission approves such 
        set of guidelines; or
            (3) if the Commission does not approve a set of self-
        regulatory guidelines under section 6 before the date that is 2 
        years after the date of the enactment of this Act, on the date 
        that is 2 years after the date of the enactment of this Act.
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