Online Consumer Protection Act of 2021
Bill: H.R.1090 | Sponsor: Rep. Banks, Jim (R-IN)
Policy area: Commerce

Summary:
Online Consumer Protection Act of 2021  This bill requires commercial software operators and developers to provide consumers with a warning prior to making available for download software from specified countries that support international terrorism.  Violations of this requirement are subject to enforcement by the Federal Trade Commission and intentional violations are subject to criminal penalties.

To require software marketplace operators and developers of covered 
    foreign software to provide to consumers a warning prior to the 
           download of such software, 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 ``Online Consumer Protection Act of 
2021''.

SEC. 2. CONSUMER WARNING AND ACKNOWLEDGMENT FOR DOWNLOAD OF COVERED 
              FOREIGN SOFTWARE.

    (a) In General.--A software marketplace operator or developer of 
covered foreign software may not--
            (1) permit a consumer to download covered foreign software 
        unless, before the download begins--
                    (A) a warning that meets the requirements of 
                subsection (b) is displayed to the consumer, separately 
                from any privacy policy, terms of service, or other 
                notice; and
                    (B) the consumer is required to choose (by taking 
                an affirmative step such as clicking on a button) 
                between the options of--
                            (i) acknowledging such warning and 
                        proceeding with the download; or
                            (ii) cancelling the download; or
            (2) make available covered foreign software for download by 
        consumers unless the operator or developer has in place 
        procedures to ensure compliance with paragraph (1).
    (b) Requirements for Warning.--
            (1) In general.--A warning meets the requirements of this 
        subsection if such warning reads as follows (with the 
        italicized language being replaced and the other bracketed 
        language being included or deleted, as appropriate for the 
        covered foreign software regarding which the warning is being 
        given, and the brackets removed): ``Warning: [Name of Covered 
        Foreign Software] is developed by [Name of Developer of Covered 
        Foreign Software], which [is controlled by a company that] [is 
        organized under the laws of]/[conducts its principal operations 
        in]/[is organized under the laws of and conducts its principal 
        operations in] [Name of Covered Country]. Please either [insert 
        description of how to acknowledge the warning and proceed with 
        the download] if you wish to proceed with the download or 
        [insert description of how to cancel the download] if you wish 
        to cancel the download.''.
            (2) Alternative warnings.--The Commission may by regulation 
        specify that a warning other than the warning provided in 
        paragraph (1) meets the requirements of this subsection, as the 
        Commission considers appropriate.
    (c) Liability of Software Developer.--In the case of a violation of 
subsection (a) by a software marketplace operator, if the developer of 
the covered foreign software with respect to which the violation was 
committed did not inform the software marketplace operator that the 
software is covered foreign software, the developer (as well as the 
software marketplace operator) shall be considered to have committed 
the violation.
    (d) Enforcement by Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        this section or a regulation promulgated under this section 
        shall be treated as a violation of a regulation under section 
        18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
        57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
            (2) Powers of commission.--The Commission shall enforce 
        this section and the regulations promulgated under the section 
        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. 
        Any person who violates this section or a regulation 
        promulgated under this section shall be subject to the 
        penalties and entitled to the privileges and immunities 
        provided in the Federal Trade Commission Act.
            (3) Regulations.--The Commission may promulgate regulations 
        under section 553 of title 5, United States Code, to carry out 
        this section.
    (e) Criminal Offense.--
            (1) Corporate offense.--Whoever, being a software 
        marketplace operator or developer of covered foreign software, 
        knowingly violates subsection (a) shall be fined $50,000 for 
        each violation.
            (2) Individual offense.--Whoever, being an officer of a 
        software marketplace operator or developer of covered foreign 
        software, causes a violation of subsection (a) with the intent 
        to conceal the country in which software is developed, shall be 
        fined under title 18, United States Code, imprisoned not more 
        than 2 years, or both.
            (3) Application.--This subsection shall apply with respect 
        to conduct occurring during the period beginning on the date of 
        enactment of this Act and ending on the date on which this 
        section ceases to have any force or effect under subsection 
        (g).
    (f) Report to Congress.--Not later than 8 years after the date of 
the enactment of this Act, the Commission, in consultation with the 
Attorney General, shall submit to Congress a report on the 
implementation and enforcement of this section.
    (g) Sunset.--This section shall cease to have any force or effect 
on the date that is 10 years after the date of the enactment of this 
Act.
    (h) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Covered country.--
                    (A) In general.--The term ``covered country'' 
                means--
                            (i) China, Russia, North Korea, Iran, 
                        Syria, and Cuba;
                            (ii) any other country the government of 
                        which the Secretary of State determines has 
                        repeatedly provided support for international 
                        terrorism pursuant to--
                                    (I) section 1754(c)(1)(A) of the 
                                Export Control Reform Act of 2018 (50 
                                U.S.C. 4318(c)(1)(A));
                                    (II) section 620A of the Foreign 
                                Assistance Act of 1961 (22 U.S.C. 
                                2371);
                                    (III) section 40 of the Arms Export 
                                Control Act (22 U.S.C. 2780); or
                                    (IV) any other provision of law; 
                                and
                            (iii) subject to subparagraph (B), any 
                        other country designated by the Attorney 
                        General or the Commission based on expert 
                        knowledge of the sources of dangerous software.
                    (B) Process.--
                            (i) Designation.--Upon designating a 
                        country under subparagraph (A)(iii), the 
                        Attorney General or the Commission (in this 
                        clause referred to as the ``notifying party'') 
                        shall transmit a notification of the 
                        designation to the Commission or the Attorney 
                        General, as the case may be (in this clause 
                        referred to as the ``notified party''). Such 
                        designation shall become effective on the day 
                        that is 30 days after the date on which such 
                        notification is transmitted, unless, before 
                        such day, the notified party transmits to the 
                        notifying party and the Secretary of State an 
                        objection. The Secretary shall, not later than 
                        30 days after the date on which the Secretary 
                        receives such objection, determine whether to 
                        designate such country under such subparagraph.
                            (ii) Revocation of designation.--
                                    (I) Joint action required.--Except 
                                as provided in subclause (II), the 
                                designation of a country under 
                                subparagraph (A)(iii) may only be 
                                revoked by the Attorney General and the 
                                Commission, acting jointly.
                                    (II) Dispute resolution.--In the 
                                case of a dispute between the Attorney 
                                General and the Commission regarding 
                                whether to revoke the designation of a 
                                country under subparagraph (A)(iii), 
                                the Attorney General or the Commission 
                                may transmit to the Secretary of State 
                                a notification of such dispute. The 
                                Secretary shall, not later than 30 days 
                                after the date on which the Secretary 
                                receives such notification, determine 
                                whether to revoke such designation.
            (3) Covered foreign software.--The term ``covered foreign 
        software'' means software that is developed by--
                    (A) a person (other than an individual)--
                            (i) who is organized under the laws of a 
                        covered country; or
                            (ii) whose principal operations are 
                        conducted in a covered country; or
                    (B) a person (other than an individual) that is, 
                directly or indirectly, controlled by a person 
                described in subparagraph (A).
            (4) Mobile application.--The term ``mobile application'' 
        means a software program that runs on the operating system of a 
        smartphone, tablet computer, or similar mobile electronic 
        device.
            (5) Software.--The term ``software'' means any computer 
        software program, including a mobile application.
            (6) Software marketplace operator.--The term ``software 
        marketplace operator'' means a person who, for a commercial 
        purpose, operates an online store or marketplace through which 
        software is made available for download by consumers.
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