Title: Information Transparency & Personal Data Control Act
Policy area: Commerce

Summary:
Information Transparency & Personal Data Control Act
This bill requires the Federal Trade Commission to establish requirements related to privacy, security, and consent for entities providing services to the public that collect, store, process, use, or otherwise control sensitive personal information.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6864 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6864

   To require the Federal Trade Commission to promulgate regulations 
 related to sensitive personal information or behavioral data, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2018

  Ms. DelBene (for herself and Mr. Jeffries) introduced the following 
    bill; which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
   To require the Federal Trade Commission to promulgate regulations 
 related to sensitive personal information or behavioral data, 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 ``Information Transparency & Personal 
Data Control Act''.

SEC. 2. REQUIREMENTS FOR SENSITIVE PERSONAL INFORMATION OR BEHAVIORAL 
              DATA.

    (a) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Federal Trade Commission shall promulgate 
regulations under section 553 of title 5, United States Code, to 
require, except as provided in subsection (b), any operator that 
provides services to the public involving the collection, storage, 
processing, sale, sharing with third parties, or other use of sensitive 
personal information from United States persons or persons located in 
the United States when the data is collected, to meet the following 
requirements:
            (1) Affirmative, express, and opt in consent.--Provide 
        users with notice through a privacy and data use policy of a 
        specific request to use their data and require that users 
        provide affirmative, express, and opt in consent to any 
        functionality that involves the collection, storage, 
        processing, sale, sharing, or other use of sensitive personal 
        information, including sharing personal data with third 
        parties.
            (2) Privacy and data use policy.--Provide users with an up-
        to-date, transparent privacy, security, and data use policy 
        that meets general requirements, including that such policy, 
        presented to users in the context where it applies--
                    (A) is concise and intelligible;
                    (B) is clear and prominent in appearance;
                    (C) uses clear and plain language;
                    (D) uses visualizations where appropriate to make 
                complex information understandable by the ordinary 
                user; and
                    (E) is provided free of charge.
            (3) Additional requirements for privacy and data use 
        policy.--The privacy, security, and data use policy required 
        under paragraph (2) shall include the following:
                    (A) Identity and contact information of the entity 
                collecting the sensitive personal information.
                    (B) The purpose or use for collecting, storing, 
                processing, selling, sharing, or otherwise using the 
                personal information, including how the sensitive 
                personal information is shared with third parties.
                    (C) Third parties with whom the sensitive personal 
                information will be shared and for what purposes.
                    (D) The storage period for how long the personal 
                information will be retained by the operator and any 
                third party, as applicable.
                    (E) How consent to collecting, storing, processing, 
                selling, sharing, or otherwise using the sensitive 
                personal information, including sharing with third 
                parties, may be withdrawn.
                    (F) How a user can view the sensitive personal 
                information that they have provided to an operator and 
                whether it can be exported to other web-based 
                platforms.
                    (G) What kind of sensitive personal information is 
                collected.
                    (H) Whether the sensitive personal information will 
                be used to create profiles about users.
                    (I) How sensitive personal information is protected 
                from unauthorized access or acquisition.
            (4) Opt out consent.--For any collection, storage, 
        processing, selling, sharing, or other use of non-sensitive 
        personal information, including sharing with third parties, 
        Operators shall provide users with the ability to opt out at 
        any time.
            (5) Privacy audits.--
                    (A) In general.--Annually, Operators collecting, 
                storing, processing, selling, sharing, or otherwise 
                using sensitive personal information shall obtain a 
                privacy audit from an objective, independent third-
                party professional with substantial experience in the 
                field of privacy and data protection, who uses 
                procedures and standards generally accepted in such 
                field.
                    (B) Audit requirements.--Each such audit shall--
                            (i) set forth the privacy, security, and 
                        data use controls that the operator has 
                        implemented and maintained during the reporting 
                        period;
                            (ii) describe whether such controls are 
                        appropriate to the size and complexity of the 
                        operator, the nature and scope of the 
                        activities of the operator, and the nature of 
                        the sensitive personal information or 
                        behavioral data collected by the operator;
                            (iii) certify whether the privacy and 
                        security controls operate with sufficient 
                        effectiveness to provide reasonable assurance 
                        to protect the privacy and security of 
                        sensitive personal information or behavioral 
                        data and that the controls have so operated 
                        throughout the reporting period;
                            (iv) be prepared and completed within 60 
                        days after the end of the reporting period to 
                        which the audit applies; and
                            (v) be provided to the Federal Trade 
                        Commission or to the attorney general of a 
                        State, or other authorized State officer, 
                        within 10 days of notification by the 
                        Commission or the attorney general of a State, 
                        or other authorized State officer where such 
                        person has presented to the Operator 
                        allegations that a violation of this Act or any 
                        regulation issued under this Act has been 
                        committed by the Operator.
                    (C) Small business exemption.--Notwithstanding 
                other authorities of the FTC, the audit requirements 
                set forth above shall not apply to Operators with 500 
                or fewer employees.
                    (D) Non-sensitive personal information exemption.--
                The audit requirements set forth above shall not apply 
                to Operators who do not collect, store, process, sell, 
                share, or otherwise use sensitive personal information.
    (b) Exemptions.--
            (1) Necessary operations and security purposes.--Subsection 
        (a) shall not apply to the processing, collecting, storing, 
        sharing, selling of sensitive personal information for the 
        following purposes:
                    (A) Preventing or detecting fraud.
                    (B) Protecting the security of people, devices, 
                networks, or facilities.
                    (C) Protecting the health, safety, rights, or 
                property of the covered entity or another person.
                    (D) Responding in good faith to valid legal process 
                or providing information as otherwise required or 
                authorized by law.
                    (E) Monitoring or enforcing agreements between the 
                covered entity and an individual, including but not 
                limited to, terms of service, terms of use, user 
                agreements, or agreements concerning monitoring 
                criminal activity.
            (2) Reasonable expectation of users.--The regulations 
        promulgated pursuant to subsection (a) with respect to the 
        requirement to provide opt in consent shall not apply to the 
        processing of sensitive personal information or behavioral data 
        in which such processing does not deviate from purposes 
        consistent with an operator's relationship with users as 
        understood by the reasonable user.

SEC. 3. APPLICATION AND ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) General Application.--This Act applies, according to its terms, 
to those persons, partnerships, and corporations over which the Federal 
Trade Commission has authority pursuant to section 5(a)(2) of the 
Federal Trade Commission Act (15 U.S.C. 45(a)(2)). Notwithstanding the 
limitations in the Federal Trade Commission Act on Commission authority 
with respect to common carriers, this Act also applies, according to 
its terms, to common carriers subject to the Communications Act of 1934 
(47 U.S.C. 151 et seq.) and Acts amendatory thereof and supplementary 
thereto.
    (b) Enforcement.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        this Act or a regulation promulgated under this Act 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.--Except as provided in subsection 
        (a), the Federal Trade Commission shall enforce this Act and 
        the regulations promulgated under 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. Any person who 
        violates this Act or a 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.
    (c) Construction.--Nothing in this Act shall be construed to limit 
the authority of the Federal Trade Commission under any other provision 
of law.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Call detail record.--The term ``call detail record''--
                    (A) means session-identifying information 
                (including an originating or terminating telephone 
                number, an International Mobile Subscriber Identity 
                number, or an International Mobile Station Equipment 
                Identity number), a telephone calling card number, or 
                the time or duration of a call;
                    (B) does not include--
                            (i) the contents (as defined in section 
                        2510(8) of title 18, United States Code) of any 
                        communication;
                            (ii) the name, address, or financial 
                        information of a subscriber or customer; or
                            (iii) cell site location or global 
                        positioning system information.
            (2) Clear and prominent.--The term ``clear and prominent'' 
        means in any communication medium, the required disclosure is--
                    (A) of a type, size, and location sufficiently 
                noticeable for an ordinary consumer to read and 
                comprehend the communication;
                    (B) provided in a manner such that an ordinary 
                consumer is able to read and comprehend the 
                communication;
                    (C) is presented in an understandable language and 
                syntax;
                    (D) includes nothing contrary to, inconsistent 
                with, or that mitigates any statement contained within 
                the disclosure or within any document linked to or 
                referenced therein; and
                    (E) includes an option that is compliant with 
                applicable obligations of the operator under title III 
                of the Americans with Disabilities Act of 1990 (42 
                U.S.C. 12181 et seq.).
            (3) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (4) Operator.--The term ``operator'' means any entity who 
        operates a website located on the internet or an online service 
        and who collects or maintains personal information from or 
        about individuals, or on whose behalf such information is 
        collected or maintained, where such website or online service 
        is operated for commercial purposes, including any entity that 
        buys and sells consumer data without direct consumer 
        interaction, and any entity offering products or services for 
        sale through that website or online service, involving commerce 
        among the States or with one or more foreign nations.
            (5) Sensitive personal information.--The term ``sensitive 
        personal information'' means information relating to an 
        identified or identifiable individual, including the following:
                    (A) Financial information.
                    (B) Health information.
                    (C) Relationships.
                    (D) Information pertaining to children under 13 
                years of age.
                    (E) Social Security numbers.
                    (F) Driver's license or other government-issued 
                identification number.
                    (G) Authentication credentials, such as a username 
                and password.
                    (H) Precise geolocation information.
                    (I) Content of communications.
                    (J) Call detail records.
                    (K) Web browsing history, application usage 
                history, and the functional equivalent of either.
                    (L) Biometric information.
                    (M) Sexual orientation.
                    (N) Political preferences.
                    (O) Religious beliefs.
                    (P) Any other personal or behavioral information 
                that the Commission determines to be sensitive.
            (6) State.--The term ``State'' means each State of the 
        United States, the District of Columbia, and each commonwealth, 
        territory, or possession of the United States.
            (7) Third party.--The term ``third party'' means an 
        individual or entity that uses or receives sensitive personal 
        information or behavioral data obtained by or on behalf of an 
        operator, other than--
                    (A) a service provider of an operator to whom the 
                operator discloses the consumer's sensitive personal 
                information for an operational purpose pursuant to an 
                agreement that prohibits the person receiving the 
                personal information from using or disclosing the 
                personal information for any purpose other than the 
                purposes contemplated by the agreement; and
                    (B) any entity that uses such data only as 
                reasonably necessary--
                            (i) to comply with applicable law, 
                        regulation, or legal process;
                            (ii) to enforce an operator's terms of use; 
                        or
                            (iii) to detect, prevent, or mitigate fraud 
                        or security vulnerabilities.

SEC. 5. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to preclude the acquisition 
by the Federal Government of--
            (1) the contents of a wire or electronic communication 
        pursuant to other lawful authorities, including the authorities 
        under chapter 119 of title 18, United States Code (commonly 
        known as the ``Wiretap Act''), the Foreign Intelligence 
        Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), or any other 
        provision of Federal law not specifically amended by this Act; 
        or
            (2) records or other information relating to a subscriber 
        or customer of any electronic communication service or remote 
        computing service (not including the content of such 
        communications) pursuant to the Foreign Intelligence 
        Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), chapter 119 
        of title 18, United States Code (commonly known as the 
        ``Wiretap Act''), or any other provision of Federal law not 
        specifically amended by this Act.

SEC. 6. RIGHT OF ACTION.

    (a) Right of Action.--Except as provided in subsection (e), the 
attorney general of a State, or other authorized State officer, 
alleging a violation of this Act or any regulation issued under this 
Act that affects or may affect such State or its residents may bring an 
action on behalf of the residents of the State in any United States 
district court for the district in which the defendant is found, 
resides, or transacts business, or wherever venue is proper under 
section 1391 of title 28, to obtain appropriate injunctive relief.
    (b) Notice to Commission Required.--A State shall provide prior 
written notice to the Federal Trade Commission of any civil action 
under subsection (a) together with a copy of its complaint, except that 
if it is not feasible for the State to provide such prior notice, the 
State shall provide such notice immediately upon instituting such 
action.
    (c) Intervention by the Commission.--The Commission may intervene 
in such civil action and upon intervening--
            (1) be heard on all matters arising in such civil action; 
        and
            (2) file petitions for appeal of a decision in such civil 
        action.
    (d) Construction.--Nothing in this section shall be construed--
            (1) to prevent the attorney general of a State, or other 
        authorized State officer, from exercising the powers conferred 
        on the attorney general, or other authorized State officer, by 
        the laws of such State; or
            (2) to prohibit the attorney general of a State, or other 
        authorized State officer, from proceeding in State or Federal 
        court on the basis of an alleged violation of any civil or 
        criminal statute of that State.
    (e) Limitation.--No separate suit shall be brought under this 
section if, at the time the suit is brought, the same alleged violation 
is the subject of a pending action by the Federal Trade Commission or 
the United States under this chapter.

SEC. 7. EFFECTIVE DATE.

    This Act shall take effect 180 days after the date of the enactment 
of this Act.
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