Title: PRIVCY ACT
Policy area: Commerce

Summary:
Protecting the Information of our Vulnerable Children and Youth Act or the PRIVCY ACT  This bill modifies and expands the requirements for commercial entities with respect to information collected from young consumers under the age of 18 and children under the age of 13. Specifically, it applies the requirements for processing information reasonably linkable to a young consumer or child to any entity within the jurisdiction of the Federal Trade Commission, including nonprofit organizations.  Additionally, the bill modifies the requirements for such processed information with respect to
Among other things, it also adds provisions

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5703 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 5703

To amend the Children's Online Privacy Protection Act of 1998 to update 
      and expand the coverage of such Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2020

Ms. Castor of Florida introduced the following bill; which was referred 
                to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To amend the Children's Online Privacy Protection Act of 1998 to update 
      and expand the coverage of such Act, 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; TABLE OF CONTENTS.

    This Act may be cited as the ``Protecting the Information of our 
Vulnerable Children and Youth Act'' or the ``PRIVCY ACT''.

SEC. 2. DEFINITIONS.

    Section 1302 of the Children's Online Privacy Protection Act of 
1998 (15 U.S.C. 6501) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``or `children''' after ``child''; 
                and
                    (B) by inserting ``or individuals, respectively,'' 
                after ``individual'';
            (2) by striking paragraph (10);
            (3) by redesignating paragraphs (2) through (9) as 
        paragraphs (3) through (10), respectively;
            (4) inserting after paragraph (1) the following:
            ``(2) Young consumer.--The term `young consumer' means an 
        individual over the age of 12 and under the age of 18.'';
            (5) by amending paragraph (3) (as so redesignated) to read 
        as follows:
            ``(3) Covered entity.--The term `covered entity' means--
                    ``(A) any organization, corporation, trust, 
                partnership, sole proprietorship, unincorporated 
                association, or venture over which the Commission has 
                authority pursuant to section 5(a)(2) of the Federal 
                Trade Commission Act (15 U.S.C. 45(a)(2));
                    ``(B) notwithstanding section 5(a)(2) of the 
                Federal Trade Commission Act (15 U.S.C. 45(a)(2)), 
                common carriers; and
                    ``(C) notwithstanding sections 4 and 5(a)(2) of the 
                Federal Trade Commission Act (15 U.S.C. 44 and 
                45(a)(2)), any nonprofit organization, including any 
                organization described in section 501(c) of the 
                Internal Revenue Code of 1986 that is exempt from 
                taxation under section 501(a) of the Internal Revenue 
                Code of 1986.'';
            (6) by amending paragraph (5) (as so redesignated) to read 
        as follows:
            ``(5) Disclose.--The term `disclose' means to intentionally 
        or unintentionally release, transfer, sell, disseminate, share, 
        publish, lease, license, make available, allow access to, fail 
        to restrict access to, or otherwise communicate covered 
        information.'';
            (7) by amending paragraph (9) (as so redesignated) to read 
        as follows:
            ``(9) Covered information.--The term `covered 
        information'--
                    ``(A) means any information, linked or reasonably 
                linkable to a specific young consumer or child, or 
                consumer device of a young consumer or child;
                    ``(B) may include--
                            ``(i) a name, alias, home or other physical 
                        address, online identifier, Internet Protocol 
                        address, email address, account name, Social 
                        Security number, physical characteristics or 
                        description, telephone number, State 
                        identification card number, driver's license 
                        number, where applicable, passport number, or 
                        other similar identifier;
                            ``(ii) race, religion, sex, sexual 
                        orientation, sexual behavior, familial status, 
                        gender identity, disability, age, political 
                        affiliation, or national origin;
                            ``(iii) commercial information, including 
                        records relating to personal property, products 
                        or services purchased, obtained, or considered, 
                        or other purchasing or consuming histories or 
                        tendencies;
                            ``(iv) biometric information;
                            ``(v) Internet or other electronic network 
                        activity information, including browsing 
                        history, search history, and information 
                        regarding a young consumer's or child's 
                        interaction with an Internet website, 
                        application, or advertisement;
                            ``(vi) geolocation information;
                            ``(vii) audio, electronic, visual, thermal, 
                        olfactory, or similar information;
                            ``(viii) education information;
                            ``(ix) health information;
                            ``(x) facial recognition information;
                            ``(xi) contents of and parties to 
                        information, including with respect to 
                        electronic mail, text messages, picture 
                        messages, voicemails, audio conversations, and 
                        video conversations;
                            ``(xii) financial information, including 
                        bank account numbers, credit card numbers, 
                        debit card numbers, or insurance policy 
                        numbers, where applicable;
                            ``(xiii) inferences drawn from any of the 
                        information described in this paragraph to 
                        create a profile about a young consumer or 
                        child reflecting the young consumer's or 
                        child's preferences, characteristics, 
                        psychological trends, predispositions, 
                        behavior, attitudes, intelligence, abilities, 
                        and aptitudes; and
                    ``(C) does not include--
                            ``(i) information that is processed solely 
                        for the purpose of employment of a young 
                        consumer;
                            ``(ii) de-identified information.'';
            (8) by amending paragraph (10) (as so redesignated) to read 
        as follows:
            ``(10) Verifiable consent.--The term `verifiable consent' 
        means express, affirmative consent freely given by a young 
        consumer, or by the parent of a child, to the processing of 
        covered information of that young consumer or child, 
        respectively--
                    ``(A) that is specific, informed, and unambiguous;
                    ``(B) that is given separately for each process of 
                specific types of covered information;
                    ``(C) where the young consumer or parent of a 
                child, as applicable, has not received any financial or 
                other incentive in exchange for such consent; and
                    ``(D) that is given before any processing occurs, 
                at a time and in a context in which the young consumer 
                or parent of a child, as applicable, would reasonably 
                expect to make choices concerning such processing.'';
            (9) by redesignating paragraphs (11) and (12) as paragraphs 
        (12) and (13), respectively; and
            (10) by adding at the end the following:
            ``(14) Process.--The term `process' means any operation or 
        set of operations which is performed on covered information, 
        whether or not by automated means, including collecting, 
        creating, acquiring, disclosing, recording, deriving, 
        inferring, obtaining, assembling, organizing, structuring, 
        storing, retaining, adapting or altering, using, or retrieving 
        covered information.
            ``(15) De-identified information and related terms.--
                    ``(A) The term `de-identified information' means 
                information that has been de-identified by a covered 
                entity, where the covered entity publicly discloses the 
                methods it uses to de-identify information.
                    ``(B) The term `de-identify' means the removal of 
                identifying information from information such that the 
                information is not reasonably linkable to a specific 
                young consumer or child or consumer device of a young 
                consumer or child.
                    ``(C) The term `re-identify' means to link 
                information that has been de-identified to a specific 
                young consumer or child or consumer device of a young 
                consumer or child.
            ``(16) State.--The term `State' means each of the several 
        States, the District of Columbia, each territory of the United 
        States, and each federally recognized Indian Tribe.
            ``(17) Service provider.--The term `service provider' means 
        a covered entity that processes covered information at the 
        direction of, and for the sole benefit of, another covered 
        entity, and--
                    ``(A) is contractually or legally prohibited from 
                processing such covered information for any other 
                purpose; and
                    ``(B) complies with all of the requirements of this 
                Act.''.

SEC. 3. UNFAIR OR DECEPTIVE ACTS OR PRACTICES.

    Section 1303 of the Children's Online Privacy Protection Act of 
1998 (15 U.S.C. 6502) is amended--
            (1) in the section heading, by striking ``collection and 
        use of personal information from and about children on the 
        internet'' and inserting ``processing of covered information 
        from and about young consumers or children'';
            (2) by amending subsection (a) to read as follows:
    ``(a) Acts Prohibited.--It is unlawful for a covered entity that 
has actual or constructive knowledge that such covered entity is 
processing covered information about a young consumer or child to 
process such information in a manner that violates the regulations 
prescribed under subsection (b).'';
            (3) by amending subsection (b) to read as follows:
    ``(b) In General.--Not later than 1 year after the date of 
enactment of the Protecting the Information of our Vulnerable Children 
and Youth Act, the Commission shall, under section 553 of title 5, 
United States Code, revise regulations issued under this Act prior to 
such date of enactment and issue additional regulations as necessary 
that implement the requirements and prohibitions set forth in 
paragraphs (1) through (7). The Commission shall have the authority to 
revise such regulations every 7 years or as it determines necessary due 
to changes in or emerging technology.
            ``(1) Transparency.--Such regulations shall require a 
        covered entity to develop and make publicly available at all 
        times and in a machine-readable format, a privacy policy, in a 
        manner that is clear, easily understood, and written in plain 
        and concise language, that includes--
                    ``(A) the categories of covered information that 
                the covered entity processes about young consumers and 
                children;
                    ``(B) how and under what circumstances covered 
                information is collected directly from a young consumer 
                or child;
                    ``(C) the categories and the sources of any covered 
                information processed by a covered entity that is not 
                collected directly from a young consumer or child;
                    ``(D) a description of the purposes for which the 
                covered entity processes covered information, 
                including--
                            ``(i) a description of whether and how the 
                        covered entity customizes products or services, 
                        or adjusts the prices of products or services 
                        for young consumers or children or based in any 
                        part on processing of covered information;
                            ``(ii) a description of whether and how the 
                        covered entity, or the covered entity's 
                        affiliates or service providers, de-identifies 
                        information, including the methods used to de-
                        identify such information; and
                            ``(iii) a description of whether and how 
                        the covered entity, or the covered entity's 
                        affiliates or service providers, generates or 
                        uses any consumer score to make decisions 
                        concerning a young consumer or child, and the 
                        source or sources of any such consumer score;
                    ``(E) a description of how long and the 
                circumstances under which the covered entity retains 
                covered information;
                    ``(F) a description of all of the purposes for 
                which the covered entity discloses covered information 
                with service providers and, on a biennial basis, the 
                categories of service providers;
                    ``(G) a description of whether and for what 
                purposes the covered entity discloses information to 
                third parties;
                    ``(H) whether a covered entity sells or otherwise 
                shares covered information with data brokers or 
                processes covered information for targeted advertising;
                    ``(I) whether a covered entity collects covered 
                information about young consumers or children over time 
                and across different websites or mobile applications 
                when a young consumer or child uses the covered 
                entity's website or mobile application;
                    ``(J) how a young consumer or a parent of a child 
                can exercise their rights to access, correct, and 
                delete such young consumer's or child's covered 
                information as set forth under paragraph (5);
                    ``(K) how a young consumer or a parent of a child 
                can grant, withhold, or withdraw the consent required 
                under paragraph (2), including how to modify consent 
                for the processing of covered information, and the 
                consequences of withholding, withdrawing, or modifying 
                such consent;
                    ``(L) the effective date of the notice; and
                    ``(M) how the covered entity will communicate 
                material changes of the privacy policy to the young 
                consumer or the parent of a child.
            ``(2) Consent required.--
                    ``(A) In general.--Such regulations shall require a 
                covered entity that has actual or constructive 
                knowledge that such covered entity is processing 
                covered information about a young consumer or child--
                            ``(i) to provide clear and concise notice 
                        to a young consumer or the parent of a child of 
                        the items of covered information about such 
                        young consumer or child, respectively, that is 
                        processed by such covered entity and how such 
                        covered entity processes such covered 
                        information and obtain verifiable consent for 
                        such processing; and
                            ``(ii) if such covered entity determines, 
                        including through constructive knowledge, that 
                        such covered entity has not obtained verifiable 
                        consent for the processing of covered 
                        information about a young consumer or child, 
                        to, not later than 48 hours after such 
                        determination--
                                    ``(I) obtain verifiable consent; or
                                    ``(II) delete all covered 
                                information about such young consumer 
                                or child.
                    ``(B) When consent not required.--Such regulations 
                shall provide that verifiable consent under this 
                paragraph is not required in the case of--
                            ``(i) online contact information collected 
                        from a young consumer or child that--
                                    ``(I) is used only to respond 
                                directly on a one-time basis to a 
                                specific request from the young 
                                consumer or child;
                                    ``(II) is not used to re-contact 
                                the young consumer or child; and
                                    ``(III) is not retained by the 
                                covered entity after responding as 
                                described in subclause (I);
                            ``(ii) a request for the name or online 
                        contact information of a young consumer or the 
                        parent of a child that is used for the sole 
                        purpose of obtaining verifiable consent or 
                        providing notice under subparagraph (A)(i) and 
                        where such information is not retained by the 
                        covered entity if verifiable consent is not 
                        obtained within 48 hours; or
                            ``(iii) the processing of such information 
                        by the covered entity is necessary--
                                    ``(I) to respond to judicial 
                                process; or
                                    ``(II) to the extent permitted 
                                under other provisions of law, to 
                                provide information to law enforcement 
                                agencies or for an investigation on a 
                                matter related to public safety.
                    ``(C) Withdrawal of consent.--Such regulations 
                shall further provide a young consumer or the parent of 
                a child, as applicable, a mechanism to withdraw his or 
                her consent at any time in a manner that is as easy as 
                the mechanism to give consent. Such withdrawal of 
                consent shall not be construed to affect the lawfulness 
                of any processing based on verifiable consent before 
                such withdrawal.
                    ``(D) Prohibition on limiting or discontinuing 
                service.--Such regulations shall prohibit a covered 
                entity from refusing to provide a service, or 
                discontinuing a service provided, to a young consumer 
                or child, if the young consumer or parent of the child, 
                as applicable, refuses to consent, or withdraws 
                consent, to the processing of any covered information 
                not essential to the covered entity to provide such 
                service.
            ``(3) Retention of data.--
                    ``(A) Retention limitations.--Subject to the 
                exceptions provided in subparagraph (B), such 
                regulations shall prohibit a covered entity from 
                keeping, retaining, or otherwise storing covered 
                information for longer than is reasonably necessary for 
                the purposes for which the covered information is 
                processed.
                    ``(B) Exceptions.--Further retention of covered 
                information shall not be considered to be incompatible 
                with the purposes of processing described in 
                subparagraph (A) if such processing is necessary and 
                done solely for the purposes of--
                            ``(i) compliance with laws, regulations, or 
                        other legal obligations;
                            ``(ii) preventing risks to the health or 
                        safety of a child or young adults or groups of 
                        children or young adults; or
                            ``(iii) repairing errors that impair 
                        existing functionality.
            ``(4) Limitation on disclosing covered information to third 
        parties.--
                    ``(A) Disclosures.--Such regulations shall prohibit 
                a covered entity from disclosing covered information to 
                a third party unless the covered entity has a written 
                agreement with such third party that--
                            ``(i) specifies all of the purposes for 
                        which the third party may process the covered 
                        information for which the covered entity has 
                        verifiable consent;
                            ``(ii) prohibits the third party from 
                        processing covered information for any purpose 
                        other than the purposes specified under clause 
                        (i); and
                            ``(iii) requires the third party to provide 
                        at least the same privacy and security 
                        protections as the covered entity; or
                    ``(B) Responsibilities of covered entities 
                regarding third parties.--Such regulations shall 
                require a covered entity--
                            ``(i) to perform reasonable due diligence 
                        in selecting any third party to enter into an 
                        agreement under subparagraph (A) and to 
                        exercise reasonable oversight over all such 
                        third parties to assure compliance with the 
                        requirements of this Act; and
                            ``(ii) if the covered entity has actual or 
                        constructive knowledge that a third party has 
                        violated the agreement described in 
                        subparagraph (A) to--
                                    ``(I) to the extent practicable, 
                                promptly take steps to ensure 
                                compliance with such agreement; and
                                    ``(II) promptly report to the 
                                Commission that such a violation 
                                occurred.
            ``(5) Right to access, correct, and delete covered 
        information.--
                    ``(A) Access.--Such regulations shall require a 
                covered entity, upon request of a young consumer or the 
                parent of a child and after proper identification of 
                such young consumer or parent, to promptly provide to 
                such young consumer or parent, as applicable--
                            ``(i) access to all covered information 
                        pertaining to such young consumer or child 
                        including a description of--
                                    ``(I) each type of covered 
                                information processed by the covered 
                                entity pertaining to the young consumer 
                                or child, as applicable;
                                    ``(II) each purpose for which the 
                                covered entity processes each category 
                                of covered information pertaining to 
                                the young consumer or child, as 
                                applicable;
                                    ``(III) the names of each third 
                                party to which the covered entity 
                                disclosed the covered information;
                                    ``(IV) each source other than the 
                                young consumer or child, as applicable, 
                                from which the covered entity obtained 
                                covered information pertaining to that 
                                young consumer or child, as applicable;
                                    ``(V) how long the covered 
                                information will be retained or stored 
                                by the covered entity and, if not 
                                known, the criteria the covered entity 
                                uses to determine how long the covered 
                                information will be retained or stored 
                                by the covered entity; and
                                    ``(VI) with respect to any consumer 
                                score of the young consumer or child, 
                                as applicable, processed by the covered 
                                entity, of--
                                            ``(aa) how such consumer 
                                        score is used by the covered 
                                        entity to make decisions with 
                                        respect to that young consumer 
                                        or child, as applicable; and
                                            ``(bb) the source that 
                                        created the consumer score if 
                                        not created by the covered 
                                        entity; and
                            ``(ii) a simple and reasonable mechanism by 
                        which a young consumer or parent of a child may 
                        request access to the information described 
                        under clause (i), as applicable.
                    ``(B) Deletion.--Such regulations shall require a 
                covered entity, subject to the exceptions established 
                under subparagraph (D)--
                            ``(i) to establish a simple and reasonable 
                        mechanism by which a young consumer or parent 
                        of a child with respect to whom the covered 
                        entity processes covered information may 
                        request the covered entity to delete any 
                        covered information (or any component thereof); 
                        and
                            ``(ii) to delete such covered information 
                        not later than 45 days after receiving such 
                        request.
                    ``(C) Correction.--Such regulations shall require a 
                covered entity, subject to the exceptions established 
                under subparagraph (D)--
                            ``(i) to provide each young consumer or 
                        parent of a child with respect to whom the 
                        covered entity processes covered information, 
                        as applicable, a simple and reasonable 
                        mechanism by which that young consumer or 
                        parent may submit a request to the entity--
                                    ``(I) to dispute the accuracy or 
                                completeness of that covered 
                                information, or part or component 
                                thereof; and
                                    ``(II) to request that such covered 
                                information, or part or component 
                                thereof, be corrected for accuracy or 
                                completeness; and
                            ``(ii) not later than 45 days after 
                        receiving a request under clause (i)--
                                    ``(I) to determine whether the 
                                covered information disputed or 
                                requested to be corrected is inaccurate 
                                or incomplete; and
                                    ``(II) to correct the accuracy or 
                                completeness of any covered information 
                                determined by the covered entity to be 
                                inaccurate or incomplete.
                    ``(D) Exceptions.--Such regulations shall permit a 
                covered entity to deny a request made under 
                subparagraphs (A), (B), or (C) if--
                            ``(i) the covered entity is unable to 
                        verify the identity of the young consumer or 
                        parent of a child making the request after 
                        making a reasonable effort to verify the 
                        identity of such young consumer or parent; or
                            ``(ii) with respect to the request made, 
                        the covered entity determines that--
                                    ``(I) the entity is limited from 
                                doing so by law, legally recognized 
                                privilege, or other legal obligation; 
                                or
                                    ``(II) fulfilling the request would 
                                create a legitimate risk to the 
                                privacy, security, or safety of someone 
                                other than the young consumer or child, 
                                as applicable; or
                            ``(iii) with respect to a request to 
                        correct covered information made under 
                        subparagraph (C) or a request to delete covered 
                        information made under subparagraph (D), the 
                        covered entity determines that the retention of 
                        the covered information is necessary to--
                                    ``(I) complete the transaction with 
                                the young consumer or child, as 
                                applicable, for which the covered 
                                information was collected;
                                    ``(II) provide a product or service 
                                affirmatively requested by the young 
                                consumer or parent of a child, as 
                                applicable;
                                    ``(III) perform a contract with the 
                                young consumer or a parent of a child, 
                                as applicable, including a contract for 
                                billing, financial reporting, or 
                                accounting;
                                    ``(IV) to keep a record of the 
                                covered information for law enforcement 
                                purposes; or
                                    ``(V) identify and repair errors 
                                that impair the functionality of the 
                                Internet website or online service; or
                            ``(iv) the covered information is used in 
                        public or peer-reviewed scientific, medical, or 
                        statistical research in the public interest 
                        that adheres to commonly accepted ethical 
                        standards or laws, with informed consent 
                        consistent with section 50.20 of title 21, Code 
                        of Federal Regulations, provided that the 
                        research must already be in progress at the 
                        time of request to access, correct, or delete 
                        is made under subparagraphs (A), (B), or (C).
                    ``(E) Prohibition on limiting or discontinuing 
                service.--Such regulations shall prohibit a covered 
                entity from refusing to provide a service, or 
                discontinuing a service provided, to a young consumer 
                or child, if the young consumer or parent of the child, 
                as applicable, exercises any of the rights set forth in 
                regulations under this paragraph.
            ``(6) Additional prohibited practices with respect to young 
        consumers and children.--
                    ``(A) In general.--Such regulations shall prohibit 
                a covered entity from--
                            ``(i) processing any covered information in 
                        a manner that is inconsistent with what a 
                        reasonable young consumer or parent of a child 
                        would expect in the context of a particular 
                        transaction or the young consumer's or parent's 
                        relationship with such covered entity or 
                        seeking to obtain verifiable consent for such 
                        processing;
                            ``(ii) providing targeting advertisements 
                        or engaging in other marketing to a specific 
                        child, based on that child's covered 
                        information or behavior, or based on the 
                        covered information or behavior of children who 
                        are similar to that child in gender, income 
                        level, age, race, or ethnicity; and
                            ``(iii) conditioning the participation of a 
                        child in a game, sweepstakes, or other contest 
                        on consenting to the processing of more covered 
                        information than is necessary for such child to 
                        participate.
                    ``(B) Exceptions.--Nothing in subparagraph (A) 
                shall prohibit a covered entity from processing covered 
                information if necessary solely for purposes of--
                            ``(i) detecting and preventing security 
                        incidents;
                            ``(ii) preventing imminent danger to the 
                        personal safety of an individual or group of 
                        individuals;
                            ``(iii) identifying and repairing errors 
                        that impair the functionality of the Internet 
                        website or online service; or
                            ``(iv) complying with any Federal, State, 
                        or local law, rule, regulation, or other legal 
                        obligation, including civil, criminal, or 
                        regulatory inquiries, investigations, 
                        subpoenas, disclosures of information required 
                        by a court order or other properly executed 
                        compulsory process.
                    ``(C) De-identified information.--Such regulations 
                shall prohibit a covered entity that de-identifies 
                information, and any third party with which the covered 
                entity discloses such de-identified information, from 
                re-identifying, or attempting to re-identify, any 
                information that the covered entity has de-identified. 
                Such regulations shall also require a covered entity to 
                contractually prohibit any third party with which the 
                covered entity discloses such de-identified information 
                from re-identifying or attempting to re-identify such 
                information.
            ``(7) Security requirements.--
                    ``(A) In general.--Such regulations shall require a 
                covered entity to establish and implement reasonable 
                security policies, practices, and procedures for the 
                treatment and protection of covered information, taking 
                into consideration--
                            ``(i) the size, nature, scope, and 
                        complexity of the activities engaged in by such 
                        covered entity;
                            ``(ii) the sensitivity of any covered 
                        information at issue;
                            ``(iii) the state of the art in 
                        administrative, technical, and physical 
                        safeguards for protecting such information; and
                            ``(iv) the cost of implementing such 
                        policies, practices, and procedures.
                    ``(B) Specific requirements.--Such regulations 
                shall require the policies, practices, and procedures 
                established pursuant to regulations issued under 
                subparagraph (A) to include the following:
                            ``(i) A written security policy with 
                        respect to the processing of such covered 
                        information.
                            ``(ii) The identification of an officer or 
                        other individual as the point of contact with 
                        responsibility for the management of 
                        information security.
                            ``(iii) A process for identifying and 
                        assessing any reasonably foreseeable 
                        vulnerabilities in the system or systems 
                        maintained by such covered entity that contains 
                        such covered information, including regular 
                        monitoring for a breach of security of such 
                        system or systems.
                            ``(iv) A process for taking preventive and 
                        corrective action to mitigate against any 
                        vulnerabilities identified in the process 
                        required by clause (iii), which may include--
                                    ``(I) implementing any changes to 
                                the security practices, architecture, 
                                installation, or implementation of 
                                network or operating software; and
                                    ``(II) regular testing or otherwise 
                                monitoring the effectiveness of the 
                                safeguards.
                            ``(v) A process for determining if the 
                        covered information is no longer needed and 
                        deleting such covered information by shredding, 
                        permanently erasing, or otherwise modifying the 
                        covered information contained in such data to 
                        make such covered information permanently 
                        unreadable or indecipherable.
                            ``(vi) A process for overseeing persons who 
                        have access to covered information, including 
                        through Internet-connected devices, by--
                                    ``(I) taking reasonable steps to 
                                select and retain persons that are 
                                capable of maintaining appropriate 
                                safeguards for the covered information 
                                or Internet-connected devices at issue; 
                                and
                                    ``(II) requiring all such persons 
                                to implement and maintain such security 
                                measures.
                            ``(vii) A process for employee training and 
                        supervision for implementation of the policies, 
                        practices, and procedures required by this 
                        subsection.
                            ``(viii) A written plan or protocol for 
                        internal and public response in the event of a 
                        breach of security.
                    ``(C) Periodic assessment and consume privacy and 
                data security modernization.--Such regulations shall 
                require a covered entity, not less frequently than 
                every 12 months, to monitor, evaluate, and adjust, as 
                appropriate, the policies, practices, and procedures of 
                such covered entity in light of any relevant changes 
                in--
                            ``(i) technology;
                            ``(ii) internal or external threats and 
                        vulnerabilities to covered information; and
                            ``(iii) the changing business arrangements 
                        of the covered entity.
                    ``(D) Submission of policies to the ftc.--Such 
                regulations shall require a covered entity to submit 
                the policies, practices, and procedures of the covered 
                entity to the Commission in conjunction with a 
                notification of a breach of security required by any 
                Federal or State statute or regulation or upon request 
                of the Commission.''; and
            (4) in subsection (c)--
                    (A) by inserting ``subsection (a)(2) or'' after 
                ``violation of''; and
                    (B) by striking ``under subsection (a)'' and 
                inserting ``under subsection (b)''.

SEC. 4. REPEAL OF SAFE HARBORS PROVISION AND CONFORMING AMENDMENTS.

    (a) In General.--Section 1304 of the Children's Online Privacy 
Protection Act of 1998 (15 U.S.C. 6503) is repealed.
    (b) Conforming Amendments.--The Children's Online Privacy 
Protection Act of 1998 (15 U.S.C. 6501 et seq.) is amended--
            (1) by striking ``operator'' each place it appears and 
        inserting ``covered entity'';
            (2) in section 1303(c), by striking ``sections 1304 and 
        1306'' and inserting ``section 1306''; and
            (3) in section 1305(b), by striking paragraph (3).

SEC. 5. ADMINISTRATION AND APPLICABILITY OF ACT.

    (a) Enforcement by Federal Trade Commission.--Section 1306(d) of 
the Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
6505(d)) is amended--
            (1) in the first sentence, by striking ``this title. Any 
        entity'' and inserting ``this title, and any entity'';
            (2) by striking ``The Commission shall prevent'' and 
        inserting the following:
            ``(1) In general.--Except as provided in paragraphs (2) 
        through (4), the Commission shall prevent''; and
            (3) by adding at the end the following:
            ``(2) Increased civil penalty amount.--In the case of a 
        civil penalty under subsection (l) or (m) of section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45) relating to acts or 
        practices in violation of any provision of this title or a 
        regulation prescribed under this title, the maximum dollar 
        amount per violation shall be $63,795.
            ``(3) Nature of relief available.--In any action commenced 
        by the Commission under section 19(a) of the Federal Trade 
        Commission Act (15 U.S.C. 57a(a)) to enforce this title, the 
        Commission shall seek all appropriate relief described in 
        subsection (b) of such section, and may, notwithstanding such 
        subsection, seek any exemplary or punitive damages.''.
    (b) Enforcement by Certain Other Agencies.--Section 1306 of the 
Children's Online Privacy Protection Act of 1998 (15 U.S.C. 6505) is 
further amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``, in the case 
                of'' and all that follows and inserting the following: 
                ``by the appropriate Federal banking agency, with 
                respect to any insured depository institution (as those 
                terms are defined in section 3 of that Act (12 U.S.C. 
                1813));'';
                    (B) in paragraph (6), by striking ``Federal land 
                bank, Federal land bank association, Federal 
                intermediate credit bank, or production credit 
                association'' and inserting ``Farm Credit Bank, 
                Agricultural Credit Bank (to the extent exercising the 
                authorities of a Farm Credit Bank), Federal Land Credit 
                Association, or agricultural credit association''; and
                    (C) by striking paragraph (2) and redesignating 
                paragraphs (3) through (6) as paragraphs (2) through 
                (5), respectively; and
            (2) in subsection (c), by striking ``subsection (a)'' each 
        place it appears and inserting ``subsection (b)''.

SEC. 6. REVIEW.

    Section 1307 of the Children's Online Privacy Protection Act of 
1998 (15 U.S.C. 6506) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the regulations initially issued under section 1303'' and 
        inserting ``the regulations issued under section 1303 for the 
        initial implementation of the amendments made by the Protecting 
        the Information of our Vulnerable Children and Youth Act''; and
            (2) by amending paragraph (1) to read as follows:
            ``(1) review the implementation of this title, including 
        the effect of the implementation of this title on practices 
        relating to the processing of covered information about young 
        consumers or children and young consumer's and children's 
        ability to obtain access to information of their choice online; 
        and''.

SEC. 7. PRIVATE RIGHT OF ACTION.

    The Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
6501 et seq.) is amended--
            (1) by redesignating sections 1307 and 1308 as sections 
        1308 and 1309, respectively; and
            (2) by inserting after section 1306 the following:

``SEC. 1307. PRIVATE RIGHT OF ACTION.

    ``(a) Right of Action.--Any parent of a young consumer or parent of 
a child alleging a violation of this title or a regulation prescribed 
under this title with respect to the covered information of such young 
consumer or child may bring a civil action in any court of competent 
jurisdiction.
    ``(b) Injury in Fact.--A violation of this Act or a regulation 
promulgated under this Act with respect to the covered information of a 
young consumer or child constitutes an injury in fact to that young 
consumer or child.
    ``(c) Relief.--In a civil action brought under subsection (a) in 
which the plaintiff prevails, the court may award--
            ``(1) injunctive relief;
            ``(2) actual damages;
            ``(3) punitive damages;
            ``(4) reasonable attorney's fees and costs; and
            ``(5) any other relief that the court determines 
        appropriate.
    ``(d) Pre-Dispute Arbitration Agreements.--
            ``(1) In general.--No pre-dispute arbitration agreement or 
        pre-dispute joint-action waiver shall be valid or enforceable 
        with respect to any claim arising out of this Act or the 
        regulations issued under this Act.
            ``(2) Determination.--A determination as to whether and how 
        this Act applies to an arbitration agreement shall be 
        determined under Federal law by the court, rather than the 
        arbitrator, irrespective of whether the party opposing 
        arbitration challenges such agreement specifically or in 
        conjunction with any other term of the contract containing such 
        agreement.
            ``(3) Definitions.--As used in this subsection--
                    ``(A) the term `pre-dispute arbitration agreement' 
                means any agreement to arbitrate a dispute that has not 
                arisen at the time of the making of the agreement; and
                    ``(B) the term `pre-dispute joint-action waiver' 
                means an agreement, whether or not part of a pre-
                dispute arbitration agreement, that would prohibit, or 
                waive the right of, one of the parties to the agreement 
                to participate in a joint, class, or collective action 
                in a judicial, arbitral, administrative, or other 
                forum, concerning a dispute that has not yet arisen at 
                the time of the making of the agreement.
    ``(e) Non-Waiveability.--The rights and remedies provided under 
this Act may not be waived or limited by contract or otherwise.''.

SEC. 8. RELATIONSHIP TO OTHER LAW.

    Section 1306 of the Children's Online Privacy Protection Act of 
1998 (15 U.S.C. 6505) is further amended by adding at the end the 
following:
    ``(f) Relationship to Other Law.--Nothing in this Act may be 
construed to modify, limit, or supersede the operation of any privacy 
or security provision in any other Federal statute or regulation.''.

SEC. 9. ADDITIONAL CONFORMING AMENDMENT.

    The heading of title XIII of division C of the Omnibus Consolidated 
and Emergency Supplemental Appropriations Act, 1999 (Public Law 105-
277; 112 Stat. 2681-728) is amended by inserting ``AND YOUNG 
CONSUMER'S'' after ``CHILDREN'S''.
                                 <all>