Title: American Data Privacy and Protection Act
Policy area: Commerce

Summary:
American Data Privacy and Protection Act
This bill establishes requirements for how companies, including nonprofits and common carriers, handle personal data, which includes information that identifies or is reasonably linkable to an individual.
Specifically, the bill requires most companies to limit the collection, processing, and transfer of personal data to that which is reasonably necessary to provide a requested product or service and to other specified circumstances. It also generally prohibits companies from transferring individuals' personal data without their affirmative express consent.
The bill establishes consumer data protections, including the right to access, correct, and delete personal data. Prior to engaging in targeted advertising, the bill requires companies to provide individuals with a means to opt out of such advertising. The bill also provides additional protections with respect to personal data of individuals under the age of 17. It further prohibits companies from using personal data to discriminate based on specified protected characteristics.
Additionally, companies must implement security practices to protect and secure personal data against unauthorized access, and the Federal Trade Commission (FTC) may issue regulations for complying with this requirement.
The bill provides for enforcement of these requirements by the FTC and state attorneys general. Beginning four years after the bill takes effect, individuals may, subject to certain notification requirements, bring civil actions for violations of the bill.
Finally, the bill preempts state laws that are covered by the provisions of the bill except for certain categories of state laws and specified laws in Illinois and California.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8152 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 8152

  To provide consumers with foundational data privacy rights, create 
   strong oversight mechanisms, and establish meaningful enforcement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2022

 Mr. Pallone (for himself, Mrs. Rodgers of Washington, Ms. Schakowsky, 
and Mr. Bilirakis) introduced the following bill; which was referred to 
                  the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To provide consumers with foundational data privacy rights, create 
   strong oversight mechanisms, and establish meaningful enforcement.

    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.

    (a) Short Title.--This Act may be cited as the ``American Data 
Privacy and Protection Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                        TITLE I--DUTY OF LOYALTY

Sec. 101. Data minimization.
Sec. 102. Loyalty duties.
Sec. 103. Privacy by design.
Sec. 104. Loyalty to individuals with respect to pricing.
                     TITLE II--CONSUMER DATA RIGHTS

Sec. 201. Consumer awareness.
Sec. 202. Transparency.
Sec. 203. Individual data ownership and control.
Sec. 204. Right to consent and object.
Sec. 205. Data protections for children and minors.
Sec. 206. Third-party collecting entities.
Sec. 207. Civil rights and algorithms.
Sec. 208. Data security and protection of covered data.
Sec. 209. Small business protections.
Sec. 210. Unified opt-out mechanisms.
                  TITLE III--CORPORATE ACCOUNTABILITY

Sec. 301. Executive responsibility.
Sec. 302. Service providers and third parties.
Sec. 303. Technical compliance programs.
Sec. 304. Commission approved compliance guidelines.
Sec. 305. Digital content forgeries.
        TITLE IV--ENFORCEMENT, APPLICABILITY, AND MISCELLANEOUS

Sec. 401. Enforcement by the Federal Trade Commission.
Sec. 402. Enforcement by State attorneys general.
Sec. 403. Enforcement by individuals.
Sec. 404. Relationship to Federal and State laws.
Sec. 405. Severability.
Sec. 406. COPPA.
Sec. 407. Authorization of appropriations.
Sec. 408. Effective date.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Affirmative express consent.--
                    (A) In general.--The term ``affirmative express 
                consent'' means an affirmative act by an individual 
                that clearly communicates the individual's freely 
                given, specific, informed, and unambiguous 
                authorization for an act or practice, in response to a 
                specific request from a covered entity that meets the 
                requirements of subparagraph (B).
                    (B) Request requirements.--The requirements of this 
                subparagraph with respect to a request from a covered 
                entity to an individual are the following:
                            (i) The request is provided to the 
                        individual in a clear and conspicuous 
                        standalone disclosure made through the primary 
                        medium used to offer the covered entity's 
                        product or service.
                            (ii) The request includes a description of 
                        the act or practice for which the individual's 
                        consent is sought and--
                                    (I) clearly states the specific 
                                categories of covered data that the 
                                covered entity shall collect, process, 
                                and transfer for each act or practice;
                                    (II) clearly distinguishes between 
                                any act or practice which is necessary 
                                to fulfill a request of the individual 
                                and any act or practice which is for 
                                another purpose; and
                                    (III) includes a prominent heading 
                                and is written in easy-to-understand 
                                language that would enable a reasonable 
                                individual to identify and understand 
                                the processing purpose for which 
                                consent is sought and the covered data 
                                to be collected, processed, or 
                                transferred by the covered entity for 
                                such processing purpose.
                            (iii) The request clearly explains the 
                        individual's applicable rights related to 
                        consent.
                            (iv) The request shall be made in a manner 
                        readily accessible to and usable by individuals 
                        with disabilities.
                            (v) The request shall be made available to 
                        the public in each language in which the 
                        covered entity provides a product or service 
                        for which authorization is sought or in which 
                        the covered entity carries out any activity 
                        related to any product or service for which the 
                        covered data of the individual may be 
                        collected, processed, or transferred.
                    (C) Express consent required.--A covered entity 
                shall not infer that an individual has provided 
                affirmative express consent to an act or practice from 
                the inaction of the individual or the individual's 
                continued use of a service or product provided by the 
                covered entity.
                    (D) Pretextual consent prohibited.--A covered 
                entity shall not obtain or attempt to obtain the 
                affirmative express consent of an individual through--
                            (i) the use of any false, fictitious, 
                        fraudulent, or materially misleading statement 
                        or representation; or
                            (ii) the design, modification, or 
                        manipulation of any user interface with the 
                        purpose or substantial effect of obscuring, 
                        subverting, or impairing a reasonable 
                        individual's autonomy, decision making, or 
                        choice to provide such consent or any covered 
                        data.
            (2) Algorithm.--The term ``algorithm'' means a 
        computational process that uses machine learning, natural 
        language processing, artificial intelligence techniques, or 
        other computational processing techniques of similar or greater 
        complexity that makes a decision or facilitate human decision 
        making with respect to covered data, including to determine the 
        provision of products or services or to rank, order, promote, 
        recommend, amplify, or similarly determine the delivery or 
        display of information to an individual.
            (3) Biometric information.--
                    (A) In general.--The term ``biometric information'' 
                means any covered data generated from the technological 
                processing of an individual's unique biological, 
                physical, or physiological characteristics that is 
                linked or reasonably linkable to an individual 
                including--
                            (i) fingerprints;
                            (ii) voice prints;
                            (iii) iris or retina scans;
                            (iv) facial mapping or hand mapping, 
                        geometry, or templates; or
                            (v) gait or personally identifying physical 
                        movements.
                    (B) Exclusion.--The term ``biometric information'' 
                does not include--
                            (i) a digital or physical photograph;
                            (ii) an audio or video recording; or
                            (iii) data generated from a digital or 
                        physical photograph, or an audio or video 
                        recording that cannot be used to identify an 
                        individual.
            (4) Collect; collection.--The terms ``collect'' and 
        ``collection'' mean buying, renting, gathering, obtaining, 
        receiving, accessing, or otherwise acquiring covered data by 
        any means.
            (5) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (6) Common branding.--The term ``common branding'' means a 
        name, service mark, or trademark that is shared by 2 or more 
        entities.
            (7) Control.--The term ``control'' means, with respect to 
        an entity--
                    (A) ownership of, or the power to vote, more than 
                50 percent of the outstanding shares of any class of 
                voting security of the entity;
                    (B) control over the election of a majority of the 
                directors of the entity (or of individuals exercising 
                similar functions); or
                    (C) the power to exercise a controlling influence 
                over the management of the entity.
            (8) Covered data.--
                    (A) In general.--The term ``covered data'' means 
                information that identifies or is linked or reasonably 
                linkable, alone or in combination with other 
                information, to an individual or a device that 
                identifies or is linked or reasonably linkable to an 
                individual, and may include derived data and unique 
                identifiers.
                    (B) Exclusions.--The term ``covered data'' does not 
                include--
                            (i) de-identified data;
                            (ii) employee data;
                            (iii) publicly available information; or
                            (iv) inferences made exclusively from 
                        multiple independent sources of publicly 
                        available information that do not reveal 
                        sensitive covered data with respect to an 
                        individual.
                    (C) Employee data defined.--For purposes of 
                subparagraph (B), the term ``employee data'' means--
                            (i) information relating to a job applicant 
                        collected by a covered entity acting as a 
                        prospective employer of such job applicant in 
                        the course of the application, or hiring 
                        process, provided that such information is 
                        collected, processed, or transferred by the 
                        prospective employer solely for purposes 
                        related to the employee's status as a current 
                        or former job applicant of such employer;
                            (ii) the business contact information of an 
                        employee, including the employee's name, 
                        position or title, business telephone number, 
                        business address, or business email address 
                        that is provided to an employer by an employee 
                        who is acting in a professional capacity, 
                        provided that such information is collected, 
                        processed, or transferred solely for purposes 
                        related to such employee's professional 
                        activities;
                            (iii) emergency contact information 
                        collected by an employer that relates to an 
                        employee of that employer, provided that such 
                        information is collected, processed, or 
                        transferred solely for the purpose of having an 
                        emergency contact on file for the employee; or
                            (iv) information relating to an employee 
                        (or a spouse, dependent, other covered family 
                        member, or beneficiary of such employee) that 
                        is necessary for the employer to collect, 
                        process, or transfer solely for the purpose of 
                        administering benefits to which such employee 
                        (or spouse, dependent, other covered family 
                        member, or beneficiary of such employee) is 
                        entitled on the basis of the employee's 
                        position with that employer.
            (9) Covered entity.--
                    (A) The term ``covered entity''--
                            (i) means any entity or any person, other 
                        than an individual acting in a non-commercial 
                        context, that alone or jointly with others 
                        determines the purposes and means of 
                        collecting, processing, or transferring covered 
                        data and--
                                    (I) is subject to the Federal Trade 
                                Commission Act (15 U.S.C. 41 et seq.);
                                    (II) is a common carrier subject to 
                                the Communications Act of 1934 (47 
                                U.S.C. 151 et seq.) and all Acts 
                                amendatory thereof and supplementary 
                                thereto title II of the Communications 
                                Act of 1934 (47 U.S.C. 201-231) as 
                                currently enacted or subsequently 
                                amended; or
                                    (III) is an organization not 
                                organized to carry on business for 
                                their own profit or that of their 
                                members; and
                            (ii) includes any entity or person that 
                        controls, is controlled by, or is under common 
                        control with another covered entity.
                    (B) Exclusions.--The term ``covered entity'' does 
                not include--
                            (i) a governmental entity such as a body, 
                        authority, board, bureau, commission, district, 
                        agency, or political subdivision of the 
                        Federal, State, or local government; or
                            (ii) a person or an entity that is 
                        collecting, processing, or transferring covered 
                        data on behalf of or a Federal, State, Tribal, 
                        territorial, or local government entity.
            (10) De-identified data.--The term ``de-identified data'' 
        means information that does not identify and is not linked or 
        reasonably linkable to an individual or an individual's device, 
        regardless of whether the information is aggregated, provided 
        that the covered entity--
                    (A) takes reasonable technical, administrative, and 
                physical measures to ensure that the information 
                cannot, at any point, be used to re-identify any 
                individual or device;
                    (B) publicly commits in a clear and conspicuous 
                manner--
                            (i) to process and transfer the information 
                        solely in a de-identified form without any 
                        reasonable means for re-identification; and
                            (ii) to not attempt to re-identify the 
                        information with any individual or device; and
                    (C) contractually obligates any person or entity 
                that receives the information from the covered entity 
                to comply with all of the provisions of this paragraph.
            (11) Derived data.--The term ``derived data'' means covered 
        data that is created by the derivation of information, data, 
        assumptions, correlations, inferences, predictions, or 
        conclusions from facts, evidence, or another source of 
        information or data about an individual or an individual's 
        device.
            (12) Device.--The term ``device'' means any electronic 
        equipment capable of transmitting or receiving covered data 
        that is designed for use by one or more individuals.
            (13) Employee.--The term ``employee'' means (regardless of 
        whether such employee is paid, unpaid, or employed on a 
        temporary basis) an employee, director, officer, staff member, 
        an individual working as a contractor, trainee, volunteer, or 
        intern of an employer.
            (14) Executive agency.--The ``Executive agency'' has the 
        meaning set forth in section 105 of title 5, United States 
        Code.
            (15) Genetic information.--The term ``genetic information'' 
        means any covered data, regardless of its format, that concerns 
        an individual's genetic characteristics, including--
                    (A) raw sequence data that results from the 
                sequencing of an individual's complete extracted or a 
                portion of the extracted deoxyribonucleic acid (DNA); 
                or
                    (B) genotypic and phenotypic information that 
                results from analyzing the raw sequence data.
            (16) Individual.--The term ``individual'' means a natural 
        person residing in the United States.
            (17) Large data holder.--The term ``large data holder'' 
        means a covered entity or service provider that, in the most 
        recent calendar year--
                    (A) had annual gross revenues of $250,000,000 or 
                more; and
                    (B) collected, processed, or transferred--
                            (i) the covered data of more than 5,000,000 
                        individuals or devices that identify or are 
                        linked or reasonably linkable to 1 or more 
                        individuals; and
                            (ii) the sensitive covered data of more 
                        than 200,000 individuals or devices that 
                        identify or are linked or reasonably linkable 
                        to 1 or more individuals.
                    (C) Exclusions.--The term ``large data holder'' 
                does not include any instance where the covered entity 
                or service provider would qualify as a large data 
                holder solely on account of collecting, or processing--
                            (i) personal email addresses;
                            (ii) personal telephone numbers; or
                            (iii) log-in information of an individual 
                        or device to allow the individual or device to 
                        log in to an account administered by the 
                        covered entity or service provider.
                    (D) Revenue.--For purposes of this determining 
                whether any covered entity or service provider is a 
                large data holder, the term ``revenue'' as it relates 
                to any covered entity or service provider that is not 
                organized to carry on business for its own profit or 
                that of its members, means the gross receipts the 
                covered entity or service provider received in whatever 
                form from all sources without subtracting any costs or 
                expenses, and includes contributions, gifts, grants, 
                dues or other assessments, income from investments, or 
                proceeds from the sale of real or personal property.
            (18) Market research.--The term ``market research'' means 
        the collection, processing, or transfer of covered data as 
        reasonably necessary and proportionate to investigate the 
        market for or marketing of products, services, or ideas, where 
        the covered data is not--
                    (A) integrated into any product or service;
                    (B) otherwise used to contact any individual or 
                individual's device; or
                    (C) used to advertise or market to any individual 
                or individual's device.
            (19) Material.--The term ``material'' means with respect to 
        an act, practice, or representation of a covered entity 
        (including a representation made by the covered entity in a 
        privacy policy or similar disclosure to individuals), involving 
        the collection, processing, or transfer of covered data that 
        such act, practice, or representation is likely to affect an 
        individual's decision or conduct regarding a product or 
        service.
            (20) Precise geolocation information.--
                    (A) In general.--The term ``precise geolocation 
                information'' means information that reveals the past 
                or present physical location of an individual, or 
                device that identifies or is linked or reasonably 
                linkable to 1 or more individuals, with sufficient 
                precision to identify street level location information 
                or an individual's location within a range of 1,000 
                feet or less.
                    (B) Exclusion.--The term ``precise geolocation 
                information'' does not mean geolocation information 
                identifiable solely from the visual content of an 
                image.
            (21) Process.--The term ``process'' means to conduct or 
        direct any operation or set of operations performed on covered 
        data including analyzing, organizing, structuring, retaining, 
        storing, using, or otherwise handling covered data.
            (22) Processing purpose.--The term ``processing purpose'' 
        means a reason for which a covered entity collects, processes, 
        or transfers covered data that is specific and granular enough 
        for a reasonable individual to understand the material facts of 
        how and why the covered entity collects, processes, or 
        transfers the covered data.
            (23) Publicly available information.--
                    (A) In general.--The term ``publicly available 
                information'' means any information that a covered 
                entity has a reasonable basis to believe has been 
                lawfully made available to the general public from--
                            (i) Federal, State, or local government 
                        records provided that the covered entity 
                        collects, processes, and transfers such 
                        information in accordance with any restrictions 
                        or terms of use placed on the information by 
                        the relevant government entity;
                            (ii) widely distributed media;
                            (iii) a website or online service made 
                        available to all members of the public, for 
                        free or for a fee, including where all members 
                        of the public can log-in to the website or 
                        online service;
                            (iv) a disclosure that has been made to the 
                        general public as required by Federal, State, 
                        or local law; or
                            (v) a visual observation of an individual's 
                        physical presence in a public place by another 
                        person, not including data collected by a 
                        device in the individual's possession.
                    (B) Clarifications; limitations.--
                            (i) Available to all members of the 
                        public.--For purposes of this paragraph, 
                        information from a website or online service is 
                        not available to all members of the public if 
                        the individual who made the information 
                        available via the website or online service has 
                        restricted the information to a specific 
                        audience.
                            (ii) Other limitations.--The term 
                        ``publicly available information'' does not 
                        include--
                                    (I) any obscene visual depiction 
                                (as defined for purposes of section 
                                1460 of title 18, United States Code);
                                    (II) inferences made exclusively 
                                from multiple independent sources of 
                                publicly available information that do 
                                not reveal sensitive covered data with 
                                respect to an individual;
                                    (III) biometric information;
                                    (IV) publicly available information 
                                that has been combined with covered 
                                data;
                                    (V) genetic information; or
                                    (VI) known nonconsensual intimate 
                                images.
            (24) Sensitive covered data.--
                    (A) In general.--The term ``sensitive covered 
                data'' means the following forms of covered data:
                            (i) A government-issued identifier, such as 
                        a social security number, passport number, or 
                        driver's license number, that is not required 
                        by law to be displayed in public.
                            (ii) Any information that describes or 
                        reveals the past, present, or future physical 
                        health, mental health, disability, diagnosis, 
                        or healthcare condition or treatment of an 
                        individual.
                            (iii) A financial account number, debit 
                        card number, credit card number, or information 
                        about income level or bank account balances.
                            (iv) Biometric information.
                            (v) Genetic information.
                            (vi) Precise geolocation information.
                            (vii) An individual's private 
                        communications such as voicemails, emails, 
                        texts, direct messages, or mail, or information 
                        identifying the parties to such communications, 
                        voice communications, and any information that 
                        pertains to the transmission of such 
                        communications, including telephone numbers 
                        called, telephone numbers from which calls were 
                        placed, the time calls were made, call 
                        duration, and location information of the 
                        parties to the call, unless the covered entity 
                        is the sender or an intended recipient of the 
                        communication. Communications are not private 
                        for purposes of this paragraph if such 
                        communications are made from or to a device 
                        provided by an employer to an employee insofar 
                        as such employer provides conspicuous notice 
                        that it may access such communications.
                            (viii) Account or device log-in 
                        credentials, or security or access codes for an 
                        account or device.
                            (ix) Information identifying the sexual 
                        orientation or sexual behavior of an individual 
                        in a manner inconsistent with the individual's 
                        reasonable expectation regarding disclosure of 
                        such information.
                            (x) Calendar information, address book 
                        information, phone or text logs, photos, audio 
                        recordings, or videos maintained for private 
                        use by an individual, regardless of whether 
                        such information is stored on the individual's 
                        device or in a separate location on an 
                        individual's device, regardless of whether such 
                        information is backed up in a separate 
                        location.
                            (xi) A photograph, film, video recording, 
                        or other similar medium that shows the naked or 
                        undergarment-clad private area of an 
                        individual.
                            (xii) Information that reveals the video 
                        content or services requested or selected by an 
                        individual from a provider of broadcast 
                        television service, cable service, satellite 
                        service or streaming media service.
                            (xiii) Information about an individual when 
                        the covered entity knows that the individual is 
                        under the age of 17.
                            (xiv) Any other covered data collected, 
                        processed, or transferred for the purpose of 
                        identifying the above data types.
                    (B) Rulemaking.--The Commission may commence a 
                rulemaking pursuant to section 553 of title 5, United 
                States Code, to include any additional category of 
                covered data under this definition that may require a 
                similar level of protection as the data listed in 
                clauses (i) through (xvi) of subparagraph (A) as a 
                result of any new method of collecting, processing, or 
                transferring covered data.
            (25) Service provider.--The term ``service provider'' means 
        a person or entity that collects, processes, or transfers 
        covered data on behalf of, and at the direction of, a covered 
        entity and which receives covered data from or on behalf of a 
        covered entity pursuant to a written contract, provided that 
        the contract meets the requirements of section 302.
            (26) Service provider data.--The term ``service provider 
        data'' means covered data that is collected or processed by or 
        has been transferred to a service provider by a covered entity 
        for the purpose of allowing the service provider to perform a 
        service or function on behalf of, and at the direction of, such 
        covered entity.
            (27) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Northern Mariana 
        Islands, or the Trust Territory of the Pacific Islands.
            (28) State privacy authority.--
                    (A) In general.--The term ``State Privacy 
                Authority'' means--
                            (i) the chief consumer protection officer 
                        of a State; or
                            (ii) a State consumer protection agency 
                        with expertise in data protection.
            (29) Substantial privacy risk.--The term ``substantial 
        privacy risk'' means the collection, processing, or transfer of 
        covered data in a manner that may result in any reasonably 
        foreseeable material physical injury, economic injury, highly 
        offensive intrusion into the reasonable privacy expectations of 
        an individual under the circumstances, or discrimination on the 
        basis of race, color, religion, national origin, sex, or 
        disability.
            (30) Targeted advertising.--The term ``targeted 
        advertising''--
                    (A) means displaying to an individual or device 
                identified by a unique identifier an online 
                advertisement or content that is selected based on 
                known or predicted preferences, characteristics, or 
                interests associated with the individual or a device 
                identified by a unique identifier; and
                    (B) does not include--
                            (i) advertising or marketing to an 
                        individual or an individual's device in 
                        response to the individual's specific request 
                        for information or feedback;
                            (ii) contextual advertising, which is when 
                        an advertisement is displayed based on the 
                        content or location in which the advertisement 
                        appears and does not vary based on who is 
                        viewing the advertisement; or
                            (iii) processing covered data solely for 
                        measuring or reporting advertising or content, 
                        performance, reach, or frequency, including 
                        independent measurement.
            (31) Third party.--The term ``third party''--
                    (A) means any person or entity that--
                            (i) collects, processes, or transfers 
                        third-party data; and
                            (ii) is not a service provider with respect 
                        to such data; and
                    (B) does not include a person or entity that 
                collects covered data from another entity if the 2 
                entities are related by common ownership or corporate 
                control and share common branding, unless one of those 
                is a large data holder or those entities are each 
                related to a large data holder through common ownership 
                or corporate control.
            (32) Third-party collecting entity.--
                    (A) In general.--The term ``third-party collecting 
                entity''--
                            (i) means a covered entity whose principal 
                        source of revenue is derived from processing or 
                        transferring the covered data that the covered 
                        entity did not collect directly from the 
                        individuals linked or linkable to the covered 
                        data; and
                            (ii) does not include a covered entity in 
                        so far as such entity processes employee data 
                        collected by and received from a third party 
                        concerning any individual who is an employee of 
                        the third party for the sole purpose of such 
                        third party providing benefits to the employee.
                    (B) Principal source of revenue defined.--For 
                purposes of this paragraph, ``principal source of 
                revenue'' means, for the prior 12-month period, 
                either--
                            (i) more than 50 percent of all revenue of 
                        the covered entity; or
                            (ii) obtaining revenue from processing or 
                        transferring the covered data of more than 
                        5,000,000 individuals that the covered entity 
                        did not collect directly from the individuals 
                        to which the covered data pertains.
                    (C) Non-application to service providers.--An 
                entity shall not be considered to be a third-party 
                collecting entity for purposes of this Act if the 
                entity is acting as a service provider (as defined in 
                this section).
            (33) Third-party data.--The term ``third-party data'' means 
        covered data that has been transferred to a third party by a 
        covered entity.
            (34) Transfer.--The term ``transfer'' means to disclose, 
        release, share, disseminate, make available, or license in 
        writing, electronically, or by any other means.
            (35) Unique identifier.--The term ``unique identifier'' 
        means an identifier to the extent that such identifier is 
        reasonably linkable to an individual or device that identifies 
        or is linked or reasonably linkable to 1 or more individuals, 
        including a device identifier, an Internet Protocol address, 
        cookies, beacons, pixel tags, mobile ad identifiers, or similar 
        technology, customer number, unique pseudonym, or user alias, 
        telephone numbers, or other forms of persistent or 
        probabilistic identifiers that are linked or reasonably 
        linkable to an individual or device.
            (36) Widely distributed media.--The term ``widely 
        distributed media'' means information that is available to the 
        general public, including information from a telephone book or 
        online directory, a television, internet, or radio program, the 
        news media, or an internet site that is available to the 
        general public on an unrestricted basis, but does not include 
        an obscene visual depiction (as defined in section 1460 of 
        title 18, United States Code).

                        TITLE I--DUTY OF LOYALTY

SEC. 101. DATA MINIMIZATION.

    (a) In General.--A covered entity shall not collect, process, or 
transfer covered data unless the collection, processing, or transfer is 
limited to what is reasonably necessary and proportionate to--
            (1) provide, or maintain a specific product or service 
        requested by the individual to whom the data pertains;
            (2) deliver a communication that is reasonably anticipated 
        by the individual recipient within the context of the 
        individual's interactions with the covered entity; or
            (3) effect a purpose expressly permitted under subsection 
        (b).
    (b) Permissible Purposes.--A covered entity or service provider may 
collect, process, or transfer covered data for any of the following 
purposes provided that the covered entity or service provider can 
demonstrate that collection, processing, or transfer complies with all 
other applicable laws not preempted in section 404 and provisions of 
this Act and is limited to what is reasonably necessary and 
proportionate to such purpose:
            (1) To initiate or complete a transaction or fulfill an 
        order or service specifically requested by an individual, 
        including any associated routine administrative activity such 
        as billing, shipping, delivery, and accounting, including the 
        collection, processing, or transferring of the last four digits 
        of a credit card number.
            (2) With respect to covered data previously collected in 
        accordance with this Act, notwithstanding this exception, to 
        process such data as necessary to perform system maintenance or 
        diagnostics, to maintain a product or service for which such 
        data was collected, to conduct internal research or analytics, 
        to improve a product or service for which such data was 
        collected and to perform inventory management or reasonable 
        network management, to protect against spam, or to debug or 
        repair errors that impair the functionality of a service or 
        product for which such data was collected.
            (3) To authenticate users of a product or service.
            (4) To prevent, detect, protect against, or respond to a 
        security incident, or fulfill a product or service warranty. 
        For purposes of this paragraph, security is defined as network 
        security as well as intrusion, medical alerts, fire alarms, and 
        access control security.
            (5) To prevent, detect, protect against or respond to 
        fraud, harassment, or illegal activity. For the purposes of 
        this paragraph, illegal activity means a violation of a 
        Federal, State, or local law punishable as a felony or 
        misdemeanor that can directly harm another person.
            (6) To comply with a legal obligation imposed by Federal, 
        Tribal, Local, or State law, or to establish, exercise, or 
        defend legal claims.
            (7) To prevent an individual, or groups of individuals, 
        from suffering harm where the covered entity or service 
        provider believes in good faith that the individual, or groups 
        of individuals, is at risk of death, serious physical injury, 
        or other serious health risk.
            (8) To effectuate a product recall pursuant to Federal or 
        State law.
            (9)(A) To conduct a public or peer-reviewed scientific, 
        historical, or statistical research project that--
                    (i) is in the public interest;
                    (ii) adheres to all relevant laws governing such 
                research; and
                    (iii) adheres to the regulations for human subject 
                research established under part 46 of title 45, Code of 
                Federal Regulations (or a successor regulations).
            (B) The Commission should set forth within 18 months of the 
        enactment of this Act guidelines to help covered entities 
        ensure the privacy of affected users and the security of 
        covered data, particularly as data is being transferred to and 
        stored by researchers.
            (10) To deliver a communication at the direction of an 
        individual between the communicating individual and one or more 
        individuals or entities.
            (11) With respect to covered data previously collected in 
        accordance with this Act, notwithstanding this exception, to 
        process such data as necessary to provide first party marketing 
        or advertising of products or services provided by the covered 
        entity.
            (12) Otherwise complies with the requirements of this Act, 
        including section 204(c), to provide a targeted advertisement.
    (c) Guidance.--The Commission shall issue guidance regarding what 
is reasonably necessary and proportionate to comply with this section. 
Such guidance shall take into consideration--
            (1) the size of, and the nature, scope, and complexity of 
        the activities engaged in by the covered entity, including 
        whether the covered entity is a large data holder, nonprofit 
        organization, covered entities meeting the requirements of 
        section 209, service provider, third party, or third-party 
        collecting entity;
            (2) the sensitivity of covered data collected, processed, 
        or transferred by the covered entity;
            (3) the volume of covered data collected, processed, or 
        transferred by the covered entity; and
            (4) the number of individuals and devices to which the 
        covered data collected, processed, or transferred by the 
        covered entity relates.
    (d) Deceptive Marketing of a Product or Service.--A covered entity, 
service provider, or third party is prohibited from engaging in 
deceptive advertising or marketing with respect to a product or service 
provided to an individual.

SEC. 102. LOYALTY DUTIES.

    (a) Restricted Data Practices.--Notwithstanding section 101 and 
unless an exception applies, with respect to covered data, a covered 
entity shall not--
            (1) collect, process, or transfer a social security number, 
        except when necessary to facilitate extensions of credit, 
        authentication, the payment and collection of taxes, the 
        enforcement of a contract between parties, or the prevention, 
        investigation, and prosecution of fraud or illegal activity;
            (2) collect or process sensitive covered data, except where 
        such collection or processing is strictly necessary to provide 
        or maintain a specific product or service requested by the 
        individual to whom the covered data pertains, or to effect a 
        purpose enumerated in section 101(b)(1) through (10);
            (3) transfer an individual's sensitive covered data to a 
        third party, unless--
                    (A) the transfer is made pursuant to the 
                affirmative express consent of the individual;
                    (B) the transfer is necessary to comply with a 
                legal obligation imposed by Federal, State, or local 
                law, or to establish, exercise, or defend legal claims;
                    (C) the transfer is necessary to prevent an 
                individual from imminent injury where the covered 
                entity believes in good faith that the individual is at 
                risk of death or serious physical injury;
                    (D) the transfer of biometric information is 
                necessary to facilitate data security or 
                authentication;
                    (E) the transfer of a password is necessary to use 
                a designated password manager or is to a covered entity 
                for the exclusive purpose of identifying passwords that 
                are being re-used across sites or accounts; or
                    (F) the transfer of genetic information is 
                necessary to perform a medical diagnosis or medical 
                treatment specifically requested by an individual, or 
                to conduct medical research in accordance with 
                conditions of section 101(b)(9); or
            (4) collect, process, or transfer an individual's 
        aggregated internet search or browsing history, except with the 
        affirmative express consent of the individual or pursuant to 
        one of the permissible purposes enumerated in section 101(b)(1) 
        through (10).

SEC. 103. PRIVACY BY DESIGN.

    (a) Policies, Practices, and Procedures.--A covered entity and a 
service provider shall establish, implement, and maintain reasonable 
policies, practices, and procedures regarding the collection, 
processing, and transfer of covered data to--
            (1) consider Federal laws, rules, or regulations related to 
        covered data the covered entity or service provider collects, 
        processes, or transfers;
            (2) identify, assess, and mitigate privacy risks related to 
        individuals under the age of 17, if applicable;
            (3) mitigate privacy risks, including substantial privacy 
        risks, related to the products and services of the covered 
        entity or the service provider, including their design, 
        development, and implementation; and
            (4) implement reasonable training and safeguards within the 
        covered entity and service provider to promote compliance with 
        all privacy laws applicable to covered data the covered entity 
        collects, processes, or transfers or covered data the service 
        provider collects, processes, or transfers on behalf of the 
        covered entity and mitigate privacy risks, including 
        substantial privacy risks.
    (b) Factors To Consider.--The policies, practices, and procedures 
established by a covered entity and a service provider under subsection 
(a), shall correspond with--
            (1) the size of the covered entity or the service provider 
        and the nature, scope, and complexity of the activities engaged 
        in by the covered entity, including whether the covered entity 
        is a large data holder, nonprofit organization, covered 
        entities meeting the requirements of section 209, third party, 
        or third-party collecting entity;
            (2) the sensitivity of the covered data collected, 
        processed, or transferred by the covered entity or service 
        provider;
            (3) the volume of covered data collected, processed, or 
        transferred by the covered entity or service provider;
            (4) the number of individuals and devices to which the 
        covered data collected, processed, or transferred by the 
        covered entity or service provider relates; and
            (5) the cost of implementing such policies, practices, and 
        procedures in relation to the risks and nature of the covered 
        data.
    (c) Commission Guidance.--Not later than 1 year after the date of 
enactment of this Act, the Commission shall issue guidance as to what 
constitutes reasonable policies, practices, and procedures as required 
by this section. The Commission shall consider unique circumstances 
applicable to nonprofit organizations and covered entities meeting the 
requirements of section 209.

SEC. 104. LOYALTY TO INDIVIDUALS WITH RESPECT TO PRICING.

    (a) Conditional Service or Pricing Prohibited.--A covered entity 
shall not deny or condition or effectively condition the provision of a 
service or product to an individual based on the individual's agreement 
to waive (or refusal to waive) any requirements under this Act or any 
regulations promulgated under this Act or terminate a service or 
otherwise refuse to provide a service or product to an individual as a 
consequence of the individual's refusal to provide such a waiver.
    (b) Rules of Construction.--Nothing in subsection (a) shall be 
construed to--
            (1) prohibit the relation of the price of a service or the 
        level of service provided to an individual to the provision, by 
        the individual, of financial information that is necessarily 
        collected and processed only for the purpose of initiating, 
        rendering, billing for, or collecting payment for a service or 
        product requested by the individual;
            (2) prohibit a covered entity from offering a loyalty 
        program that provides discounted or free products or services, 
        or other consideration, in exchange for an individual's 
        continued business with the covered entity, provided that such 
        program otherwise complies with the requirements of this Act 
        and any regulations promulgated under this Act;
            (3) require a covered entity to provide a loyalty program 
        that would require the covered entity to collect, process, or 
        transfer covered data that it otherwise would not;
            (4) prohibit a covered entity from offering a financial 
        incentive or other consideration to an individual for 
        participation in market research; or
            (5) prohibit a covered entity from offering different types 
        of pricing or functionalities with respect to a product or 
        service based on an individual's exercise of a right in section 
        203(a)(3).

                     TITLE II--CONSUMER DATA RIGHTS

SEC. 201. CONSUMER AWARENESS.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Commission shall publish, on the public website of the 
Commission, a web page that describes each provision, right, 
obligation, and requirement of this Act, listed separately for 
individuals and for covered entities and service providers, and the 
remedies, exemptions, and protections associated with this Act in plain 
and concise language and in an easy-to-understand manner.
    (b) Updates.--The Commission shall update the information published 
under subsection (a) on a quarterly basis as necessitated by any change 
in law, regulation, guidance, or judicial decisions.
    (c) Accessibility.--The Commission shall publish materials 
disclosed pursuant to subsection (a) in the ten languages with the most 
users in the United States, according to the most recent U.S. Census. 
The Commission shall ensure the website is readily accessible to and 
usable by individuals with disabilities.

SEC. 202. TRANSPARENCY.

    (a) In General.--Each covered entity and service provider shall 
make publicly available, in a clear, conspicuous, not misleading, and 
readily accessible manner, a privacy policy that provides a detailed 
and accurate representation of the entity's data collection, 
processing, and transfer activities.
    (b) Content of Privacy Policy.--The privacy policy required under 
subsection (a) shall include, at a minimum, the following:
            (1) The identity and the contact information of--
                    (A) the covered entity or service provider 
                (including the covered entity's or service provider's 
                points of contact, generic electronic mail addresses, 
                and phone numbers of the covered entity, as applicable 
                for privacy and data security inquiries); and
                    (B) any other entity within the same corporate 
                structure as, and under common branding with, the 
                covered entity or service provider to which covered 
                data is transferred by the covered entity.
            (2) The categories of covered data the covered entity or 
        service provider collects or processes.
            (3) The processing purposes for each category of covered 
        data the covered entity or service provider collects or 
        processes.
            (4) Whether the covered entity or service provider 
        transfers covered data and, if so, each category of service 
        provider and third party to which the covered entity or service 
        provider transfers covered data, the name of each third-party 
        collecting entity to which the covered entity or service 
        provider transfers covered data, and the purposes for which 
        such data is transferred to such categories of service 
        providers and third parties or third-party collecting entities, 
        except for transfers to governmental entities pursuant to a 
        court order or law that prohibits the covered entity from 
        disclosing such transfer.
            (5) The length of time the covered entity or service 
        provider intends to retain each category of covered data, 
        including sensitive covered data, or, if it is not possible to 
        identify that time frame, the criteria used to determine the 
        length of time the covered entity intends to retain categories 
        of covered data.
            (6) A prominent description of how an individual can 
        exercise the rights described in this Act.
            (7) A general description of the covered entity's or 
        service provider's data security practices.
            (8) The effective date of the privacy policy.
            (9) Whether or not any covered data collected by the 
        covered entity or service provider is transferred to, processed 
        in, stored in or otherwise accessible to the People's Republic 
        of China, Russia, Iran, or North Korea.
    (c) Languages.--The privacy policy required under subsection (a) 
shall be made available to the public in each language in which the 
covered entity or service provider--
            (1) provides a product or service that is subject to the 
        privacy policy; or
            (2) carries out activities related to such product or 
        service.
    (d) Accessibility.--The covered entity or service provider shall 
also provide the disclosures under this section in a manner that is 
readily accessible to and usable by individuals with disabilities.
    (e) Material Changes.--
            (1) Affirmative express consent.--If a covered entity makes 
        a material change to its privacy policy or practices, the 
        covered entity shall notify each individual affected by such 
        material change before implementing the material change with 
        respect to any previously collected covered data and, except as 
        provided in section 101(b), provide a reasonable opportunity 
        for each individual to withdraw consent to any further 
        materially different collection, processing, or transferring of 
        covered data under the changed policy.
            (2) Notification.--The covered entity shall take all 
        reasonable measures to provide direct notification regarding 
        material changes to the privacy policy to each affected 
        individual, in each language that the privacy policy is made 
        available, and taking into account available technology and the 
        nature of the relationship.
            (3) Clarification.--Nothing in this section shall be 
        construed to affect the requirements for covered entities under 
        section 102 or 204.
            (4) Log of material changes.--Each large data holder shall 
        retain copies of previous versions of its privacy policy for at 
        least 10 years and publish them on its website. It shall make 
        publicly available, in a clear, conspicuous, and readily 
        accessible manner, a log describing the data and nature of each 
        material change over the past 10 years. The descriptions shall 
        be sufficient for a reasonable individual to understand the 
        material effect of each material change.
    (f) Short-Form Notice to Consumers by Large Data Holders.--
            (1) In general.--In addition to the privacy policy required 
        under subsection (a), a large data holder must provide a short-
        form notice of its covered data practices in a manner that is--
                    (A) concise, clear, and conspicuous;
                    (B) readily accessible, based on the way an 
                individual interacts with the large data holder and its 
                products or services and what is reasonably anticipated 
                within the context of the relationship;
                    (C) inclusive of an overview of individual rights 
                and disclosures to reasonably draw attention to data 
                practices that may reasonably be unexpected or that 
                involve sensitive covered data; and
                    (D) no more than 500 words in length.
            (2) Rulemaking.--The Commission shall issue a rule pursuant 
        to section 553 of title 5, United States Code, establishing the 
        minimum data disclosures necessary for the short-form notice 
        which shall not exceed the content requirements in subsection 
        (b) and shall include templates and/or models of short-form 
        notices.

SEC. 203. INDIVIDUAL DATA OWNERSHIP AND CONTROL.

    (a) Access to, and Correction, Deletion, and Portability of, 
Covered Data.--Subject to subsections (b) and (c), a covered entity 
shall provide an individual, after receiving a verified request from 
the individual, with the right to--
            (1) access--
                    (A) the covered data, except covered data in back-
                up or archival systems, of the individual in a human-
                readable format that a reasonable individual can 
                understand and download from the internet, that is 
                collected, processed, or transferred by the covered 
                entity or any service provider of the covered entity 
                within the 24 months preceding the request;
                    (B) the name of any third party and the categories 
                of any service providers to whom the covered entity has 
                transferred for consideration the covered data of the 
                individual, as well as the categories of sources from 
                which the covered data was collected; and
                    (C) a description of the purpose for which the 
                covered entity transferred the covered data of the 
                individual to a third party or service provider;
            (2) correct any verifiably material inaccuracy or 
        materially incomplete information with respect to the covered 
        data of the individual that is processed by the covered entity 
        and instruct the covered entity to notify any third party, or 
        service provider to which the covered entity transferred such 
        covered data of the corrected information;
            (3) delete covered data of the individual that is processed 
        by the covered entity and instruct the covered entity to notify 
        any third party, or service provider to which the covered 
        entity transferred such covered data of the individual's 
        deletion request; and
            (4) to the extent technically feasible, export covered data 
        to the individual or directly to another entity, except for 
        derived data, of the individual that is processed by the 
        covered entity without licensing restrictions that limit such 
        transfers, in--
                    (A) a human-readable format that a reasonable 
                individual can understand and download from the 
                internet; and
                    (B) a portable, structured, interoperable, and 
                machine-readable format.
    (b) Individual Autonomy.--A covered entity shall not condition, 
effectively condition, attempt to condition, or attempt to effectively 
condition the exercise of any individual rights under this section 
through--
            (1) through the use of any false, fictitious, fraudulent, 
        or materially misleading statement or representation; or
            (2) the design, modification, or manipulation of any user 
        interface with the purpose or substantial effect of obscuring, 
        subverting, or impairing a reasonable individual's autonomy, 
        decision making, or choice to exercise any such rights.
    (c) Timing.--
            (1) Subject to subsections (d) and (e)(1) each request 
        shall be completed by any--
                    (A) large data holder within 45 days of 
                verification of such request from an individual;
                    (B) covered entity that is not considered a large 
                data holder or a covered entity described in section 
                209 within 60 days of verification of such request from 
                an individual; or
                    (C) covered entity as described in section 209 
                within 90 days of verification of such request from an 
                individual.
            (2) A response period set forth in this subsection may be 
        extended once by 45 additional days when reasonably necessary, 
        considering the complexity and number of the individual's 
        requests, so long as the covered entity informs the individual 
        of any such extension within the initial 45-day response 
        period, together with the reason for the extension.
    (d) Frequency and Cost of Access.--A covered entity--
            (1) shall provide an individual with the opportunity to 
        exercise each of the rights described in subsection (a); and
            (2) with respect to--
                    (A) the first 2 times that an individual exercises 
                any right described in subsection (a) in any 12-month 
                period, shall allow the individual to exercise such 
                right free of charge; and
                    (B) any time beyond the initial 2 times described 
                in subparagraph (A), may allow the individual to 
                exercise such right for a reasonable fee for each 
                request.
    (e) Verification and Exceptions.--
            (1) Required exceptions.--A covered entity shall not permit 
        an individual to exercise a right described in subsection (a), 
        in whole or in part, if the covered entity--
                    (A) cannot reasonably verify that the individual 
                making the request to exercise the right is the 
                individual whose covered data is the subject of the 
                request or an individual authorized to make such a 
                request on the individual's behalf;
                    (B) reasonably believes that the request is made to 
                interfere with a contract between the covered entity 
                and another individual;
                    (C) determines that the exercise of the right would 
                require access to or correction of another individual's 
                sensitive covered data; or
                    (D) reasonably believes that the exercise of the 
                right would require the covered entity to engage in an 
                unfair or deceptive practice under section 5 of the 
                Federal Trade Commission Act (15 U.S.C. 45).
            (2) Additional information.--If a covered entity cannot 
        reasonably verify that a request to exercise a right described 
        in subsection (a) is made by the individual whose covered data 
        is the subject of the request (or an individual authorized to 
        make such a request on the individual's behalf), the covered 
        entity--
                    (A) may request that the individual making the 
                request to exercise the right provide any additional 
                information necessary for the sole purpose of verifying 
                the identity of the individual; and
                    (B) shall not process or transfer such additional 
                information for any other purpose.
            (3) Permissive exceptions.--
                    (A) In general.--A covered entity may decline to 
                comply with a request to exercise a right described in 
                subsection (a), in whole or in part, that would--
                            (i) require the covered entity to retain 
                        any covered data collected for a single, one-
                        time transaction, if such covered data is not 
                        processed or transferred by the covered entity 
                        for any purpose other than completing such 
                        transaction;
                            (ii) be impossible or demonstrably 
                        impracticable to comply with, and the covered 
                        entity shall provide a description to the 
                        requestor detailing the inability to comply 
                        with the request;
                            (iii) require the covered entity to attempt 
                        to re-identify de-identified data;
                            (iv) result in the release of trade 
                        secrets, or other privileged, or confidential 
                        business information;
                            (v) require the covered entity to correct 
                        any covered data that cannot be reasonably 
                        verified as being inaccurate or incomplete;
                            (vi) interfere with law enforcement, 
                        judicial proceedings, investigations, or 
                        reasonable efforts to guard against, detect, or 
                        investigate malicious or unlawful activity, or 
                        enforce valid contracts;
                            (vii) violate Federal or State law or the 
                        rights and freedoms of another individual, 
                        including under the Constitution of the United 
                        States;
                            (viii) prevent a covered entity from being 
                        able to maintain a confidential record of 
                        deletion requests, maintained solely for the 
                        purpose of preventing covered data of an 
                        individual who has submitted a deletion request 
                        and requests that the covered entity no longer 
                        collect, process, or transfer such data;
                            (ix) fall within an exception enumerated in 
                        the regulations promulgated by the Commission 
                        pursuant to paragraph (D); or
                            (x) with respect to requests for deletion--
                                    (I) unreasonably interfere with the 
                                provision of products or services by 
                                the covered entity to another person it 
                                currently serves;
                                    (II) delete covered data that 
                                relates to a public figure and for 
                                which the requesting individual has no 
                                reasonable expectation of privacy;
                                    (III) delete covered data 
                                reasonably necessary to perform a 
                                contract between the covered entity and 
                                the individual;
                                    (IV) delete covered data that the 
                                covered entity needs to retain in order 
                                to comply with professional ethical 
                                obligations; or
                                    (V) delete covered data that the 
                                covered entity reasonably believes may 
                                be evidence of unlawful activity or an 
                                abuse of the covered entity's products 
                                or services.
                    (B) Partial compliance.--In a circumstance that 
                would allow a denial pursuant to paragraph (A), a 
                covered entity shall partially comply with the 
                remainder of the request if it is possible and not 
                unduly burdensome to do so.
                    (C) Number of requests.--For purposes of this 
                paragraph, the receipt of a large number of verified 
                requests, on its own, shall not be considered to render 
                compliance with a request demonstrably impossible.
                    (D) Further exceptions.--The Commission may, by 
                regulation as described in subsection (f), establish 
                additional permissive exceptions necessary to protect 
                the rights of individuals, alleviate undue burdens on 
                covered entities, prevent unjust or unreasonable 
                outcomes from the exercise of access, correction, 
                deletion, or portability rights, or as otherwise 
                necessary to fulfill the purposes of this section. In 
                creating such exceptions, the Commission should 
                consider any relevant changes in technology, means for 
                protecting privacy and other rights, and beneficial 
                uses of covered data by covered entities.
    (f) Regulations.--Within two years of the date of enactment of this 
Act, the Commission may promulgate regulations, pursuant to section 553 
of title 5, United States Code (5 U.S.C. 553), as necessary to 
establish processes by which covered entities are to comply with the 
provisions of this section. Such regulations shall take into 
consideration--
            (1) the size of, and the nature, scope, and complexity of 
        the activities engaged in by the covered entity, including 
        whether the covered entity is a large data holder, nonprofit 
        organization, covered entities meeting the requirements of 
        section 209, service provider, third party, or third-party 
        collecting entity;
            (2) the sensitivity of covered data collected, processed, 
        or transferred by the covered entity;
            (3) the volume of covered data collected, processed, or 
        transferred by the covered entity; and
            (4) the number of individuals and devices to which the 
        covered data collected, processed, or transferred by the 
        covered entity relates.
    (g) Accessibility.--A covered entity shall facilitate the ability 
for individuals to make requests under this section in any of the ten 
languages with the most users in the United States, according to the 
most recent U.S. Census, if the covered entity provides service in such 
language. The mechanisms by which a covered entity enables individuals 
to make requests under this section shall be readily accessible and 
usable by with disabilities.

SEC. 204. RIGHT TO CONSENT AND OBJECT.

    (a) Withdrawal of Consent.--A covered entity shall provide an 
individual with a clear and conspicuous, easy-to-execute means to 
withdraw any affirmative express consent previously provided by the 
individual that is as easy to execute by a reasonable individual as the 
means to provide consent, with respect to the processing or transfer of 
the covered data of the individual.
    (b) Right To Opt Out of Covered Data Transfers.--
            (1) In general.--A covered entity--
                    (A) shall not transfer the covered data of an 
                individual to a third party if the individual objects 
                to the transfer; and
                    (B) shall allow an individual to object to such 
                transfer through an opt-out mechanism, as described in 
                section 210, if applicable.
            (2) Exception.--An individual may not opt out of the 
        collection, processing, and transfer of covered data made 
        pursuant to the exceptions in sections 101(b)(1) through (11) 
        of this Act.
    (c) Right To Opt Out of Targeted Advertising.--A covered entity 
that engages in targeted advertising shall--
            (1) prior to engaging in such targeted advertising and at 
        all times thereafter, provide an individual with a clear and 
        conspicuous means to opt out of targeted advertising;
            (2) abide by such opt-out designations by an individual; 
        and
            (3) allow an individual to prohibit such targeted 
        advertising through an opt-out mechanism, as described in 
        section 210, if applicable.
    (d) Individual Autonomy.--A covered entity shall not condition, 
effectively condition, attempt to condition, or attempt to effectively 
condition the exercise of any individual rights under this section 
through--
            (1) through the use of any false, fictitious, fraudulent, 
        or materially misleading statement or representation; or
            (2) the design, modification, or manipulation of any user 
        interface with the purpose or substantial effect of obscuring, 
        subverting, or impairing a reasonable individual's autonomy, 
        decision making, or choice to exercise any such rights.

SEC. 205. DATA PROTECTIONS FOR CHILDREN AND MINORS.

    (a) Prohibition on Targeted Advertising to Children and Minors.--A 
covered entity shall not engage in targeted advertising to any 
individual under the age of 17 if the covered entity knows that the 
individual is under the age of 17.
    (b) Data Transfer Requirements Related to Minors.--A covered entity 
shall not transfer the covered data of an individual to a third party 
without affirmative express consent from the individual or the 
individual's parent or guardian if the covered entity knows that the 
individual under the age of 17.
    (c) Knowledge.--The knowledge requirement in subsections (a) and 
(b), shall not be construed to require the affirmative collection or 
processing of any data with respect to the age of an individual or a 
proxy thereof, or to require that a covered entity implement an age 
gating regime. Rather, the determination of whether an individual is 
under 17 shall be based on the covered data collected directly from an 
individual or a proxy thereof that the covered entity would otherwise 
collect in the normal course of business.
    (d) Youth Privacy and Marketing Division.--
            (1) Establishment.--There is established within the 
        Commission a division to be known as the ``Youth Privacy and 
        Marketing Division'' (in this section referred to as the 
        ``Division'').
            (2) Director.--The Division shall be headed by a Director, 
        who shall be appointed by the Chair of the Commission.
            (3) Duties.--The Division shall be responsible for 
        assisting the Commission in addressing, as it relates to this 
        Act--
                    (A) the privacy of children and minors; and
                    (B) marketing directed at children and minors.
            (4) Staff.--The Director of the Division shall hire 
        adequate staff to carry out the duties described in paragraph 
        (3), including by hiring individuals who are experts in data 
        protection, digital advertising, data analytics, and youth 
        development.
            (5) Reports.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the Commission 
        shall submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Energy and 
        Commerce of the House of Representatives a report that 
        includes--
                    (A) a description of the work of the Division 
                regarding emerging concerns relating to youth privacy 
                and marketing practices; and
                    (B) an assessment of how effectively the Division 
                has, during the period for which the report is 
                submitted, assisting the Commission to address youth 
                privacy and marketing practices.
            (6) Publication.--Not later than 10 days after the date on 
        which a report is submitted under paragraph (5), the Commission 
        shall publish the report on its website.
    (e) Report by the Inspector General.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, and biennially thereafter, the Inspector 
        General of the Commission shall submit to the Commission and to 
        the Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Energy and Commerce of the House of 
        Representatives a report regarding the safe harbor provisions 
        in section 1307 of the Children's Online Privacy Protection Act 
        of 1998 (15 U.S.C. 6503), which shall include--
                    (A) an analysis of whether the safe harbor 
                provisions are--
                            (i) operating fairly and effectively; and
                            (ii) effectively protecting the interests 
                        of children and minors; and
                    (B) any proposal or recommendation for policy 
                changes that would improve the effectiveness of the 
                safe harbor provisions.
            (2) Publication.--Not later than 10 days after the date on 
        which a report is submitted under paragraph (1), the Commission 
        shall publish the report on the website of the Commission.

SEC. 206. THIRD-PARTY COLLECTING ENTITIES.

    (a) Notice.--Each third-party collecting entity shall place a clear 
and conspicuous notice on the website or mobile application of the 
third-party collecting entity (if the third-party collecting entity 
maintains such a website or mobile application) that--
            (1) notifies individuals that the entity is a third-party 
        collecting entity using specific language that the Commission 
        shall develop through rulemaking under section 553 of title 5, 
        United States Code; and
            (2) includes a link to the website established under 
        subsection (b)(3).
    (b) Third-Party Collecting Entity Registration.--
            (1) In general.--Not later than January 31 of each calendar 
        year that follows a calendar year during which a covered entity 
        acted as a third-party collecting entity and processed covered 
        data pertaining to more than 5,000 individuals or devices that 
        identify or are linked or reasonably linkable to an individual, 
        such covered entity shall register with the Commission in 
        accordance with this subsection.
            (2) Registration requirements.--In registering with the 
        Commission as required under paragraph (1), a third-party 
        collecting entity shall do the following:
                    (A) Pay to the Commission a registration fee of 
                $100.
                    (B) Provide the Commission with the following 
                information:
                            (i) The legal name and primary physical, 
                        email, and internet addresses of the third-
                        party collecting entity.
                            (ii) A description of the categories of 
                        data the third-party collecting entity 
                        processes and transfers.
                            (iii) The contact information of the third-
                        party collecting entity, including a contact 
                        person, telephone number, an e-mail address, a 
                        website, and a physical mailing address.
                            (iv) Link to a website through which an 
                        individual may easily exercise the rights 
                        provided under this subsection.
            (3) Third-party collecting entity registry.--The Commission 
        shall establish and maintain on a website a searchable, 
        publicly available, central registry of third-party collecting 
        entities that are registered with the Commission under this 
        subsection that includes the following:
                    (A) A listing of all registered third-party 
                collecting entities and a search feature that allows 
                members of the public to identify individual third-
                party collecting entities.
                    (B) For each registered third-party collecting 
                entity, the information described in paragraph (2).
                    (C) A ``Do Not Collect'' registry link and 
                mechanism by which an individual may, after the 
                Commission has verified the identity of the individual 
                or individual's parent or guardian, which may include 
                tokenization, easily submit a request to all registered 
                third-party collecting entities that are not consumer 
                reporting agencies, and to the extent they are not 
                acting as consumer reporting agencies, as defined in 
                section 603(f) of the Fair Credit Reporting Act (15 
                U.S.C. 1681a(f)) to--
                            (i) delete all covered data related to such 
                        individual that the third-party collecting 
                        entity did not collect from the individual 
                        directly or when acting as a service provider; 
                        and
                            (ii) ensure that any third-party collecting 
                        entity no longer collects covered data related 
                        to such individual without the affirmative 
                        express consent of such individual, except 
                        insofar as such covered entity is acting as a 
                        service provider. Each third-party collecting 
                        entity that receives such a request from an 
                        individual shall delete all the covered data of 
                        the individual not later than 30 days after the 
                        request is received by the third-party 
                        collecting entity.
    (c) Penalties.--A third-party collecting entity that fails to 
register or provide the notice as required under this section shall be 
liable for--
            (1) a civil penalty of $50 for each day it fails to 
        register or provide notice as required under this subsection, 
        not to exceed a total of $10,000 for any year; and
            (2) an amount equal to the registration fees due under 
        paragraph (2) of subsection (b) for each year that it failed to 
        register as required under paragraph (1) of such subsection.

SEC. 207. CIVIL RIGHTS AND ALGORITHMS.

    (a) Civil Rights Protections.--
            (1) In general.--A covered entity or a service provider may 
        not collect, process, or transfer covered data in a manner that 
        discriminates in or otherwise makes unavailable the equal 
        enjoyment of goods or services on the basis of race, color, 
        religion, national origin, sex, or disability.
            (2) Exceptions.--This subsection shall not apply to--
                    (A) the collection, processing, or transfer of 
                covered data for the purpose of--
                            (i) a covered entity's or a service 
                        provider's self-testing to prevent or mitigate 
                        unlawful discrimination; or
                            (ii) diversifying an applicant, 
                        participant, or customer pool; or
                    (B) any private club or group not open to the 
                public, as described in section 201(e) of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000a(e)).
    (b) FTC Enforcement Assistance.--
            (1) In general.--Whenever the Commission obtains 
        information that a covered entity or service provider may have 
        collected, processed, or transferred covered data in violation 
        of subsection (a), the Commission shall transmit such 
        information as allowable under Federal law to any Executive 
        agency with authority to initiate enforcement actions or 
        proceedings relating to such violation.
            (2) Annual report.--Not later than 3 years after the date 
        of enactment of this Act, and annually thereafter, the 
        Commission shall submit to Congress a report that includes a 
        summary of--
                    (A) the types of information the Commission 
                transmitted to Federal agencies under paragraph (1) 
                during the previous 1-year period; and
                    (B) how such information relates to Federal civil 
                rights laws.
            (3) Technical assistance.--In transmitting information 
        under paragraph (1), the Commission may consult and coordinate 
        with, and provide technical and investigative assistance, as 
        appropriate, to such Executive agency.
            (4) Cooperation with other agencies.--The Commission may 
        implement this subsection by executing agreements or memoranda 
        of understanding with the appropriate Federal agencies.
    (c) Algorithm Impact and Evaluation.--
            (1) Algorithm impact assessment.--
                    (A) Impact assessment.--Notwithstanding any other 
                provision of law, not later than 2 years after the date 
                of enactment of this Act, and annually thereafter, a 
                large data holder that uses an algorithm that may cause 
                potential harm to an individual, and uses such 
                algorithm solely or in part, to collect, process, or 
                transfer covered data must conduct an impact assessment 
                of such algorithm in accordance with subparagraph (B).
                    (B) Impact assessment scope.--The impact assessment 
                required under subparagraph (A) shall provide the 
                following:
                            (i) A detailed description of the design 
                        process and methodologies of the algorithm.
                            (ii) A statement of the purpose, proposed 
                        uses, and foreseeable capabilities outside of 
                        the articulated proposed use of the algorithm.
                            (iii) A detailed description of the data 
                        used by the algorithm, including the specific 
                        categories of data that will be processed as 
                        input and any data used to train the model that 
                        the algorithm relies on.
                            (iv) A description of the outputs produced 
                        by the algorithm.
                            (v) An assessment of the necessity and 
                        proportionality of the algorithm in relation to 
                        its stated purpose, including reasons for the 
                        superiority of the algorithm over nonautomated 
                        decision-making methods.
                            (vi) A detailed description of steps the 
                        large data holder has taken or will take to 
                        mitigate potential harms to individuals, 
                        including potential harms related to--
                                    (I) any individual under the age of 
                                17;
                                    (II) making or facilitating 
                                advertising for, or determining access 
                                to, or restrictions on the use of 
                                housing, education, employment, 
                                healthcare, insurance, or credit 
                                opportunities;
                                    (III) determining access to, or 
                                restrictions on the use of, any place 
                                of public accommodation, particularly 
                                as such harms relate to the protected 
                                characteristics of individuals, 
                                including race, color, religion, 
                                national origin, sex, or disability; or
                                    (IV) disparate impact on the basis 
                                of individuals' race, color, religion, 
                                national origin, sex, or disability 
                                status.
            (2) Algorithm design evaluation.--Notwithstanding any other 
        provision of law, not later than 2 years after the date of 
        enactment of this Act, a covered entity or service provider 
        that knowingly develops an algorithm, solely or in part, to 
        collect, process, or transfer covered data or publicly 
        available information shall prior to deploying the algorithm in 
        interstate commerce evaluate the design, structure, and inputs 
        of the algorithm, including any training data used to develop 
        the algorithm, to reduce the risk of the potential harms 
        identified under paragraph (1)(B).
            (3) Other considerations.--
                    (A) Focus.--In complying with paragraph (1) or (2), 
                a covered entity and a service provider may focus the 
                impact assessment or evaluation on any algorithm, or 
                portions of an algorithm, that may reasonably 
                contribute to the risk of the potential harms 
                identified under paragraph (1)(B).
                    (B) External, independent auditor or researcher.--
                To the extent possible, a covered entity and a service 
                provider shall utilize an external, independent auditor 
                or researcher to conduct an impact assessment under 
                paragraph (1) or an evaluation under paragraph (2).
                    (C) Availability.--
                            (i) In general.--A covered entity and a 
                        service provider--
                                    (I) shall, not later than 30 days 
                                after completing an impact assessment 
                                or evaluation, submit the impact 
                                assessment and evaluation conducted 
                                under paragraphs (1) and (2) to the 
                                Commission;
                                    (II) shall, upon request, make such 
                                impact assessment and evaluation 
                                available to Congress; and
                                    (III) may make a summary of such 
                                impact assessment and evaluation 
                                publicly available in a place that is 
                                easily accessible to individuals.
                            (ii) Trade secrets.--Covered entities and 
                        service providers must make all submissions 
                        under this section to the Commission in 
                        unredacted form, but a covered entity and a 
                        service provider may redact and segregate any 
                        trade secrets (as defined in section 1839 of 
                        title 18, United States Code) from public 
                        disclosure under this subparagraph.
                    (D) Enforcement.--The Commission may not use any 
                information obtained solely and exclusively through a 
                covered entity or a service provider's disclosure of 
                information to the Commission in compliance with this 
                section for any purpose other than enforcing this Act, 
                including the study and report provisions in paragraph 
                6 of this section. This provision shall not preclude 
                the Commission from providing this information to 
                Congress in response to a subpoena or official 
                Congressional request.
            (4) Guidance.--Not later than 2 years after the date of 
        enactment of this Act, the Commission shall, in consultation 
        with the Secretary of Commerce, or their respective designees, 
        publish guidance regarding compliance with this section.
            (5) Rulemaking and exemption.--The Commission shall have 
        authority under section 553 of title 5, United States Code, to 
        promulgate regulations as necessary to establish processes by 
        which a large data holder--
                    (A) shall submit an impact assessment to the 
                Commission under paragraph (3)(C)(i)(I); and
                    (B) may exclude from this subsection any algorithm 
                that presents low or minimal risk for potential for 
                harms to individuals (as identified under paragraph 
                (1)(B)).
            (6) Study and report.--
                    (A) Study.--The Commission, in consultation with 
                the Secretary of Commerce or the Secretary's designee, 
                shall conduct a study, to review any impact assessment 
                or evaluation submitted under this paragraph. Such 
                study shall include an examination of--
                            (i) best practices for the assessment and 
                        evaluation of algorithms; and
                            (ii) methods to reduce the risk of harm to 
                        individuals that may be related to the use of 
                        algorithms.
                    (B) Report.--
                            (i) Initial report.--Not later than 3 years 
                        after the date of enactment of this Act, the 
                        Commission, in consultation with the Secretary 
                        of Commerce or the Secretary's designee, shall 
                        submit to Congress a report containing the 
                        results of the study conducted under subsection 
                        (a), together with recommendations for such 
                        legislation and administrative action as the 
                        Commission determines appropriate.
                            (ii) Additional reports.--Not later than 3 
                        years after submission of the initial report 
                        under clause (i), and as the Commission 
                        determines necessary thereafter, the Commission 
                        shall submit to Congress an updated version of 
                        such report.

SEC. 208. DATA SECURITY AND PROTECTION OF COVERED DATA.

    (a) Establishment of Data Security Practices.--
            (1) In general.--A covered entity or service provider shall 
        establish, implement, and maintain reasonable administrative, 
        technical, and physical data security practices and procedures 
        to protect and secure covered data against unauthorized access 
        and acquisition.
            (2) Considerations.--The reasonable administrative, 
        technical, and physical data security practices required under 
        paragraph (1) shall be appropriate to--
                    (A) the size and complexity of the covered entity 
                or service provider;
                    (B) the nature and scope of the covered entity or 
                the service provider's collecting, processing, or 
                transferring of covered data;
                    (C) the volume and nature of the covered data 
                collected, processed, or transferred by the covered 
                entity or service provider;
                    (D) the sensitivity of the covered data collected, 
                processed, or transferred;
                    (E) the current state of the art in administrative, 
                technical, and physical safeguards for protecting such 
                covered data; and
                    (F) the cost of available tools to improve security 
                and reduce vulnerabilities to unauthorized access and 
                acquisition of such covered data in relation to the 
                risks and nature of the covered data.
    (b) Specific Requirements.--The data security practices required 
under subsection (a) shall include, at a minimum, the following 
practices:
            (1) Assess vulnerabilities.--Identifying and assessing any 
        material internal and external risk to, and vulnerability in, 
        the security of each system maintained by the covered entity 
        that collects, processes, or transfers covered data, or service 
        provider that collects, processes, or transfers covered data on 
        behalf of the covered entity, including unauthorized access to 
        or risks to such covered data, human vulnerabilities, access 
        rights, and the use of service providers. With respect to large 
        data holders, such activities shall include a plan to receive 
        and respond to unsolicited reports of vulnerabilities by any 
        entity or individual.
            (2) Preventive and corrective action.--Taking preventive 
        and corrective action designed to mitigate any reasonably 
        foreseeable risks or vulnerabilities to covered data identified 
        by the covered entity or service provider, consistent with the 
        nature of such risk or vulnerability, which may include 
        implementing administrative, technical, or physical safeguards 
        or changes to data security practices or the architecture, 
        installation, or implementation of network or operating 
        software, among other actions.
            (3) Evaluation of preventive and corrective action.--
        Evaluating and making reasonable adjustments to the safeguards 
        described in paragraph (2) in light of any material changes in 
        technology, internal or external threats to covered data, and 
        the covered entity or service provider's own changing business 
        arrangements or operations.
            (4) Information retention and disposal.--Disposing of 
        covered data that is required to be deleted by law or is no 
        longer necessary for the purpose for which the data was 
        collected, processed, or transferred, unless an individual has 
        provided affirmative express consent to such retention. Such 
        disposal shall include destroying, permanently erasing, or 
        otherwise modifying the covered data to make such data 
        permanently unreadable or indecipherable and unrecoverable to 
        ensure ongoing compliance with this section.
            (5) Training.--Training each employee with access to 
        covered data on how to safeguard covered data and updating such 
        training as necessary.
            (6) Designation.--Designating an officer, employee, or 
        employees to maintain and implement such practices.
            (7) Incident response.--Implementing procedures to detect, 
        respond to, or recover from security incidents or breaches.
    (c) Regulations.--The Commission may promulgate in accordance with 
section 553 of title 5, United States Code, technology-neutral 
regulations to establish processes for complying with this section.
    (d) Applicability of Other Information Security Laws.--A covered 
entity that is required to comply with title V of the Gramm-Leach-
Bliley Act (15 U.S.C. 6801 et seq.) or the Health Information 
Technology for Economic and Clinical Health Act (42 U.S.C. 17931 et 
seq.), and is in compliance with the information security requirements 
of such Act as determined by the enforcement authority in such Act, 
shall be deemed to be in compliance with the requirements of this 
section with respect to any data covered by such information security 
requirements.

SEC. 209. SMALL BUSINESS PROTECTIONS.

    (a) In General.--
            (1) Any covered entity or service provider that can 
        establish that it met the requirements described in paragraph 
        (2) for the period of the 3 preceding calendar years (or for 
        the period during which the covered entity has been in 
        existence if such period is less than 3 years) shall--
                    (A) be exempt from compliance with sections 
                203(a)(4), 208(b)(1)-(3), (5)-(7), and 301(c); and
                    (B) at the covered entity's sole discretion, have 
                the option of complying with section 203(a)(2) by, 
                after receiving a verified request from an individual 
                to correct covered data of the individual under such 
                section, deleting such covered data in its entirety 
                instead of making the requested correction.
            (2) Exemption requirements.--The requirements of this 
        paragraph are, with respect to a covered entity or a service 
        provider and a period, the following:
                    (A) The covered entity or service provider's 
                average annual gross revenues during the period did not 
                exceed $41,000,000.
                    (B) The covered entity or service provider, on 
                average, did not annually collect or process the 
                covered data of more than 200,000 individuals during 
                the period beyond the purpose of initiating, rendering, 
                billing for, finalizing, completing, or otherwise 
                collecting payment for a requested service or product, 
                so long as all covered data for such purpose is deleted 
                or de-identified within 90 days.
                    (C) The covered entity or service provider did not 
                derive more than 50 percent of its revenue from 
                transferring covered data during any year (or part of a 
                year if the covered entity has been in existence for 
                less than 1 year) that occurs during the period.
            (3) Definition.--For purposes of this section, the term 
        ``revenue'' as it relates to any covered entity that is not 
        organized to carry on business for its own profit or that of 
        their members, means the gross receipts the covered entity 
        received in whatever form from all sources without subtracting 
        any costs or expenses, and includes contributions, gifts, 
        grants, dues or other assessments, income from investments, or 
        proceeds from the sale of real or personal property.
            (4) Journalism.--Nothing in this Act shall be construed to 
        limit or diminish First Amendment freedoms to gather and 
        publish information guaranteed under the Constitution.

SEC. 210. UNIFIED OPT-OUT MECHANISMS.

    For the rights established under sections 204(b) and (c), and 
section 206(c)(3)(D) not later than 18 months after the date of 
enactment of this Act, the Commission shall establish one or more 
acceptable privacy protective, centralized mechanisms, including global 
privacy signals such as browser or device privacy settings, for 
individuals to exercise all such rights through a single interface for 
a covered entity to utilize to allow an individual to make such opt out 
designations with respect to covered data related to such individual.

                  TITLE III--CORPORATE ACCOUNTABILITY

SEC. 301. EXECUTIVE RESPONSIBILITY.

    (a) In General.--Beginning 1 year after the date of enactment of 
this Act, an executive officer of a large data holder shall annually 
certify, in good faith, to the Commission, in a manner specified by the 
Commission by regulation under section 553 of title 5, United States 
Code, that the entity maintains--
            (1) internal controls reasonably designed to comply with 
        this Act; and
            (2) reporting structures to ensure that such certifying 
        officers are involved in, and are responsible for, decisions 
        that impact the entity's compliance with this Act.
    (b) Requirements.--A certification submitted under subsection (a) 
shall be based on a review of the effectiveness of a large data 
holder's internal controls and reporting structures that is conducted 
by the certifying officers not more than 90 days before the submission 
of the certification.
    (c) Designation of Privacy and Data Security Officer.--
            (1) In general.--A covered entity and a service provider 
        shall designate--
                    (A) 1 or more qualified employees as privacy 
                officers; and
                    (B) 1 or more qualified employees (in addition to 
                any employee designated under subparagraph (A)) as data 
                security officers.
            (2) Requirements for officers.--An employee who is 
        designated by a covered entity or a service provider as a 
        privacy officer or a data security officer shall, at a 
        minimum--
                    (A) implement a data privacy program and data 
                security program to safeguard the privacy and security 
                of covered data in compliance with the requirements of 
                this Act; and
                    (B) facilitate the covered entity or service 
                provider's ongoing compliance with this Act.
            (3) Additional requirements for large data holders.--A 
        large data holder shall designate at least 1 of the officers 
        described in paragraph (1) of this subsection to report 
        directly to the highest official at the large data holder as a 
        privacy protection officer who shall, in addition to the 
        requirements in paragraph (2), either directly or through a 
        supervised designee or designees--
                    (A) establish processes to periodically review and 
                update the privacy and security policies, practices, 
                and procedures of the large data holder, as necessary;
                    (B) conduct biennial and comprehensive audits to 
                ensure the policies, practices, and procedures of the 
                large data holder work to ensure the company is in 
                compliance with all applicable laws and ensure such 
                audits are accessible to the Commission upon such 
                request;
                    (C) develop a program to educate and train 
                employees about compliance requirements;
                    (D) maintain updated, accurate, clear, and 
                understandable records of all privacy and data security 
                practices undertaken by the large data holder; and
                    (E) serve as the point of contact between the large 
                data holder and enforcement authorities.
    (d) Large Data Holder Privacy Impact Assessments.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act or 1 year after the date that a covered 
        entity or service provider first meets the definition of large 
        data holder, whichever is earlier, and biennially thereafter, 
        each large data holder shall conduct a privacy impact 
        assessment that weighs the benefits of the large data holder's 
        covered data collecting, processing, and transfer practices 
        against the potential adverse consequences of such practices to 
        individual privacy.
            (2) Assessment requirements.--A privacy impact assessment 
        required under paragraph (1) shall be--
                    (A) reasonable and appropriate in scope given--
                            (i) the nature of the covered data 
                        collected, processed, and transferred by the 
                        large data holder;
                            (ii) the volume of the covered data 
                        collected, processed, and transferred by the 
                        large data holder; and
                            (iii) the potential risks posed to the 
                        privacy of individuals by the collecting, 
                        processing, and transfer of covered data by the 
                        large data holder;
                    (B) documented in written form and maintained by 
                the large data holder unless rendered out of date by a 
                subsequent assessment conducted under paragraph (1); 
                and
                    (C) approved by the privacy protection officer 
                designated in subsection (c)(3) of the large data 
                holder.
            (3) Additional factors to include in assessment.--In 
        assessing the privacy risks, including substantial privacy 
        risks, the large data holder may include reviews of the means 
        by which technologies, including blockchain and distributed 
        ledger technologies and other emerging technologies, are used 
        to secure covered data.

SEC. 302. SERVICE PROVIDERS AND THIRD PARTIES.

    (a) Service Providers.--A service provider--
            (1) shall only collect, process, and transfer service 
        provider data to the extent strictly necessary and 
        proportionate to provide a service requested by the covered 
        entity. This paragraph shall not require a service provider to 
        collect or process covered data if the service provider would 
        not otherwise do so;
            (2) shall not collect, process, or transfer service 
        provider data if the service provider has actual knowledge that 
        the covered entity violated this Act with respect to such data;
            (3) shall assist a covered entity in fulfilling the covered 
        entity's obligation to respond to individual rights requests 
        pursuant to section 203, by appropriate technical and 
        organizational measures, taking into account the nature of the 
        processing and the information reasonably available to the 
        service provider;
            (4) may engage another service provider for purposes of 
        processing service provider data on behalf of a covered entity 
        only after providing the covered entity that is directing the 
        services or functions of the service provider with respect to 
        such service provider data with notice, and pursuant to a 
        written contract that requires such other service provider to 
        satisfy the obligations of the service provider with respect to 
        such service provider data;
            (5) shall upon the reasonable request of the covered 
        entity, make available to the covered entity information 
        necessary to demonstrate the service provider's compliance with 
        the obligations in this Act, which may include making available 
        a report of an independent assessment arranged by the service 
        provider on terms agreed to by the parties and making the 
        report required under section 207(c)(2) as applicable;
            (6) shall, at the covered entity's direction, delete or 
        return all covered data to the covered entity as requested at 
        the end of the provision of services, unless retention of the 
        covered data is required by law;
            (7) shall not transfer service provider data to any person 
        with the exception of another service provider without the 
        affirmative express consent, obtained by the covered entity 
        with the direct relationship to the individual that is 
        directing the services or functions of the service provider 
        with respect to the service provider data, of the individual to 
        whom the service provider data is linked or reasonably 
        linkable;
            (8) shall develop, implement, and maintain reasonable 
        administrative, technical, and physical safeguards that are 
        designed to protect the security and confidentiality of covered 
        data it processes consistent with section 208; and
            (9) shall be exempt from the requirements of section 202(d) 
        with respect to service provider data but shall provide direct 
        notification regarding material changes to its privacy policy 
        to each covered entity with which it provides services or 
        functions as a service provider, in each language that the 
        privacy policy is made available. Compliance with this 
        provision does not alleviate any obligations the service 
        provider has to the covered entity to which it provides 
        services or functions as a service provider.
    (b) Contracts Between Covered Entities and Service Providers.--A 
person or entity may act as a service provider pursuant to a written 
contract between the covered entity and the service provider, or a 
written contract between one service provider and a second service 
provider as permitted in section 302(a)(4), provided that the 
contract--
            (1) governs the service provider's data processing 
        procedures with respect to processing or transfer performed on 
        behalf of the covered entity or service provider;
            (2) clearly sets forth--
                    (A) instructions for processing data;
                    (B) the nature and purpose of processing;
                    (C) the type of data subject to processing;
                    (D) the duration of processing; and
                    (E) the rights and obligations of both parties;
            (3) does not relieve a covered entity or a service provider 
        of an obligation under this Act; and
            (4) prohibits--
                    (A) collecting, processing, or transferring covered 
                data in contravention to subsection (a); and
                    (B) combining service provider data with covered 
                data which the service provider receives from or on 
                behalf of another person or persons or collects from 
                its own interaction with an individual. The contract 
                may, subject to agreement with the service provider, 
                permit a covered entity to monitor the service 
                provider's compliance with the contract through 
                measures including, but not limited to, ongoing manual 
                reviews and automated scans, and regular assessments, 
                audits, or other technical and operational testing at 
                least once every 12 months.
    (c) Relationship Between Covered Entities and Service Providers.--
            (1) Determining whether a person is acting as a covered 
        entity or service provider with respect to a specific 
        processing of data is a fact-based determination that depends 
        upon the context in which such data is processed.
            (2) A covered entity or service provider that transfers 
        covered data to a service provider, in compliance with the 
        requirements of this Act, is not liable for a violation of this 
        Act by the service provider to whom such covered data was 
        transferred, this Act provided that, at the time of 
        transferring such covered data, the covered entity or service 
        provider did not know or have reason to know that the service 
        provider would likely commit a violation of this Act.
            (3) A covered entity or service provider that receives 
        covered data in compliance with the requirements of this Act is 
        not in violation of this Act as a result of a violation by a 
        covered entity or service provider from which it receives such 
        covered data.
    (d) Third Parties.--A third party--
            (1) shall not process third-party data for a processing 
        purpose other than, in the case of sensitive covered data, the 
        processing purpose for which the individual gave affirmative 
        express consent and, in the case of non-sensitive data, the 
        processing purpose for which the covered entity made a 
        disclosure pursuant to section 204(b)(4);
            (2) for purposes of paragraph (1), may reasonably rely on 
        representations made by the covered entity that transferred the 
        third-party data, provided that the third party conducts 
        reasonable due diligence on the representations of the covered 
        entity and finds those representations to be credible; and
            (3) shall be exempt from the requirements of section 204 
        with respect to third-party data, but shall otherwise have the 
        same responsibilities and obligations as a covered entity with 
        respect to such data under all other provisions of this Act.
    (e) Additional Obligations on Covered Entities.--
            (1) In general.--A covered entity or service provider shall 
        exercise reasonable due diligence in--
                    (A) selecting a service provider; and
                    (B) deciding to transfer covered data to a third 
                party.
            (2) Guidance.--Not later than 2 years after the date of 
        enactment of this Act, the Commission shall publish guidance 
        regarding compliance with this subsection, taking into 
        consideration the burdens on small- and medium-sized covered 
        entities.

SEC. 303. TECHNICAL COMPLIANCE PROGRAMS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Commission shall promulgate regulations 
under section 553 of title 5, United States Code, to establish a 
process for the proposal and approval of technical compliance programs 
under this section specific to any technology, product, service, or 
method used by a covered entity to collect, process, or transfer 
covered data.
    (b) Scope of Programs.--The technical compliance programs 
established under this section shall, with respect to a technology, 
product, service, or method used by a covered entity to collect, 
process, or transfer covered data--
            (1) establish guidelines for compliance with this Act;
            (2) meet or exceed the requirements of this Act; and
            (3) be made publicly available to any individual whose 
        covered data is collected, processed, or transferred using such 
        technology, product, service, or method.
    (c) Approval Process.--
            (1) In general.--Any request for approval, amendment, or 
        repeal of a technical compliance program may be submitted to 
        the Commission by any person, including a covered entity, a 
        representative of a covered entity, an association of covered 
        entities, or a public interest group or organization. Within 90 
        days, the Commission shall publish the request and provide an 
        opportunity for public comment on the proposal.
            (2) Expedited response to requests.--Beginning 1 year after 
        the date of enactment of this Act, the Commission shall act 
        upon a request for the proposal and approval of a technical 
        compliance program not later than 180 days after the filing of 
        the request, and shall set forth publicly in writing its 
        conclusions with regard to such request.
    (d) Right To Appeal.--Final action by the Commission on a request 
for approval, amendment, or repeal of a technical compliance program, 
or the failure to act within the 180 day period after a request for 
approval, amendment, or repeal of a technical compliance program is 
made under subsection (c), may be appealed to a Federal district court 
of the United States of appropriate jurisdiction as provided for in 
section 702 of title 5, United States Code.
    (e) Effect on Enforcement.--
            (1) In general.--Prior to commencing an investigation or 
        enforcement action against any covered entity under this Act, 
        the Commission and State attorney general shall consider the 
        covered entity's history of compliance with any technical 
        compliance program approved under this section and any action 
        taken by the covered entity to remedy noncompliance with such 
        program. If such enforcement action described in Sec. 403 is 
        commenced, the covered entity's history of compliance with any 
        technical compliance program approved under this section and 
        any action taken by the covered entity to remedy noncompliance 
        with such program shall be taken into consideration when 
        determining liability or a penalty. The covered entity's 
        history of compliance with any technical compliance program 
        shall not affect any burden of proof or the weight given to 
        evidence in an enforcement or judicial proceeding.
            (2) Commission authority.--Approval of a technical 
        compliance program shall not limit the authority of the 
        Commission, including the Commission's authority to commence an 
        investigation or enforcement action against any covered entity 
        under this Act or any other Act.
            (3) Rule of construction.--Nothing in this subsection shall 
        provide any individual, class of individuals, or person with 
        any right to seek discovery of any non-public Commission 
        deliberations or activities or impose any pleading requirement 
        on the Commission should it bring an enforcement action of any 
        kind.

SEC. 304. COMMISSION APPROVED COMPLIANCE GUIDELINES.

    (a) Application for Compliance Guideline Approval.--
            (1) In general.--A covered entity that is not a third-party 
        collecting entity and meets the requirements of section 209, or 
        a group of such covered entities, may apply to the Commission 
        for approval of 1 or more sets of compliance guidelines 
        governing the collection, processing, and transfer of covered 
        data by the covered entity or group of covered entities.
            (2) Application requirements.--Such application shall 
        include--
                    (A) a description of how the proposed guidelines 
                will meet or exceed the requirements of this Act;
                    (B) a description of the entities or activities the 
                proposed set of compliance guidelines is designed to 
                cover;
                    (C) a list of the covered entities that meet the 
                requirements of section 209 and are not third-party 
                collecting entities, if any are known at the time of 
                application, that intend to adhere to the compliance 
                guidelines; and
                    (D) a description of how such covered entities will 
                be independently assessed for adherence to such 
                compliance guidelines, including the independent 
                organization not associated with any of the covered 
                entities that may participate in guidelines that will 
                administer such guidelines.
            (3) Commission review.--
                    (A) Initial approval.--
                            (i) Public comment period.--Within 90 days 
                        after the receipt of proposed guidelines 
                        submitted pursuant to paragraph (2), the 
                        Commission shall publish the proposal and 
                        provide an opportunity for public comment on 
                        such compliance guidelines.
                            (ii) Approval.--The Commission shall 
                        approve an application regarding proposed 
                        guidelines under paragraph (2) if the applicant 
                        demonstrates that the compliance guidelines--
                                    (I) meet or exceed requirements of 
                                this Act;
                                    (II) provide for the regular review 
                                and validation by an independent 
                                organization not associated with any of 
                                the covered entities that may 
                                participate in the guidelines and that 
                                is approved by the Commission to 
                                conduct such reviews of the compliance 
                                guidelines of the covered entity or 
                                entities to ensure that the covered 
                                entity or entities continue to meet or 
                                exceed the requirements of this Act; 
                                and
                                    (III) include a means of 
                                enforcement if a covered entity does 
                                not meet or exceed the requirements in 
                                the guidelines, which may include 
                                referral to the Commission for 
                                enforcement consistent with section 401 
                                or referral to the appropriate State 
                                attorney general for enforcement 
                                consistent with section 402.
                            (iii) Timeline.--Within 1 year of receiving 
                        an application regarding proposed guidelines 
                        under paragraph (2), the Commission shall issue 
                        a determination approving or denying the 
                        application and providing its reasons for 
                        approving or denying such application.
                    (B) Approval of modifications.--
                            (i) In general.--If the independent 
                        organization administering a set of guidelines 
                        makes material changes to guidelines previously 
                        approved by the Commission, the independent 
                        organization must submit the updated guidelines 
                        to the Commission for approval. As soon as 
                        feasible, the Commission shall publish the 
                        updated guidelines and provide an opportunity 
                        for public comment.
                            (ii) Timeline.--The Commission shall 
                        approve or deny any material change to the 
                        guidelines within 180 days after receipt of the 
                        submission for approval.
    (b) Withdrawal of Approval.--If at any time the Commission 
determines that the guidelines previously approved no longer meet the 
requirements of this Act or a regulation promulgated under this Act or 
that compliance with the approved guidelines is insufficiently enforced 
by the independent organization administering the guidelines, the 
Commission shall notify the covered entities or group of such entities 
and the independent organization of its determination to withdraw 
approval of such guidelines and the basis for doing so. Upon receipt of 
such notice, the covered entity or group of such entities and the 
independent organization may cure any alleged deficiency with the 
guidelines or the enforcement of such guidelines within 180 days and 
submit the proposed cure or cures to the Commission. If the Commission 
determines that such cures eliminate the alleged deficiency in the 
guidelines, then the Commission may not withdraw approval of such 
guidelines on the basis of such determination.
    (c) Deemed Compliance.--A covered entity that is eligible to 
participate under subsection (a)(1), and participates, in guidelines 
approved under this section shall be deemed in compliance with the 
relevant provisions of this Act if it is in compliance with such 
guidelines.

SEC. 305. DIGITAL CONTENT FORGERIES.

    (a) Reports.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter, the Secretary of Commerce or the 
Secretary's designee shall publish a report regarding digital content 
forgeries.
    (b) Requirements.--Each report under subsection (a) shall include 
the following:
            (1) A definition of digital content forgeries along with 
        accompanying explanatory materials, except that the definition 
        developed pursuant to this section shall not supersede any 
        other provision of law or be construed to limit the authority 
        of any Executive agency related to digital content forgeries.
            (2) A description of the common sources of digital content 
        forgeries in the United States and commercial sources of 
        digital content forgery technologies.
            (3) An assessment of the uses, applications, and harms of 
        digital content forgeries.
            (4) An analysis of the methods and standards available to 
        identify digital content forgeries as well as a description of 
        the commercial technological counter-measures that are, or 
        could be, used to address concerns with digital content 
        forgeries, which may include the provision of warnings to 
        viewers of suspect content.
            (5) A description of the types of digital content 
        forgeries, including those used to commit fraud, cause harm, or 
        violate any provision of law.
            (6) Any other information determined appropriate by the 
        Secretary of Commerce or the Secretary's designee.

        TITLE IV--ENFORCEMENT, APPLICABILITY, AND MISCELLANEOUS

SEC. 401. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) New Bureau.--
            (1) In general.--The Commission shall establish within the 
        Commission a new bureau, the Bureau of Privacy, which shall be 
        comparable in structure, size, organization, and authority to 
        the existing Bureaus within the Commission related to consumer 
        protection and competition.
            (2) Mission.--The mission of the bureau established under 
        this subsection shall be to assist the Commission in exercising 
        the Commission's authority under this Act and related 
        authorities.
            (3) Timeline.--The bureau shall be established, staffed, 
        and fully operational not later than 1 year after the date of 
        enactment of this Act.
    (b) Office of Business Mentorship.--The Director of the Bureau 
established under subsection (a) shall establish within the Bureau an 
Office of Business Mentorship to provide guidance and education to 
covered entities regarding compliance with this Act. Covered entities 
may request advice from the Commission or this office with respect to a 
course of action which the covered entity proposes to pursue and which 
may relate to the requirements of this Act.
    (c) Enforcement by the Federal Trade Commission.--
            (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 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) Powers of the commission.--
                    (A) In general.--Except as provided in paragraphs 
                (3), (4), and (5), the 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.
                    (B) Privileges and immunities.--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 (15 U.S.C. 41 et seq.).
            (3) Limiting certain actions unrelated to this act.--If the 
        Commission brings a civil action under this Act alleging that 
        an act or practice violates this Act or a regulation 
        promulgated under this Act, the Commission may not seek a cease 
        and desist order against the same defendant under section 5(b) 
        of the Federal Trade Commission Act (15 U.S.C. 45(b)) to stop 
        that same act or practice on the grounds that such act or 
        practice constitutes an unfair or deceptive act or practice.
            (4) Common carriers and nonprofits.--Notwithstanding any 
        jurisdictional limitation of the Commission with respect to 
        consumer protection or privacy, the Commission shall enforce 
        this Act and the regulations promulgated under this Act, in the 
        same manner provided in subsections (1), (2), (3), and (5) of 
        this subsection, with respect to common carriers subject to the 
        Communications Act of 1934 (47 U.S.C. 151 et seq.) and All Acts 
        amendatory thereof and supplementary thereto; and organizations 
        not organized to carry on business for their own profit or that 
        of their members.
            (5) Data privacy and security victims relief fund.--
                    (A) Establishment of victims relief fund.--There is 
                established in the Treasury of the United States a 
                separate fund to be known as the ``Privacy and Security 
                Victims Relief Fund'' (referred to in this paragraph as 
                the ``Victims Relief Fund'').
                    (B) Deposits.--The amount of any civil penalty 
                obtained against any covered entity or service provider 
                or any other relief ordered to provide redress, 
                payments or compensation, or other monetary relief to 
                individuals that cannot be located or the payment of 
                which would otherwise not be practicable in any 
                judicial or administrative action to enforce this Act 
                or a regulation promulgated under this Act shall be 
                deposited into the Victims Relief Fund.
                    (C) Use of fund amounts.--
                            (i) Availability to the commission.--
                        Notwithstanding section 3302 of title 31, 
                        United States Code, amounts in the Victims 
                        Relief Fund shall be available to the 
                        Commission, without fiscal year limitation, to 
                        provide redress, payments or compensation, or 
                        other monetary relief to individuals affected 
                        by an act or practice for which relief has been 
                        obtained under this Act.
                            (ii) Other permissible uses.--To the extent 
                        that individuals cannot be located or such 
                        redress, payments or compensation, or other 
                        monetary relief are otherwise not practicable, 
                        the Commission may use such funds for the 
                        purpose of--
                                    (I) funding the activities of the 
                                Office of Business Mentorship 
                                established under subsection (b); or
                                    (II) engaging in technological 
                                research that the Commission considers 
                                necessary to enforce or administer this 
                                Act.

SEC. 402. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

    (a) Civil Action.--In any case in which the attorney general of a 
State or State Privacy Authority has reason to believe that an interest 
of the residents of that State has been, may be, or is adversely 
affected by the engagement of any a covered entity or service provider 
in an act or practice that has violated this Act or a regulation 
promulgated under this Act, the attorney general of the State, or State 
Privacy Authority, may bring a civil action in the name of the State, 
or as parens patriae on behalf of the residents of the State. Any such 
action shall be brought exclusively in an appropriate Federal district 
court of the United States to--
            (1) enjoin that act or practice;
            (2) enforce compliance with this Act or the regulation;
            (3) obtain damages, civil penalties, restitution, or other 
        compensation on behalf of the residents of the State; or
            (4) reasonable attorneys' fees and other litigation costs 
        reasonably incurred.
    (b) Rights of the Commission.--
            (1) In general.--Except where not feasible, the attorney 
        general of a State or State Privacy Authority shall notify the 
        Commission in writing prior to initiating a civil action under 
        subsection (a). Such notice shall include a copy of the 
        complaint to be filed to initiate such action. Upon receiving 
        such notice, the Commission may intervene in such action as of 
        right pursuant to the Federal Rules of Civil Procedure.
            (2) Notification timeline.--Where it is not feasible for 
        the attorney general of a State or State Privacy Authority to 
        provide the notification required by paragraph (1) before 
        initiating a civil action under subsection (a), the attorney 
        general of a State or State Privacy Authority shall notify the 
        Commission immediately after initiating the civil action.
    (c) Actions by the Commission.--In any case in which a civil action 
is instituted by or on behalf of the Commission for violation of this 
Act or a regulation promulgated under this Act, no attorney general or 
State Privacy Authority may, during the pendency of such action, 
institute a civil action against any defendant named in the complaint 
in the action instituted by or on behalf of the Commission for 
violation of this Act or a regulation promulgated under this Act that 
is alleged in such complaint, if the Commission's complaint alleges 
such violations affected the residents of the relevant State or 
individuals nationwide. In a case brought by the Commission that 
affects the interests of a State, an attorney general of such State or 
State Privacy Authority may intervene as of right pursuant to the 
Federal Rules of Civil Procedure.
    (d) Rule of Construction.--Nothing in this section shall be 
construed to prevent the attorney general of a State or State Privacy 
Authority from exercising the powers conferred on the attorney general 
or State Privacy Authority to conduct investigations, to administer 
oaths or affirmations, or to compel the attendance of witnesses or the 
production of documentary or other evidence.
    (e) Preservation of State Powers.--Except as provided in subsection 
(c), no provision of this section shall be construed as altering, 
limiting, or affecting the authority of a State attorney general or 
State Privacy Authority to--
            (1) bring an action or other regulatory proceeding arising 
        solely under the laws in effect in that State; or
            (2) exercise the powers conferred on the attorney general 
        or State Privacy Authority by the laws of the State, including 
        the ability to conduct investigations, administer oaths or 
        affirmations, or compel the attendance of witnesses or the 
        production of documentary or other evidence.

SEC. 403. ENFORCEMENT BY INDIVIDUALS.

    (a) Enforcement by Individuals.--
            (1) In general.--Beginning 4 years after the date on which 
        this Act takes effect, any individual who suffers an injury 
        that could be addressed by the relief permitted in paragraph 
        (2) for a violation of this Act or a regulation promulgated 
        under this Act by a covered entity may bring a civil action 
        against such entity in any Federal court of competent 
        jurisdiction.
            (2) Relief.--In a civil action brought under paragraph (1) 
        in which the plaintiff prevails, the court may award the 
        plaintiff--
                    (A) an amount equal to the sum of any actual 
                damages sustained;
                    (B) injunctive relief; and
                    (C) reasonable attorney's fees and litigation 
                costs.
            (3) Rights of the commission and state attorneys general.--
                    (A) In general.--Prior to an individual bringing a 
                civil action under paragraph (1), such individual must 
                first notify the Commission and the attorney general of 
                the State of the individuals residence in writing 
                outlining their desire to commence a civil action. Upon 
                receiving such notice, the Commission and State 
                attorney general shall make a determination, not later 
                than 60 days after receiving such notice, as to whether 
                they will independently seek to intervene in such 
                action, and upon intervening--
                            (i) be heard on all matters arising in such 
                        action; and
                            (ii) file petitions for appeal of a 
                        decision in such action.
                    (B) Bad faith.--Any written communication 
                requesting a monetary payment that is sent to a covered 
                entity shall be considered to have been sent in bad 
                faith and shall be unlawful as defined in this Act, if 
                the written communication was sent:
                            (i) Prior to the date that is 60 days after 
                        either a State attorney general or the 
                        Commission has received the notice required 
                        under subparagraph (A).
                            (ii) After the Commission or attorney 
                        general of a State made the determination to 
                        independently seek civil actions against such 
                        entity as outlined in subparagraph (A).
            (4) FTC study.--Beginning on the date that is 5 years after 
        the date of enactment of this Act, the Commission's Bureau of 
        Economics shall conduct an annual study to determine the 
        economic impacts in the United States of demand letters and the 
        scope of the rights of an individual to bring forth civil 
        actions against covered entities. Such study shall include, but 
        not be limited to include the following:
                    (A) The impact on increasing insurance rates in the 
                United States.
                    (B) The impact on the ability of covered entities 
                to offer new products or services.
                    (C) The impact on the creation and growth of 
                startup companies, including tech startup companies.
                    (D) Any emerging risks and long-term trends in 
                relevant marketplaces, supply chains, and labor 
                availability.
            (5) Report to congress.--Not later than 1 year after the 
        first day on which individuals are able to bring civil actions 
        under this subsection, and annually thereafter, the Commission 
        shall submit to the Committee on Energy and Commerce of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report that 
        contains the results of the study conducted under paragraph 
        (4).
    (b) Pre-Dispute Arbitration Agreements and Pre-Dispute Joint-Action 
Waivers Related to Individuals Under the Age of 18.--
            (1) Arbitration.--Except as provided in section 303(d), and 
        notwithstanding any other provision of law, no agreement for 
        pre-dispute arbitration with respect to an individual under the 
        age of 18 may limit any of the rights provided in this Act.
            (2) Joint-action waivers.--Notwithstanding any other 
        provision of law, no agreement for pre-dispute joint-action 
        waiver with respect to an individual under the age of 18 may 
        limit any of the rights provided in this Act.
            (3) Definitions.--For purposes of this subsection:
                    (A) Pre-dispute arbitration agreement.--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.
                    (B) Pre-dispute joint-action waiver.--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 1 
                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.
    (c) Right To Cure.--
            (1) Notice.--Subject to paragraph (3), any action under 
        this section may be brought by an individual if, prior to 
        initiating such action against a covered entity for injunctive 
        relief or against a covered entity that meets the requirements 
        of section 210(c) for any form of relief the individual 
        provides to the covered entity 45 days' written notice 
        identifying the specific provisions of this Act the individual 
        alleges have been or are being violated.
            (2) Effect of cure.--In the event a cure is possible, if 
        within the 45 days the covered entity cures the noticed 
        violation and provides the individual an express written 
        statement that the violation has been cured and that no further 
        violations shall occur, an action for injunctive relief may be 
        reasonably dismissed.
    (d) Demand Letter.--If an individual or a class of individuals 
sends correspondence to a covered entity alleging a violation of the 
provisions of this Act and requesting a monetary payment, such 
correspondence shall include the following language: ``Please visit the 
website of the Federal Trade Commission to understand your rights 
pursuant to this letter'' followed by a hyperlink to the web page of 
the Commission required under section 201. If such correspondence does 
not include such language and hyperlink, the individual or joint class 
of individuals shall forfeit their rights under this section.
    (e) Applicability.--This section shall only apply to any claim 
alleging a violation of section 102, 104, 202, 203, 204, 205(a), 
205(b), 206(c)(3)(D), 207(a), 208(a), or 302 for which relief described 
in subsection (a)(2) may be granted.

SEC. 404. RELATIONSHIP TO FEDERAL AND STATE LAWS.

    (a) Federal Law Preservation.--
            (1) In general.--Nothing in this Act or a regulation 
        promulgated under this Act shall be construed to limit--
                    (A) the authority of the Commission, or any other 
                Executive agency, under any other provision of law;
                    (B) any requirement for a common carrier subject to 
                section 64.2011 of title 47, Code of Federal 
                Regulations, regarding information security breaches; 
                or
                    (C) any other provision of Federal law unless 
                specifically authorized by this Act.
            (2) Applicability of other privacy requirements.--A covered 
        entity that is required to comply with title V of the Gramm-
        Leach-Bliley Act (15 U.S.C. 6801 et seq.), the Health 
        Information Technology for Economic and Clinical Health Act (42 
        U.S.C. 17931 et seq.), part C of title XI of the Social 
        Security Act (42 U.S.C. 1320d et seq.), the Fair Credit 
        Reporting Act (15 U.S.C. 1681 et seq.), the Family Educational 
        Rights and Privacy Act (20 U.S.C. 1232g; part 99 of title 34, 
        Code of Federal Regulations), or the regulations promulgated 
        pursuant to section 264(c) of the Health Insurance Portability 
        and Accountability Act of 1996 (42 U.S.C. 1320d-2 note), and is 
        in compliance with the data privacy requirements of such 
        regulations, part, title, or Act (as applicable), shall be 
        deemed to be in compliance with the related requirements of 
        this title, except for section 208, with respect to data 
        subject to the requirements of such regulations, part, title, 
        or Act. Not later than 1 year after the date of enactment of 
        this Act, the Commission shall issue guidance describing the 
        implementation of this paragraph.
            (3) Applicability of other data security requirements.--A 
        covered entity that is required to comply with title V of the 
        Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.), the Health 
        Information Technology for Economic and Clinical Health Act (42 
        U.S.C. 17931 et seq.), part C of title XI of the Social 
        Security Act (42 U.S.C. 1320d et seq.), or the regulations 
        promulgated pursuant to section 264(c) of the Health Insurance 
        Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
        note), and is in compliance with the information security 
        requirements of such regulations, part, title, or Act (as 
        applicable), shall be deemed to be in compliance with the 
        requirements of section 208 with respect to data subject to the 
        requirements of such regulations, part, title, or Act. Not 
        later than 1 year after the date of enactment of this Act, the 
        Commission shall issue guidance describing the implementation 
        of this paragraph.
    (b) Preemption of State Laws.--
            (1) In general.--No State or political subdivision of a 
        State may adopt, maintain, enforce, or continue in effect any 
        law, regulation, rule, standard, requirement, or other 
        provision having the force and effect of law of any State, or 
        political subdivision of a State, covered by the provisions of 
        this Act, or a rule, regulation, or requirement promulgated 
        under this Act.
            (2) State law preservation.--Paragraph (1) shall not be 
        construed to preempt, displace, or supplant the following State 
        laws, rules, regulations, or requirements:
                    (A) Consumer protection laws of general 
                applicability such as laws regulating deceptive, 
                unfair, or unconscionable practices.
                    (B) Civil rights laws.
                    (C) Laws that govern the privacy rights or other 
                protections of employees, employee information, 
                students, or student information.
                    (D) Laws that address notification requirements in 
                the event of a data breach.
                    (E) Contract or tort law.
                    (F) Criminal laws governing fraud, theft, including 
                identity theft, unauthorized access to information or 
                electronic devices, or unauthorized use of information, 
                malicious behavior, or similar provisions, or laws of 
                criminal procedure.
                    (G) Criminal or civil laws regarding cyberstalking, 
                cyberbullying, nonconsensual pornography, or sexual 
                harassment.
                    (H) Public safety or sector specific laws unrelated 
                to privacy or security.
                    (I) Laws that address public records, criminal 
                justice information systems, arrest records, mug shots, 
                conviction records, or non-conviction records.
                    (J) Laws that address banking records, financial 
                records, tax records, Social Security numbers, credit 
                cards, credit reporting and investigations, credit 
                repair, credit clinics, or check-cashing services.
                    (K) Laws that solely address facial recognition or 
                facial recognition technologies, electronic 
                surveillance, wiretapping, or telephone monitoring.
                    (L) The Biometric Information Privacy Act (740 ICLS 
                14 et seq.) and the Genetic Information Privacy Act 
                (410 ILCS et seq.).
                    (M) Laws to address unsolicited email messages, 
                telephone solicitation, or caller ID.
                    (N) Laws that address health information, medical 
                information, medical records, HIV status, or HIV 
                testing.
                    (O) Laws that address the confidentiality of 
                library records.
                    (P) Section 1798.150 of the California Civil Code 
                (as amended on November 3, 2020, by initiative 
                Proposition 24, section 16).
            (3) Nonapplication of fcc privacy laws and regulations to 
        covered entities.--Notwithstanding any other provision of law, 
        sections 222, 338(i), and 631 of the Communications Act of 
        1934, as amended (47 U.S.C. 222, 338(i), and 551), and any 
        regulation promulgated by the Federal Communications Commission 
        under such sections, shall not apply to any covered entity with 
        respect to the collecting, processing, or transferring of 
        covered data under this Act.
    (c) Preservation of Common Law or Statutory Causes of Action for 
Civil Relief.--Nothing in this Act, nor any amendment, standard, rule, 
requirement, assessment, law, or regulation promulgated under this Act, 
shall be construed to preempt, displace, or supplant any Federal or 
State common law rights or remedies, or any statute creating a remedy 
for civil relief, including any cause of action for personal injury, 
wrongful death, property damage, or other financial, physical, 
reputational, or psychological injury based in negligence, strict 
liability, products liability, failure to warn, an objectively 
offensive intrusion into the private affairs or concerns of the 
individual, or any other legal theory of liability under any Federal or 
State common law, or any State statutory law, except that the fact of a 
violation of this Act shall not be pleaded as an element of any such 
cause of action.

SEC. 405. SEVERABILITY.

    If any provision of this Act, or the application thereof to any 
person or circumstance, is held invalid, the remainder of this Act and 
the application of such provision to other persons not similarly 
situated or to other circumstances shall not be affected by the 
invalidation.

SEC. 406. COPPA.

    (a) In General.--Nothing in this Act shall be construed to relieve 
or change any obligations that a covered entity or another person may 
have under the Children's Online Privacy Protection Act of 1998 (15 
U.S.C. 6501 et seq.).
    (b) Updated Regulations.--Not later than 180 days after the 
enactment of this Act, the Commission shall amend its rules issued 
pursuant to the Children's Online Privacy Protection Act of 1998 (15 
U.S.C. 6501 et seq.) to make reference to the additional requirements 
placed on covered entities under this Act, in addition to those already 
enacted under the Children's Online Privacy Protection Act of 1998 that 
may already apply to some of such covered entities.

SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums 
as necessary to carry out this Act.

SEC. 408. EFFECTIVE DATE.

    Except as otherwise provided, this Act shall take effect on the 
date that is 180 days after the date of enactment of this Act.
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