Title: Children and Teens’ Online Privacy Protection Act
Policy area: Commerce

Summary:
Children and Teens' Online Privacy Protection Act
This bill extends to minors (ages 12–16) privacy protections previously applicable only to children (ages 0–12) and otherwise establishes greater online privacy protections for children and minors.
Specifically, the bill prohibits an operator of a website, online service, online application, or mobile application directed to a child or minor with constructive knowledge the user is a child or minor from collecting the user's personal information without
The bill also prohibits targeted marketing directed to a child or directed to a minor without the minor's consent.
The bill further outlines a set of principles governing how operators should collect and use personal information, as well as provide information to a parent or minor. A parent or minor must be able to challenge the accuracy of personal information, and an operator must provide for the erasure or correction of inaccurate personal information. Operators must also implement mechanisms for the erasure or elimination of personal information at the request of users and make users aware of such mechanisms.
Moreover, the bill prohibits the sale of internet-connected devices targeted to children and minors unless they meet certain cybersecurity and data security standards, and it requires manufacturers of such devices to display a privacy dashboard detailing how personal information is collected and used.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1628 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1628

   To amend the Children's Online Privacy Protection Act of 1998 to 
  strengthen protections relating to the online collection, use, and 
  disclosure of personal information of children and minors, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 13, 2021

Mr. Markey (for himself and Mr. Cassidy) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
   To amend the Children's Online Privacy Protection Act of 1998 to 
  strengthen protections relating to the online collection, use, and 
  disclosure of personal information of children and minors, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Table of contents.
Sec. 2. Definitions.
Sec. 3. Online collection, use, and disclosure of personal information 
                            of children and minors.
Sec. 4. Fair Information Practices Principles.
Sec. 5. Digital Marketing Bill of Rights for Minors.
Sec. 6. Targeted marketing to children or minors.
Sec. 7. Removal of content.
Sec. 8. Privacy dashboard for connected devices for children and 
                            minors.
Sec. 9. Prohibition on sale of connected devices for children and 
                            minors that fail to meet appropriate 
                            cybersecurity and data security standards.
Sec. 10. Rule for treatment of users of websites, services, and 
                            applications directed to children or 
                            minors.
Sec. 11. Study of mobile and online application oversight.
Sec. 12. Youth Privacy and Marketing Division.
Sec. 13. Enforcement and applicability.

SEC. 2. DEFINITIONS.

    (a) In General.--In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Constructive knowledge.--
                    (A) In general.--The term ``constructive 
                knowledge'' means that knowledge that a minor is a 
                minor under section 5(a)(1)(A)(i)(II) shall be imputed, 
                at a minimum, to an operator if--
                            (i) the operator directly or indirectly 
                        collects, uses, profiles, buys, sells, 
                        classifies, or analyzes (using an algorithm or 
                        other form of data analytics) data about a user 
                        or groups of users to estimate, identify, or 
                        classify the age, age range, or proxy thereof;
                            (ii) the operator directly or indirectly 
                        collects, uses, profiles, buys, sells, 
                        classifies or analyzes (using an algorithm or 
                        other form of data analytics) data about the 
                        nature of the content of the website, online 
                        service, online application, or mobile 
                        application that estimates, identifies, or 
                        classifies the content as directed to users of 
                        a particular age range or similarly estimates, 
                        identifies, or classifies the intended or 
                        likely audience for the content;
                            (iii) the operator has or receives data or 
                        reporting related to the age of users on the 
                        website, online service, online application, or 
                        mobile application under the self-regulatory 
                        guidelines described in section 1304 of the 
                        Children's Online Privacy Protection Act of 
                        1998 (15 U.S.C. 6503) that documents risks and 
                        controls, including the existence of operator-
                        controlled data analytics and content analytics 
                        capabilities and functions or outputs;
                            (iv) the operator has or receives 
                        complaints from parents or other third parties 
                        about the age of users using its service, 
                        whether through the operators' complaint 
                        mechanism, by email, or other means 
                        conveniently accessible by the user;
                            (v) the operator has or receives data or 
                        reporting or information from the operator's 
                        internal communications, including 
                        documentation about its advertising practices, 
                        such as an advertisement insertion order, or 
                        other promotional material to marketers, that 
                        indicates that data is being collected from 
                        users of a particular age range that are using 
                        the product or service;
                            (vi) the operator has publicly available 
                        data or reporting regarding the operator's 
                        product or service indicating that users of a 
                        particular age range are using the product or 
                        service; or
                            (vii) a content provider on the operator's 
                        website, online service, online application, or 
                        mobile application communicates to an ad-
                        network that the content is intended for users 
                        of a particular age range or likely to appeal 
                        to users of a particular age range, whether 
                        directly or indirectly.
                    (B) Additional factors.--The Commission may issue 
                guidance or promulgate rules that indicate factors, in 
                addition to those described in subparagraph (A), that 
                should be considered to be constructive knowledge for 
                purposes of this Act.
            (3) Standards.--The term ``standards'' means benchmarks, 
        guidelines, best practices, methodologies, procedures, and 
        processes.
    (b) Other Definitions.--The definitions set forth in section 1302 
of the Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
6501), as amended by section 3(a) of this Act, shall apply in this Act, 
except to the extent the Commission provides otherwise by regulations 
issued under section 553 of title 5, United States Code.

SEC. 3. ONLINE COLLECTION, USE, AND DISCLOSURE OF PERSONAL INFORMATION 
              OF CHILDREN AND MINORS.

    (a) Definitions.--Section 1302 of the Children's Online Privacy 
Protection Act of 1998 (15 U.S.C. 6501) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) Operator.--The term `operator'--
                    ``(A) means any person--
                            ``(i) who, for commercial purposes, in 
                        interstate or foreign commerce operates or 
                        provides a website on the internet, an online 
                        service, an online application, or a mobile 
                        application; and
                            ``(ii) who--
                                    ``(I) collects or maintains, either 
                                directly or through a service provider, 
                                personal information from or about the 
                                users of that website, service, 
                                application, or connected device;
                                    ``(II) allows another person to 
                                collect personal information directly 
                                from users of that website, service, 
                                application, or connected device (in 
                                which case, the operator is deemed to 
                                have collected the information); or
                                    ``(III) allows users of that 
                                website, service, application, or 
                                connected device to publicly disclose 
                                personal information (in which case, 
                                the operator is deemed to have 
                                collected the information); and
                    ``(B) does not include any nonprofit entity that 
                would otherwise be exempt from coverage under section 5 
                of the Federal Trade Commission Act (15 U.S.C. 45).'';
            (2) in paragraph (4)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) the release of personal information collected 
                from a child or minor for any purpose, except where the 
                personal information is provided to a person other than 
                an operator who--
                            ``(i) provides support for the internal 
                        operations of the website, online service, 
                        online application, or mobile application of 
                        the operator, excluding any activity relating 
                        to targeted marketing directed to children, 
                        minors, or connected devices; and
                            ``(ii) does not disclose or use that 
                        personal information for any other purpose; 
                        and''; and
                    (B) in subparagraph (B)--
                            (i) by inserting ``or minor'' after 
                        ``child'' each place the term appears;
                            (ii) by inserting ``or minors'' after 
                        ``children''; and
                            (iii) by striking ``website or online 
                        service'' and inserting ``website, online 
                        service, online application, or mobile 
                        application'';
            (3) in paragraph (8), by striking subparagraphs (F) and (G) 
        and inserting the following:
                    ``(F) geolocation information;
                    ``(G) information used for biometric 
                identification, as defined in section 70123 of title 
                46, United States Code, of an individual;
                    ``(H) information reasonably associated with or 
                attributed to an individual;
                    ``(I) information (including an internet protocol 
                address) that permits the identification of--
                            ``(i) an individual; or
                            ``(ii) any device used by an individual to 
                        directly or indirectly access the internet or 
                        an online service, online application, or 
                        mobile application; or
                    ``(J) information concerning a child or minor or 
                the parents of that child or minor (including any 
                unique or substantially unique identifier, such as a 
                customer number) that an operator collects online from 
                the child or minor and combines with an identifier 
                described in this paragraph.'';
            (4) by amending paragraph (9) to read as follows:
            ``(9) Verifiable consent.--The term `verifiable consent' 
        means any reasonable effort (taking into consideration 
        available technology), including a request for authorization 
        for future collection, use, and disclosure described in the 
        notice, to ensure that, in the case of a child, a parent of the 
        child, or, in the case of a minor, the minor--
                    ``(A) receives specific notice of the personal 
                information collection, use, and disclosure practices 
                of the operator; and
                    ``(B) before the personal information of the child 
                or minor is collected, freely and unambiguously 
                authorizes--
                            ``(i) the collection, use, and disclosure, 
                        as applicable, of that personal information; 
                        and
                            ``(ii) any subsequent use of that personal 
                        information.'';
            (5) by striking paragraph (10) and redesignating paragraphs 
        (11) and (12) as paragraphs (10) and (11), respectively; and
            (6) by adding at the end the following:
            ``(12) Connected device.--The term `connected device' means 
        a device that is capable of connecting to the internet, 
        directly or indirectly, or to another connected device.
            ``(13) Online.--The term `online' means--
                    ``(A) connected to or compatible with the internet; 
                or
                    ``(B) via the internet.
            ``(14) Online application.--The term `online application'--
                    ``(A) means an internet-connected software program; 
                and
                    ``(B) includes a service or application offered via 
                a connected device.
            ``(15) Online service.--The term `online service'--
                    ``(A) means broadband internet access service, as 
                defined in the Report and Order on Remand, Declaratory 
                Ruling, and Order in the matter of protecting and 
                promoting the open internet, adopted by the Federal 
                Communications Commission on February 26, 2015 (FCC 15-
                24); and
                    ``(B) includes a service or application offered via 
                a connected device.
            ``(16) Directed to a child or minor.--
                    ``(A) In general.--The terms `directed to a child' 
                or `directed to a minor' means, with respect to a 
                website, online service, online application, or mobile 
                application, the website, online service, online 
                application, or mobile application is targeted to 
                children or minors, as the case may be, as demonstrated 
                by--
                            ``(i) the subject matter of the website, 
                        online service, online application, or mobile 
                        application;
                            ``(ii) the visual content of the website, 
                        online service, online application, or mobile 
                        application;
                            ``(iii) the use of animated characters or 
                        child-oriented activities for children, or the 
                        use of minor-oriented characters or minor-
                        oriented activities for minors, and related 
                        incentives on the website, online service, 
                        online application, or mobile application;
                            ``(iv) the music or other audio content on 
                        the website, online service, online 
                        application, or mobile application;
                            ``(v) the age of models on the website, 
                        online service, online application, or mobile 
                        application;
                            ``(vi) the presence, on the website, online 
                        service, online application, or mobile 
                        application, of--
                                    ``(I) child celebrities;
                                    ``(II) celebrities who appeal to 
                                children;
                                    ``(III) teen celebrities; or
                                    ``(IV) celebrities who appeal to 
                                minors;
                            ``(vii) the language used on the website, 
                        online service, online application, or mobile 
                        application;
                            ``(viii) advertising content used on, or 
                        used to advertise, the website, online service, 
                        online application, or mobile application; or
                            ``(ix) reliable empirical evidence relating 
                        to--
                                    ``(I) the composition of the 
                                audience of the website, online 
                                service, online application, or mobile 
                                application; and
                                    ``(II) the intended audience of the 
                                website, online service, online 
                                application, or mobile application.
                    ``(B) Rules of construction.--
                            ``(i) Services deemed directed to children 
                        or minors.--For the purposes of this title, a 
                        website, online service, online application, or 
                        mobile application shall be deemed to be 
                        directed to children or minors if the operator 
                        of the website, online service, online 
                        application, or mobile application has 
                        constructive knowledge that the website, online 
                        service, online application, or mobile 
                        application collects personal information 
                        directly from users of any other website, 
                        online service, online application, or mobile 
                        application that is directed to children or 
                        minors under the criteria described in 
                        subparagraph (A).
                            ``(ii) Services deemed directed to mixed 
                        audiences.--
                                    ``(I) In general.--A website, 
                                online service, online application, or 
                                mobile application that is directed to 
                                children or minors under the criteria 
                                described in subparagraph (A), but that 
                                does not target children or minors as 
                                the primary audience of the website, 
                                online service, online application, or 
                                mobile application, shall not be deemed 
                                to be directed to children or minors 
                                for purposes of this title if the 
                                website, online service, online 
                                application, or mobile application--
                                            ``(aa) does not collect 
                                        personal information from any 
                                        user of the website, online 
                                        service, online application, or 
                                        mobile application before 
                                        verifying age information of 
                                        the user; and
                                            ``(bb) does not, without 
                                        first complying with any 
                                        relevant notice and consent 
                                        provision under this title, 
                                        collect, use, or disclose 
                                        personal information of any 
                                        user who identifies themselves 
                                        to the website, online service, 
                                        online application, or mobile 
                                        application as an individual 
                                        who is under the age of 16.
                                    ``(II) Use of certain tools.--For 
                                purposes of this title, a website, 
                                online service, online application, or 
                                mobile application, shall not be deemed 
                                directed to children or minors solely 
                                because the website, online service, 
                                online application, or mobile 
                                application refers or links to any 
                                other website, online service, online 
                                application, or mobile application 
                                directed to children or minors by using 
                                information location tools, including--
                                            ``(aa) a directory;
                                            ``(bb) an index;
                                            ``(cc) a reference;
                                            ``(dd) a pointer; or
                                            ``(ee) a hypertext link.
            ``(17) Mobile application.--The term `mobile application'--
                    ``(A) means a software program that runs on the 
                operating system of--
                            ``(i) a cellular telephone;
                            ``(ii) a tablet computer; or
                            ``(iii) a similar portable computing device 
                        that transmits data over a wireless connection; 
                        and
                    ``(B) includes a service or application offered via 
                a connected device.
            ``(18) Geolocation information.--The term `geolocation 
        information' means information sufficient to identify a street 
        name and name of a city or town.
            ``(19) Minor.--The term `minor' means an individual over 
        the age of 12 and under the age of 16.
            ``(20) Targeted marketing.--The term `targeted marketing' 
        means advertising or any other effort to market a product or 
        service that is directed to a specific individual or device--
                    ``(A) based on--
                            ``(i) the personal information of--
                                    ``(I) the individual; or
                                    ``(II) a group of individuals who 
                                are similar in gender, age, income 
                                level, race, or ethnicity to the 
                                specific individual to whom the product 
                                or service is marketed;
                            ``(ii) psychological profiling; or
                            ``(iii) a unique identifier of the device; 
                        or
                    ``(B) as a result of use by the individual, access 
                by any device of the individual, or use by a group of 
                individuals who are similar to the specific individual, 
                of--
                            ``(i) a website;
                            ``(ii) an online service;
                            ``(iii) an online application;
                            ``(iv) a mobile application; or
                            ``(v) an operating system.''.
    (b) Online Collection, Use, and Disclosure of Personal Information 
of Children and Minors.--Section 1303 of the Children's Online Privacy 
Protection Act of 1998 (15 U.S.C. 6502) is amended--
            (1) by striking the heading and inserting the following: 
        ``online collection, use, and disclosure of personal 
        information of children and minors.'';
            (2) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--It is unlawful for an operator of a 
        website, online service, online application, or mobile 
        application directed to a child or minor, or an operator having 
        constructive knowledge that personal information being 
        collected is from a child or minor, to collect personal 
        information from a child or minor in a manner that violates the 
        regulations prescribed under subsection (b).''; and
                    (B) in paragraph (2)--
                            (i) by striking ``of such a website or 
                        online service''; and
                            (ii) by striking ``subsection 
                        (b)(1)(B)(iii) to the parent of a child'' and 
                        inserting ``subsection (b)(1)(A)(iii) to the 
                        parent of a child or under subsection 
                        (b)(1)(A)(iv) to a minor'';
            (3) in subsection (b)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of the enactment of the Act entitled `An Act to 
                amend the Children's Online Privacy Protection Act of 
                1998 to strengthen protections relating to the online 
                collection, use, and disclosure of personal information 
                of children and minors, and for other purposes', the 
                Commission shall promulgate, under section 553 of title 
                5, United States Code, regulations to require an 
                operator of a website, online service, online 
                application, or mobile application directed to children 
                or minors, or an operator having constructive knowledge 
                that personal information being collected is from a 
                child or minor--
                            ``(i) to provide clear and conspicuous 
                        notice in clear and plain language of--
                                    ``(I) the types of personal 
                                information the operator collects;
                                    ``(II) how the operator uses the 
                                information;
                                    ``(III) whether and why the 
                                operator discloses the information; and
                                    ``(IV) the procedures or mechanisms 
                                the operator uses to ensure that 
                                personal information is not collected 
                                from children or minors except in 
                                accordance with the regulations 
                                promulgated under this paragraph;
                            ``(ii) to obtain verifiable consent for the 
                        collection, use, or disclosure of personal 
                        information of a child or minor;
                            ``(iii) to provide to a parent whose child 
                        has provided personal information to the 
                        operator, upon request by and proper 
                        identification of the parent--
                                    ``(I) a description of the specific 
                                types of personal information collected 
                                from the child by the operator;
                                    ``(II) the opportunity at any time 
                                to delete personal information 
                                collected from the child; and
                                    ``(III) a means that is reasonable 
                                under the circumstances for the parent 
                                to obtain any personal information 
                                collected from the child, if such 
                                information is available to the 
                                operator at the time the parent makes 
                                the request;
                            ``(iv) to provide to a minor who has 
                        provided personal information to the operator, 
                        upon request by and proper identification of 
                        the minor--
                                    ``(I) a description of the specific 
                                types of personal information collected 
                                from the minor by the operator;
                                    ``(II) the opportunity at any time 
                                to delete personal information 
                                collected from the minor; and
                                    ``(III) a means that is reasonable 
                                under the circumstances for the minor 
                                to obtain any personal information 
                                collected from the minor, if such 
                                information is available to the 
                                operator at the time the minor makes 
                                the request;
                            ``(v) not to condition participation in a 
                        game, or use of a website, service, or 
                        application, by a child or minor on the 
                        provision by the child or minor of more 
                        personal information than is reasonably 
                        required to participate in the game or use the 
                        website, service, or application; and
                            ``(vi) to establish and maintain reasonable 
                        procedures to protect the confidentiality, 
                        security, and integrity of personal information 
                        collected from children and minors.
                    ``(B) Updates.--Not less frequently than once every 
                4 years after the date on which regulations are 
                promulgated under subparagraph (A), the Commission 
                shall update those regulations as necessary.'';
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``verifiable parental 
                        consent'' and inserting ``verifiable consent'';
                            (ii) in subparagraph (A)--
                                    (I) by inserting ``or minor'' after 
                                ``collected from a child'';
                                    (II) by inserting ``or minor'' 
                                after ``request from the child''; and
                                    (III) by inserting ``or minor or to 
                                contact a different child or minor'' 
                                after ``to recontact the child'';
                            (iii) in subparagraph (B)--
                                    (I) by striking ``parent or child'' 
                                and inserting ``parent, child, or 
                                minor''; and
                                    (II) by striking ``parental 
                                consent'' each place the term appears 
                                and inserting ``verifiable consent'';
                            (iv) in subparagraph (C)--
                                    (I) in the matter preceding clause 
                                (i), by inserting ``or minor'' after 
                                ``child'' each place the term appears;
                                    (II) in clause (i)--
                                            (aa) by inserting ``or 
                                        minor'' after ``child'' each 
                                        place the term appears; and
                                            (bb) by inserting ``or 
                                        minor, as applicable,'' after 
                                        ``parent'' each place the term 
                                        appears; and
                                    (III) in clause (ii)--
                                            (aa) by inserting ``or 
                                        minor, as applicable,'' after 
                                        ``parent''; and
                                            (bb) by inserting ``or 
                                        minor'' after ``child'' each 
                                        place the term appears; and
                            (v) in subparagraph (D)--
                                    (I) in the matter preceding clause 
                                (i), by inserting ``or minor'' after 
                                ``child'' each place the term appears;
                                    (II) in clause (ii), by inserting 
                                ``or minor'' after ``child''; and
                                    (III) in the flush text following 
                                clause (iii)--
                                            (aa) by inserting ``or 
                                        minor, as applicable,'' after 
                                        ``parent'' each place the term 
                                        appears; and
                                            (bb) by inserting ``or 
                                        minor'' after ``child''; and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Continuation of service.--The regulations shall 
        prohibit an operator from discontinuing service provided to a 
        child or minor on the basis of a request by the parent of the 
        child or by the minor, under the regulations prescribed under 
        clauses (iii)(II) and (iv)(II), respectively, of paragraph 
        (1)(A) to delete personal information collected from the child 
        or minor, to the extent that the operator is capable of 
        providing such service without such information.'';
            (4) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (5) by inserting after subsection (b) the following:
    ``(c) Constructive Knowledge.--
            ``(1) In general.--Constructive knowledge that personal 
        information being collected is from a child or minor under 
        subsection (a) or (b) shall be imputed, at a minimum, to an 
        operator if--
                    ``(A) the operator directly or indirectly collects, 
                uses, profiles, buys, sells, classifies, or analyzes 
                (using an algorithm or other form of data analytics) 
                data about a user or groups of users to estimate, 
                identify, or classify the age, age range, or proxy 
                thereof;
                    ``(B) the operator directly or indirectly collects, 
                uses, profiles, buys, sells, classifies or analyzes 
                (using an algorithm or other form of data analytics) 
                data about the nature of the content of the website, 
                online service, online application, or mobile 
                application that estimates, identifies, or classifies 
                the content as child or minor-directed or similarly 
                estimates, identifies, or classifies the intended or 
                likely audience for the content;
                    ``(C) the operator has or receives data or 
                reporting related to the age of users on the website, 
                online service, online application, or mobile 
                application under the self-regulatory guidelines 
                described in section 1304 that documents risks and 
                controls, including the existence of operator-
                controlled data analytics and content analytics 
                capabilities and functions or outputs;
                    ``(D) the operator has or receives complaints from 
                parents or other third parties about the age of users 
                using its service, whether through the operators' 
                complaint mechanism, by email, or other means 
                conveniently accessible by the user;
                    ``(E) the operator has or receives data or 
                reporting or information from the operator's internal 
                communications, including documentation about its 
                advertising practices, such as an advertisement 
                insertion order, or other promotional material to 
                marketers, that indicates that data is being collected 
                from children or minors that are using the product or 
                service;
                    ``(F) the operator has publicly available data or 
                reporting regarding the operator's product or service 
                indicating that children or minors are using its 
                product or service; or
                    ``(G) a content provider on the operator's website, 
                online service, online application, or mobile 
                application communicates to an ad-network that the 
                content is intended for children or minors or likely to 
                appeal to children or minors, whether directly or 
                indirectly.
            ``(2) Additional factors.--The Commission may issue 
        guidance or promulgate rules that indicate factors, in addition 
        to those described in paragraph (1), that should be considered 
        to be constructive knowledge for purposes of this section.''.
    (c) Safe Harbors.--Section 1304 of the Children's Online Privacy 
Protection Act of 1998 (15 U.S.C. 6503) is amended--
            (1) in subsection (b)(1), by inserting ``and minors'' after 
        ``children''; and
            (2) by adding at the end the following:
    ``(d) Publication.--The Commission shall publish on the internet 
website of the Commission any report or documentation required by 
regulation to be submitted to the Commission to carry out this 
section.''.
    (d) Administration and Applicability of Act.--Section 1306 of the 
Children's Online Privacy Protection Act of 1998 (15 U.S.C. 6505) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``, in the case 
                of'' and all that follows and inserting the following: 
                ``by the appropriate Federal banking agency, with 
                respect to any insured depository institution (as those 
                terms are defined in section 3 of that Act (12 U.S.C. 
                1813));''; and
                    (B) by striking paragraph (2) and redesignating 
                paragraphs (3) through (6) as paragraphs (2) through 
                (5), respectively; and
            (2) by adding at the end the following new subsection:
    ``(f) Telecommunications Carriers and Cable Operators.--
            ``(1) Enforcement by commission.--Notwithstanding section 
        5(a)(2) of the Federal Trade Commission Act (15 U.S.C. 
        45(a)(2)), compliance with the requirements imposed under this 
        title shall be enforced by the Commission with respect to any 
        telecommunications carrier (as defined in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153)).
            ``(2) Relationship to other law.--To the extent that 
        section 222, 338(i), or 631 of the Communications Act of 1934 
        (47 U.S.C. 222; 338(i); 551) is inconsistent with this title, 
        this title controls.''.

SEC. 4. FAIR INFORMATION PRACTICES PRINCIPLES.

    The Fair Information Practices Principles described in this section 
are the following:
            (1) Collection limitation principle.--Except as provided in 
        paragraph (3), personal information should be collected from a 
        child or minor only when collection of the personal information 
        is--
                    (A) consistent with the context of a particular 
                transaction or service or the relationship of the child 
                or minor with the operator, including collection 
                necessary to fulfill a transaction or provide a service 
                requested by the child or minor; or
                    (B) required or specifically authorized by law.
            (2) Data quality principle.--The personal information of a 
        child or minor should be accurate, complete, and kept up-to-
        date to the extent necessary to fulfill the purposes described 
        in subparagraphs (A) through (D) of paragraph (3).
            (3) Purpose specification principle.--The purposes for 
        which personal information is collected should be specified to 
        the parent of a child or to a minor not later than at the time 
        of the collection of the information. The subsequent use or 
        disclosure of the information should be limited to--
                    (A) fulfillment of the transaction or service 
                requested by the minor or parent of the child;
                    (B) support for the internal operations of the 
                website, service, or application, as described in 
                section 312.2 of title 16, Code of Federal Regulations, 
                excluding any activity relating to targeted marketing 
                directed to children, minors, or a device of a child or 
                minor if the support for internal operations in 
                consistent with the interest of the child or minor;
                    (C) compliance with legal process or other purposes 
                expressly authorized under specific legal authority; or
                    (D) other purposes--
                            (i) that are specified in a notice to the 
                        minor or parent of the child; and
                            (ii) to which the minor or parent of the 
                        child has consented under paragraph (7) before 
                        the information is used or disclosed for such 
                        other purposes.
            (4) Retention limitation principle.--
                    (A) In general.--The personal information of a 
                child or minor should not be retained for longer than 
                is necessary to fulfill a transaction or provide a 
                service requested by the child or minor or such other 
                purposes specified in subparagraphs (A) through (D) of 
                paragraph (3).
                    (B) Data disposal.--The operator should implement a 
                reasonable and appropriate data disposal policy based 
                on the nature and sensitivity of personal information 
                described in subparagraph (A).
            (5) Security safeguards principle.--The personal 
        information of a child or minor should be protected by 
        reasonable and appropriate security safeguards against risks 
        such as loss or unauthorized access, destruction, use, 
        modification, or disclosure.
            (6) Openness principle.--
                    (A) General principle.--The operator should 
                maintain a general policy of openness about 
                developments, practices, and policies with respect to 
                the personal information of a child or minor.
                    (B) Provision of information.--The operator should 
                provide to each parent of a child, or to each minor, 
                using the website, online service, online application, 
                or mobile application of the operator with a clear and 
                prominent means--
                            (i) to identify and contact the operator, 
                        by, at a minimum, disclosing, clearly and 
                        prominently, the identity of the operator and--
                                    (I) in the case of an operator who 
                                is an individual, the address of the 
                                principal residence of the operator and 
                                an email address and telephone number 
                                for the operator; or
                                    (II) in the case of any other 
                                operator, the address of the principal 
                                place of business of the operator and 
                                an email address and telephone number 
                                for the operator;
                            (ii) to determine whether the operator 
                        possesses any personal information of the child 
                        or minor, the nature of any such information, 
                        and the purposes for which the information was 
                        collected and is being retained;
                            (iii) to obtain any personal information of 
                        the child or minor that is in the possession of 
                        the operator from the operator, or from a 
                        person specified by the operator, within a 
                        reasonable time after making a request, at a 
                        charge (if any) that is not excessive, in a 
                        reasonable manner, and in a form that is 
                        readily intelligible to the child or minor;
                            (iv) to challenge the accuracy of personal 
                        information of the child or minor that is in 
                        the possession of the operator;
                            (v) to determine if the child or minor has 
                        established the inaccuracy of personal 
                        information in a challenge under clause (iv) in 
                        order to have such information erased, 
                        corrected, completed, or otherwise amended; and
                            (vi) to determine the method by which the 
                        operator obtains data relevant to the child or 
                        minor.
                    (C) Limitation.--Nothing in this paragraph shall be 
                construed to permit an operator to erase or otherwise 
                modify personal information requested by a law 
                enforcement agency pursuant to legal authority.
            (7) Individual participation principle.--The operator 
        should--
                    (A) obtain consent from a parent of a child or from 
                a minor before using or disclosing the personal 
                information of the child or minor for any purpose other 
                than the purposes described in subparagraphs (A) 
                through (C) of paragraph (3); and
                    (B) obtain affirmative express consent from a 
                parent of a child or from a minor before using or 
                disclosing previously collected personal information of 
                the child or minor for purposes that constitute a 
                material change in practice from the original purposes 
                specified to the child or minor under paragraph (3).
            (8) Racial and socioeconomic profiling.--The personal 
        information of a child or minor shall not be used to direct 
        content to the child or minor, or a group of individuals 
        similar to the child or minor, on the basis of race, 
        socioeconomic factors, or any proxy thereof.

SEC. 5. DIGITAL MARKETING BILL OF RIGHTS FOR MINORS.

    (a) Acts Prohibited.--
            (1) Prohibition.--
                    (A) In general.--Except as provided in subparagraph 
                (B), it shall be unlawful for an operator of a website, 
                online service, online application, or mobile 
                application to collect personal information from a 
                minor if--
                            (i)(I) the minor is a user of the website, 
                        online service, online application, or mobile 
                        application; and
                            (II) the operator has constructive 
                        knowledge that personal information is being 
                        collected from a minor or minors; or
                            (ii) the website, online service, online 
                        application, or mobile application is directed 
                        to minors.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                an operator that has adopted and complies with a 
                Digital Marketing Bill of Rights for Minors that is 
                consistent with the Fair Information Practices 
                Principles described in section 4.
            (2) Effective date.--This subsection shall take effect on 
        the date that is 180 days after the promulgation of regulations 
        under subsection (b).
    (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall promulgate, under 
        section 553 of title 5, United States Code, regulations to 
        implement this section, including regulations further defining 
        the Fair Information Practices Principles described in section 
        4.
            (2) Updates.--Not less frequently than once every 4 years 
        after the date on which regulations are promulgated under 
        paragraph (1), the Commission shall update those regulations as 
        necessary.

SEC. 6. TARGETED MARKETING TO CHILDREN OR MINORS.

    (a) Acts Prohibited.--
            (1) Children.--It shall be unlawful for an operator of a 
        website, online service, online application, or mobile 
        application to use, disclose to third parties, or compile 
        personal information of a child for purposes of targeted 
        marketing if--
                    (A)(i) the child is a user of the website, online 
                service, online application, or mobile application; and
                    (ii) the operator has constructive knowledge that 
                personal information is being collected from a child or 
                children; or
                    (B) the website, online service, online 
                application, or mobile application is directed to a 
                child.
            (2) Minors.--
                    (A) Prohibition.--Except as provided in 
                subparagraph (B), it shall be unlawful for an operator 
                of a website, online service, online application, or 
                mobile application to use, disclose to third parties, 
                or compile personal information of a minor for purposes 
                of targeted marketing if--
                            (i)(I) the minor is a user of the website, 
                        online service, online application, or mobile 
                        application; and
                            (II) the operator has constructive 
                        knowledge that the minor is a minor; or
                            (ii) the website, online service, online 
                        application, or mobile application is directed 
                        to a minor.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                an operator that has obtained the verifiable consent of 
                the relevant minor.
            (3) Effective date.--This subsection shall take effect on 
        the date that is 180 days after the promulgation of regulations 
        under subsection (b).
    (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall promulgate, under 
        section 553 of title 5, United States Code, regulations to 
        implement this section.
            (2) Updates.--Not less frequently than once every 4 years 
        after the date on which regulations are promulgated under 
        paragraph (1), the Commission shall update those regulations as 
        necessary.

SEC. 7. REMOVAL OF CONTENT.

    (a) Acts Prohibited.--It is unlawful for an operator to make 
publicly available through a website, online service, online 
application, or mobile application content or information that contains 
or displays personal information of children or minors in a manner that 
violates subsection (b).
    (b) Requirement.--
            (1) In general.--An operator, to the extent technologically 
        feasible, shall--
                    (A) implement mechanisms that permit a user of the 
                website, online service, online application, or mobile 
                application of the operator to erase or otherwise 
                eliminate content or information that is--
                            (i) submitted to the website, online 
                        service, online application, or mobile 
                        application by that user;
                            (ii) publicly available through the 
                        website, online service, online application, or 
                        mobile application; and
                            (iii) contains or displays personal 
                        information of children or minors; and
                    (B) take appropriate steps to--
                            (i) make users aware of the mechanisms 
                        described in subparagraph (A); and
                            (ii) provide notice to users that the 
                        mechanisms described in subparagraph (A) do not 
                        necessarily provide comprehensive removal of 
                        the content or information submitted by users.
            (2) Exceptions.--Paragraph (1) shall not be construed to 
        require an operator or third party to erase or otherwise 
        eliminate content or information that--
                    (A) any other provision of Federal or State law 
                requires the operator or third party to maintain; or
                    (B) was submitted to the website, online service, 
                online application, or mobile application of the 
                operator by any person other than the user who is 
                attempting to erase or otherwise eliminate the content 
                or information, including content or information 
                submitted by the user that was republished or 
                resubmitted by another person.
    (c) Limitation.--Nothing in this section shall be construed to 
limit the authority of a law enforcement agency to obtain any content 
or information from an operator as authorized by law or pursuant to an 
order of a court of competent jurisdiction.
    (d) Effective Date.--This section shall take effect on the date 
that is 180 days after the date of enactment of this Act.

SEC. 8. PRIVACY DASHBOARD FOR CONNECTED DEVICES FOR CHILDREN AND 
              MINORS.

    (a) In General.--A manufacturer of a connected device directed to a 
child or minor shall prominently display on the packaging for the 
connected device a standardized and easy-to-understand privacy 
dashboard, detailing whether, what, and how personal information of a 
child or minor is--
            (1) collected from the connected device;
            (2) transmitted from the connected device;
            (3) retained on the connected device;
            (4) retained by the manufacturer or affiliated person;
            (5) used by the manufacturer or affiliated person; and
            (6) protected.
    (b) Features.--A privacy dashboard under subsection (a) shall 
inform a consumer of--
            (1) the extent to which the connected device meets the 
        highest cybersecurity and data security standards, including if 
        and how to obtain security patches;
            (2) the extent to which the connected device gives--
                    (A) a parent meaningful control over the 
                information of a child of the parent; and
                    (B) a minor meaningful control over the information 
                of the minor;
            (3) the extent to which the device minimizes the 
        collection, retention, and use of information from a child or 
        minor;
            (4) the location of privacy policies;
            (5) the type of personal information the connected device 
        may collect;
            (6) the minimum length of time during which a connected 
        device will received security patches and software updates;
            (7) whether the connected device can be used without being 
        connected to the internet; and
            (8) any other information as the Commission considers 
        appropriate.
    (c) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall promulgate, under 
        section 553 of title 5, United States Code, regulations to 
        implement this section.
            (2) Updates.--Not less frequently than once every 4 years 
        after the date on which regulations are promulgated under 
        paragraph (1), the Commission shall update those regulations as 
        necessary.
    (d) Effective Date.--Subsections (a) and (b) shall take effect on 
the date that is 180 days after the promulgation of regulations under 
subsection (c).

SEC. 9. PROHIBITION ON SALE OF CONNECTED DEVICES FOR CHILDREN AND 
              MINORS THAT FAIL TO MEET APPROPRIATE CYBERSECURITY AND 
              DATA SECURITY STANDARDS.

    (a) Prohibition.--Beginning 1 year after the date of enactment of 
this Act, no person may sell a connected device unless the connected 
device meets appropriate cybersecurity and data security standards 
established by the Commission.
    (b) Cybersecurity and Data Security Standards.--
            (1) In general.--The Commission shall promulgate, under 
        section 553 of title 5, United States Code, cybersecurity and 
        data security standards described in subsection (a).
            (2) Considerations.--In promulgating cybersecurity and data 
        security standards under paragraph (1), the Commission shall--
                    (A) create cybersecurity and data security 
                standards for different subsets of connected devices 
                based on the varying degrees of--
                            (i) cybersecurity and data security risk 
                        associated with each subset of connected 
                        device;
                            (ii) sensitivity of information collected, 
                        stored, or transmitted by each subset of 
                        connected device; and
                            (iii) functionality of each subset of 
                        connected device;
                    (B) consider incorporating, to the extent 
                practicable, existing cybersecurity and data security 
                standards; and
                    (C) ensure that the cybersecurity and data security 
                standards--
                            (i) are consistent with Fair Information 
                        Practice Principles described in section 4; and
                            (ii) promote data minimization.

SEC. 10. RULE FOR TREATMENT OF USERS OF WEBSITES, SERVICES, AND 
              APPLICATIONS DIRECTED TO CHILDREN OR MINORS.

    For the purposes of this Act, an operator of a website, online 
service, online application, or mobile application that is directed to 
children or minors shall treat each user of that website, online 
service, online application, or mobile application as a child or minor, 
except as permitted by the Commission pursuant to a regulation 
promulgated under this Act.

SEC. 11. STUDY OF MOBILE AND ONLINE APPLICATION OVERSIGHT.

    Not later than 2 years after the date of enactment of this Act, the 
Commission shall submit to each committee of the Senate and each 
committee of the House of Representatives that has jurisdiction over 
the Commission a report on the processes of platforms that offer mobile 
and online applications for ensuring that, of those applications that 
are directed to children or minors, the applications operate in 
accordance with--
            (1) this Act, the amendments made by this Act, and rules 
        promulgated under this Act;
            (2) rules promulgated by the Commission under section 5 of 
        the Federal Trade Commission Act (15 U.S.C. 45) relating to 
        unfair or deceptive acts or practices in marketing; and
            (3) any other Federal or State law relating to the privacy 
        of children or minors.

SEC. 12. YOUTH PRIVACY AND MARKETING DIVISION.

    (a) Establishment.--There is established within the Commission a 
division to be known as the Youth Privacy and Marketing Division.
    (b) Director.--The Youth Privacy and Marketing Division shall be 
headed by a Director, who shall be appointed by the Chairman of the 
Commission.
    (c) Duties.--The Youth Privacy and Marketing Division established 
under subsection (a) shall be responsible for addressing, as it relates 
to this Act and the amendments made by this Act--
            (1) the privacy of children and minors; and
            (2) marketing directed at children and minors.
    (d) Staff.--The Director of the Youth Privacy and Marketing 
Division shall hire adequate staff to carry out the duties under 
subsection (c), including individuals who are experts in data 
protection, digital advertising, data analytics, and youth development.
    (e) Reports.--Not later than 1 year after the date of enactment of 
this Act, and each year thereafter, the Director of the Youth and 
Privacy Marketing Division 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--
            (1) a description of the work of the Youth Privacy and 
        Marketing Division on emerging concerns relating to youth 
        privacy and marketing practices; and
            (2) an assessment of how effectively the Commission has, 
        during the period for which the report is submitted, addressed 
        youth privacy and marketing practices.

SEC. 13. ENFORCEMENT AND APPLICABILITY.

    (a) Enforcement by the Commission.--
            (1) In general.--Except as otherwise provided, this Act and 
        the regulations prescribed under this Act shall be enforced by 
        the Commission under the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.).
            (2) Unfair or deceptive acts or practices.--Subject to 
        subsection (b), a violation of this Act or a regulation 
        prescribed 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)).
            (3) Actions by the commission.--
                    (A) In general.--Subject to subsection (b), and 
                except as provided in subsection (d)(1), the Commission 
                shall prevent any person from violating this Act or a 
                regulation prescribed 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, and any person who 
                violates this Act or such regulation shall be subject 
                to the penalties and entitled to the privileges and 
                immunities provided in the Federal Trade Commission 
                Act.
                    (B) Violations.--
                            (i) In general.--In an action brought by 
                        the Commission to enforce this Act and the 
                        regulations prescribed under this Act, each 
                        connected device that fails to meet a standard 
                        promulgated under this Act shall be treated as 
                        a separate violation.
                            (ii) Civil penalty.--Notwithstanding 
                        section 5(m) of the Federal Trade Commission 
                        Act (15 U.S.C. 45(m)), a civil penalty 
                        recovered for a violation of this Act or a 
                        regulation prescribed under this Act may be in 
                        excess of the amounts provided for in that 
                        section as the court finds appropriate to deter 
                        violations of this Act and regulations 
                        prescribed under this Act.
                            (iii) First violations.--In an action 
                        brought by the Commission to enforce this Act 
                        and the regulations prescribed under this Act, 
                        the Commission may seek a civil penalty for any 
                        violation of this Act or regulation prescribed 
                        under this Act, including any violation that is 
                        the first violation of this Act or a regulation 
                        prescribed under this Act that a person against 
                        whom the action is brought has committed.
    (b) Enforcement by Certain Other Agencies.--Notwithstanding 
subsection (a), compliance with the requirements imposed under this Act 
shall be enforced as follows:
            (1) Under section 8 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1818) by the appropriate Federal banking agency, 
        with respect to an insured depository institution (as such 
        terms are defined in section 3 of such Act (12 U.S.C. 1813)).
            (2) Under the Federal Credit Union Act (12 U.S.C. 1751 et 
        seq.) by the National Credit Union Administration Board, with 
        respect to any Federal credit union.
            (3) Under part A of subtitle VII of title 49, United States 
        Code, by the Secretary of Transportation, with respect to any 
        air carrier or foreign air carrier subject to such part.
            (4) Under the Packers and Stockyards Act, 1921 (7 U.S.C. 
        181 et seq.) (except as provided in section 406 of that Act (7 
        U.S.C. 226; 227)) by the Secretary of Agriculture, with respect 
        to any activities subject to that Act.
            (5) Under the Farm Credit Act of 1971 (12 U.S.C. 2001 et 
        seq.) by the Farm Credit Administration, with respect to any 
        Federal land bank, Federal land bank association, Federal 
        intermediate credit bank, or production credit association.
    (c) Enforcement by State Attorneys General.--
            (1) In general.--
                    (A) Civil actions.--In any case in which the 
                attorney general of a State has reason to believe that 
                an interest of the residents of that State has been or 
                is threatened or adversely affected by the engagement 
                of any person in a practice that violates this Act or a 
                regulation prescribed under this Act, the State, as 
                parens patriae, may bring a civil action on behalf of 
                the residents of the State in a district court of the 
                United States of appropriate jurisdiction to--
                            (i) enjoin that practice;
                            (ii) enforce compliance with this Act or 
                        such regulation;
                            (iii) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State; or
                            (iv) obtain such other relief as the court 
                        may consider to be appropriate.
                    (B) Notice.--
                            (i) In general.--Before filing an action 
                        under subparagraph (A), the attorney general of 
                        the State involved shall provide to the 
                        Commission--
                                    (I) written notice of that action; 
                                and
                                    (II) a copy of the complaint for 
                                that action.
                            (ii) Exemption.--
                                    (I) In general.--Clause (i) shall 
                                not apply with respect to the filing of 
                                an action by an attorney general of a 
                                State under this paragraph if the 
                                attorney general of the State 
                                determines that it is not feasible to 
                                provide the notice described in that 
                                clause before the filing of the action.
                                    (II) Notification.--In an action 
                                described in subclause (I), the 
                                attorney general of a State shall 
                                provide notice and a copy of the 
                                complaint to the Commission at the same 
                                time as the attorney general files the 
                                action.
            (2) Intervention.--
                    (A) In general.--On receiving notice under 
                paragraph (1)(B), the Commission shall have the right 
                to intervene in the action that is the subject of the 
                notice.
                    (B) Effect of intervention.--If the Commission 
                intervenes in an action under paragraph (1), it shall 
                have the right--
                            (i) to be heard with respect to any matter 
                        that arises in that action; and
                            (ii) to file a petition for appeal.
            (3) Construction.--For purposes of bringing any civil 
        action under paragraph (1), nothing in this Act shall be 
        construed to prevent an attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of that State to--
                    (A) conduct investigations;
                    (B) administer oaths or affirmations; or
                    (C) compel the attendance of witnesses or the 
                production of documentary and other evidence.
            (4) Actions by the commission.--In any case in which an 
        action is instituted by or on behalf of the Commission for 
        violation of this Act or a regulation prescribed under this 
        Act, no State may, during the pendency of that action, 
        institute an action under paragraph (1) against any defendant 
        named in the complaint in the action instituted by or on behalf 
        of the Commission for that violation.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in the district court of the United 
                States that meets applicable requirements relating to 
                venue under section 1391 of title 28, United States 
                Code.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant; or
                            (ii) may be found.
    (d) Telecommunications Carriers and Cable Operators.--
            (1) Enforcement by commission.--Notwithstanding section 
        5(a)(2) of the Federal Trade Commission Act (15 U.S.C. 
        45(a)(2)), compliance with the requirements imposed under this 
        Act shall be enforced by the Commission with respect to any 
        telecommunications carrier (as defined in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153)).
            (2) Relationship to other laws.--To the extent that section 
        222, 338(i), or 631 of the Communications Act of 1934 (47 
        U.S.C. 222; 338(i); 551) is inconsistent with this Act, this 
        Act controls.
    (e) Safe Harbors.--
            (1) Definition.--In this subsection--
                    (A) the term ``applicable section'' means section 
                5, 6, 7, 8, or 9 of this Act;
                    (B) the term ``covered operator'' means an operator 
                subject to guidelines approved under paragraph (2);
                    (C) the term ``requesting entity'' means an entity 
                that submits a safe harbor request to the Commission; 
                and
                    (D) the term ``safe harbor request'' means a 
                request to have self-regulatory guidelines described in 
                paragraph (2)(A) approved under that paragraph.
            (2) Guidelines.--
                    (A) In general.--An operator may satisfy the 
                requirements of regulations issued under an applicable 
                section by following a set of self-regulatory 
                guidelines, issued by representatives of the marketing 
                or online industries, or by other persons, that, after 
                notice and an opportunity for comment, are approved by 
                the Commission upon making a determination that the 
                guidelines meet the requirements of the regulations 
                issued under that applicable section.
                    (B) Expedited response to requests.--Not later than 
                180 days after the date on which a safe harbor request 
                is filed under subparagraph (A), the Commission shall 
                act upon the request set forth in writing the 
                conclusions of the Commission with regard to the 
                request.
                    (C) Appeals.--A requesting entity may appeal the 
                final action of the Commission under subparagraph (B), 
                or a failure by the Commission to act in the period 
                described in that paragraph, to a district court of the 
                United States of appropriate jurisdiction, as provided 
                for in section 706 of title 5, United States Code.
            (3) Incentives.--
                    (A) Self-regulatory incentives.--In prescribing 
                regulations under an applicable section, the Commission 
                shall provide incentives for self-regulation by covered 
                operators to implement the protections afforded 
                children and minors, as applicable, under the 
                regulatory requirements described in those sections.
                    (B) Deemed compliance.--The incentives under 
                subparagraph (A) shall include provisions for ensuring 
                that a covered operator will be deemed to be in 
                compliance with the requirements of the regulations 
                under an applicable section if that person complies 
                with guidelines approved under paragraph (2).
            (4) Regulations.--In prescribing regulations relating to 
        safe harbor guidelines under an applicable section, the 
        Commission shall--
                    (A) establish criteria for the approval of 
                guidelines that will ensure that a covered operator 
                provides substantially the same or greater protections 
                for children and minors, as applicable, as those 
                contained in the regulations issued under the 
                applicable section; and
                    (B) require that any report or documentation 
                required to be submitted to the Commission by a covered 
                operator or requesting entity will be published on the 
                internet website of the Commission.
            (5) Report by the inspector general.--
                    (A) In general.--Not later than 2 years after the 
                date of enactment of this Act, and once each 2 years 
                thereafter, the Inspector General of the Commission 
                shall submit to the Commission and each committee of 
                the Senate and each committee of the House of 
                Representatives that has jurisdiction over the 
                Commission a report regarding the safe harbor 
                provisions under this subparagraph, which shall 
                include--
                            (i) 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
                            (ii) proposals for policy changes that 
                        would improve the effectiveness of the safe 
                        harbor provisions.
                    (B) Publication.--Not later than 10 days after the 
                date on which a report under subparagraph (A) is 
                submitted, the Commission shall publish the report on 
                the internet website of the Commission.
    (f) Effective Date.--This section shall take effect on the date 
that is 90 days after the date of enactment of this Act.
                                 <all>