App Store Accountability Act

Bill: 118-hr-10364
Sponsor: full_name: Rep. James, John [R-MI-10]
Introduced: 2024-12-11
Policy area: Commerce
Latest action: action_date: 2024-12-11
text: Referred to the House Committee on Energy and Commerce.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 10364 IN THE HOUSE OF REPRESENTATIVES December 11, 2024 Mr. James introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To safeguard children from harmful app services accessible through app stores across the United States, to provide parents with parental controls, to provide parents clear and accurate information about apps and their services to ensure proper parental consent is achieved, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the App Store Accountability Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings; sense of Congress. Sec. 3. Definitions. Sec. 4. App store obligations. Sec. 5. Developer obligations. Sec. 6. App age ratings transparency advisory committee. Sec. 7. Compliance. Sec. 8. Enforcement. Sec. 9. Preemption. Sec. 10. Severability. Sec. 11. Effective date. 2. Findings; sense of Congress (a) Findings Congress finds the following: (1) Minors do not have the same capacity to consent to a contract as adults. (2) Many apps allow in-app purchases without confirming that an adult has consented to such a purchase. (3) Many apps contain content or features inappropriate for minors, such as obscene or explicitly sexual content, addictive features, and adult themes. (4) 95 percent of teenagers in the United States own a smart phone and have access to apps through an app store. (5) The leading app stores provide some ability for parents to oversee a minor's use of apps, but those abilities are incomplete to appropriately protect minors. (6) The leading app stores provide some age rating for apps, but those ratings can be inaccurate, vague, deceptive, or otherwise unhelpful to parents. (7) Some developers claim to limit or prohibit the use of their app by minors but too often fail to enforce those policies. (8) Several online services provide the capability to verify the age of a user. (9) App stores have the ability to, but too often do not, verify the age of a user. (10) Requiring age verification by the largest app store providers may empower parental oversight of minors’ use of apps while minimizing the burden on developers, entrepreneurs, parents, and other adult users of apps. (11) Two app stores, the Apple App Store and the Google Play Store, almost entirely control the app distribution market in the United States, and these 2 stores provide methods for parents to oversee a minor's use of apps, but those methods are incomplete to appropriately protect minors. (b) Sense of congress It is the sense of Congress that— (1) requiring age verification by the largest app store providers may empower parental oversight of minors’ use of apps while minimizing the burden on developers, entrepreneurs, parents, and other adult users of apps; (2) mobile device usage depends on access to certain apps; (3) mobile devices have evolved to command a uniquely pervasive presence as a medium of expression, are impossible to completely avoid, and are foundational to both public and private life; and (4) disclosure of offensive content within apps— (A) empowers parents to better understand what apps their children are using and exercise their parental oversight; and (B) ensures that minors are better able to avoid content they are instructed against accessing or would otherwise desire to personally avoid. 3. Definitions In this Act: (1) Age category The term age category means the category of an individual based on their age, including the following categories: (A) Adult An adult is such an individual who has attained 18 years of age. (B) Teenager A teenager is such an individual who has attained 16 years of age but has not attained 18 years of age. (C) Child A child is such an individual who has attained 13 years of age but has not attained 16 years of age. (D) Young child A young child is such an individual who has not attained 13 years of age. (2) Age rating The term age rating means a public display that indicates the appropriateness of an app for different age categories. (3) App The term app means a software application or electronic service that may be run or directed by a user on a computer, mobile device, or any other general purpose computing device. (4) App store The term app store means a publicly available website, software application, or other electronic service that distributes and facilitates the download of an app from a third-party developer by a user of a computer, mobile device, or any other general purpose computing device. (5) Commission The term Commission means the Federal Trade Commission. (6) Covered app store provider The term covered app store provider means any person that owns or controls an app store available in the United States and for which users in the United States exceed 5,000,000. (7) Developer The term developer means any person that owns or controls an app on the app store of a covered app store provider and available in the United States. (8) Know The term know means to have actual knowledge or knowledge fairly inferred based on objective circumstances. (9) Minor The term minor means an individual who has not attained 18 years of age. (10) Mobile device The term mobile device means a tablet or smart phone that is capable of running a mobile operating system. (11) Mobile operating system The term mobile operating system means a set of software that manages mobile device hardware resources and provides common services for mobile device programs. (12) Parent The term parent , with respect to a minor, means an adult with the legal right to make decisions on behalf of the minor, including— (A) a natural parent; (B) an adoptive parent; (C) a legal guardian; or (D) an individual with legal custody over the minor. (13) Signal The term signal means age bracketed data sent by a real-time secure application programming interface or operating system that is likely to be accessed by minors. (14) Verifiable parental consent The term verifiable parental consent means authorization that is provided— (A) by a parent who a covered app store provider has verified is an adult; (B) in response to a disclosure from a covered app store provider that identifies what is specifically being consented to, including the age rating for the app or in-app purchase at issue; and (C) in response to a clear choice to consent or to decline to consent to the request from the covered app store provider. 4. App store obligations (a) In general Each covered app store provider shall do the following: (1) Age verification Determine the age category for each individual in the United States that uses the app store of such provider and verify such individual's age using commercially reasonable methods. (2) Parental oversight of app store usage Obtain verifiable parental consent prior to allowing a minor to use the app store of such provider, including by providing a mechanism for a parent to block a minor from downloading any app that is not suitable for the age category of the minor. (3) Parental oversight of app downloads Obtain verifiable parental consent, on a download-by-download basis, prior to allowing a minor to download an app from the app store of such provider, including by providing an easily accessible mechanism for a parent to consent to the download of an app. (4) Parental oversight of app purchases Obtain verifiable parental consent, on a purchase-by-purchase basis, prior to allowing a minor to purchase any app through the app store of such provider, and such consent shall be valid for up to 7 days. (5) Parental oversight of in-app purchases Obtain verifiable parental consent, on a purchase-by-purchase basis, prior to allowing a minor to make an in-app purchase through the app store of such provider. (6) Parental oversight of app usage With respect to any covered app store provider that owns or controls a mobile device's mobile operating system, to the extent practicable, provide to parents a clear and easy mechanism to set— (A) filters that prevent a minor from accessing any adult website on the web browser of the mobile device; and (B) usage limits, including daily limits and limitations during school and evening hours. (7) App age rating display To the extent the covered app store provider displays age ratings or descriptions of content, clearly and prominently display the age rating or description of content for each app available in the app store of the provider, including information regarding the minimum age category suitable for usage of an app. (8) Age category signal to developers Provide to developers the ability to determine, in real time, the age category of any user and, with respect to any user that is a minor, whether the covered app store provider has obtained verifiable parental consent in accordance with this section. (b) Rules of construction Nothing in this section shall be construed— (1) to prevent a covered app store provider from taking reasonable measures to block, detect, or prevent the distribution of unlawful, obscene, or other harmful material to minors, to block or filter spam, to prevent criminal activity, or to protect the security of an app store or app; (2) to require a covered app store provider to disclose to a developer any information about a user other than such user's age category and, with respect to any user that is a minor, whether the covered app store provider has obtained verifiable parental consent in accordance with this section; (3) to allow a covered app store provider to use any measures required by this section in a way that is arbitrary, capricious, anti-competitive, or unlawful; or (4) to affect or restrict the expression of political, religious, or other viewpoints. 5. Developer obligations (a) App age rating To the extent that a developer provides age ratings or descriptions of content to users, the developer shall— (1) clearly provide the description of content and clearly identify the age category eligible for usage of an app consistent with the rating system developed in accordance with the best practices established by the Advisory Committee under section 6; and (2) provide such information to each app store available in the United States. (b) Parental oversight of app usage To the extent technically feasible, each developer shall use the application programming interface of a covered app store provider to verify— (1) the age category of its users; and (2) in the case of a minor, whether verifiable parental consent has been obtained before allowing the use of the app or in-app purchases. (c) Time restrictions Each developer shall provide readily available features for a parent to implement time restrictions with respect to the app of such developer, including the ability to view metrics reflecting the amount of time that a minor is using the app and set daily time limits on a minor's use of such app. (d) Use of app store provider signal Each developer shall use a covered app store provider’s signal to determine the age category of a user. 6. App age ratings transparency advisory committee (a) Establishment Not later than 60 days after the date of enactment of this Act, the Commission shall establish and convene the App Age Ratings Transparency Advisory Committee (in this section referred to as the Advisory Committee ) to recommend best practices regarding the age rating of apps offered on the app store of any covered app store provider for different age categories. (b) Participation The Advisory Committee shall include members from— (1) content creators; (2) developers; (3) public interest groups focused on child welfare; (4) parents; and (5) any other representatives deemed appropriate by the Commission. (c) Report Not later than 1 year after the date on which the Advisory Committee is established, and every 3 years thereafter until the date described in subsection (d), the Advisory Committee shall submit to Congress, and publish in a publicly available manner, a report that includes recommendations for best practices regarding the age rating of apps offered on the app store of any covered app store provider. (d) Termination The Advisory Committee shall terminate on the date that is 15 years after the date on which the Advisory Committee is established, unless the Commission determines that the continued involvement and guidance of the Advisory Committee is in the public interest. (e) Non-Applicability of FACA Chapter 10 of title 5, United States Code, other than section 1009 of such Chapter, shall not apply to the Advisory Committee established under this section. 7. Compliance Not later than 1 year after the date of enactment of this Act, the Commission shall issue guidance to assist covered app store providers and developers in complying with the requirements of this Act. 8. Enforcement (a) Unfair or deceptive acts or practice A violation of this Act or a regulation promulgated thereunder shall be treated as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) ). (b) Powers of the Commission (1) In general Subject to subsection (c), the Commission shall enforce 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. (2) Privileges and immunities Any person who violates this Act or a regulation promulgated thereunder 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) Authority preserved Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law. (c) Additional penalties and authority In addition to the authority and penalties provided in the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ), the following authority and penalties shall apply with respect to a violation of this Act: (1) Specific civil penalties (A) Knowing misstatement of content Any covered app store provider or developer who knowingly and willfully misstates the content of an app as required under section 4(a)(7) or 5(a) shall be subject to a civil penalty of $500 for each user as determined by the Commission. (B) Negligent misstatements of content Any covered app store provider or developer who negligently misstates the content of an app as required under section 4(a)(7) or 5(a) shall be subject to a civil penalty of $250 for each user as determined by the Commission. (C) Failure to verify parental consent Any covered app store provider or developer who knowingly or negligently fails to comply with parental consent verification as required under this Act shall be subject to a civil penalty of $1,000 for each user as determined by the Commission. (D) Maximum penalty The amount of any civil penalty under this paragraph shall not exceed a total of $4,000,000,000 per violation. (E) Construing specific civil penalties Each instance of misstatement of content or failure to obtain verifiable parental consent shall be defined by the number of individual downloads or purchases of an app that occurred in noncompliance with this Act. (2) General civil penalties (A) In general Any covered app store provider or developer who violates any provision of this Act or any regulation promulgated under this Act, other than violations described in paragraph (1), shall be subject to a civil penalty for each violation. (B) Maximum penalty The amount of any civil penalty under this paragraph shall not exceed $2,000,000,000 per violation. (3) Injunctive relief (A) In general The Commission may seek a temporary restraining order, preliminary injunction, or permanent injunction to prevent any violation of this Act or any regulation promulgated thereunder. (B) Additional relief The Commission may seek other forms of equitable relief, including rescission or reformation of contracts, restitution, the refund of money, and the return of property. (4) Consumer redress The Commission may seek monetary redress for consumers affected by a violation of this Act or any regulation promulgated thereunder, including through a refund, reimbursement, or other form of compensation. (5) Cease and desist orders (A) In general The Commission may issue a cease and desist order to prohibit further violation of this Act or any regulation promulgated thereunder. (B) Compliance requirements Cease and desist orders issued under this paragraph may include specific compliance requirements such as changes to business practices, disclosures, and record-keeping. (6) Maximum penalties The maximum penalty described in paragraph (1)(D) or paragraph (2)(B) shall be doubled upon a finding by the Commission that the covered app store provider or developer in violation of this Act or a regulation promulgated thereunder has repeatedly or flagrantly violated this Act or a regulation promulgated thereunder. 9. Preemption Any law, regulation, or other requirement of a State or political subdivision of a State with respect to imposing substantially similar or the same obligations on app store providers and developers as laid out in this Act is hereby preempted by this Act. 10. 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. 11. Effective date Except as otherwise provided in this Act, this Act shall take effect on the date that is 1 year after the date of enactment of this Act.