,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hcgb ,,in ,,the ,,house ,,of ,,representatives ,september #bd1 #bjbj,ms4 ,castor of ,florida 7for herself1 ,ms4 ,clarke of ,new ,york1 and ,ms4 ,wexton7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce ,a ,,bill ,to keep children safe and protect their interests on the internet1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,kids ,internet ,design and ,safety ,act or the ,,kids ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,children increasingly consume digital entertainment on the internet and are uniquely susceptible to manipulation online1 given their lack of important neurological and psychological mechanisms which are developed later in adulthood4 7#b7 ,today's digital media environment1 which is constantly evolving and now includes high-tech experiences1 such as augmented reality and virtual reality1 is largely designed in non-transparent ways to ensure children interact with content that reflect the interests and goals of content creators1 platforms1 and marketers4 7#c7 ,artificial intelligence1 machine learning1 and other complex systems are used to make continuous decisions about how online content for children can be personalized to increase engagement4 7#d7 ,online companies gather1 analyze1 and use data for behavioral marketing directed at children4 7#e7 ,companies employ sophisticated strategies1 including neuromarketing1 to affect consumer behavior and manipulate decision making4 7#f7 ,branded content in various forms of multimedia1 including native advertising and influencer marketing1 exposes children to marketing that is inherently manipulative or purposely disguised as entertainment or other information4 #c4 ,definitions 7a7 ,in general ,in this ,act3 7#a7 ,augmented reality ,the term augmented reality means an application or web-based experience utilizing a camera to change or enhance the user's view of the real world4 7#b7 ,branded content ,the term branded content means commercial content created for1 and distributed on1 a platform in such a way that the line between entertainment and advertising becomes unclear in order to generate a positive view of the brand4 7#c7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#d7 ,covered user ,the term covered user means an individual under the age of #af4 7#e7 ,directed to children ,the term directed to children means the targeting of covered users by a platform1 as demonstrated by1 with respect to such platform-- 7,a7 its subject matter2 7,b7 its visual content2 7,c7 the use of animated characters or child-oriented activities for children and related incentives2 7,d7 music or other audio content2 7,e7 the age of models used2 7,f7 the presence of-- 7i7 child celebrities2 or 7ii7 celebrities who appeal to covered users2 7,g7 the language used2 7,h7 advertising content used on1 or used to advertise1 such platform2 or 7,i7 reliable empirical evidence relating to-- 7i7 the composition of the audience of such platform2 and 7ii7 the intended audience of such platform4 7#f7 ,host-selling ,the term host-selling refers to commercial video content that features the same characters or individuals as in the adjacent noncommercial content4 7#g7 ,influencer marketing ,the term influencer marketing means a tactic by which a brand or agency or publisher works with individuals who are deemed to have the potential to create engagement1 drive conversation1 or sell products or services with the intended target audience1 in order to drive brand messages4 7#h7 ,manipulation ,the term manipulation means design strategies1 product settings1 and product architecture targeted to cognitive vulnerabilities with the intention or effect of pushing the user to make choices to their detriment and the operator's benefit4 7#i7 ,native advertising ,the term native advertising means a form of paid media where the advertising experience follows the natural form and function of the user experience in which it is placed4 7#aj7 ,neuromarketing ,the term neuromarketing means a subfield of marketing that attempts to predict and potentially manipulate consumer behavior and decision making based on analysis of brain patterns4 7#aa7 ,operator 7,a7 ,in general ,the term operator means any person who operates a platform1 including any person offering products or services for sale through that platform1 involving commerce-- 7i7 among the several ,states or with one or more foreign nations2 7ii7 in any territory of the ,united ,states or in the ,district of ,columbia1 or between any such territory and-- 7,i7 another such territory2 or 7,,ii7 any ,state or foreign nation2 or 7iii7 between the ,district of ,columbia and any ,state1 territory1 or foreign nation4 7,b7 ,exception ,the term operator does not include any nonprofit entity that would otherwise be exempt from coverage under section #e of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de74 7#ab7 ,person ,the term person means any individual1 partnership1 corporation1 trust1 estate1 cooperative1 association1 or other entity4 7#ac7 ,platform ,the term platform means a website1 online service1 online application1 or mobile application which is operated for commercial purposes4 7#ad7 ,virtual reality ,the term virtual reality means an application or web-based experience utilizing a camera to create an immersive environment that mimics the real world1 usually via a headset4 #d4 ,regulation of acts and practices on child-directed platforms 7a7 ,prohibition on certain features ,it is unlawful for an operator of a platform directed to children to incorporate any of the following features3 7#a7 ,any auto-play setting that1 without input from the covered user1 commences additional video content directly following the video content initially selected by the user4 7#b7 ,push alerts that urge a covered user to spend more time engaged with the platform when they are not actively using it4 7#c7 ,displaying the quantity of positive engagement or feedback that a covered user has received from other users4 7#d7 ,any design feature or setting that unfairly encourages a covered user1 due to their age or inexperience1 to make purchases1 submit content1 or spend more time engaging with the platform4 7#e7 ,any feature that provides a covered user with badges or other visual award symbols based on elevated levels of engagement with the platform4 7b7 ,prohibition on amplification of certain content2 user reporting mechanism ,it shall be unlawful for an operator of a platform directed to children1 or a platform for which the operator has constructive knowledge that covered users use its platform1 to-- 7#a7 amplify1 promote1 or encourage covered users' consumption of videos and other forms of content that involve-- 7,a7 sexual material2 7,b7 physical or emotional violence1 including bullying2 7,c7 adult activities1 including gambling2 or 7,d7 other dangerous1 abusive1 exploitative1 or wholly commercial content2 or 7#b7 fail to implement a mechanism for users to report suspected violations of any requirement under paragraph 7#a74 7c7 ,prohibition on certain advertising methods 7#a7 ,in general ,it shall be unlawful for an operator of a platform directed to children to-- 7,a7 direct content that includes host-selling to covered users2 7,b7 expose covered users to program-length advertisements2 7,c7 direct branded content or native advertising to covered users2 7,d7 direct online advertising or material with considerable commercial content involving alcohol1 nicotine1 or tobacco to covered users2 7,e7 expose covered users to online advertising or material with considerable commercial content with any imbedded interactive elements that take advantage of covered users' inexperience or credulity in noncommercial child-directed content2 or 7,f7 direct content that includes product placement to covered users4 7#b7 ,program-length advertisement ,the term program-length advertisement shall be defined by the ,commission through regulation or other public guidance4 7d7 ,prohibition on use of personal information ,it shall be unlawful for an operator of a platform directed to children to use age verification information collected from covered users for any commercial purpose4 7e7 ,regulations ,the ,commission shall promulgate regulations in accordance with section #eec of title #e1 ,united ,states ,code1 to require any operator of a platform directed to children to incorporate online visual elements or other indicators that distinguish commercial content from noncommercial content4 #e4 ,marketing and commercialization 7a7 ,content labeling system report ,not later than the date that is #a year after the date of enactment of this ,act1 the ,commission shall submit to ,congress a report-- 7#a7 containing recommendations for a labeling system to allow parents to identify noncommercial1 educational1 and enriching content for covered users online2 and 7#b7 address considerations regarding how such labeling system should-- 7,a7 analyze content based on evidence-based criteria2 7,b7 employ an easy-to-understand visual cue for parents to identify content described in paragraph 7#a72 7,c7 receive regular review to determine its effectiveness2 and 7,d7 develop a mechanism for users to report to the ,commission complaints of mislabeled content and for the ,commission to remedy such instances of mislabeled content4 7b7 ,consultation ,the report described in subsection 7a7 shall be developed by the ,commission in consultation with an advisory board1 to be created and convened by the ,commission1 which is comprised of experts in child development1 child health1 education1 and media4 #f4 ,transparency and auditing 7a7 ,transparency ,the ,commission shall promulgate regulations in accordance with section #eec of title #e1 ,united ,states ,code1 requiring an operator of a platform which is directed to children to publish and maintain a publicly accessible digital record of the viewable or playable content of each such platform4 7b7 ,annual platform audits ,the regulations promulgated pursuant to subsection 7a7 shall include the establishment of an annual audit process1 to be conducted during the #e-year period subsequent to the date of enactment of this ,act1 for each of the #be platforms directed to children with the highest total number of child users1 to evaluate the level of compliance by each such platform with respect to the requirements under this ,act4 7c7 ,report ,the ,commission shall issue annual reports to ,congress based on the audits described in subsection 7b7 that-- 7#a7 describe the level of compliance by the platforms described in such subsection with respect to the requirements under this ,act2 and 7#b7 provide recommendations for such legislation and administrative actions as the ,commission determines appropriate based on the audit findings4 #g4 ,grant program 7a7 ,establishment 7#a7 ,in general ,the ,secretary of ,commerce shall provide grants to eligible persons to foster the creation and promotion of advertisement-free and educational online content for covered users1 such as videos and applications4 7#b7 ,eligible person ,for purposes of this section1 the term eligible person means a person that has submitted an application1 as approved by the ,secretary of ,commerce pursuant to the eligibility requirements developed under subsection 7b71 for the creation and promotion of advertisement-free and educational online content for covered users4 7b7 ,advisory council ,the ,secretary shall establish and convene an ,advisory ,council on ,children's ,online ,content1 which shall be-- 7#a7 comprised of experts in education1 child development1 psychology1 online media1 and other related disciplines2 and 7#b7 tasked with developing evidence-based criteria for grant eligibility and grant distribution4 7c7 ,authorization of appropriations 7#a7 ,in general ,to carry out this section1 there is authorized to be appropriated-- 7,a7 for fiscal year #bjba1 #d1jjj1jjj2 7,b7 for fiscal year #bjbb1 #h1jjj1jjj2 7,c7 for fiscal year #bjbc1 #aj1jjj1jjj2 and 7,d7 for fiscal year #bjbd1 #ab1jjj1jjj4 7#b7 ,availability of funds ,any amount appropriated under this subsection for any fiscal year shall remain available for the purposes of carrying out any application approved during such fiscal year for an additional period of #a year after the end of such fiscal year4 #h4 ,administration and enforcement 7a7 ,in general ,this ,act shall be enforced by the ,commission under the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7b7 ,actions by ,commission 7#a7 ,in general ,the ,commission shall prevent any person from violating this ,act or any regulation promulgated by the ,commission under this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties1 as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act4 7#b7 ,penalties and privileges ,any person that violates this ,act or any regulation promulgated under the ,act shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act in the same manner1 by the same means1 and with the same jurisdiction1 power1 and duties1 as though all applicable terms and provisions of the ,federal ,trade ,commission ,act were incorporated into and made a part of this ,act4 7c7 ,civil penalty ,a violation of the ,act1 or a rule promulgated under the ,act1 shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7d7 ,effect on other laws ,nothing contained in this ,act shall be construed to limit the authority of the ,commission under any other provisions of law4