,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #hcgb ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,septemb] #bd1 #bjbj,ms4 ,ca/or ( ,florida 7= h]self1 ,ms4 ,cl>ke ( ,new ,york1 & ,ms4 ,wexton7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to keep *ildr5 safe & protect _! int]e/s on ! int]net1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,kids ,int]net ,design & ,safety ,act or ! ,,kids ,act4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,*ildr5 increas+ly consume digital ent]ta9m5t on ! int]net & are uniquely susceptible to manipulation onl9e1 giv5 _! lack ( important neurological & psy*ological me*anisms :i* are develop$ lat] 9 adul?ood4 7#b7 ,today's digital m$ia environm5t1 :i* is con/antly evolv+ & n[ includes high-te* exp]i5ces1 su* z augm5t$ reality & virtual reality1 is l>gely design$ 9 non-transp>5t ways to ensure *ildr5 int]act ) cont5t t reflect ! int]e/s & goals ( cont5t creators1 plat=ms1 & m>ket]s4 7#c7 ,artificial intellig5ce1 ma*9e le>n+1 & o!r complex sy/ems are us$ to make cont9u\s decisions ab\t h[ onl9e cont5t = *ildr5 c be p]sonaliz$ to increase engagem5t4 7#d7 ,onl9e companies ga!r1 analyze1 & use data = behavioral m>ket+ direct$ at *ildr54 7#e7 ,companies employ sophi/icat$ /rategies1 includ+ neurom>ket+1 to affect consum] behavior & manipulate decision mak+4 7#f7 ,br&$ cont5t 9 v>i\s =ms ( multim$ia1 includ+ native adv]tis+ & influ5c] m>ket+1 exposes *ildr5 to m>ket+ t is inh]5tly manipulative or purposely disguis$ z ent]ta9m5t or o!r in=mation4 #c4 ,def9itions 7a7 ,9 g5]al ,9 ?is ,act3 7#a7 ,augm5t$ reality ,! t]m augm5t$ reality means an application or web-bas$ exp]i5ce utiliz+ a cam]a to *ange or enhance ! us]'s view ( ! real _w4 7#b7 ,br&$ cont5t ,! t]m br&$ cont5t means comm]cial cont5t creat$ =1 & di/ribut$ on1 a plat=m 9 su* a way t ! l9e betwe5 ent]ta9m5t & adv]tis+ becomes uncle> 9 ord] to g5]ate a positive view ( ! br&4 7#c7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#d7 ,cov]$ us] ,! t]m cov]$ us] means an individual "u ! age ( #af4 7#e7 ,direct$ to *ildr5 ,! t]m direct$ to *ildr5 means ! t>get+ ( cov]$ us]s by a plat=m1 z demon/rat$ by1 ) respect to su* plat=m-- 7,a7 its subject matt]2 7,b7 its visual cont5t2 7,c7 ! use ( animat$ *>act]s or *ild-ori5t$ activities = *ildr5 & relat$ inc5tives2 7,d7 music or o!r audio cont5t2 7,e7 ! age ( models us$2 7,f7 ! pres5ce (-- 7i7 *ild celebrities2 or 7ii7 celebrities :o appeal to cov]$ us]s2 7,g7 ! language us$2 7,h7 adv]tis+ cont5t us$ on1 or us$ to adv]tise1 su* plat=m2 or 7,i7 reliable empirical evid5ce relat+ to-- 7i7 ! composition ( ! audi5ce ( su* plat=m2 & 7ii7 ! int5d$ audi5ce ( su* plat=m4 7#f7 ,ho/-sell+ ,! t]m ho/-sell+ ref]s to comm]cial video cont5t t features ! same *>act]s or individuals z 9 ! adjac5t noncomm]cial cont5t4 7#g7 ,influ5c] m>ket+ ,! t]m influ5c] m>ket+ means a tactic by :i* a br& or ag5cy or publi%] works ) individuals :o are deem$ to h ! pot5tial to create engagem5t1 drive conv]sation1 or sell products or s]vices ) ! int5d$ t>get audi5ce1 9 ord] to drive br& messages4 7#h7 ,manipulation ,! t]m manipulation means design /rategies1 product sett+s1 & product ar*itecture t>get$ to cognitive vuln]abilities ) ! int5tion or effect ( pu%+ ! us] to make *oices to _! detrim5t & ! op]ator's b5efit4 7#i7 ,native adv]tis+ ,! t]m native adv]tis+ means a =m ( paid m$ia :]e ! adv]tis+ exp]i5ce foll[s ! natural =m & function ( ! us] exp]i5ce 9 :i* x is plac$4 7#aj7 ,neurom>ket+ ,! t]m neurom>ket+ means a subfield ( m>ket+ t attempts to pr$ict & pot5tially manipulate consum] behavior & decision mak+ bas$ on analysis ( bra9 patt]ns4 7#aa7 ,op]ator 7,a7 ,9 g5]al ,! t]m op]ator means any p]son :o op]ates a plat=m1 includ+ any p]son (f]+ products or s]vices = sale ?r\gh t plat=m1 involv+ comm]ce-- 7i7 among ! sev]al ,/ates or ) "o or m =eign nations2 7ii7 9 any t]ritory ( ! ,unit$ ,/ates or 9 ! ,di/rict ( ,columbia1 or betwe5 any su* t]ritory &-- 7,i7 ano!r su* t]ritory2 or 7,,ii7 any ,/ate or =eign nation2 or 7iii7 betwe5 ! ,di/rict ( ,columbia & any ,/ate1 t]ritory1 or =eign nation4 7,b7 ,exception ,! t]m op]ator does n include any nonpr(it entity t w\ld o!rwise be exempt f cov]age "u section #e ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de74 7#ab7 ,p]son ,! t]m p]son means any individual1 p>tn]%ip1 corporation1 tru/1 e/ate1 coop]ative1 association1 or o!r entity4 7#ac7 ,plat=m ,! t]m plat=m means a website1 onl9e s]vice1 onl9e application1 or mobile application :i* is op]at$ = comm]cial purposes4 7#ad7 ,virtual reality ,! t]m virtual reality means an application or web-bas$ exp]i5ce utiliz+ a cam]a to create an imm]sive environm5t t mimics ! real _w1 usually via a headset4 #d4 ,regulation ( acts & practices on *ild-direct$ plat=ms 7a7 ,prohibition on c]ta9 features ,x is unlawful = an op]ator ( a plat=m direct$ to *ildr5 to incorporate any ( ! foll[+ features3 7#a7 ,any auto-play sett+ t1 )\t input f ! cov]$ us]1 comm5ces additional video cont5t directly foll[+ ! video cont5t initially select$ by ! us]4 7#b7 ,pu% al]ts t urge a cov]$ us] to sp5d m "t engag$ ) ! plat=m :5 !y are n actively us+ x4 7#c7 ,display+ ! quantity ( positive engagem5t or fe$back t a cov]$ us] has receiv$ f o!r us]s4 7#d7 ,any design feature or sett+ t unfairly enc\rages a cov]$ us]1 due to _! age or inexp]i5ce1 to make pur*ases1 submit cont5t1 or sp5d m "t engag+ ) ! plat=m4 7#e7 ,any feature t provides a cov]$ us] ) badges or o!r visual aw>d symbols bas$ on elevat$ levels ( engagem5t ) ! plat=m4 7b7 ,prohibition on amplification ( c]ta9 cont5t2 us] report+ me*anism ,x %all be unlawful = an op]ator ( a plat=m direct$ to *ildr51 or a plat=m = :i* ! op]ator has con/ructive k t cov]$ us]s use its plat=m1 to-- 7#a7 amplify1 promote1 or enc\rage cov]$ us]s' consumption ( videos & o!r =ms ( cont5t t involve-- 7,a7 sexual mat]ial2 7,b7 physical or emotional viol5ce1 includ+ bully+2 7,c7 adult activities1 includ+ gambl+2 or 7,d7 o!r dang]\s1 abusive1 exploitative1 or :olly comm]cial cont5t2 or 7#b7 fail to implem5t a me*anism = us]s to report suspect$ violations ( any requirem5t "u p>agraph 7#a74 7c7 ,prohibition on c]ta9 adv]tis+ me?ods 7#a7 ,9 g5]al ,x %all be unlawful = an op]ator ( a plat=m direct$ to *ildr5 to-- 7,a7 direct cont5t t includes ho/-sell+ to cov]$ us]s2 7,b7 expose cov]$ us]s to program-l5g? adv]tisem5ts2 7,c7 direct br&$ cont5t or native adv]tis+ to cov]$ us]s2 7,d7 direct onl9e adv]tis+ or mat]ial ) consid]able comm]cial cont5t involv+ alcohol1 nicot9e1 or tobacco to cov]$ us]s2 7,e7 expose cov]$ us]s to onl9e adv]tis+ or mat]ial ) consid]able comm]cial cont5t ) any imb$d$ int]active elem5ts t take advantage ( cov]$ us]s' inexp]i5ce or cr$ulity 9 noncomm]cial *ild-direct$ cont5t2 or 7,f7 direct cont5t t includes product placem5t to cov]$ us]s4 7#b7 ,program-l5g? adv]tisem5t ,! t]m program-l5g? adv]tisem5t %all be def9$ by ! ,commission ?r\gh regulation or o!r public guidance4 7d7 ,prohibition on use ( p]sonal in=mation ,x %all be unlawful = an op]ator ( a plat=m direct$ to *ildr5 to use age v]ification in=mation collect$ f cov]$ us]s = any comm]cial purpose4 7e7 ,regulations ,! ,commission %all promulgate regulations 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 to require any op]ator ( a plat=m direct$ to *ildr5 to incorporate onl9e visual elem5ts or o!r indicators t di/+ui% comm]cial cont5t f noncomm]cial cont5t4 #e4 ,m>ket+ & comm]cialization 7a7 ,cont5t label+ sy/em report ,n lat] ?an ! date t is #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all submit to ,congress a report-- 7#a7 conta9+ recomm5dations = a label+ sy/em to all[ p>5ts to id5tify noncomm]cial1 educational1 & enri*+ cont5t = cov]$ us]s onl9e2 & 7#b7 address consid]ations reg>d+ h[ su* label+ sy/em %\ld-- 7,a7 analyze cont5t bas$ on evid5ce-bas$ crit]ia2 7,b7 employ an easy-to-und]/& visual cue = p>5ts to id5tify cont5t describ$ 9 p>agraph 7#a72 7,c7 receive regul> review to det]m9e its effectiv5ess2 & 7,d7 develop a me*anism = us]s to report to ! ,commission compla9ts ( mislabel$ cont5t & = ! ,commission to rem$y su* in/ances ( mislabel$ cont5t4 7b7 ,consultation ,! report describ$ 9 subsection 7a7 %all be develop$ by ! ,commission 9 consultation ) an advisory bo>d1 to be creat$ & conv5$ by ! ,commission1 :i* is compris$ ( exp]ts 9 *ild developm5t1 *ild heal?1 education1 & m$ia4 #f4 ,transp>5cy & audit+ 7a7 ,transp>5cy ,! ,commission %all promulgate regulations 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 requir+ an op]ator ( a plat=m :i* is direct$ to *ildr5 to publi% & ma9ta9 a publicly accessible digital record ( ! viewable or playable cont5t ( ea* su* plat=m4 7b7 ,annual plat=m audits ,! regulations promulgat$ pursuant to subsection 7a7 %all include ! e/abli%m5t ( an annual audit process1 to be conduct$ dur+ ! #e-ye> p]iod subsequ5t to ! date ( enactm5t ( ?is ,act1 = ea* ( ! #be plat=ms direct$ to *ildr5 ) ! highe/ total numb] ( *ild us]s1 to evaluate ! level ( compliance by ea* su* plat=m ) respect to ! requirem5ts "u ?is ,act4 7c7 ,report ,! ,commission %all issue annual reports to ,congress bas$ on ! audits describ$ 9 subsection 7b7 t-- 7#a7 describe ! level ( compliance by ! plat=ms describ$ 9 su* subsection ) respect to ! requirem5ts "u ?is ,act2 & 7#b7 provide recomm5dations = su* legislation & adm9i/rative actions z ! ,commission det]m9es appropriate bas$ on ! audit f9d+s4 #g4 ,grant program 7a7 ,e/abli%m5t 7#a7 ,9 g5]al ,! ,secret>y ( ,comm]ce %all provide grants to eligible p]sons to fo/] ! creation & promotion ( adv]tisem5t-free & educational onl9e cont5t = cov]$ us]s1 su* z videos & applications4 7#b7 ,eligible p]son ,= purposes ( ?is section1 ! t]m eligible p]son means a p]son t has submitt$ an application1 z approv$ by ! ,secret>y ( ,comm]ce pursuant to ! eligibility requirem5ts develop$ "u subsection 7b71 = ! creation & promotion ( adv]tisem5t-free & educational onl9e cont5t = cov]$ us]s4 7b7 ,advisory c\ncil ,! ,secret>y %all e/abli% & conv5e an ,advisory ,c\ncil on ,*ildr5's ,onl9e ,cont5t1 :i* %all be-- 7#a7 compris$ ( exp]ts 9 education1 *ild developm5t1 psy*ology1 onl9e m$ia1 & o!r relat$ discipl9es2 & 7#b7 task$ ) develop+ evid5ce-bas$ crit]ia = grant eligibility & grant di/ribution4 7c7 ,au?orization ( appropriations 7#a7 ,9 g5]al ,to c>ry out ?is section1 !re is au?oriz$ to be appropriat$-- 7,a7 = fiscal ye> #bjba1 #d1jjj1jjj2 7,b7 = fiscal ye> #bjbb1 #h1jjj1jjj2 7,c7 = fiscal ye> #bjbc1 #aj1jjj1jjj2 & 7,d7 = fiscal ye> #bjbd1 #ab1jjj1jjj4 7#b7 ,availability ( funds ,any am\nt appropriat$ "u ?is subsection = any fiscal ye> %all rema9 available = ! purposes ( c>ry+ out any application approv$ dur+ su* fiscal ye> = an additional p]iod ( #a ye> aft] ! end ( su* fiscal ye>4 #h4 ,adm9i/ration & en=cem5t 7a7 ,9 g5]al ,?is ,act %all be en=c$ by ! ,commission "u ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7b7 ,actions by ,commission 7#a7 ,9 g5]al ,! ,commission %all prev5t any p]son f violat+ ?is ,act or any regulation promulgat$ by ! ,commission "u ?is ,act 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]s1 & duties1 z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 7 incorporat$ into & made a "p ( ?is ,act4 7#b7 ,p5alties & privileges ,any p]son t violates ?is ,act or any regulation promulgat$ "u ! ,act %all be subject to ! p5alties & entitl$ to ! privileges & immunities provid$ 9 ! ,f$]al ,trade ,commission ,act 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]1 & duties1 z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7 incorporat$ into & made a "p ( ?is ,act4 7c7 ,civil p5alty ,a violation ( ! ,act1 or a rule promulgat$ "u ! ,act1 %all be treat$ z a violation ( a rule def9+ an unfair or deceptive act or practice prescrib$ "u section #ah7;a77#a77;,b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7d7 ,effect on o!r laws ,no?+ conta9$ 9 ?is ,act %all be con/ru$ to limit ! au?ority ( ! ,commission "u any o!r provisions ( law4