,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #heab  ,,in ,,the ,,house ,,of  
,,representatives  ,october #b1         
#bjbj,mr4 ,foster 7for himself and ,mr4 
,moulton7 introduced the following bill2
 which was referred to the ,committee on
 ,energy and ,commerce1 and in addition 
to the ,committee on ,financial         
,services1 for a period to be           
subsequently determined by the ,speaker1
 in each case for consideration of such 
provisions as fall within the           
jurisdiction of the committee concerned 
,a ,,bill  ,to require the ,securities  
and ,exchange ,commission to promulgate 
regulations relating to the disclosure  
of certain commercial data1 and for     
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,designing     
,accounting ,safeguards ,to ,help       
,broaden ,oversight and ,regulations on 
,data4  #b4 ,definitions ,in this ,act3 
7#a7 ,commission ,the term ,commission  
means the ,securities and ,exchange     
,commission4  7#b7 ,issuer ,the term    

issuer has the meaning given the term in
 section #c7;a7 of the ,securities and  
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#gh;c7a774  7#c7 ,other definitions ,the
 terms commercial data operator1 user1  
and user data have the meaning given    
those terms1 respectively1 under section
 #ac7s77#a7 of the ,securities ,exchange
 ,act of #aicd4  #c4 ,commercial data   
operators  7a7 ,requirements  7#a7 ,in  
general ,a commercial data operator     
shall-- 7,a7 on a routine basis1 and not
 less frequently than once every #ij    
days-- 7i7 provide each user of the     
commercial data operator with an        
assessment of the economic value that   
the commercial data operator places on  
the data of that user2 and  7ii7 in a   
clear and conspicuous manner1 in        
accordance with paragraph 7#c71 identify
 to each user of the commercial data    
operator-- 7,i7 the types of data       
collected from users of the commercial  
data operator1 whether by the commercial
 data operator or another person        

pursuant to an agreement with the       
commercial data operator2 and  7,,ii7   
the ways that the data of a user of the 
commercial data operator is used if the 
use is not directly or exclusively      
related to the online service that the  
commercial data operator provides to the
 user2 and  7,b7 except as provided in  
paragraph 7#b71 provide a user of the   
commercial data operator with the       
ability to delete all data1 in the      
aggregate and for an individual field1  
that the commercial data operator       
possesses1 or maintains control or      
access to with respect to the user1     
through-- 7i7 a single setting2 or  7ii7
 another clear and conspicuous mechanism
 by which the user may make such a      
deletion4  7#b7 ,deletion exceptions    
7,a7 ,in general ,a commercial data     
operator shall comply with a user       
directive to delete1 in whole or in     
part1 the data of the user except-- 7i7 
in cases where there is a legal         
obligation of the commercial data       

operator to maintain the data2  7ii7 for
 the establishment1 exercise1 or defense
 of legal claims2 or  7iii7 if the data 
is necessary to detect security         
incidents1 protect against malicious1   
deceptive1 fraudulent1 or illegal       
activity1 or assist in the prosecution  
of those responsible for such activity4 
7,b7 ,retention ,a commercial data      
operator may not retain any more user   
data than is necessary to carry out an  
activity described in clauses 7i7       
through 7iii7 of subparagraph 7,a74     
7#c7 ,availability ,a commercial data   
operator shall ensure that all          
disclosures required under paragraph    
7#a7 are available to a user of the     
commercial data operator-- 7,a7 on and  
after the date on which the commercial  
data operator makes the identification2 
and  7,b7 through any normal mechanism  
by which a user may interact with the   
online service provided by the          
commercial data operator4  7#d7 ,unfair 
and deceptive acts or practices  7,a7   

,unfair or deceptive acts or practices  
,a violation of this subsection 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  7,b7 ,powers of    
,federal ,trade ,commission  7i7 ,in    
general ,the ,federal ,trade ,commission
 shall enforce this subsection in the   
same manner1 by the same means1 and with
 the same jurisdiction1 powers1 and     
duties 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 subsection4  7ii7          
,privileges and immunities ,any person  
who violates this subsection shall be   
subject to the penalties and entitled to
 the privileges and immunities provided 
in the ,federal ,trade ,commission ,act 
7#ae ,u4,s4,c4 #da et seq474  7b7       
,regulations ,not later than #a year    

after the date of enactment of this     
,act1 the ,federal ,trade ,commission   
shall promulgate regulations carrying   
out subsection 7a74  #d4 ,,sec          
disclosures  7a7 ,in general ,section   
#ac of the ,securities ,exchange ,act of
 #aicd 7#ae ,u4,s4,c4 #ghm7 is amended  
by adding at the end the following3  7s7
 ,disclosure relating to aggregate value
 of user data held by commercial data   
operators  7#a7 ,definitions ,in this   
subsection3 7,a7 ,commercial data       
operator ,the term commercial data      
operator means an entity acting in its  
capacity as a consumer online services  
provider or data broker that-- 7i7      
generates a material amount of revenue  
directly from the use1 collection1      
processing1 sale1 or sharing of the user
 data2 and  7ii7 has more than          
#ajj1jjj1jjj unique monthly visitors or 
users in the ,united ,states for a      
majority of months during the previous  
#a-year period2  7,b7 ,user ,the term   
user means an individual consumer who   

uses an online service designed for     
consumer use by a commercial data       
operator4  7,c7 ,user data ,the term    
user data means any information that    
identifies1 relates to1 describes1 is   
capable of being associated with1 or    
could reasonably be linked with an      
individual user1 whether directly       
submitted to the commercial data        
operator by the user or derived from the
 observed activity of the user by the   
commercial data operator4  7#b7         
,disclosure ,each issuer that is1 or is 
a consolidated subsidiary of1 a         
commercial data operator and is required
 to file an annual or quarterly report  
under subsection 7a7 shall disclose in  
that report the aggregate value1 if     
material1 of-- 7,a7 user data that the  
commercial data operator holds2  7,b7   
contracts with third parties for the    
collection of user data through the     
online service provided by the          
commercial data operator2 and  7,c7 any 
other item that the ,commission         

determines1 by rule1 is necessary or    
useful for the protection of investors  
and in the public interest4  7#c7       
,valuation methodology  7,a7 ,in general
 ,the ,commission1 in consultation with 
appropriate standards settings          
organizations1 shall develop a method or
 methods for calculating the value of   
user data required to be disclosed under
 paragraph 7#b74  7,b7 ,considerations  
,in developing the method under         
subparagraph 7,a71 the ,commission shall
 promote comparability in calculating   
the value of data across commercial data
 operators that utilize user data in a  
similar manner while taking into account
 the potential need to develop distinct 
methods for calculating the value of    
data for different uses1 sectors1 and   
business models4  4  7b7 ,qualitative   
disclosure ,not later than #a year after
 the date of enactment of this          
subsection1 the ,commission shall amend 
section #bbi4cjf of title #ag1 ,code of 
,federal ,regulations1 to require a     

commercial data operator that is an     
issuer subject to section #ac or #ae7;d7
 of the ,securities ,exchange ,act of   
#aicd 7#ae ,u4,s4,c4 #ghm1 #gho7d77 to  
provide quantitative and qualitative    
disclosures about the value of user data
 held1 including-- 7#a7 technical and   
legal measures in place to protect user 
data held by the commercial data        
operator2  7#b7 an assessment of        
financial and legal risks associated    
with storing the type and quantity of   
user data held by the commercial data   
operator2  7#c7 each source of user data
 held by the commercial data operator1  
whether by sale1 a direct consumer      
relationship1 an indirect consumer      
relationship1 or other means2  7#d7 each
 discrete revenue generating operation  
of the commercial data operator and any 
subsidiary or affiliate that relies on  
user data2  7#e7 the entry into any     
contract valued at more than #aj1jjj1jjj
 with a third party for the collection1 
licensing1 or sharing by the third party

 pursuant to an agreement with the      
commercial data operator2  7#f7 the     
amount of revenue derived from          
obtaining1 collecting1 processing1      
selling1 using or sharing user data     
during the reporting period2  7#g7 how  
changes in the measurement of aggregate 
fair value of user data affect the      
reported performance and cash flows of  
the issuer2 and  7#h7 any acquisition of
 user data in the preceding reporting   
period valued at more than #ajj1jjj1jjj4
  7c7 ,report  7#a7 ,in general ,not    
later than #c years after the date of   
enactment of this ,act1 the ,commission 
shall submit to the ,committee on       
,banking1 ,housing1 and ,urban ,affairs 
of the ,senate and the ,committee on    
,financial ,services of the ,house of   
,representatives a report on-- 7,a7 the 
nature1 timing1 and extent of the       
disclosure practices of commercial data 
operators2  7,b7 an assessment of the   
valuation methodologies and practices   
employed by commercial data operators in

 developing and submitting disclosures  
to the public2  7,c7 an evaluation of   
the methods of delivery and presentation
 of the disclosures required by this    
,act1 and the amendments made by this   
,act2 and  7,d7 recommendations for the 
improvement of the methods described in 
subparagraph 7,c71 including developing 
standards to enhance comparability and  
utility for investors4  7#b7 ,rulemaking
 ,not later than #ahj days after the    
date on which the report required under 
paragraph 7#a7 is submitted1 the        
,commission shall promulgate a proposed 
regulation implementing the             
recommendations described in paragraph  
7#a77;,d74