,i #aagth ,,congress #ast ,session ,h4 ,r4 #edci ,,in ,,the ,,house ,,of ,,representatives ,september #cj1 #bjba,ms4 ,castor of ,florida 7for herself1 ,ms4 ,clarke of ,new ,york1 ,ms4 ,wexton1 and ,mrs4 ,trahan7 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 capabilities 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 producers1 online 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 online users' 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 ,algorithmic process ,the term algorithmic process means a computational process1 including one derived from machine learning or other artificial intelligence techniques1 that processes personal information or other data for the purpose of determining the order or manner that a set of information is provided to a user of an online platform1 including the provision of commercial content1 the display of social media posts1 or any other method of automated decision making1 content selection1 content recommendation1 or content amplification4 7#b7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#c7 ,constructive knowledge 7,a7 ,in general ,the term constructive knowledge means1 for purposes of section #d1 with respect to knowledge that a user of an online platform is a covered user1 knowledge that is imputed to the operator of the online platform if-- 7i7 the operator directly or indirectly collects1 uses1 profiles1 buys1 sells1 classifies1 or analyzes 7using an algorithmic process or other form of data analytics7 data about the user to estimate1 identify1 or classify the age1 age range1 or proxy thereof2 7ii7 the operator has or receives data or reporting related to the age of the user on the online platform under the self-regulatory guidelines described in section #acjd of the ,children's ,online ,privacy ,protection ,act of #aiih 7#ae ,u4,s4,c4 #fejc7 that documents risks and controls1 including the existence of operator-controlled data analytics and content analytics capabilities and functions or outputs2 7iii7 the operator has or receives complaints from parents or other third parties about the age of the user1 whether through the operator's complaint mechanism1 by email1 or other means conveniently accessible by such parents or third parties2 7iv7 the operator has or receives data or reporting or information from the operator's internal communications1 including documentation about its advertising practices1 such as an advertisement insertion order1 or other promotional material to marketers1 that indicates that data is being collected from the user because the user is within a particular age range2 or 7v7 the operator knows that-- 7,i7 a provider of content on the platform communicates to an advertising network that the content is intended for users of a particular age range or likely to appeal to users of a particular age range1 whether directly or indirectly2 and 7,,ii7 the user is shown that content4 7,b7 ,additional factors ,the ,commission may issue guidance or promulgate rules in accordance with section #eec of title #e1 ,united ,states ,code1 that indicate factors1 in addition to those described in subparagraph 7,a71 that should be considered to be constructive knowledge for purposes of this ,act4 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 an online platform or portion of an online platform1 as demonstrated by1 with respect to such platform or portion of a 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 company compensates individuals who are deemed to have the potential to review1 promote1 or sell a product or service online to an intended target audience4 7#h7 ,online platform ,the term online platform means any public-facing website1 online service1 online application1 or mobile application which is operated for commercial purposes4 7#i7 ,operator ,the term operator means any person who1 for commercial purposes1 in interstate or foreign commerce1 operates or provides an online platform4 7#aj7 ,person ,the term person means any individual1 partnership1 corporation1 trust1 estate1 cooperative1 association1 or other entity4 #d4 ,regulation of acts and practices on child-directed platforms 7a7 ,prohibition on certain interface elements 7#a7 ,in general 7,a7 ,prohibition ,it is unlawful for an operator to operate or provide-- 7i7 an online platform or a portion of an online platform directed to children that incorporates an interface element described in subparagraph 7,b72 and 7ii7 any online platform that employs an interface element described in subparagraph 7,b7 with respect to a user if the operator has actual or constructive knowledge that the user is a covered user4 7,b7 ,interface elements described ,the interface elements described in this subparagraph are the following3 7i7 ,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 7ii7 ,messages or alerts that encourage a covered user who is not actively using the platform to engage with the platform4 7iii7 ,displaying the quantity of positive engagement or feedback that a covered user has received from other users4 7iv7 ,any interface element or setting that unfairly encourages a covered user1 due to their age or inexperience1 to share personal information1 submit content1 or spend more time engaging with the platform4 7v7 ,any interface element that provides a covered user with badges or other visual award symbols based on elevated levels of engagement with the platform4 7vi7 ,any interface element that maximizes a covered user's spending on the platform1 unfairly encourages a covered user to spend money on the platform1 facilitates a financial transaction by a covered user on the platform without notification to the covered user's parent1 or facilitates a financial transaction by a covered user on the platform that is not in the interest of the covered user4 7#b7 ,rulemaking ,not later than #a year after the date of enactment of this ,act and not less frequently than every #e years thereafter1 the ,commission shall promulgate regulations under section #eec of title #e1 ,united ,states ,code1 that establish any additions or exceptions to the prohibitions under paragraph 7#a74 ,the ,commission may only establish such an exception on the basis that the exception is necessary to provide essential functionality for an online platform and is consistent with the best interests of covered users4 7b7 ,prohibition on amplification of certain content2 user reporting mechanism 7#a7 ,in general ,it shall be unlawful for an operator to operate or provide-- 7,a7 an online platform or portion of an online platform directed to children that employs an algorithmic process described in paragraph 7#b7 on the platform2 7,b7 any online platform that employs an algorithmic process described in paragraph 7#b7 with respect to a user of the platform if the operator of the platform has actual or constructive knowledge that the user is a covered user2 and 7,c7 an online platform that does not include a mechanism for users or other third parties to report suspected violations of any requirement of this paragraph4 7#b7 ,algorithmic process described ,an algorithmic process described in this paragraph is an algorithmic process that amplifies1 promotes1 or encourages covered users' consumption of videos and other forms of content that-- 7,a7 are of a non-educational nature 7as determined by the ,commission72 and 7,b7 involve-- 7i7 sexual material2 7ii7 promotion of physical or emotional violence or activities that can reasonably be assumed to result in physical or emotional harm1 including self-harm1 use of weapons1 and bullying2 7iii7 activities that are unlawful for covered users to engage in or the promotion of such activities2 or 7iv7 wholly commercial content that is not reasonably recognizable as such to a covered user4 7c7 ,prohibition on certain advertising methods 7#a7 ,in general ,it shall be unlawful for an online operator to operate or provide-- 7,a7 an online platform or portion of an online platform directed to children that employs an algorithmic process to present any of the content described in paragraph 7#b7 to users of the platform2 and 7,b7 any online platform that employs an algorithmic process to present any of the content described in paragraph 7#b7 to a covered user if the operator of the platform has actual or constructive knowledge that the user is a covered user4 7#b7 ,content described ,the content described in this paragraph is the following3 7,a7 ,content that includes host-selling4 7,b7 ,program-length advertisements4 7,c7 ,influencer marketing4 7,d7 ,online advertising or material with considerable commercial content involving alcohol1 nicotine1 or tobacco4 7,e7 ,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 content4 7,f7 ,content that includes product placement4 7#c7 ,program-length advertisement ,for purposes of this subsection1 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 online platform to use age verification information collected from a covered user for any commercial purpose if-- 7#a7 the online platform is directed to children2 or 7#b7 the operator of the online platform has constructive knowledge that the user is a covered user4 7e7 ,requirement ,to distinguish commercial content from noncommercial content ,the ,commission shall promulgate regulations in accordance with section #eec of title #e1 ,united ,states ,code1 to require any online platform or portion of an online platform that is directed to children1 or with respect to which the operator of the platform or portion of the platform has constructive knowledge that covered users use the platform or portion of the platform1 to incorporate online visual elements or other indicators that distinguish commercial content from noncommercial content4 7f7 ,rulemaking ,the ,commission shall promulgate1 in accordance with section #eec of title #e1 ,united ,states ,code1 such rules as may be necessary to carry out this section4 7g7 ,effective date ,the requirements of this section shall apply to online platforms beginning on the date that is #a year after the date of enactment of this ,act4 #e4 ,online content labeling 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 covered users and parents to identify noncommercial1 educational1 and enriching content for covered users online2 and 7#b7 addressing 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 include 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 an online 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 ,such regulations shall require the operator to ensure that such record does not include personal information 7as defined in section #acjb of the ,children's ,online ,privacy ,protection ,act of #aiih 7#ae ,u4,s4,c4 #feja77 or1 as appropriate1 user-generated content4 7b7 ,annual platform audits ,the regulations promulgated pursuant to subsection 7a7 shall include the establishment of an annual audit process1 to be conducted by the ,commission during the #e-year period subsequent to the date of enactment of this ,act1 for each of the #be online platforms directed to children with the highest total number of covered users1 to evaluate the level of compliance by each such platform with the requirements under this ,act4 7c7 ,report ,the ,commission shall submit 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 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 7in this section referred to as the ,secretary7 shall make grants to eligible persons to foster the creation and promotion of advertisement-free and educational online content 7such as videos and applications7 for covered users4 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 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 ,federal ,trade ,commission study ,not later than #a year after the date of enactment of this ,act1 the ,commission shall conduct and publish a study1 using any compulsory processes available to the ,commission as necessary1 relying on public data and information if available and sufficient1 and incorporating public comment1 on harms resulting from interface elements and advertising methods on online platforms that are directed to children 7and best practices for avoiding such harms71 including the following3 7#a7 ,the use of algorithmic processes and any other automated systems used for non-commercial content recommendation or amplification on platforms that are directed to covered users4 7#b7 ,the effect of algorithmic processes and any other automated systems used for non-commercial content recommendation or amplification on platforms that are directed to covered users4 #i4 ,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 this ,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 this ,act1 or a regulation promulgated under this ,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 ,enforcement by ,states 7#a7 ,in general ,if the attorney general of a ,state has reason to believe that an interest of the residents of the ,state has been or is being threatened or adversely affected by a violation of this ,act or a regulation promulgated under this ,act1 the attorney general of the ,state may1 as parens patriae1 bring a civil action on behalf of the residents of the ,state in an appropriate district court of the ,united ,states to obtain appropriate relief4 7#b7 ,rights of commission 7,a7 ,notice to commission 7i7 ,in general ,except as provided in clause 7iii71 the attorney general of a ,state1 before initiating a civil action under paragraph 7#a71 shall provide written notification to the ,commission that the attorney general intends to bring such civil action4 7ii7 ,contents ,the notification required under clause 7i7 shall include a copy of the complaint to be filed to initiate the civil action4 7iii7 ,exception ,if it is not feasible for the attorney general of a ,state to provide the notification required under clause 7i7 before initiating a civil action under paragraph 7#a71 the attorney general shall notify the ,commission immediately upon instituting the civil action4 7,b7 ,intervention by commission ,the ,commission may-- 7i7 intervene in any civil action brought by the attorney general of a ,state under paragraph 7#a72 and 7ii7 upon intervening-- 7,i7 be heard on all matters arising in the civil action2 and 7,,ii7 file petitions for appeal of a decision in the civil action4 7#c7 ,investigatory powers ,nothing in this subsection may be construed to prevent the attorney general of a ,state from exercising the powers conferred on the attorney general by the laws of the ,state to conduct investigations1 to administer oaths or affirmations1 or to compel the attendance of witnesses or the production of documentary or other evidence4 7e7 ,effect on other laws 7#a7 ,authority of the ,commission ,nothing contained in this ,act shall be construed to limit the authority of the ,commission under any other provisions of law4 7#b7 ,relation to ,state law ,nothing in this ,act may be construed to preempt any provision of ,state law that provides greater protection to consumers than is provided in this ,act4