,,ii #aag? ,,congress #a/ ,session ,s4 #biah ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #cj1 #bjba,mr4 ,m>key 7= himself & ,mr4 ,blum5?al7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ,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 capabilities :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 produc]s1 onl9e 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 onl9e us]s' 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 ,algori?mic process ,! t]m algori?mic process means a computational process1 includ+ "o d]iv$ f ma*9e le>n+ or o!r artificial intellig5ce te*niques1 t processes p]sonal in=mation or o!r data = ! purpose ( det]m9+ ! ord] or mann] t a set ( in=mation is provid$ to a us] ( an onl9e plat=m1 includ+ ! provision ( comm]cial cont5t1 ! display ( social m$ia po/s1 or any o!r me?od ( automat$ decision mak+1 cont5t selection1 cont5t recomm5dation1 or cont5t amplification4 7#b7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#c7 ,con/ructive k 7,a7 ,9 g5]al ,! t]m con/ructive k means1 = purposes ( section #d1 ) respect to k t a us] ( an onl9e plat=m is a cov]$ us]1 k t is imput$ to ! op]ator ( ! onl9e plat=m if-- 7i7 ! op]ator directly or indirectly collects1 uses1 pr(iles1 buys1 sells1 classifies1 or analyzes 7us+ an algori?mic process or o!r =m ( data analytics7 data ab\t ! us] to e/imate1 id5tify1 or classify ! age1 age range1 or proxy !re(2 7ii7 ! op]ator has or receives data or report+ relat$ to ! age ( ! us] on ! onl9e plat=m "u ! self-regulatory guidel9es describ$ 9 section #acjd ( ! ,*ildr5's ,onl9e ,privacy ,protection ,act ( #aiih 7#ae ,u4,s4,c4 #fejc7 t docum5ts risks & controls1 includ+ ! exi/5ce ( op]ator-controll$ data analytics & cont5t analytics capabilities & functions or outputs2 7iii7 ! op]ator has or receives compla9ts f p>5ts or o!r ?ird p>ties ab\t ! age ( ! us]1 :e!r ?r\gh ! op]ator's compla9t me*anism1 by email1 or o!r means conv5i5tly accessible by su* p>5ts or ?ird p>ties2 7iv7 ! op]ator has or receives data or report+ or in=mation f ! op]ator's int]nal communications1 includ+ docum5tation ab\t its adv]tis+ practices1 su* z an adv]tisem5t ins]tion ord]1 or o!r promotional mat]ial to m>ket]s1 t indicates t data is be+ collect$ f ! us] because ! us] is )9 a p>ticul> age range2 or 7v7 ! op]ator kn[s t-- 7,i7 a provid] ( cont5t on ! plat=m communicates to an adv]tis+ network t ! cont5t is int5d$ = us]s ( a p>ticul> age range or likely to appeal to us]s ( a p>ticul> age range1 :e!r directly or indirectly2 & 7,,ii7 ! us] is %[n t cont5t4 7,b7 ,additional factors ,! ,commission may issue guidance or promulgate rules 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 t indicate factors1 9 addition to ^? describ$ 9 subp>agraph 7,a71 t %\ld be consid]$ to be con/ructive k = purposes ( ?is ,act4 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 an onl9e plat=m or portion ( an onl9e plat=m1 z demon/rat$ by1 ) respect to su* plat=m or portion ( a 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 company comp5sates individuals :o are deem$ to h ! pot5tial to review1 promote1 or sell a product or s]vice onl9e to an int5d$ t>get audi5ce4 7#h7 ,onl9e plat=m ,! t]m onl9e plat=m means any public-fac+ website1 onl9e s]vice1 onl9e application1 or mobile application :i* is op]at$ = comm]cial purposes4 7#i7 ,op]ator ,! t]m op]ator means any p]son :o1 = comm]cial purposes1 9 int]/ate or =eign comm]ce1 op]ates or provides an onl9e plat=m4 7#aj7 ,p]son ,! t]m p]son means any individual1 p>tn]%ip1 corporation1 tru/1 e/ate1 coop]ative1 association1 or o!r entity4 #d4 ,regulation ( acts & practices on *ild-direct$ plat=ms 7a7 ,prohibition on c]ta9 int]face elem5ts 7#a7 ,9 g5]al 7,a7 ,prohibition ,x is unlawful = an op]ator to op]ate or provide-- 7i7 an onl9e plat=m or a portion ( an onl9e plat=m direct$ to *ildr5 t incorporates an int]face elem5t describ$ 9 subp>agraph 7,b72 & 7ii7 any onl9e plat=m t employs an int]face elem5t describ$ 9 subp>agraph 7,b7 ) respect to a us] if ! op]ator has actual or con/ructive k t ! us] is a cov]$ us]4 7,b7 ,int]face elem5ts describ$ ,! int]face elem5ts describ$ 9 ?is subp>agraph are ! foll[+3 7i7 ,any auto-play sett+ t1 )\t input f ! cov]$ us]1 comm5ces additional video cont5t directly foll[+ ! video cont5t initially select$ by ! us]4 7ii7 ,messages or al]ts t enc\rage a cov]$ us] :o is n actively us+ ! plat=m to engage ) ! plat=m4 7iii7 ,display+ ! quantity ( positive engagem5t or fe$back t a cov]$ us] has receiv$ f o!r us]s4 7iv7 ,any int]face elem5t or sett+ t unfairly enc\rages a cov]$ us]1 due to _! age or inexp]i5ce1 to %>e p]sonal in=mation1 submit cont5t1 or sp5d m "t engag+ ) ! plat=m4 7v7 ,any int]face elem5t t provides a cov]$ us] ) badges or o!r visual aw>d symbols bas$ on elevat$ levels ( engagem5t ) ! plat=m4 7vi7 ,any int]face elem5t t maximizes a cov]$ us]'s sp5d+ on ! plat=m1 unfairly enc\rages a cov]$ us] to sp5d money on ! plat=m1 facilitates a f9ancial transaction by a cov]$ us] on ! plat=m )\t notification to ! cov]$ us]'s p>5t1 or facilitates a f9ancial transaction by a cov]$ us] on ! plat=m t is n 9 ! int]e/ ( ! cov]$ us]4 7#b7 ,rulemak+ ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act & n less frequ5tly ?an e #e ye>s !reaft]1 ! ,commission %all promulgate regulations "u section #eec ( title #e1 ,unit$ ,/ates ,code1 t e/abli% any additions or exceptions to ! prohibitions "u p>agraph 7#a74 ,! ,commission may only e/abli% su* an exception on ! basis t ! exception is necess>y to provide ess5tial functionality = an onl9e plat=m & is consi/5t ) ! be/ int]e/s ( cov]$ us]s4 7b7 ,prohibition on amplification ( c]ta9 cont5t2 us] report+ me*anism 7#a7 ,9 g5]al ,x %all be unlawful = an op]ator to op]ate or provide-- 7,a7 an onl9e plat=m or portion ( an onl9e plat=m direct$ to *ildr5 t employs an algori?mic process describ$ 9 p>agraph 7#b7 on ! plat=m2 7,b7 any onl9e plat=m t employs an algori?mic process describ$ 9 p>agraph 7#b7 ) respect to a us] ( ! plat=m if ! op]ator ( ! plat=m has actual or con/ructive k t ! us] is a cov]$ us]2 & 7,c7 an onl9e plat=m t does n include a me*anism = us]s or o!r ?ird p>ties to report suspect$ violations ( any requirem5t ( ?is p>agraph4 7#b7 ,algori?mic process describ$ ,an algori?mic process describ$ 9 ?is p>agraph is an algori?mic process t amplifies1 promotes1 or enc\rages cov]$ us]s' consumption ( videos & o!r =ms ( cont5t t-- 7,a7 are ( a non-educational nature 7z det]m9$ by ! ,commission72 & 7,b7 involve-- 7i7 sexual mat]ial2 7ii7 promotion ( physical or emotional viol5ce or activities t c reasonably be assum$ to result 9 physical or emotional h>m1 includ+ self-h>m1 use ( weapons1 & bully+2 7iii7 activities t are unlawful = cov]$ us]s to engage 9 or ! promotion ( su* activities2 or 7iv7 :olly comm]cial cont5t t is n reasonably recognizable z su* to a cov]$ us]4 7c7 ,prohibition on c]ta9 adv]tis+ me?ods 7#a7 ,9 g5]al ,x %all be unlawful = an onl9e op]ator to op]ate or provide-- 7,a7 an onl9e plat=m or portion ( an onl9e plat=m direct$ to *ildr5 t employs an algori?mic process to pres5t any ( ! cont5t describ$ 9 p>agraph 7#b7 to us]s ( ! plat=m2 & 7,b7 any onl9e plat=m t employs an algori?mic process to pres5t any ( ! cont5t describ$ 9 p>agraph 7#b7 to a cov]$ us] if ! op]ator ( ! plat=m has actual or con/ructive k t ! us] is a cov]$ us]4 7#b7 ,cont5t describ$ ,! cont5t describ$ 9 ?is p>agraph is ! foll[+3 7,a7 ,cont5t t includes ho/-sell+4 7,b7 ,program-l5g? adv]tisem5ts4 7,c7 ,influ5c] m>ket+4 7,d7 ,onl9e adv]tis+ or mat]ial ) consid]able comm]cial cont5t involv+ alcohol1 nicot9e1 or tobacco4 7,e7 ,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$ulity 9 noncomm]cial *ild-direct$ cont5t4 7,f7 ,cont5t t includes product placem5t4 7#c7 ,program-l5g? adv]tisem5t ,= purposes ( ?is subsection1 ! 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 onl9e plat=m to use age v]ification in=mation collect$ f a cov]$ us] = any comm]cial purpose if-- 7#a7 ! onl9e plat=m is direct$ to *ildr52 or 7#b7 ! op]ator ( ! onl9e plat=m has con/ructive k t ! us] is a cov]$ us]4 7e7 ,requirem5t ,to di/+ui% comm]cial cont5t f noncomm]cial cont5t ,! ,commission %all promulgate regulations 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 to require any onl9e plat=m or portion ( an onl9e plat=m t is direct$ to *ildr51 or ) respect to :i* ! op]ator ( ! plat=m or portion ( ! plat=m has con/ructive k t cov]$ us]s use ! plat=m or portion ( ! plat=m1 to incorporate onl9e visual elem5ts or o!r indicators t di/+ui% comm]cial cont5t f noncomm]cial cont5t4 7f7 ,rulemak+ ,! ,commission %all promulgate1 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code1 su* rules z may be necess>y to c>ry out ?is section4 7g7 ,effective date ,! requirem5ts ( ?is section %all apply to onl9e plat=ms beg9n+ on ! date t is #a ye> aft] ! date ( enactm5t ( ?is ,act4 #e4 ,onl9e cont5t label+ 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[ cov]$ us]s & 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 include 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 ( an onl9e plat=m :i* is direct$ to *ildr5 to publi% & ma9ta9 a publicly accessible digital record ( ! viewable or playable cont5t ( ea* su* plat=m4 ,su* regulations %all require ! op]ator to ensure t su* record does n include p]sonal in=mation 7z def9$ 9 section #acjb ( ! ,*ildr5's ,onl9e ,privacy ,protection ,act ( #aiih 7#ae ,u4,s4,c4 #feja77 or1 z appropriate1 us]-g5]at$ cont5t4 7b7 ,annual plat=m audits ,! regulations promulgat$ pursuant to subsection 7a7 %all include ! e/abli%m5t ( an annual audit process1 to be conduct$ by ! ,commission dur+ ! #e-ye> p]iod subsequ5t to ! date ( enactm5t ( ?is ,act1 = ea* ( ! #be onl9e plat=ms direct$ to *ildr5 ) ! highe/ total numb] ( cov]$ us]s1 to evaluate ! level ( compliance by ea* su* plat=m ) ! requirem5ts "u ?is ,act4 7c7 ,report ,! ,commission %all submit annual reports to ,congress bas$ on ! audits describ$ 9 subsection 7b7 t-- 7#a7 describe ! level ( compliance by ! plat=ms describ$ 9 su* subsection ) ! 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 79 ?is section ref]r$ to z ! ,secret>y7 %all make grants to eligible p]sons to fo/] ! creation & promotion ( adv]tisem5t-free & educational onl9e cont5t 7su* z videos & applications7 = cov]$ us]s4 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 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$-- 7,a7 = fiscal ye> #bjbb1 #d1jjj1jjj2 7,b7 = fiscal ye> #bjbc1 #h1jjj1jjj2 7,c7 = fiscal ye> #bjbd1 #aj1jjj1jjj2 & 7,d7 = fiscal ye> #bjbe1 #ab1jjj1jjj4 7#b7 ,availability ( funds ,any am\nt appropriat$ "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 ,f$]al ,trade ,commission /udy ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all conduct & publi% a /udy1 us+ any compulsory processes available to ! ,commission z necess>y1 rely+ on public data & in=mation if available & suffici5t1 & incorporat+ public comm5t1 on h>ms result+ f int]face elem5ts & adv]tis+ me?ods on onl9e plat=ms t are direct$ to *ildr5 7& be/ practices = avoid+ su* h>ms71 includ+ ! foll[+3 7#a7 ,! use ( algori?mic processes & any o!r automat$ sy/ems us$ = non-comm]cial cont5t recomm5dation or amplification on plat=ms t are direct$ to cov]$ us]s4 7#b7 ,! effect ( algori?mic processes & any o!r automat$ sy/ems us$ = non-comm]cial cont5t recomm5dation or amplification on plat=ms t are direct$ to cov]$ us]s4 #i4 ,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 ?is ,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 ( ?is ,act1 or a regulation promulgat$ "u ?is ,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$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7d7 ,en=cem5t by ,/ates 7#a7 ,9 g5]al ,if ! attorney g5]al ( a ,/ate has reason to believe t an int]e/ ( ! resid5ts ( ! ,/ate has be5 or is be+ ?reat5$ or adv]sely affect$ by a violation ( ?is ,act or a regulation promulgat$ "u ?is ,act1 ! attorney g5]al ( ! ,/ate may1 z p>5s patriae1 br+ a civil action on behalf ( ! resid5ts ( ! ,/ate 9 an appropriate di/rict c\rt ( ! ,unit$ ,/ates to obta9 appropriate relief4 7#b7 ,rights ( ,commission 7,a7 ,notice to ,commission 7i7 ,9 g5]al ,except z provid$ 9 clause 7iii71 ! attorney g5]al ( a ,/ate1 be=e initiat+ a civil action "u p>agraph 7#a71 %all provide writt5 notification to ! ,commission t ! attorney g5]al int5ds to br+ su* civil action4 7ii7 ,cont5ts ,! notification requir$ "u clause 7i7 %all include a copy ( ! compla9t to be fil$ to initiate ! civil action4 7iii7 ,exception ,if x is n feasible = ! attorney g5]al ( a ,/ate to provide ! notification requir$ "u clause 7i7 be=e initiat+ a civil action "u p>agraph 7#a71 ! attorney g5]al %all notify ! ,commission imm$iately ^u in/itut+ ! civil action4 7,b7 ,int]v5tion by commission ,! ,commission may-- 7i7 int]v5e 9 any civil action br\ght by ! attorney g5]al ( a ,/ate "u p>agraph 7#a72 & 7ii7 ^u int]v5+-- 7,i7 be he>d on all matt]s aris+ 9 ! civil action2 & 7,,ii7 file petitions = appeal ( a decision 9 ! civil action4 7#c7 ,inve/igatory p[]s ,no?+ 9 ?is subsection may be con/ru$ to prev5t ! attorney g5]al ( a ,/ate f ex]cis+ ! p[]s conf]r$ on ! attorney g5]al by ! laws ( ! ,/ate to conduct inve/igations1 to adm9i/] oa?s or affirmations1 or to compel ! att5dance ( witnesses or ! production ( docum5t>y or o!r evid5ce4 7e7 ,effect on o!r laws 7#a7 ,au?ority ( ! ,commission ,no?+ conta9$ 9 ?is ,act %all be con/ru$ to limit ! au?ority ( ! ,commission "u any o!r provisions ( law4 7#b7 ,relation to ,/ate law ,no?+ 9 ?is ,act may be con/ru$ to preempt any provision ( ,/ate law t provides great] protection to consum]s ?an is provid$ 9 ?is ,act4