E-STOP Act

Ensuring Shoppers Transparency in Online Pricing Act of 2012 or the E-STOP Act - Directs the Federal Trade Commission (FTC) to promulgate rules requiring an Internet merchant with annual gross revenue of more than $1 million to disclose to each consumer, prior to the final purchase of any good or service, the use of a price-altering computer program. Defines "price-altering computer program" as one that: (1) accesses a consumer's personal information, including information about the consumer's computer and browsing history; and (2) uses such information to alter the merchant's selling price of a good or service. Allows exemptions to accommodate the reasonable expectations of consumers concerning price changes.

Deems a violation of a rule promulgated under this Act to be an unfair or deceptive act or practice under the Federal Trade Commission Act.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6508 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6508

To direct the Federal Trade Commission to promulgate rules requiring an 
  Internet merchant to disclose the use of a price-altering computer 
                    program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2012

    Mrs. Davis of California (for herself, Ms. Richardson, and Ms. 
 Schakowsky) introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To direct the Federal Trade Commission to promulgate rules requiring an 
  Internet merchant to disclose the use of a price-altering computer 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ensuring Shoppers Transparency in 
Online Pricing Act of 2012'' or the ``E-STOP Act''.

SEC. 2. DISCLOSURE REQUIREMENT FOR INTERNET MERCHANTS.

    (a) Rulemaking.--The Federal Trade Commission shall, not later than 
180 days after the date of enactment of this Act, promulgate rules 
under section 553 of title 5, United States Code, requiring an Internet 
merchant to disclose to each consumer, prior to the final purchase of 
any good or service, the use of a price-altering computer program.
    (b) Content.--The rules promulgated by the Commission under 
subsection (a) shall--
            (1) require, at a minimum, an Internet merchant to clearly 
        and prominently disclose the use of a price-altering computer 
        program to a consumer prior to the final purchase of a good or 
        service; and
            (2) provide an Internet merchant procedures for complying 
        with the requirement under paragraph (1).
    (c) Exceptions.--The Commission shall provide for specific 
exceptions to the rules promulgated under subsection (a) when a 
consumer should reasonably expect the price to be altered based on the 
personal information of such consumer, including but not limited to for 
the calculation of a shipping charge and for a financial service for 
which personal information is customarily used to formulate a price.
    (d) Internet Merchants Subject to Disclosure Requirement.--The 
rules promulgated under subsection (a) shall only apply to an Internet 
merchant that has a total annual gross revenue of more than $1,000,000, 
and such amount shall be indexed for inflation every 5 years by the 
Commission to reflect the change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of Labor Statistics of the 
Department of Labor.
    (e) Enforcement.--A violation of a rule promulgated under 
subsection (a) shall be treated as a violation of a rule defining an 
unfair or deceptive act or practice prescribed under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)). The Commission shall enforce this Act in the same 
manner, by the same means, and with the same jurisdiction, powers, and 
duties, as though all applicable terms and provisions of the Federal 
Trade Commission Act were incorporated into and made a part of this 
Act.
    (f) Definitions.--In this Act:
            (1) Internet.--The term ``Internet'' has the meaning given 
        the term in section 1101 of the Internet Tax Freedom Act (47 
        U.S.C. 151 note).
            (2) Internet merchant.--The term ``Internet merchant'' 
        means a person that sells or offers to sell a good or service 
        by way of an Internet transaction.
            (3) Internet protocol address.--The term ``Internet 
        Protocol address'' means the numerical label assigned to a 
        particular computer or other device that accesses the Internet.
            (4) Price-altering computer program.--The term ``price-
        altering computer program'' means a computer program that--
                    (A) accesses a consumer's personal information, 
                including but not limited to Internet browsing history, 
                device type and manufacturer, operating system, and 
                Internet Protocol address; and
                    (B) uses the information accessed under 
                subparagraph (A) to alter the selling price of a good 
                or service sold by an Internet merchant.
                                 <all>