Kids Internet Design and Safety Act or the KIDS Act
This bill prohibits operators of commercial online platforms that are directed to children from engaging in certain practices, including implementing features that encourage additional engagement with the platform, promoting certain types of content, and using certain advertising methods.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5439 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5439
To keep children safe and protect their interests on the internet, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 30, 2021
Ms. Castor of Florida (for herself, Ms. Clarke of New York, Ms. Wexton,
and Mrs. Trahan) introduced the following bill; which was referred to
the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To keep children safe and protect their interests on the internet, 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 ``Kids Internet Design and Safety
Act'' or the ``KIDS Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Children increasingly consume digital entertainment on
the internet and are uniquely susceptible to manipulation
online, given their lack of important neurological and
psychological capabilities which are developed later in
adulthood.
(2) Today's digital media environment, which is constantly
evolving and now includes high-tech experiences, such as
augmented reality and virtual reality, is largely designed in
non-transparent ways to ensure children interact with content
that reflect the interests and goals of content producers,
online platforms, and marketers.
(3) Artificial intelligence, machine learning, and other
complex systems are used to make continuous decisions about how
online content for children can be personalized to increase
engagement.
(4) Online companies gather, analyze, and use data for
behavioral marketing directed at children.
(5) Companies employ sophisticated strategies, including
neuromarketing, to affect consumer behavior and manipulate
online users' decision making.
(6) Branded content in various forms of multimedia,
including native advertising and influencer marketing, exposes
children to marketing that is inherently manipulative or
purposely disguised as entertainment or other information.
SEC. 3. DEFINITIONS.
(a) In General.--In this Act:
(1) Algorithmic process.--The term ``algorithmic process''
means a computational process, including one derived from
machine learning or other artificial intelligence techniques,
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 platform,
including the provision of commercial content, the display of
social media posts, or any other method of automated decision
making, content selection, content recommendation, or content
amplification.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Constructive knowledge.--
(A) In general.--The term ``constructive
knowledge'' means, for purposes of section 4, with
respect to knowledge that a user of an online platform
is a covered user, knowledge that is imputed to the
operator of the online platform if--
(i) the operator directly or indirectly
collects, uses, profiles, buys, sells,
classifies, or analyzes (using an algorithmic
process or other form of data analytics) data
about the user to estimate, identify, or
classify the age, age range, or proxy thereof;
(ii) 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 1304 of the
Children's Online Privacy Protection Act of
1998 (15 U.S.C. 6503) that documents risks and
controls, including the existence of operator-
controlled data analytics and content analytics
capabilities and functions or outputs;
(iii) the operator has or receives
complaints from parents or other third parties
about the age of the user, whether through the
operator's complaint mechanism, by email, or
other means conveniently accessible by such
parents or third parties;
(iv) the operator has or receives data or
reporting or information from the operator's
internal communications, including
documentation about its advertising practices,
such as an advertisement insertion order, or
other promotional material to marketers, that
indicates that data is being collected from the
user because the user is within a particular
age range; or
(v) the operator knows that--
(I) 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 range, whether directly
or indirectly; and
(II) the user is shown that
content.
(B) Additional factors.--The Commission may issue
guidance or promulgate rules in accordance with section
553 of title 5, United States Code, that indicate
factors, in addition to those described in subparagraph
(A), that should be considered to be constructive
knowledge for purposes of this Act.
(4) Covered user.--The term ``covered user'' means an
individual under the age of 16.
(5) Directed to children.--The term ``directed to
children'' means the targeting of covered users by an online
platform or portion of an online platform, as demonstrated by,
with respect to such platform or portion of a platform--
(A) its subject matter;
(B) its visual content;
(C) the use of animated characters or child-
oriented activities for children and related
incentives;
(D) music or other audio content;
(E) the age of models used;
(F) the presence of--
(i) child celebrities; or
(ii) celebrities who appeal to covered
users;
(G) the language used;
(H) advertising content used on, or used to
advertise, such platform; or
(I) reliable empirical evidence relating to--
(i) the composition of the audience of such
platform; and
(ii) the intended audience of such
platform.
(6) Host-selling.--The term ``host-selling'' refers to
commercial video content that features the same characters or
individuals as in the adjacent noncommercial content.
(7) Influencer marketing.--The term ``influencer
marketing'' means a tactic by which a company compensates
individuals who are deemed to have the potential to review,
promote, or sell a product or service online to an intended
target audience.
(8) Online platform.--The term ``online platform'' means
any public-facing website, online service, online application,
or mobile application which is operated for commercial
purposes.
(9) Operator.--The term ``operator'' means any person who,
for commercial purposes, in interstate or foreign commerce,
operates or provides an online platform.
(10) Person.--The term ``person'' means any individual,
partnership, corporation, trust, estate, cooperative,
association, or other entity.
SEC. 4. REGULATION OF ACTS AND PRACTICES ON CHILD-DIRECTED PLATFORMS.
(a) Prohibition on Certain Interface Elements.--
(1) In general.--
(A) Prohibition.--It is unlawful for an operator to
operate or provide--
(i) an online platform or a portion of an
online platform directed to children that
incorporates an interface element described in
subparagraph (B); and
(ii) any online platform that employs an
interface element described in subparagraph (B)
with respect to a user if the operator has
actual or constructive knowledge that the user
is a covered user.
(B) Interface elements described.--The interface
elements described in this subparagraph are the
following:
(i) Any auto-play setting that, without
input from the covered user, commences
additional video content directly following the
video content initially selected by the user.
(ii) Messages or alerts that encourage a
covered user who is not actively using the
platform to engage with the platform.
(iii) Displaying the quantity of positive
engagement or feedback that a covered user has
received from other users.
(iv) Any interface element or setting that
unfairly encourages a covered user, due to
their age or inexperience, to share personal
information, submit content, or spend more time
engaging with the platform.
(v) Any interface element that provides a
covered user with badges or other visual award
symbols based on elevated levels of engagement
with the platform.
(vi) Any interface element that maximizes a
covered user's spending on the platform,
unfairly encourages a covered user to spend
money on the platform, facilitates a financial
transaction by a covered user on the platform
without notification to the covered user's
parent, or facilitates a financial transaction
by a covered user on the platform that is not
in the interest of the covered user.
(2) Rulemaking.--Not later than 1 year after the date of
enactment of this Act and not less frequently than every 5
years thereafter, the Commission shall promulgate regulations
under section 553 of title 5, United States Code, that
establish any additions or exceptions to the prohibitions under
paragraph (1). 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 users.
(b) Prohibition on Amplification of Certain Content; User Reporting
Mechanism.--
(1) In general.--It shall be unlawful for an operator to
operate or provide--
(A) an online platform or portion of an online
platform directed to children that employs an
algorithmic process described in paragraph (2) on the
platform;
(B) any online platform that employs an algorithmic
process described in paragraph (2) 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 user; and
(C) an online platform that does not include a
mechanism for users or other third parties to report
suspected violations of any requirement of this
paragraph.
(2) Algorithmic process described.--An algorithmic process
described in this paragraph is an algorithmic process that
amplifies, promotes, or encourages covered users' consumption
of videos and other forms of content that--
(A) are of a non-educational nature (as determined
by the Commission); and
(B) involve--
(i) sexual material;
(ii) promotion of physical or emotional
violence or activities that can reasonably be
assumed to result in physical or emotional
harm, including self-harm, use of weapons, and
bullying;
(iii) activities that are unlawful for
covered users to engage in or the promotion of
such activities; or
(iv) wholly commercial content that is not
reasonably recognizable as such to a covered
user.
(c) Prohibition on Certain Advertising Methods.--
(1) In general.--It shall be unlawful for an online
operator to operate or provide--
(A) 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 (2) to users of the platform;
and
(B) any online platform that employs an algorithmic
process to present any of the content described in
paragraph (2) to a covered user if the operator of the
platform has actual or constructive knowledge that the
user is a covered user.
(2) Content described.--The content described in this
paragraph is the following:
(A) Content that includes host-selling.
(B) Program-length advertisements.
(C) Influencer marketing.
(D) Online advertising or material with
considerable commercial content involving alcohol,
nicotine, or tobacco.
(E) 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 content.
(F) Content that includes product placement.
(3) Program-length advertisement.--For purposes of this
subsection, the term ``program-length advertisement'' shall be
defined by the Commission through regulation or other public
guidance.
(d) 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--
(1) the online platform is directed to children; or
(2) the operator of the online platform has constructive
knowledge that the user is a covered user.
(e) Requirement To Distinguish Commercial Content From
Noncommercial Content.--The Commission shall promulgate regulations in
accordance with section 553 of title 5, United States Code, to require
any online platform or portion of an online platform that is directed
to children, 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 platform, to incorporate online
visual elements or other indicators that distinguish commercial content
from noncommercial content.
(f) Rulemaking.--The Commission shall promulgate, in accordance
with section 553 of title 5, United States Code, such rules as may be
necessary to carry out this section.
(g) Effective Date.--The requirements of this section shall apply
to online platforms beginning on the date that is 1 year after the date
of enactment of this Act.
SEC. 5. ONLINE CONTENT LABELING.
(a) Content Labeling System Report.--Not later than the date that
is 1 year after the date of enactment of this Act, the Commission shall
submit to Congress a report--
(1) containing recommendations for a labeling system to
allow covered users and parents to identify noncommercial,
educational, and enriching content for covered users online;
and
(2) addressing considerations regarding how such labeling
system should--
(A) analyze content based on evidence-based
criteria;
(B) employ an easy-to-understand visual cue for
parents to identify content described in paragraph (1);
(C) receive regular review to determine its
effectiveness; and
(D) include a mechanism for users to report to the
Commission complaints of mislabeled content and for the
Commission to remedy such instances of mislabeled
content.
(b) Consultation.--The report described in subsection (a) shall be
developed by the Commission in consultation with an advisory board, to
be created and convened by the Commission, which is comprised of
experts in child development, child health, education, and media.
SEC. 6. TRANSPARENCY AND AUDITING.
(a) Transparency.--The Commission shall promulgate regulations in
accordance with section 553 of title 5, United States Code, 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 platform. Such regulations
shall require the operator to ensure that such record does not include
personal information (as defined in section 1302 of the Children's
Online Privacy Protection Act of 1998 (15 U.S.C. 6501)) or, as
appropriate, user-generated content.
(b) Annual Platform Audits.--The regulations promulgated pursuant
to subsection (a) shall include the establishment of an annual audit
process, to be conducted by the Commission during the 5-year period
subsequent to the date of enactment of this Act, for each of the 25
online platforms directed to children with the highest total number of
covered users, to evaluate the level of compliance by each such
platform with the requirements under this Act.
(c) Report.--The Commission shall submit annual reports to Congress
based on the audits described in subsection (b) that--
(1) describe the level of compliance by the platforms
described in such subsection with the requirements under this
Act; and
(2) provide recommendations for such legislation and
administrative actions as the Commission determines appropriate
based on the audit findings.
SEC. 7. GRANT PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary of Commerce (in this section
referred to as the ``Secretary'') shall make grants to eligible
persons to foster the creation and promotion of advertisement-
free and educational online content (such as videos and
applications) for covered users.
(2) Eligible person.--For purposes of this section, the
term ``eligible person'' means a person that has submitted an
application, as approved by the Secretary pursuant to the
eligibility requirements developed under subsection (b), for
the creation and promotion of advertisement-free and
educational online content for covered users.
(b) Advisory Council.--The Secretary shall establish and convene an
Advisory Council on Children's Online Content, which shall be--
(1) comprised of experts in education, child development,
psychology, online media, and other related disciplines; and
(2) tasked with developing evidence-based criteria for
grant eligibility and grant distribution.
(c) Authorization of Appropriations.--
(1) In general.--To carry out this section, there is
authorized to be appropriated--
(A) for fiscal year 2021, $4,000,000;
(B) for fiscal year 2022, $8,000,000;
(C) for fiscal year 2023, $10,000,000; and
(D) for fiscal year 2024, $12,000,000.
(2) 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 1 year after the
end of such fiscal year.
SEC. 8. FEDERAL TRADE COMMISSION STUDY.
Not later than 1 year after the date of enactment of this Act, the
Commission shall conduct and publish a study, using any compulsory
processes available to the Commission as necessary, relying on public
data and information if available and sufficient, and incorporating
public comment, on harms resulting from interface elements and
advertising methods on online platforms that are directed to children
(and best practices for avoiding such harms), including the following:
(1) 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 users.
(2) 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 users.
SEC. 9. ADMINISTRATION AND ENFORCEMENT.
(a) In General.--This Act shall be enforced by the Commission under
the Federal Trade Commission Act (15 U.S.C. 41 et seq.).
(b) Actions by Commission.--
(1) 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 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 (15 U.S.C. 41 et seq.) were incorporated into
and made a part of this Act.
(2) 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 manner, by the same means, and with the same jurisdiction,
power, 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.
(c) Civil Penalty.--A violation of this Act, or a regulation
promulgated under this Act, 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)).
(d) Enforcement by States.--
(1) 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
Act, the attorney general of the State may, as parens patriae,
bring a civil action on behalf of the residents of the State in
an appropriate district court of the United States to obtain
appropriate relief.
(2) Rights of commission.--
(A) Notice to commission.--
(i) In general.--Except as provided in
clause (iii), the attorney general of a State,
before initiating a civil action under
paragraph (1), shall provide written
notification to the Commission that the
attorney general intends to bring such civil
action.
(ii) Contents.--The notification required
under clause (i) shall include a copy of the
complaint to be filed to initiate the civil
action.
(iii) Exception.--If it is not feasible for
the attorney general of a State to provide the
notification required under clause (i) before
initiating a civil action under paragraph (1),
the attorney general shall notify the
Commission immediately upon instituting the
civil action.
(B) Intervention by commission.--The Commission
may--
(i) intervene in any civil action brought
by the attorney general of a State under
paragraph (1); and
(ii) upon intervening--
(I) be heard on all matters arising
in the civil action; and
(II) file petitions for appeal of a
decision in the civil action.
(3) 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 investigations, to administer
oaths or affirmations, or to compel the attendance of witnesses
or the production of documentary or other evidence.
(e) Effect on Other Laws.--
(1) Authority of the commission.--Nothing contained in this
Act shall be construed to limit the authority of the Commission
under any other provisions of law.
(2) 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 Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Consumer Protection and Commerce.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line