[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2592 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2592
To enhance transparency and accountability for online political
advertisements by requiring those who purchase and publish such ads to
disclose information about the advertisements to the public, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2019
Mr. Kilmer (for himself, Ms. Stefanik, Mr. Sarbanes, Mr. Fitzpatrick,
Miss Rice of New York, Mr. Gallagher, Mr. Crist, Mr. Katko, Mr. Suozzi,
Ms. Herrera Beutler, Mr. Panetta, Mr. Duffy, Mr. Schneider, Mr. Diaz-
Balart, Mr. Costa, Mr. McKinley, Mr. Phillips, Mr. Fortenberry, Mr.
Peters, Miss Gonzalez-Colon of Puerto Rico, Mr. Smith of Washington,
Mr. Bacon, Mr. Schrader, Mr. Stauber, Mr. Lujan, and Mr. Gonzalez of
Ohio) introduced the following bill; which was referred to the
Committee on House Administration
_______________________________________________________________________
A BILL
To enhance transparency and accountability for online political
advertisements by requiring those who purchase and publish such ads to
disclose information about the advertisements to the public, 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 ``Honest Ads Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to enhance the integrity of American
democracy and national security by improving disclosure requirements
for online political advertisements in order to uphold the United
States Supreme Court's well-established standard that the electorate
bears the right to be fully informed.
SEC. 3. FINDINGS.
Congress makes the following findings:
(1) On April 18, 2019, Special Counsel Robert Mueller
released a report titled ``Report on the Investigation into
Russian Interference in the 2016 Presidential Election'' which
concluded that ``the Russian government interfered in the 2016
presidential election in sweeping and systemic fashion.''. The
report details that Russia interfered in the 2016 presidential
election principally through two operations: first, through a
Russian government sponsored social media influence campaign,
and second, by Russian intelligence ``computer-intrusion''
operations against those associated with both presidential
campaigns.
(2) On September 6, 2017, the Nation's largest social media
platform disclosed that between June 2015 and May 2017, Russian
entities purchased $100,000 in political advertisements,
publishing roughly 3,000 ads linked to fake accounts associated
with the Internet Research Agency, a pro-Kremlin organization.
According to the company, the ads purchased focused ``on
amplifying divisive social and political messages . . .''.
(3) In 2002, the Bipartisan Campaign Reform Act became law,
establishing disclosure requirements for political
advertisements distributed from a television or radio broadcast
station or provider of cable or satellite television. In 2003,
the Supreme Court upheld regulations on electioneering
communications established under the Act, noting that such
requirements ``provide the electorate with information and
insure that the voters are fully informed about the person or
group who is speaking.''.
(4) According to a study from Borrell Associates, in 2016,
$1,415,000,000 was spent on online advertising, more than
quadruple the amount in 2012.
(5) The reach of a few large internet platforms--larger
than any broadcast, satellite, or cable provider--has greatly
facilitated the scope and effectiveness of disinformation
campaigns. For instance, the largest platform has over
210,000,000 American users--over 160,000,000 of them on a daily
basis. By contrast, the largest cable television provider has
22,430,000 subscribers, while the largest satellite television
provider has 21,000,000 subscribers. And the most-watched
television broadcast in U.S. history had 118,000,000 viewers.
(6) The public nature of broadcast television, radio, and
satellite ensures a level of publicity for any political
advertisement. These communications are accessible to the
press, fact-checkers, and political opponents; this creates
strong disincentives for a candidate to disseminate materially
false, inflammatory, or contradictory messages to the public.
Social media platforms, in contrast, can target portions of the
electorate with direct, ephemeral advertisements often on the
basis of private information the platform has on individuals,
enabling political advertisements that are contradictory,
racially or socially inflammatory, or materially false.
(7) According to comScore, 2 companies own 8 of the 10 most
popular smartphone applications as of June 2017, including the
most popular social media and email services--which deliver
information and news to users without requiring proactivity by
the user. Those same 2 companies accounted for 99 percent of
revenue growth from digital advertising in 2016, including 77
percent of gross spending. Seventy-nine percent of online
Americans--representing 68 percent of all Americans--use the
single largest social network, while 66 percent of these users
are most likely to get their news from that site.
(8) In its 2006 rulemaking, the Federal Election Commission
noted that only 18 percent of all Americans cited the internet
as their leading source of news about the 2004 Presidential
election; by contrast, the Pew Research Center found that 65
percent of Americans identified an internet-based source as
their leading source of information for the 2016 election.
(9) The Federal Election Commission, the independent
Federal agency charged with protecting the integrity of the
Federal campaign finance process by providing transparency and
administering campaign finance laws, has failed to take action
to address online political advertisements.
(10) In testimony before the Senate Select Committee on
Intelligence titled, ``Disinformation: A Primer in Russian
Active Measures and Influence Campaigns,'' multiple expert
witnesses testified that while the disinformation tactics of
foreign adversaries have not necessarily changed, social media
services now provide ``platform[s] practically purpose-built
for active measures[.]'' Similarly, as Gen. (RET) Keith B.
Alexander, the former Director of the National Security Agency,
testified, during the Cold War ``if the Soviet Union sought to
manipulate information flow, it would have to do so principally
through its own propaganda outlets or through active measures
that would generate specific news: planting of leaflets,
inciting of violence, creation of other false materials and
narratives. But the news itself was hard to manipulate because
it would have required actual control of the organs of media,
which took long-term efforts to penetrate. Today, however,
because the clear majority of the information on social media
sites is uncurated and there is a rapid proliferation of
information sources and other sites that can reinforce
information, there is an increasing likelihood that the
information available to average consumers may be inaccurate
(whether intentionally or otherwise) and may be more easily
manipulable than in prior eras.''.
(11) Current regulations on political advertisements do not
provide sufficient transparency to uphold the public's right to
be fully informed about political advertisements made online.
SEC. 4. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the dramatic increase in digital political
advertisements, and the growing centrality of online platforms
in the lives of Americans, requires the Congress and the
Federal Election Commission to take meaningful action to ensure
that laws and regulations provide the accountability and
transparency that is fundamental to our democracy;
(2) free and fair elections require both transparency and
accountability which give the public a right to know the true
sources of funding for political advertisements in order to
make informed political choices and hold elected officials
accountable; and
(3) transparency of funding for political advertisements is
essential to enforce other campaign finance laws, including the
prohibition on campaign spending by foreign nationals.
SEC. 5. EXPANSION OF DEFINITION OF PUBLIC COMMUNICATION.
(a) In General.--Paragraph (22) of section 301 of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30101(22)) is amended by
striking ``or satellite communication'' and inserting ``satellite, paid
internet, or paid digital communication''.
(b) Treatment of Contributions and Expenditures.--Section 301 of
such Act (52 U.S.C. 30101) is amended--
(1) in paragraph (8)(B)--
(A) by striking ``on broadcasting stations, or in
newspapers, magazines, or similar types of general
public political advertising'' in clause (v) and
inserting ``in any public communication'';
(B) by striking ``broadcasting, newspaper,
magazine, billboard, direct mail, or similar type of
general public communication or political advertising''
in clause (ix)(1) and inserting ``public
communication''; and
(C) by striking ``but not including the use of
broadcasting, newspapers, magazines, billboards, direct
mail, or similar types of general public communication
or political advertising'' in clause (x) and inserting
``but not including use in any public communication'';
and
(2) in paragraph (9)(B)--
(A) by striking clause (i) and inserting the
following:
``(i) any news story, commentary, or
editorial distributed through the facilities of
any broadcasting station or any print, online,
or digital newspaper, magazine, blog,
publication, or periodical, unless such
broadcasting, print, online, or digital
facilities are owned or controlled by any
political party, political committee, or
candidate;''; and
(B) by striking ``on broadcasting stations, or in
newspapers, magazines, or similar types of general
public political advertising'' in clause (iv) and
inserting ``in any public communication''.
(c) Disclosure and Disclaimer Statements.--Subsection (a) of
section 318 of such Act (52 U.S.C. 30120) is amended--
(1) by striking ``financing any communication through any
broadcasting station, newspaper, magazine, outdoor advertising
facility, mailing, or any other type of general public
political advertising'' and inserting ``financing any public
communication''; and
(2) by striking ``solicits any contribution through any
broadcasting station, newspaper, magazine, outdoor advertising
facility, mailing, or any other type of general public
political advertising'' and inserting ``solicits any
contribution through any public communication''.
SEC. 6. EXPANSION OF DEFINITION OF ELECTIONEERING COMMUNICATION.
(a) Expansion to Online Communications.--
(1) Application to qualified internet and digital
communications.--
(A) In general.--Subparagraph (A) of section
304(f)(3) of the Federal Election Campaign Act of 1971
(52 U.S.C. 30104(f)(3)(A)) is amended by striking ``or
satellite communication'' each place it appears in
clauses (i) and (ii) and inserting ``satellite, or
qualified internet or digital communication''.
(B) Qualified internet or digital communication.--
Paragraph (3) of section 304(f) of such Act (52 U.S.C.
30104(f)) is amended by adding at the end the following
new subparagraph:
``(D) Qualified internet or digital
communication.--The term `qualified internet or digital
communication' means any communication which is placed
or promoted for a fee on an online platform (as defined
in subsection (j)(3)).''.
(2) Nonapplication of relevant electorate to online
communications.--Section 304(f)(3)(A)(i)(III) of such Act (52
U.S.C. 30104(f)(3)(A)(i)(III)) is amended by inserting ``any
broadcast, cable, or satellite'' before ``communication''.
(3) News exemption.--Section 304(f)(3)(B)(i) of such Act
(52 U.S.C. 30104(f)(3)(B)(i)) is amended to read as follows:
``(i) a communication appearing in a news
story, commentary, or editorial distributed
through the facilities of any broadcasting
station or any online or digital newspaper,
magazine, blog, publication, or periodical,
unless such broadcasting, online, or digital
facilities are owned or controlled by any
political party, political committee, or
candidate;''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to communications made on or after January 1, 2020.
SEC. 7. APPLICATION OF DISCLAIMER STATEMENTS TO ONLINE COMMUNICATIONS.
(a) Clear and Conspicuous Manner Requirement.--Subsection (a) of
section 318 of the Federal Election Campaign Act of 1971 (52 U.S.C.
30120(a)) is amended--
(1) by striking ``shall clearly state'' each place it
appears in paragraphs (1), (2), and (3) and inserting ``shall
state in a clear and conspicuous manner''; and
(2) by adding at the end the following flush sentence:
``For purposes of this subsection, a communication does not
make a statement in a clear and conspicuous manner if it is
difficult to read or hear or if the placement is easily
overlooked.''.
(b) Special Rules for Qualified Internet or Digital
Communications.--
(1) In general.--Section 318 of such Act (52 U.S.C. 30120)
is amended by adding at the end the following new subsection:
``(e) Special Rules Qualified Internet or Digital Communications.--
``(1) Special rules with respect to statements.--In the
case of any qualified internet or digital communication (as
defined in section 304(f)(3)(D)) which is disseminated through
a medium in which the provision of all of the information
specified in this section is not possible, the communication
shall, in a clear and conspicuous manner--
``(A) state the name of the person who paid for the
communication; and
``(B) provide a means for the recipient of the
communication to obtain the remainder of the
information required under this section with minimal
effort and without receiving or viewing any additional
material other than such required information.
``(2) Safe harbor for determining clear and conspicuous
manner.--A statement in qualified internet or digital
communication (as defined in section 304(f)(3)(D)) shall be
considered to be made in a clear and conspicuous manner as
provided in subsection (a) if the communication meets the
following requirements:
``(A) Text or graphic communications.--In the case
of a text or graphic communication, the statement--
``(i) appears in letters at least as large
as the majority of the text in the
communication; and
``(ii) meets the requirements of paragraphs
(2) and (3) of subsection (c).
``(B) Audio communications.--In the case of an
audio communication, the statement is spoken in a
clearly audible and intelligible manner at the
beginning or end of the communication and lasts at
least 3 seconds.
``(C) Video communications.--In the case of a video
communication which also includes audio, the
statement--
``(i) is included at either the beginning
or the end of the communication; and
``(ii) is made both in--
``(I) a written format that meets
the requirements of subparagraph (A)
and appears for at least 4 seconds; and
``(II) an audible format that meets
the requirements of subparagraph (B).
``(D) Other communications.--In the case of any
other type of communication, the statement is at least
as clear and conspicuous as the statement specified in
subparagraphs (A), (B), or (C).''.
(2) Nonapplication of certain exceptions.--The exceptions
provided in section 110.11(f)(1)(i) and (ii) of title 11, Code
of Federal Regulations, or any successor to such rules, shall
have no application to qualified internet or digital
communications (as defined in section 304(f)(3)(D) of the
Federal Election Campaign Act of 1971).
(c) Modification of Additional Requirements for Certain
Communications.--Section 318(d) of such Act (52 U.S.C. 30120(d)) is
amended--
(1) in paragraph (1)(A)--
(A) by striking ``which is transmitted through
radio'' and inserting ``which is in an audio format'';
and
(B) by striking ``By radio'' in the heading and
inserting ``Audio format'';
(2) in paragraph (1)(B)--
(A) by striking ``which is transmitted through
television'' and inserting ``which is in video
format''; and
(B) by striking ``By television'' in the heading
and inserting ``Video format''; and
(3) in paragraph (2)--
(A) by striking ``transmitted through radio or
television'' and inserting ``made in audio or video
format''; and
(B) by striking ``through television'' in the
second sentence and inserting ``in video format''.
SEC. 8. POLITICAL RECORD REQUIREMENTS FOR ONLINE PLATFORMS.
(a) In General.--Section 304 of the Federal Election Campaign Act
of 1971 (52 U.S.C. 30104) is amended by adding at the end the following
new subsection:
``(j) Disclosure of Certain Online Advertisements.--
``(1) In general.--
``(A) Requirements for online platforms.--An online
platform shall maintain, and make available for online
public inspection in machine readable format, a
complete record of any request to purchase on such
online platform a qualified political advertisement
which is made by a person whose aggregate requests to
purchase qualified political advertisements on such
online platform during the calendar year exceeds $500.
``(B) Requirements for advertisers.--Any person who
requests to purchase a qualified political
advertisement on an online platform shall provide the
online platform with such information as is necessary
for the online platform to comply with the requirements
of subparagraph (A).
``(2) Contents of record.--A record maintained under
paragraph (1)(A) shall contain--
``(A) a digital copy of the qualified political
advertisement;
``(B) a description of the audience targeted by the
advertisement, the number of views generated from the
advertisement, and the date and time that the
advertisement is first displayed and last displayed;
and
``(C) information regarding--
``(i) the average rate charged for the
advertisement;
``(ii) the name of the candidate to which
the advertisement refers and the office to
which the candidate is seeking election, the
election to which the advertisement refers, or
the national legislative issue to which the
advertisement refers (as applicable);
``(iii) in the case of a request made by,
or on behalf of, a candidate, the name of the
candidate, the authorized committee of the
candidate, and the treasurer of such committee;
and
``(iv) in the case of any request not
described in clause (iii), the name of the
person purchasing the advertisement, the name,
address, and phone number of a contact person
for such person, and a list of the chief
executive officers or members of the executive
committee or of the board of directors of such
person.
``(3) Online platform.--For purposes of this subsection,
the term `online platform' means any public-facing website, web
application, or digital application (including a social
network, ad network, or search engine) which--
``(A) sells qualified political advertisements; and
``(B) has 50,000,000 or more unique monthly United
States visitors or users for a majority of months
during the preceding 12 months.
``(4) Qualified political advertisement.--
``(A) In general.--For purposes of this subsection,
the term `qualified political advertisement' means any
advertisement (including search engine marketing,
display advertisements, video advertisements, native
advertisements, and sponsorships) that--
``(i) is made by or on behalf of a
candidate; or
``(ii) communicates a message relating to
any political matter of national importance,
including--
``(I) a candidate;
``(II) any election to Federal
office; or
``(III) a national legislative
issue of public importance.
``(5) Time to maintain file.--The information required
under this subsection shall be made available as soon as
possible and shall be retained by the online platform for a
period of not less than 4 years.
``(6) Penalties.--For penalties for failure by online
platforms, and persons requesting to purchase a qualified
political advertisement on online platforms, to comply with the
requirements of this subsection, see section 309.''.
(b) Rulemaking.--Not later than 90 days after the date of the
enactment of this Act, the Federal Election Commission shall establish
rules--
(1) requiring common data formats for the record required
to be maintained under section 304(j) of the Federal Election
Campaign Act of 1971 (as added by subsection (a)) so that all
online platforms submit and maintain data online in a common,
machine-readable and publicly accessible format; and
(2) establishing search interface requirements relating to
such record, including searches by candidate name, issue,
purchaser, and date.
(c) Reporting.--Not later than 2 years after the date of the
enactment of this Act, and biannually thereafter, the Chairman of the
Federal Election Commission shall submit a report to Congress on--
(1) matters relating to compliance with and the enforcement
of the requirements of section 304(j) of the Federal Election
Campaign Act of 1971, as added by subsection (a);
(2) recommendations for any modifications to such section
to assist in carrying out its purposes; and
(3) identifying ways to bring transparency and
accountability to political advertisements distributed online
for free.
SEC. 9. PREVENTING CONTRIBUTIONS, EXPENDITURES, INDEPENDENT
EXPENDITURES, AND DISBURSEMENTS FOR ELECTIONEERING
COMMUNICATIONS BY FOREIGN NATIONALS IN THE FORM OF ONLINE
ADVERTISING.
Section 319 of the Federal Election Campaign Act of 1971 (52 U.S.C.
30121) is amended by adding at the end the following new subsection:
``(c) Each television or radio broadcast station, provider of cable
or satellite television, or online platform (as defined in section
304(j)(3)) shall make reasonable efforts to ensure that communications
described in section 318(a) and made available by such station,
provider, or platform are not purchased by a foreign national, directly
or indirectly.''.
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