[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1090 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1090
To require software marketplace operators and developers of covered
foreign software to provide to consumers a warning prior to the
download of such software, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 18, 2021
Mr. Banks introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To require software marketplace operators and developers of covered
foreign software to provide to consumers a warning prior to the
download of such software, 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 ``Online Consumer Protection Act of
2021''.
SEC. 2. CONSUMER WARNING AND ACKNOWLEDGMENT FOR DOWNLOAD OF COVERED
FOREIGN SOFTWARE.
(a) In General.--A software marketplace operator or developer of
covered foreign software may not--
(1) permit a consumer to download covered foreign software
unless, before the download begins--
(A) a warning that meets the requirements of
subsection (b) is displayed to the consumer, separately
from any privacy policy, terms of service, or other
notice; and
(B) the consumer is required to choose (by taking
an affirmative step such as clicking on a button)
between the options of--
(i) acknowledging such warning and
proceeding with the download; or
(ii) cancelling the download; or
(2) make available covered foreign software for download by
consumers unless the operator or developer has in place
procedures to ensure compliance with paragraph (1).
(b) Requirements for Warning.--
(1) In general.--A warning meets the requirements of this
subsection if such warning reads as follows (with the
italicized language being replaced and the other bracketed
language being included or deleted, as appropriate for the
covered foreign software regarding which the warning is being
given, and the brackets removed): ``Warning: [Name of Covered
Foreign Software] is developed by [Name of Developer of Covered
Foreign Software], which [is controlled by a company that] [is
organized under the laws of]/[conducts its principal operations
in]/[is organized under the laws of and conducts its principal
operations in] [Name of Covered Country]. Please either [insert
description of how to acknowledge the warning and proceed with
the download] if you wish to proceed with the download or
[insert description of how to cancel the download] if you wish
to cancel the download.''.
(2) Alternative warnings.--The Commission may by regulation
specify that a warning other than the warning provided in
paragraph (1) meets the requirements of this subsection, as the
Commission considers appropriate.
(c) Liability of Software Developer.--In the case of a violation of
subsection (a) by a software marketplace operator, if the developer of
the covered foreign software with respect to which the violation was
committed did not inform the software marketplace operator that the
software is covered foreign software, the developer (as well as the
software marketplace operator) shall be considered to have committed
the violation.
(d) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices.--A violation of
this section or a regulation promulgated under this section
shall be treated as a violation of a regulation under section
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
(2) Powers of commission.--The Commission shall enforce
this section and the regulations promulgated under the section
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.
Any person who violates this section or a regulation
promulgated under this section shall be subject to the
penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act.
(3) Regulations.--The Commission may promulgate regulations
under section 553 of title 5, United States Code, to carry out
this section.
(e) Criminal Offense.--
(1) Corporate offense.--Whoever, being a software
marketplace operator or developer of covered foreign software,
knowingly violates subsection (a) shall be fined $50,000 for
each violation.
(2) Individual offense.--Whoever, being an officer of a
software marketplace operator or developer of covered foreign
software, causes a violation of subsection (a) with the intent
to conceal the country in which software is developed, shall be
fined under title 18, United States Code, imprisoned not more
than 2 years, or both.
(3) Application.--This subsection shall apply with respect
to conduct occurring during the period beginning on the date of
enactment of this Act and ending on the date on which this
section ceases to have any force or effect under subsection
(g).
(f) Report to Congress.--Not later than 8 years after the date of
the enactment of this Act, the Commission, in consultation with the
Attorney General, shall submit to Congress a report on the
implementation and enforcement of this section.
(g) Sunset.--This section shall cease to have any force or effect
on the date that is 10 years after the date of the enactment of this
Act.
(h) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Covered country.--
(A) In general.--The term ``covered country''
means--
(i) China, Russia, North Korea, Iran,
Syria, and Cuba;
(ii) any other country the government of
which the Secretary of State determines has
repeatedly provided support for international
terrorism pursuant to--
(I) section 1754(c)(1)(A) of the
Export Control Reform Act of 2018 (50
U.S.C. 4318(c)(1)(A));
(II) section 620A of the Foreign
Assistance Act of 1961 (22 U.S.C.
2371);
(III) section 40 of the Arms Export
Control Act (22 U.S.C. 2780); or
(IV) any other provision of law;
and
(iii) subject to subparagraph (B), any
other country designated by the Attorney
General or the Commission based on expert
knowledge of the sources of dangerous software.
(B) Process.--
(i) Designation.--Upon designating a
country under subparagraph (A)(iii), the
Attorney General or the Commission (in this
clause referred to as the ``notifying party'')
shall transmit a notification of the
designation to the Commission or the Attorney
General, as the case may be (in this clause
referred to as the ``notified party''). Such
designation shall become effective on the day
that is 30 days after the date on which such
notification is transmitted, unless, before
such day, the notified party transmits to the
notifying party and the Secretary of State an
objection. The Secretary shall, not later than
30 days after the date on which the Secretary
receives such objection, determine whether to
designate such country under such subparagraph.
(ii) Revocation of designation.--
(I) Joint action required.--Except
as provided in subclause (II), the
designation of a country under
subparagraph (A)(iii) may only be
revoked by the Attorney General and the
Commission, acting jointly.
(II) Dispute resolution.--In the
case of a dispute between the Attorney
General and the Commission regarding
whether to revoke the designation of a
country under subparagraph (A)(iii),
the Attorney General or the Commission
may transmit to the Secretary of State
a notification of such dispute. The
Secretary shall, not later than 30 days
after the date on which the Secretary
receives such notification, determine
whether to revoke such designation.
(3) Covered foreign software.--The term ``covered foreign
software'' means software that is developed by--
(A) a person (other than an individual)--
(i) who is organized under the laws of a
covered country; or
(ii) whose principal operations are
conducted in a covered country; or
(B) a person (other than an individual) that is,
directly or indirectly, controlled by a person
described in subparagraph (A).
(4) Mobile application.--The term ``mobile application''
means a software program that runs on the operating system of a
smartphone, tablet computer, or similar mobile electronic
device.
(5) Software.--The term ``software'' means any computer
software program, including a mobile application.
(6) Software marketplace operator.--The term ``software
marketplace operator'' means a person who, for a commercial
purpose, operates an online store or marketplace through which
software is made available for download by consumers.
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