Us Congress House Bill HB413

Us Congress 2023-2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/20/23
• Refer: 1/27/23

Caption

Transparency Over Toys Spying Act or the TOTS Act This bill requires the Federal Trade Commission to issue rules requiring internet-connected toys to include a label indicating that the toy has the ability to connect to the internet and collect and transmit personal information of the user. The label must also indicate whether personal information collected by the toy is retained in the toy or by the manufacturer or another entity. Further, any user agreement or privacy policy associated with the toy must prominently state specified information about how personal information may be collected and used by the manufacturer or other entity. Internet-connected toys include entertainment devices that are targeted to, or likely to be operated by, children and are able to connect to the internet and collect and transmit personal information. The bill also authorizes the commission to enforce these rules.

Impact

The TOTS Act's regulation of internet-connected toys is significant as it holds manufacturers accountable for transparency in how children's personal information is handled. It's set to empower consumers, particularly parents, by requiring comprehensive disclosures in user agreements regarding data collection practices. The bill anticipates that enhanced labeling can help parents make informed decisions, promoting safer consumer environments for children while navigating the digital play space amidst growing concerns about privacy breaches.

Summary

House Bill 413, known as the Transparency Over Toys Spying Act (TOTS Act), aims to enhance privacy protections for children using internet-connected toys. The bill mandates that manufacturers provide clear labeling on packaging, indicating the toy's ability to connect to the internet and collect personal information. It stipulates that labels must also specify whether the collected data is stored in the toy itself or by the manufacturer, thereby informing parents and guardians about privacy aspects before purchase.

Contention

The act places regulatory responsibility on the Federal Trade Commission to enact rules within one year from the bill's enactment. This could lead to resistance from some sectors within the toy industry concerned about compliance costs or the possibility of overregulation in an evolving technological landscape. Opposition may arise over concerns that strict regulations could stifle innovation within the industry, particularly for small manufacturers who may lack the resources to comply with such requirements.