I 118THCONGRESS 1 STSESSION H. R. 413 To establish requirements for the labeling and user agreements of internet- connected toys for children, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY20, 2023 Mr. E DWARDSintroduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To establish requirements for the labeling and user agree- ments of internet-connected toys for children, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Transparency Over 4 Toys Spying Act’’ or the ‘‘TOTS Act’’. 5 SEC. 2. LABELING AND USER AGREEMENT REQUIREMENTS 6 FOR INTERNET-CONNECTED TOYS. 7 (a) R EGULATIONS.—Not later than 1 year after the 8 date of the enactment of this Act, the Commission shall 9 promulgate under section 553 of title 5, United States 10 VerDate Sep 11 2014 02:08 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H413.IH H413 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 413 IH Code, regulations that require a manufacturer introducing 1 into interstate commerce an internet-connected toy to in-2 clude— 3 (1) on the packaging associated with the toy, a 4 label that clearly indicates— 5 (A) that the toy has the ability to— 6 (i) connect to the internet; and 7 (ii) collect and transmit the personal 8 information of a user of the toy; and 9 (B) whether personal information collected 10 by the toy is retained— 11 (i) in the toy; or 12 (ii) by the manufacturer or another 13 entity; and 14 (2) in any user agreement or privacy policy as-15 sociated with the toy, highlighted information that is 16 easy to read, is the first text presented by the agree-17 ment or policy, and describes— 18 (A) how personal information may be col-19 lected by the toy and what personal information 20 may be collected; 21 (B) what personal information may be re-22 tained in the toy; 23 VerDate Sep 11 2014 02:08 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H413.IH H413 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 413 IH (C) what personal information may be 1 transmitted from the toy and to whom the per-2 sonal information may be transmitted; 3 (D) how transmitted personal information 4 may be provided to, retained, and used by the 5 manufacturer or another entity; 6 (E) any actions taken by the manufacturer 7 to minimize the collection, retention, or trans-8 mission of personal information; 9 (F) the protections available to the user 10 with respect to collected, retained, or trans-11 mitted personal information, including protec-12 tions under Federal law; and 13 (G) whether the toy can be used in a man-14 ner that prevents the collection, retention, or 15 transmission of personal information, including 16 without connection to the internet or another 17 internet-connected device. 18 (b) E NFORCEMENT BY FEDERALTRADECOMMIS-19 SION.— 20 (1) U NFAIR OR DECEPTIVE ACTS OR PRAC -21 TICES.—A violation of a regulation promulgated 22 under subsection (a) shall be treated as a violation 23 of a regulation under section 18(a)(1)(B) of the 24 Federal Trade Commission Act (15 U.S.C. 25 VerDate Sep 11 2014 02:08 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H413.IH H413 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 413 IH 57a(a)(1)(B)) regarding unfair or deceptive acts or 1 practices. 2 (2) P OWERS OF COMMISSION .—The Commis-3 sion shall enforce the regulations promulgated under 4 subsection (a) in the same manner, by the same 5 means, and with the same jurisdiction, powers, and 6 duties as though all applicable terms and provisions 7 of the Federal Trade Commission Act (15 U.S.C. 41 8 et seq.) were incorporated into and made a part of 9 this Act. Any person who violates such a regulation 10 shall be subject to the penalties and entitled to the 11 privileges and immunities provided in the Federal 12 Trade Commission Act. 13 (c) D EFINITIONS.—In this section: 14 (1) I NTERNET-CONNECTED TOY .—The term 15 ‘‘internet-connected toy’’ means a device— 16 (A) introduced into interstate commerce 17 and targeted to a child or likely to be operated 18 by a child; 19 (B) the purpose of which is entertainment 20 or amusement; 21 (C) that is able to be connected to the 22 internet, directly or through another internet- 23 connected device; and 24 VerDate Sep 11 2014 02:08 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H413.IH H413 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 413 IH (D) through which the personal informa-1 tion of a child may be collected and transmitted 2 to a person other than the child or the parent 3 of the child. 4 (2) P ERSONAL INFORMATION .—The term ‘‘per-5 sonal information’’ means individually identifiable 6 information about an individual, including— 7 (A) a first and last name; 8 (B) a home or other physical address, in-9 cluding street name and name of a city or town; 10 (C) an e-mail address; 11 (D) a telephone number; 12 (E) a Social Security number; 13 (F) a photo, video, or audio recording; 14 (G) any other identifier that the Commis-15 sion determines permits the physical or online 16 contacting of a specific individual; or 17 (H) information concerning a child or the 18 parents of that child collected from the child 19 and combined with an identifier described in 20 this paragraph. 21 (3) T ERMS DEFINED IN CHILDREN ’S ONLINE 22 PRIVACY PROTECTION ACT OF 1998 .—The terms 23 ‘‘child’’, ‘‘Commission’’, ‘‘parent’’, and ‘‘person’’ 24 have the meanings given each of those terms respec-25 VerDate Sep 11 2014 02:08 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H413.IH H413 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 413 IH tively in section 1302 of the Children’s Online Pri-1 vacy Protection Act of 1998 (15 U.S.C. 6501). 2 Æ VerDate Sep 11 2014 02:08 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H413.IH H413 kjohnson on DSK79L0C42PROD with BILLS