| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2019 |
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| 5 | 5 | | To require covered entities to issue a short-form terms of service summary |
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| 6 | 6 | | statement, and for other purposes. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | MARCH10, 2025 |
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| 9 | 9 | | Mrs. T |
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| 10 | 10 | | RAHANintroduced the following bill; which was referred to the |
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| 11 | 11 | | Committee on Energy and Commerce |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To require covered entities to issue a short-form terms of |
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| 14 | 14 | | service summary statement, and for other purposes. |
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| 15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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| 16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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| 17 | 17 | | SECTION 1. SHORT TITLE. 3 |
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| 18 | 18 | | This Act may be cited as the ‘‘Terms-of-service La-4 |
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| 19 | 19 | | beling, Design, and Readability Act’’ or the ‘‘TLDR Act’’. 5 |
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| 20 | 20 | | SEC. 2. STANDARD TERMS OF SERVICE SUMMARY STATE-6 |
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| 21 | 21 | | MENT. 7 |
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| 22 | 22 | | (a) D |
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| 23 | 23 | | EADLINE FORTERMS OFSERVICESUMMARY 8 |
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| 24 | 24 | | S |
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| 25 | 25 | | TATEMENT.—Not later than 360 days after the date of 9 |
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| 26 | 26 | | the enactment of this Act, the Commission shall issue a 10 |
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| 28 | 28 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 29 | 29 | | •HR 2019 IH |
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| 30 | 30 | | rule in accordance with section 553 of title 5, United 1 |
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| 31 | 31 | | States Code, with regard to a covered entity that publishes 2 |
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| 32 | 32 | | or has published a terms of service— 3 |
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| 33 | 33 | | (1) that requires the covered entity to include 4 |
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| 34 | 34 | | a truthful and non-misleading short-form terms of 5 |
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| 35 | 35 | | service summary statement on the website of the en-6 |
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| 36 | 36 | | tity; 7 |
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| 37 | 37 | | (2) that requires the covered entity to include 8 |
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| 38 | 38 | | a truthful and non-misleading graphic data flow dia-9 |
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| 39 | 39 | | gram on the website of the entity; and 10 |
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| 40 | 40 | | (3) that requires the covered entity to display 11 |
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| 41 | 41 | | the full terms of service of the entity in an inter-12 |
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| 42 | 42 | | active data format. 13 |
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| 43 | 43 | | (b) N |
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| 44 | 44 | | ONEWCONTRACTUALOBLIGATION.—The re-14 |
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| 45 | 45 | | quirement to include a summary statement described in 15 |
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| 46 | 46 | | subsection (a)(1) does not create any new contractual obli-16 |
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| 47 | 47 | | gation. 17 |
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| 48 | 48 | | (c) R |
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| 49 | 49 | | EQUIREMENTS FOR SHORT-FORMTERMS OF 18 |
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| 50 | 50 | | S |
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| 51 | 51 | | ERVICESUMMARYSTATEMENT.— 19 |
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| 52 | 52 | | (1) I |
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| 53 | 53 | | N GENERAL.—The short-form terms of 20 |
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| 54 | 54 | | service summary statement described in subsection 21 |
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| 55 | 55 | | (a)(1)— 22 |
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| 56 | 56 | | (A) shall be accessible to individuals with 23 |
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| 57 | 57 | | low levels of literacy and individuals with dis-24 |
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| 58 | 58 | | abilities, be machine readable, and include ta-25 |
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| 60 | 60 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 61 | 61 | | •HR 2019 IH |
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| 62 | 62 | | bles, graphic icons, hyperlinks, or other means 1 |
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| 63 | 63 | | as the Commission may require; and 2 |
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| 64 | 64 | | (B) may be presented differently depend-3 |
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| 65 | 65 | | ing on the interface or type of device on which 4 |
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| 66 | 66 | | the statement is being accessed by the user. 5 |
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| 67 | 67 | | (2) L |
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| 68 | 68 | | OCATION OF SUMMARY STATEMENT AND 6 |
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| 69 | 69 | | GRAPHIC DATA FLOW DIAGRAM .—The summary 7 |
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| 70 | 70 | | statement described in subsection (a)(1) shall be 8 |
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| 71 | 71 | | placed at the top of the permanent terms of service 9 |
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| 72 | 72 | | page of the covered entity, and the graphic data flow 10 |
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| 73 | 73 | | diagram described in subsection (a)(2) shall be lo-11 |
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| 74 | 74 | | cated immediately below such summary statement. 12 |
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| 75 | 75 | | (3) C |
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| 76 | 76 | | ONTENTS OF SUMMARY STATEMENT .—The 13 |
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| 77 | 77 | | summary statement described in subsection (a)(1) 14 |
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| 78 | 78 | | shall include the following: 15 |
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| 79 | 79 | | (A) The categories of sensitive information 16 |
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| 80 | 80 | | that the covered entity processes. 17 |
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| 81 | 81 | | (B) The sensitive information that is re-18 |
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| 82 | 82 | | quired for the basic functioning of the service 19 |
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| 83 | 83 | | and what sensitive information is needed for ad-20 |
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| 84 | 84 | | ditional features and future feature develop-21 |
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| 85 | 85 | | ment. 22 |
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| 86 | 86 | | (C) A summary of the legal liabilities of a 23 |
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| 87 | 87 | | user and any rights transferred from the user 24 |
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| 88 | 88 | | to the covered entity, such as mandatory arbi-25 |
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| 90 | 90 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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| 91 | 91 | | •HR 2019 IH |
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| 92 | 92 | | tration, class action waiver, any licensing or 1 |
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| 93 | 93 | | sale by the covered entity of the content of the 2 |
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| 94 | 94 | | user, and any waiver of moral rights. 3 |
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| 95 | 95 | | (D) Historical versions of the terms of 4 |
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| 96 | 96 | | service and change logs. 5 |
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| 97 | 97 | | (E) If the covered entity provides user de-6 |
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| 98 | 98 | | letion services, directions for how the user can 7 |
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| 99 | 99 | | delete sensitive information or discontinue the 8 |
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| 100 | 100 | | use of sensitive information. 9 |
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| 101 | 101 | | (F) A list of data breaches from the pre-10 |
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| 102 | 102 | | vious 3 years reported to consumers under ex-11 |
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| 103 | 103 | | isting Federal and State laws. 12 |
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| 104 | 104 | | (G) The effort required by a user to read 13 |
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| 105 | 105 | | the entire terms of service text, such as through 14 |
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| 106 | 106 | | the total word count and approximate time to 15 |
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| 107 | 107 | | read the statement. 16 |
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| 108 | 108 | | (H) Any other information the Commission 17 |
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| 109 | 109 | | determines to be necessary if that information 18 |
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| 110 | 110 | | is included in the terms of service by the cov-19 |
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| 111 | 111 | | ered entity. 20 |
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| 112 | 112 | | (4) A |
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| 113 | 113 | | DDITIONAL INFORMATION REQUIRED BY 21 |
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| 114 | 114 | | THE COMMISSION.—In the rule issued under sub-22 |
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| 115 | 115 | | section (a), the Commission shall include a list of 23 |
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| 116 | 116 | | other information the Commission determines to be 24 |
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| 117 | 117 | | necessary under paragraph (3)(H). 25 |
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| 120 | 120 | | •HR 2019 IH |
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| 121 | 121 | | (d) GUIDANCE ON GRAPHICDATAFLOWDIA-1 |
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| 122 | 122 | | GRAMS.—Not later than 360 days after the date of the 2 |
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| 123 | 123 | | enactment of this Act, the Commission shall publish guide-3 |
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| 124 | 124 | | lines on how a covered entity can graphically display how 4 |
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| 125 | 125 | | the sensitive information of a user is shared with a sub-5 |
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| 126 | 126 | | sidiary or corporate affiliate of such entity and how such 6 |
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| 127 | 127 | | sensitive information is shared with third parties. 7 |
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| 128 | 128 | | (e) I |
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| 129 | 129 | | NTERACTIVEDATAFORMATTERMS OFSERV-8 |
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| 130 | 130 | | ICE.—Not later than 360 days after the date of the enact-9 |
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| 131 | 131 | | ment of this Act, the Commission shall issue a rule in ac-10 |
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| 132 | 132 | | cordance with section 553 of title 5, United States Code, 11 |
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| 133 | 133 | | that requires a covered entity to tag portions of the terms 12 |
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| 134 | 134 | | of services of the entity according to an interactive data 13 |
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| 135 | 135 | | format. 14 |
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| 136 | 136 | | (f) E |
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| 137 | 137 | | NFORCEMENT.— 15 |
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| 138 | 138 | | (1) E |
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| 139 | 139 | | NFORCEMENT BY THE COMMISSION .— 16 |
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| 140 | 140 | | (A) U |
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| 141 | 141 | | NFAIR OR DECEPTIVE ACTS OR PRAC -17 |
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| 142 | 142 | | TICES.—A violation of this Act or a regulation 18 |
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| 143 | 143 | | promulgated under this Act shall be treated as 19 |
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| 144 | 144 | | a violation of a rule defining an unfair or de-20 |
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| 145 | 145 | | ceptive act or practice under section 21 |
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| 146 | 146 | | 18(a)(1)(B) of the Federal Trade Commission 22 |
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| 147 | 147 | | Act (15 U.S.C. 57a(a)(1)(B)). 23 |
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| 148 | 148 | | (B) P |
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| 149 | 149 | | OWERS OF THE COMMISSION .— 24 |
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| 151 | 151 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
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| 152 | 152 | | •HR 2019 IH |
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| 153 | 153 | | (i) IN GENERAL.—The Commission 1 |
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| 154 | 154 | | shall enforce this section and the regula-2 |
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| 155 | 155 | | tions promulgated under this section in the 3 |
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| 156 | 156 | | same manner, by the same means, and 4 |
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| 157 | 157 | | with the same jurisdiction, powers, and du-5 |
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| 158 | 158 | | ties as though all applicable terms and pro-6 |
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| 159 | 159 | | visions of the Federal Trade Commission 7 |
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| 160 | 160 | | Act (15 U.S.C. 41 et seq.) were incor-8 |
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| 161 | 161 | | porated into and made a part of this sec-9 |
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| 162 | 162 | | tion. 10 |
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| 163 | 163 | | (ii) P |
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| 164 | 164 | | RIVILEGES AND IMMUNITIES .— 11 |
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| 165 | 165 | | Any person who violates this section or a 12 |
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| 166 | 166 | | regulation promulgated under this section 13 |
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| 167 | 167 | | shall be subject to the penalties and enti-14 |
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| 168 | 168 | | tled to the privileges and immunities pro-15 |
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| 169 | 169 | | vided in the Federal Trade Commission 16 |
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| 170 | 170 | | Act. 17 |
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| 171 | 171 | | (iii) A |
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| 172 | 172 | | UTHORITY PERSEVERED .— 18 |
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| 173 | 173 | | Nothing in this section shall be construed 19 |
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| 174 | 174 | | to limit the authority of the Commission 20 |
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| 175 | 175 | | under any other provision of law. 21 |
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| 176 | 176 | | (2) E |
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| 177 | 177 | | NFORCEMENT BY STATES .— 22 |
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| 178 | 178 | | (A) I |
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| 179 | 179 | | N GENERAL.—In any case in which 23 |
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| 180 | 180 | | the attorney general of a State has reason to 24 |
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| 181 | 181 | | believe that an interest of at least 1,000 resi-25 |
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| 183 | 183 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
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| 184 | 184 | | •HR 2019 IH |
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| 185 | 185 | | dents of that State has been or is threatened or 1 |
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| 186 | 186 | | adversely affected by the engagement of any 2 |
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| 187 | 187 | | person in a practice that violates this section or 3 |
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| 188 | 188 | | a regulation promulgated under this section, the 4 |
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| 189 | 189 | | attorney general of the State, as parens patriae, 5 |
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| 190 | 190 | | may bring a civil action on behalf of the resi-6 |
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| 191 | 191 | | dents of the State in a district court of the 7 |
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| 192 | 192 | | United States of appropriate jurisdiction— 8 |
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| 193 | 193 | | (i) to enjoin that practice; 9 |
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| 194 | 194 | | (ii) to enforce compliance with this 10 |
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| 195 | 195 | | section; 11 |
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| 196 | 196 | | (iii) to obtain damages, restitution, or 12 |
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| 197 | 197 | | other compensation on behalf of such resi-13 |
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| 198 | 198 | | dents; and 14 |
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| 199 | 199 | | (iv) to obtain such other relief as the 15 |
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| 200 | 200 | | court may consider to be appropriate. 16 |
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| 201 | 201 | | (B) R |
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| 202 | 202 | | IGHTS OF THE COMMISSION .— 17 |
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| 203 | 203 | | (i) N |
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| 204 | 204 | | OTICE TO THE COMMISSION .— 18 |
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| 205 | 205 | | (I) I |
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| 206 | 206 | | N GENERAL.—Except as pro-19 |
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| 207 | 207 | | vided in subclause (III), the attorney 20 |
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| 208 | 208 | | general of a State shall notify the 21 |
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| 209 | 209 | | Commission in writing that the attor-22 |
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| 210 | 210 | | ney general intends to bring a civil ac-23 |
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| 211 | 211 | | tion under subparagraph (A) before 24 |
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| 212 | 212 | | initiating the civil action. 25 |
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| 215 | 215 | | •HR 2019 IH |
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| 216 | 216 | | (II) CONTENTS.—The notifica-1 |
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| 217 | 217 | | tion required by subclause (I) with re-2 |
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| 218 | 218 | | spect to a civil action shall include a 3 |
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| 219 | 219 | | copy of the complaint to be filed to 4 |
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| 220 | 220 | | initiate the civil action. 5 |
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| 221 | 221 | | (III) E |
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| 222 | 222 | | XEMPTION.—If it is not 6 |
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| 223 | 223 | | feasible for the attorney general of a 7 |
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| 224 | 224 | | State to provide the notification re-8 |
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| 225 | 225 | | quired by subclause (I) before initi-9 |
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| 226 | 226 | | ating a civil action under subpara-10 |
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| 227 | 227 | | graph (A), the attorney general shall 11 |
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| 228 | 228 | | notify the Commission immediately 12 |
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| 229 | 229 | | upon instituting the civil action. 13 |
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| 230 | 230 | | (ii) I |
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| 231 | 231 | | NTERVENTION BY THE COMMIS -14 |
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| 232 | 232 | | SION.—The Commission may— 15 |
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| 233 | 233 | | (I) intervene in any civil action 16 |
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| 234 | 234 | | brought by the attorney general of a 17 |
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| 235 | 235 | | State under subparagraph (A); and 18 |
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| 236 | 236 | | (II) upon intervening— 19 |
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| 237 | 237 | | (aa) be heard on all matters 20 |
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| 238 | 238 | | arising in the civil action; and 21 |
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| 239 | 239 | | (bb) file petitions for appeal. 22 |
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| 240 | 240 | | (C) C |
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| 241 | 241 | | ONSTRUCTION.—Nothing in this 23 |
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| 242 | 242 | | paragraph may be construed to prevent an at-24 |
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| 243 | 243 | | torney general of a State from exercising the 25 |
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| 245 | 245 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
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| 246 | 246 | | •HR 2019 IH |
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| 247 | 247 | | powers conferred on the attorney general by the 1 |
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| 248 | 248 | | laws of that State to— 2 |
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| 249 | 249 | | (i) conduct investigations; 3 |
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| 250 | 250 | | (ii) administer oaths or affirmations; 4 |
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| 251 | 251 | | or 5 |
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| 252 | 252 | | (iii) compel the attendance of wit-6 |
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| 253 | 253 | | nesses or the production of documentary 7 |
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| 254 | 254 | | and other evidence. 8 |
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| 255 | 255 | | (D) A |
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| 256 | 256 | | CTIONS BY THE COMMISSION .—In 9 |
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| 257 | 257 | | any case in which an action is instituted by or 10 |
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| 258 | 258 | | on behalf of the Commission for a violation of 11 |
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| 259 | 259 | | this section or a regulation promulgated under 12 |
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| 260 | 260 | | this section, a State may not, during the pend-13 |
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| 261 | 261 | | ency of that action, institute a separate action 14 |
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| 262 | 262 | | under subparagraph (A) against any defendant 15 |
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| 263 | 263 | | named in the complaint in the action instituted 16 |
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| 264 | 264 | | by or on behalf of the Commission for that vio-17 |
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| 265 | 265 | | lation. 18 |
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| 266 | 266 | | (E) V |
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| 267 | 267 | | ENUE; SERVICE OF PROCESS.— 19 |
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| 268 | 268 | | (i) V |
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| 269 | 269 | | ENUE.—Any action brought 20 |
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| 270 | 270 | | under subparagraph (A) may be brought 21 |
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| 271 | 271 | | in— 22 |
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| 272 | 272 | | (I) the district court of the 23 |
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| 273 | 273 | | United States that meets applicable 24 |
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| 274 | 274 | | requirements relating to venue under 25 |
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| 276 | 276 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
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| 277 | 277 | | •HR 2019 IH |
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| 278 | 278 | | section 1391 of title 28, United States 1 |
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| 279 | 279 | | Code; or 2 |
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| 280 | 280 | | (II) another court of competent 3 |
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| 281 | 281 | | jurisdiction. 4 |
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| 282 | 282 | | (ii) S |
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| 283 | 283 | | ERVICE OF PROCESS.—In an ac-5 |
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| 284 | 284 | | tion brought under paragraph (1), process 6 |
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| 285 | 285 | | may be served in any district in which the 7 |
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| 286 | 286 | | defendant— 8 |
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| 287 | 287 | | (I) is an inhabitant; or 9 |
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| 288 | 288 | | (II) may be found. 10 |
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| 289 | 289 | | (g) D |
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| 290 | 290 | | EFINITIONS.—In this section: 11 |
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| 291 | 291 | | (1) C |
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| 292 | 292 | | OMMISSION.—The term ‘‘Commission’’ 12 |
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| 293 | 293 | | means the Federal Trade Commission. 13 |
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| 294 | 294 | | (2) C |
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| 295 | 295 | | OVERED ENTITY.—The term ‘‘covered en-14 |
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| 296 | 296 | | tity’’— 15 |
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| 297 | 297 | | (A) means any person that operates a 16 |
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| 298 | 298 | | website located on the internet or an online 17 |
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| 299 | 299 | | service that is operated for commercial pur-18 |
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| 300 | 300 | | poses; and 19 |
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| 301 | 301 | | (B) does not include a small business con-20 |
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| 302 | 302 | | cern (as defined in section 3 of the Small Busi-21 |
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| 303 | 303 | | ness Act (15 U.S.C. 632)). 22 |
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| 304 | 304 | | (3) D |
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| 305 | 305 | | ISABILITY.—The term ‘‘disability’’ has the 23 |
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| 306 | 306 | | meaning given the term in section 3 of the Ameri-24 |
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| 309 | 309 | | •HR 2019 IH |
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| 310 | 310 | | cans with Disabilities Act of 1990 (42 U.S.C. 1 |
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| 311 | 311 | | 12102). 2 |
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| 312 | 312 | | (4) I |
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| 313 | 313 | | NTERACTIVE DATA FORMAT .—The term 3 |
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| 314 | 314 | | ‘‘interactive data format’’ means an electronic data 4 |
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| 315 | 315 | | format in which pieces of information are identified 5 |
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| 316 | 316 | | using an interactive data standard, such as eXten-6 |
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| 317 | 317 | | sible Markup Language (commonly known as 7 |
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| 318 | 318 | | ‘‘XML’’), that is a standardized list of electronic 8 |
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| 319 | 319 | | tags that mark the information described in sub-9 |
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| 320 | 320 | | section (c)(3) within the terms of service of a cov-10 |
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| 321 | 321 | | ered entity. 11 |
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| 322 | 322 | | (5) M |
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| 323 | 323 | | ORAL RIGHTS.—The term ‘‘moral rights’’ 12 |
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| 324 | 324 | | means the rights conferred by section 106A(a) of 13 |
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| 325 | 325 | | title 17, United States Code. 14 |
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| 326 | 326 | | (6) P |
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| 327 | 327 | | ROCESS.—The term ‘‘process’’ means any 15 |
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| 328 | 328 | | operation or set of operations performed on sensitive 16 |
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| 329 | 329 | | information, including collection, analysis, organiza-17 |
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| 330 | 330 | | tion, structuring, retaining, using, or otherwise han-18 |
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| 331 | 331 | | dling sensitive information. 19 |
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| 332 | 332 | | (7) S |
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| 333 | 333 | | ENSITIVE INFORMATION.—The term ‘‘sen-20 |
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| 334 | 334 | | sitive information’’ means any of the following: 21 |
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| 335 | 335 | | (A) Health information. 22 |
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| 336 | 336 | | (B) Biometric information. 23 |
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| 337 | 337 | | (C) Precise geolocation information. 24 |
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| 338 | 338 | | (D) Social security number. 25 |
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| 341 | 341 | | •HR 2019 IH |
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| 342 | 342 | | (E) Information concerning the race, color, 1 |
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| 343 | 343 | | religion, national origin, sex, age, or disability 2 |
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| 344 | 344 | | of an individual. 3 |
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| 345 | 345 | | (F) The content and parties to a commu-4 |
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| 346 | 346 | | nication. 5 |
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| 347 | 347 | | (G) Audio and video recordings captured 6 |
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| 348 | 348 | | through a consumer device. 7 |
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| 349 | 349 | | (H) Financial information, including a 8 |
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| 350 | 350 | | bank account number, credit card number, 9 |
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| 351 | 351 | | debit card number, or insurance policy number. 10 |
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| 352 | 352 | | (I) Online browsing history, which means 11 |
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| 353 | 353 | | information revealing online activities over time 12 |
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| 354 | 354 | | or across websites or online services not owned 13 |
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| 355 | 355 | | or operated by the covered entity. 14 |
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| 356 | 356 | | (8) S |
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| 357 | 357 | | TATE.—The term ‘‘State’’ means each of 15 |
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| 358 | 358 | | the several States, the District of Columbia, each 16 |
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| 359 | 359 | | commonwealth, territory, or possession of the United 17 |
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| 360 | 360 | | States, and each Federally recognized Indian Tribe. 18 |
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| 361 | 361 | | (9) T |
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| 362 | 362 | | HIRD PARTY.—The term ‘‘third party’’ 19 |
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| 363 | 363 | | means, with respect to a covered entity, a person— 20 |
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| 364 | 364 | | (A) to which the covered entity disclosed 21 |
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| 365 | 365 | | sensitive information; and 22 |
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| 366 | 366 | | (B) that is not— 23 |
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| 367 | 367 | | (i) the covered entity; 24 |
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| 368 | 368 | | VerDate Sep 11 2014 22:07 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2019.IH H2019 |
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| 369 | 369 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 13 |
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| 370 | 370 | | •HR 2019 IH |
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| 371 | 371 | | (ii) a subsidiary or corporate affiliate 1 |
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| 372 | 372 | | of the covered entity; or 2 |
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| 373 | 373 | | (iii) a service provider of the covered 3 |
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| 374 | 374 | | entity. 4 |
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| 375 | 375 | | Æ |
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| 376 | 376 | | VerDate Sep 11 2014 22:07 Mar 21, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6301 E:\BILLS\H2019.IH H2019 |
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| 377 | 377 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
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