This bill matters because it addresses concerns about data privacy and national security related to American users' information being stored overseas, particularly in China. Currently, many users may not know if their data is stored in China, or if the Chinese government could access it, which raises questions about data protection and potential surveillance. If this bill becomes law, consumers would have clear, upfront information about these practices, allowing them to make more informed choices about which online services to trust with their personal data.
Without this bill, companies are not legally required to provide such specific disclosures. Its passage would mean a significant step towards greater transparency in how user data is handled internationally, potentially influencing how companies structure their data storage and processing to meet new disclosure requirements or to avoid storing data in China if they wish to avoid the transparency burden.
KEY PROVISIONS
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PROVISION 01
Requires websites and mobile apps storing user data in China to clearly disclose this fact to users.
This provides users with critical knowledge about the geographical location of their personal information.
PROVISION 02
Mandates disclosure of whether the Chinese Communist Party or a Chinese State-owned entity has access to the stored data.
This informs users about potential access to their data by entities controlled by a foreign government.
PROVISION 03
Makes it unlawful to knowingly provide false information in these required disclosures.
This ensures the accuracy and trustworthiness of the disclosures provided to consumers.
PROVISION 04
Grants the Federal Trade Commission (FTC) authority to enforce these requirements.
This establishes a clear regulatory body responsible for overseeing and penalizing non-compliance.
This bill matters because it addresses concerns about data privacy and national security related to American users' information being stored overseas, particularly in China. Currently, many users may not know if their data is stored in China, or if the Chinese government could access it, which raises questions about data protection and potential surveillance. If this bill becomes law, consumers would have clear, upfront information about these practices, allowing them to make more informed choices about which online services to trust with their personal data.
Without this bill, companies are not legally required to provide such specific disclosures. Its passage would mean a significant step towards greater transparency in how user data is handled internationally, potentially influencing how companies structure their data storage and processing to meet new disclosure requirements or to avoid storing data in China if they wish to avoid the transparency burden.
KEY PROVISIONS
AI-extracted
high
Requires websites and mobile apps storing user data in China to clearly disclose this fact to users.
This provides users with critical knowledge about the geographical location of their personal information.
high
Mandates disclosure of whether the Chinese Communist Party or a Chinese State-owned entity has access to the stored data.
This informs users about potential access to their data by entities controlled by a foreign government.
med
Makes it unlawful to knowingly provide false information in these required disclosures.
This ensures the accuracy and trustworthiness of the disclosures provided to consumers.
med
Grants the Federal Trade Commission (FTC) authority to enforce these requirements.
This establishes a clear regulatory body responsible for overseeing and penalizing non-compliance.
Treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)), subject to penalties provided in the Federal Trade Commission Act.
Any person that maintains an internet website or sells/distributes a mobile application that stores information collected from such website or application in the People's Republic of China and fails to comply with disclosure requirements or knowingly discloses false information.
GLOSSARY
AI-written
People's Republic of China (PRC)
The official name for China, a country in East Asia. In this context, it refers to where user data might be physically stored.
Mobile Application
A software program designed to run on a mobile device such as a phone or tablet, commonly referred to as an 'app'.
Chinese Communist Party (CCP)
The founding and ruling political party of the People's Republic of China, which exercises significant control over various aspects of Chinese society and government.
Chinese State-owned entity
A company or organization that is wholly or partially owned and controlled by the Chinese government.
Clear and conspicuous manner
A way of presenting information that is easily noticeable, readable, and understandable to the average person, typically placed where a user would readily see it.
Federal Trade Commission (FTC)
An independent agency of the United States government whose principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices.
Unfair or deceptive acts or practices
ACTION TIMELINE
2 EVENTS
MAR 27, 25
Introduced in House
INTROREFERRAL
MAR 27, 25
Referred to the House Committee on Energy and Commerce.
Business activities that mislead consumers, are likely to cause substantial injury, or violate public policy, as defined and enforced by the Federal Trade Commission.
