[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3639 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3639

  To prohibit the circumvention of control measures used by Internet 
  retailers to ensure equitable consumer access to products, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2018

Mr. Blumenthal (for himself, Mr. Schumer, and Mr. Udall) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To prohibit the circumvention of control measures used by Internet 
  retailers to ensure equitable consumer access to products, 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. UNFAIR AND DECEPTIVE ACTS AND PRACTICES RELATING TO 
              CIRCUMVENTION OF ONLINE ACCESS CONTROL MEASURES.

    (a) Conduct Prohibited.--
            (1) In general.--Except as provided in paragraph (2), it 
        shall be unlawful for any person--
                    (A) to circumvent a security measure, access 
                control system, or other technological control or 
                measure on an Internet website or online service to 
                enforce posted purchasing limits or to manage 
                inventory; or
                    (B) to sell or offer to sell any product or service 
                in interstate commerce obtained in violation of 
                subparagraph (A) if the person selling or offering to 
                sell the product or service--
                            (i) participated directly in or had the 
                        ability to control the conduct in violation of 
                        subparagraph (A); or
                            (ii) knew or should have known that the 
                        product or service was acquired in violation of 
                        subparagraph (A).
            (2) Exception.--It shall not be unlawful under this section 
        for a person to create or use any computer software or system--
                    (A) to investigate, or further the enforcement or 
                defense, of any alleged violation of this section or 
                other statute or regulation; or
                    (B) to engage in research necessary to identify and 
                analyze flaws and vulnerabilities of measures, systems, 
                or controls described in paragraph (1)(A), if these 
                research activities are conducted--
                            (i) to advance the state of knowledge in 
                        the field of computer system security; or
                            (ii) to assist in the development of 
                        computer security product.
    (b) Enforcement by the Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        subsection (a) shall be treated as a violation of a rule 
        defining an unfair or a deceptive act or practice under section 
        18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
        57a(a)(1)(B)).
            (2) Powers of commission.--
                    (A) In general.--The Commission shall enforce this 
                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 section.
                    (B) Privileges and immunities.--Any person who 
                violates subsection (a) shall be subject to the 
                penalties and entitled to the privileges and immunities 
                provided in the Federal Trade Commission Act (15 U.S.C. 
                41 et seq.).
                    (C) Authority preserved.--Nothing in this Act shall 
                be construed to limit the authority of the Commission 
                under any other provision of law.
    (c) Enforcement by States.--
            (1) In general.--In any case in which the attorney general 
        of a State has reason to believe that an interest of the 
        residents of the State has been or is threatened or adversely 
        affected by the engagement of any person subject to subsection 
        (a) in a practice that violates such subsection, the attorney 
        general of the State may, as parens patriae, bring a civil 
        action on behalf of the residents of the State in an 
        appropriate district court of the United States--
                    (A) to enjoin further violation of such subsection 
                by such person;
                    (B) to compel compliance with such subsection; and
                    (C) to obtain damages, restitution, or other 
                compensation on behalf of such residents.
            (2) Rights of federal trade commission.--
                    (A) Notice to federal trade commission.--
                            (i) In general.--Except as provided in 
                        clause (iii), the attorney general of a State 
                        shall notify the Commission in writing that the 
                        attorney general intends to bring a civil 
                        action under paragraph (1) not later than 10 
                        days before initiating the civil action.
                            (ii) Contents.--The notification required 
                        by clause (i) with respect to a civil action 
                        shall include a copy of the complaint to be 
                        filed to initiate the civil action.
                            (iii) Exception.--If it is not feasible for 
                        the attorney general of a State to provide the 
                        notification required by clause (i) before 
                        initiating a civil action under paragraph (1), 
                        the attorney general shall notify the 
                        Commission immediately upon instituting the 
                        civil action.
                    (B) Intervention by federal trade commission.--The 
                Commission may--
                            (i) intervene in any civil action brought 
                        by the attorney general of a State under 
                        paragraph (1); and
                            (ii) upon intervening--
                                    (I) be heard on all matters arising 
                                in the civil action; and
                                    (II) file petitions for appeal of a 
                                decision in the civil action.
            (3) Investigatory powers.--Nothing in this subsection may 
        be construed to prevent the attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of the State to conduct investigations, to administer 
        oaths or affirmations, or to compel the attendance of witnesses 
        or the production of documentary or other evidence.
            (4) Action by federal trade commission.--If the Commission 
        institutes a civil action or an administrative action with 
        respect to a violation of subsection (a), the attorney general 
        of a State may not, during the pendency of such action, bring a 
        civil action under paragraph (1) against any defendant named in 
        the complaint of the Commission for the violation with respect 
        to which the Commission instituted such action.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in--
                            (i) the district court of the United States 
                        that meets applicable requirements relating to 
                        venue under section 1391 of title 28, United 
                        States Code; or
                            (ii) another court of competent 
                        jurisdiction.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant; or
                            (ii) may be found.
            (6) Actions by other state officials.--
                    (A) In general.--In addition to civil actions 
                brought by attorneys general under paragraph (1), any 
                other consumer protection officer of a State who is 
                authorized by the State to do so may bring a civil 
                action under paragraph (1), subject to the same 
                requirements and limitations that apply under this 
                subsection to civil actions brought by attorneys 
                general.
                    (B) Savings provision.--Nothing in this subsection 
                may be construed to prohibit an authorized official of 
                a State from initiating or continuing any proceeding in 
                a court of the State for a violation of any civil or 
                criminal law of the State.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Posted.--The term ``posted'' means clearly and 
        conspicuously published on an Internet website.
                                 <all>