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<dc:title>117 HR 3451 IH: Social Media Disclosure And Transparency of Advertisements Act of 2021</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2021-05-20</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">I</distribution-code><congress display="yes">117th CONGRESS</congress><session display="yes">1st Session</session><legis-num display="yes">H. R. 3451</legis-num><current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber><action display="yes"><action-date date="20210520">May 20, 2021</action-date><action-desc><sponsor name-id="T000482">Mrs. Trahan</sponsor> (for herself and <cosponsor name-id="C001066">Ms. Castor of Florida</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HIF00">Committee on Energy and Commerce</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title display="yes">To require covered platforms to provide information about their advertising to academic researchers, and for other purposes.</official-title></form><legis-body id="HFA70E4AF825D4BDDBBE31BC4994FD8D5" style="OLC"><section id="H4601B8D366834FB1A363A9E293FFB623" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Social Media Disclosure And Transparency of Advertisements Act of 2021</short-title></quote> or the <quote><short-title>Social Media DATA Act</short-title></quote>.</text></section><section id="H8CA2D2EF78C1474E8A8C9BE257316A8D"><enum>2.</enum><header>Requirement</header><subsection id="H263C0151672242E493E48154501D6387"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this Act, and every 3 years thereafter as needed, the Commission shall, in accordance with section 553 of title 5, United States Code, issue regulations that require the following:</text><paragraph id="H9A8C998D6BAD441CADA5E7240D850244"><enum>(1)</enum><text display-inline="yes-display-inline">A covered platform to maintain, and grant academic researchers and the Commission access to, an ad library that contains in a searchable, machine-readable format and that is collected by the covered platform in the ordinary course of business the following information (which may be updated by the Commission as the Commission determines to be necessary) related to any advertiser that purchases $500 or more of advertising in a calender year:</text><subparagraph id="HBF90F723BA004388BAC24D85276871E1"><enum>(A)</enum><text display-inline="yes-display-inline">The legal name and unique identification number for each advertiser.</text></subparagraph><subparagraph id="H76D163915DD9435FB132F1151B444013"><enum>(B)</enum><text display-inline="yes-display-inline">A digital copy of the ad content.</text></subparagraph><subparagraph id="HC8EB19D87DFF43B6AFE3EB2B2187CBC2"><enum>(C)</enum><text>The method used, as selected either by the advertiser or by the covered platform, to target an ad to platform users, including uploaded lists of platform users, pre-set categories of platform users, key words, and contextual information.</text></subparagraph><subparagraph id="H575BF13EC4C548F9A5AECCA30170B340" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">The optimization objective chosen by the advertiser (such as awareness, reach, traffic, and engagement).</text></subparagraph><subparagraph id="H41B48DE260DD48FFA93C3EFA007C344B"><enum>(E)</enum><text display-inline="yes-display-inline">A description of the targeted audience for each advertisement, including information (that may have been collected from the profile of a user or based on an algorithm) on the demographics of the audience (including age, gender, geographic location, race, ethnicity, and political affiliation), interests of the audience, and any other description of the targeted audience determined to be reasonable by the Commission.</text></subparagraph><subparagraph id="HDC1DF582239B4D2EA23B614901B068E5"><enum>(F)</enum><text display-inline="yes-display-inline">A description of the audience of the advertisement determined by a count of advertiser viewership, including information (that may have been collected from the profile of a user or based on an algorithm) on the demographics of the audience (including age, gender, geographic location, race, ethnicity, and political affiliation), interests of the audience, and any other description of the targeted audience determined to be reasonable by the Commission.</text></subparagraph><subparagraph id="HE6474DE8A6AE4728AB5E0FAA564D14C7"><enum>(G)</enum><text>The number of views generated from the advertisement.</text></subparagraph><subparagraph id="H1B97E26192EB4267A6367E1D1982404A"><enum>(H)</enum><text display-inline="yes-display-inline">Ad conversion (including how often an ad was shared, liked, or clicked-through).</text></subparagraph><subparagraph id="HD657027E813C45EC8154013B747E6710"><enum>(I)</enum><text>The date and time that the advertisement was first displayed and last displayed.</text></subparagraph><subparagraph id="HC7080203ED2D4EA19821219385617F5D"><enum>(J)</enum><text display-inline="yes-display-inline">The amount an advertiser budgeted for the purchase of the advertisement on the platform and the amount paid for the purchase of the advertisement on the platform.</text></subparagraph><subparagraph id="HE67DA43A373F451781CE75E3D4CCD724"><enum>(K)</enum><text display-inline="yes-display-inline">The category of an ad as defined by the covered platform (such as politics, employment opportunity, housing opportunity, or apparel).</text></subparagraph><subparagraph id="H0BF9FBF9B66E409AB068C075325EA35C"><enum>(L)</enum><text display-inline="yes-display-inline">Each language contained within the ad.</text></subparagraph><subparagraph id="H86C4C96E9888412B8A57B357042BB50F"><enum>(M)</enum><text display-inline="yes-display-inline">Each advertising policy of the covered platform that is made available to advertising customers on the covered platform.</text></subparagraph></paragraph><paragraph id="HC3BB45F1D0F747BEBE32DABF61643E07"><enum>(2)</enum><text display-inline="yes-display-inline">The Commission to use the information in the ad library for law enforcement and studies unrelated to this Act.</text></paragraph><paragraph id="H084EEC2D484C4E208A9963538A1F0E54"><enum>(3)</enum><text display-inline="yes-display-inline">The methodology to calculate the demographics of the targeted audience described in paragraph (1)(E) to be the same method as the demographics calculated for the delivery audience described in paragraph (1)(F). </text></paragraph><paragraph id="H40F8E2D199914594B272D8804E82C705"><enum>(4)</enum><text>Guidelines for the treatment of advertisements that are deleted by the advertiser or blocked by the terms of service of the covered platform.</text></paragraph><paragraph id="HC72D2A474CB94C68918B0BEB1D4A26E5"><enum>(5)</enum><text>Guidelines for the time allotted between when an ad is posted on a covered platform and when the information about the ad needs to be made available in the ad library.</text></paragraph><paragraph id="H435508D4B78447B58EE4854C9E760558"><enum>(6)</enum><text>Guidelines for how long an ad is required to remain available in the ad library.</text></paragraph></subsection><subsection id="H0A2E5F22F0354BD496813DC1F3B12684"><enum>(b)</enum><header>Enforcement</header><paragraph id="HF309D21DF5554B3CA59BB474B77DA887"><enum>(1)</enum><header>Enforcement by the Federal Trade Commission</header><subparagraph id="H20C573A1B57C484A91093FDAB41B007B"><enum>(A)</enum><header>Unfair or deceptive acts or practices</header><text>A violation of subsection (a) shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (<external-xref legal-doc="usc" parsable-cite="usc/15/57a">15 U.S.C. 57a(a)(1)(B)</external-xref>) regarding unfair or deceptive acts or practices.</text></subparagraph><subparagraph id="H06438462332D40118717D75D651A0AA3"><enum>(B)</enum><header>Powers of commission</header><text>The Commission shall enforce subsection (a) 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 (<external-xref legal-doc="usc" parsable-cite="usc/15/41">15 U.S.C. 41 et seq.</external-xref>) were incorporated into and made a part of this Act. Any person who violates such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.</text></subparagraph></paragraph><paragraph id="H8E4D7AA38C2E4AB5947BCE7A5759144A"><enum>(2)</enum><header>Effect on other laws</header><text display-inline="yes-display-inline">Nothing in this section shall be construed in any way to limit the authority of the Commission under any other provision of law or to limit the application of any Federal or State law.</text></paragraph><paragraph id="HB796A52572AC4D55A76426813FC88F4A"><enum>(3)</enum><header>Enforcement by State attorneys general</header><subparagraph id="HF3A1DB005DFF4354A4993F1579DF23ED"><enum>(A)</enum><header>In general</header><text>If the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating subsection (a), the attorney general, official, or agency of the State, in addition to any authority it may have to bring an action in State court under its consumer protection law, may bring a civil action in any appropriate United States district court or in any other court of competent jurisdiction, including a State court, to—</text><clause id="HD8C3BE4AAC9A41409D76D9778FB04E49"><enum>(i)</enum><text>enjoin further such violation by such person;</text></clause><clause id="H750E6D689AD043CDABC24B40E26B6F68"><enum>(ii)</enum><text>enforce compliance with such subsection;</text></clause><clause id="H21DCD0AA19FE4891B5A7E832CB1571E6"><enum>(iii)</enum><text>obtain civil penalties; and</text></clause><clause id="H923FE14C10F84511B474E6EEFAB8180B"><enum>(iv)</enum><text>obtain damages, restitution, or other compensation on behalf of residents of the State.</text></clause></subparagraph><subparagraph id="H24B2AD8CDFA94EA1A368DADEAA11196A"><enum>(B)</enum><header>Notice and intervention by the Federal Trade Commission</header><text>The attorney general of a State shall provide prior written notice of any action under subparagraph (A) to the Commission and provide the Commission with a copy of the complaint in the action, except in any case in which such prior notice is not feasible, in which case the attorney general shall serve such notice immediately upon instituting such action. The Commission shall have the right—</text><clause id="H539F0E81CF72482C9B9F8DE02DE0253C"><enum>(i)</enum><text>to intervene in the action;</text></clause><clause id="HD5F6EFE8D49E450CAAC604A9C0E2DD90"><enum>(ii)</enum><text>upon so intervening, to be heard on all matters arising therein; and</text></clause><clause id="H5050D3D7B2EE46F8920DF5E37E9906B1"><enum>(iii)</enum><text>to file petitions for appeal.</text></clause></subparagraph><subparagraph id="H448AC40AC37B464384504049137E2982"><enum>(C)</enum><header>Limitation on State action while Federal action is pending</header><text>If the Commission has instituted a civil action for violation of this section, no State attorney general, or official or agency of a State, may bring an action under this paragraph during the pendency of that action against any defendant named in the complaint of the Commission for any violation of this section alleged in the complaint.</text></subparagraph></paragraph></subsection><subsection id="H89DAAF9D769A4C7186C92B3E7DA15205"><enum>(c)</enum><header>Working Group for Social Media Research Access</header><paragraph id="HE5CED4055BEA46599F0F5283C2D831CD" display-inline="no-display-inline"><enum>(1)</enum><header>Employment authority</header><text display-inline="yes-display-inline">Not later than 60 days after the date of the enactment of this Act, the Commission shall hire 2 or 3 employees who are privacy and technology experts to lead a series of stakeholder engagements, including round tables, public workshops, and open comment periods. Stakeholders may include social media researchers, information science researchers, privacy and civil rights advocates, technologists, representatives from social media companies, representatives from standards organizations, and representatives from international data governance bodies.</text></paragraph><paragraph id="H9F6C9416C05243C09470E0B63FEC5FF8" commented="no"><enum>(2)</enum><header>Establishment of working group</header><text display-inline="yes-display-inline">Not later than 30 days after the date on which the employees described in paragraph (1) are hired, the Commission shall establish a working group for social media research access (in this subsection the <quote>working group</quote>) composed of the stakeholders described in paragraph (1). </text></paragraph><paragraph id="H466207ACD9C54694AB887872C08E0658" commented="no"><enum>(3)</enum><header>No compensation for members</header><text display-inline="yes-display-inline">A member of the working group shall serve without compensation in addition to any compensation received for the service of the member as an officer or employee of the United States, if applicable.</text></paragraph><paragraph id="H695C3BA994CC48079B5F3E97CAE8FFE9" commented="no"><enum>(4)</enum><header>Reports required</header><subparagraph id="H65CBB1ECEAC84B5C86307D471B85311C"><enum>(A)</enum><header>Best practices and code of conduct</header><text display-inline="yes-display-inline">Not later than 1 year after the date on which the working group is established pursuant to paragraph (2), the Commission, in consultation with the working group, shall make available to the public on the website of the Commission a report containing—</text><clause id="H7CA3447B0DEC4A6D9938EF3F53AD0015"><enum>(i)</enum><text>a description of the best practices regarding what type of information from an interactive computer service should be made available, and under what circumstances, to academic researchers; and</text></clause><clause id="HBC333989620440549B8848E6A9495468"><enum>(ii)</enum><text>a recommended code of conduct for academic researchers working with such information.</text></clause></subparagraph><subparagraph id="H1FC6BBD0BFED4320821D8CA17E1F3E3D" commented="no"><enum>(B)</enum><header>Policy recommendations</header><text display-inline="yes-display-inline">Not later than 1 year after the date on which the working group is established pursuant to paragraph (2), the working group shall submit to Congress a report with recommendations for policy changes, which may include any of the following:</text><clause id="HD5A03F53A966469D85DD6037CCD383A8"><enum>(i)</enum><text display-inline="yes-display-inline">The types of information that should be made available to academic researchers and under what circumstances interactive computer services should be required to grant access to academic researchers.</text></clause><clause id="H03D91C0F92AD4FE58FDB238479F2DF55"><enum>(ii)</enum><text>Circumstances in which additional legal protections for interactive computer services may be needed related to the sharing of data with researchers.</text></clause><clause id="H0151DC16023E41FC81C243AC616B2012"><enum>(iii)</enum><text>Recommendation for penalties for academic researchers who misuse or seek to inappropriately reidentify information provided to them by interactive computer services for research purposes.</text></clause></subparagraph><subparagraph id="HC3F246EE3A7A44B995DBF74D1D29FEDB" commented="no"><enum>(C)</enum><header>Requirements for reports</header><text display-inline="yes-display-inline">In preparing the reports described under subparagraph (A) and (B), the working group may consider the following:</text><clause id="HC8C5AE20CEE34B09B2D39384C782D794" commented="no"><enum>(i)</enum><text>The type of information considered, including the following:</text><subclause id="HCE58D7B5446943E4955F9E58075EC86B" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">Information related to content moderation decisions including choices related to the ranking, ordering, promotion, recommendation of content, and requests for content removals.</text></subclause><subclause id="H0A90509ACA064347BFBBAD57D674EE6E" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">Information related to engagement (such as sharing and likes) with public links (such as news articles and video clips), including the demographic breakdown of users that interact with content.</text></subclause><subclause id="H04B3216EE33F461B84CFB366A489896C" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">Information related to exposure (viewership or impressions) with public links (such as news articles and video clips), including the demographic breakdown of users that interact with content.</text></subclause><subclause id="H4CEBA32FCA4C4CB5B1E160E663BE80C8" commented="no"><enum>(IV)</enum><text>Classification of public information sources (such as opinion and journalism).</text></subclause><subclause id="H9501A1F15BDE4514BF5D4BDE073B2EA5" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">Archives of formerly public accounts that were removed, including any special treatment of accounts that previously belonged to high-profile individuals.</text></subclause><subclause id="HCFE684D5E6F94625801F5F42D80BB7BE" commented="no"><enum>(VI)</enum><text display-inline="yes-display-inline">Archives of fake or bot accounts that have been removed.</text></subclause><subclause id="H9870219C8ACA4083B39422EAC4B76397" commented="no"><enum>(VII)</enum><text display-inline="yes-display-inline">Archives of coordinated influence operation accounts that have been removed.</text></subclause><subclause id="HEA569B01DEEE4F78B1616E6A6A14DC68" commented="no"><enum>(VIII)</enum><text display-inline="yes-display-inline">Research conducted by an interactive computer service internally related to the online behavior of a user including A/B studies and other internal research, including studies on interventions to slow spread of misinformation and disinformation, and to increase user deliberation, including warning labels, limits on sharing and posting, time delay on sharing and posting, and prompts to confirm.</text></subclause><subclause id="HE03C4D5119754E38AEA1843E4B107575" commented="no"><enum>(IX)</enum><text display-inline="yes-display-inline">The most popular content on a platform.</text></subclause></clause><clause id="H4B37D7F0622F48439EE205740AA8D860" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">Storage of information and treatment for each type of information considered, including the following:</text><subclause id="HC616CE5C89E14F92BA1C6FF734109435" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">Limits on time and amount of information stored broken down by the type of information.</text></subclause><subclause id="H1C31D9CC8BA840AC95177645FA315002" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">Under what circumstances privacy preserving techniques such as differential privacy and statistical noise could be used.</text></subclause><subclause id="H8BADD67E25D54457A5AD628821A63A5A" commented="no"><enum>(III)</enum><text>Required level of aggregation for demographic information.</text></subclause><subclause id="H1D6D4E323CE140CBB362A5FBDA0209C9" commented="no"><enum>(IV)</enum><text>Standardized variable names across platforms for specific types of information.</text></subclause><subclause id="H5569393408CC425CBC45CD0682DF3D19" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">Under what circumstances erasure policies (related to who and how an individual can request to be removed from a dataset) may be needed, specifically for individuals who are less than 18 years old.</text></subclause><subclause id="H21869C993A1041A88429E0C137034B2D" commented="no"><enum>(VI)</enum><text>Adherence to data security best practices.</text></subclause></clause><clause id="H5711209C1F5042BB81144EE1EE8E475A" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">A consideration of access for each type of information considered, including the following:</text><subclause id="H7AC85A782C674FD9A03AC3004C280A35" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">Designation of secure facilities and computers to analyze information.</text></subclause><subclause id="H8F4C4CA0DF724037BDBE5A0378F9847A" commented="no"><enum>(II)</enum><text>Set criteria for researcher access.</text></subclause><subclause id="H24BA576BA33343338A3C44DDBB9664F5" commented="no"><enum>(III)</enum><text>Any limit on the type of research that specific datasets can be used for.</text></subclause></clause><clause id="HD256E3D7EDED420C9F5BDFE9C1A8D56B" commented="no"><enum>(iv)</enum><text>An analysis of how any of the recommendations might interact with international law and jurisdiction.</text></clause><clause id="HC851F85EAAFA4785AAAABE97C51FE3CD" commented="no"><enum>(v)</enum><text>Policies for assuring that open science principles of reproducibility of results and replication of analyses can be respected.</text></clause><clause id="H4AD944FBB2214FA296156EBE945E2E8E"><enum>(vi)</enum><text display-inline="yes-display-inline">Recommendations for the size and type of interactive computer service, which may vary.</text></clause></subparagraph></paragraph><paragraph id="H033E114C0DFD481BBEE2AADB367B9DE3"><enum>(5)</enum><header>Inapplicability of FACA</header><text>The Federal Advisory Committee Act (5 U.S.C. App.) does not apply to the working group.</text></paragraph></subsection><subsection id="HE913A78B40EC4FDDAC04E159EA69185C"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text><paragraph id="HD24B08E04AA34ABB98A5D7BEF319C051"><enum>(1)</enum><header>Academic researcher</header><subparagraph id="HF5285FF378774A3A9319D88864884EF6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>academic researcher</term> means an individual that conducts research—</text><clause id="HCEF272DC7C8A42FBB8C55813872BBC94"><enum>(i)</enum><text>in collaboration with an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001(a)</external-xref>)); and</text></clause><clause id="H83444D7AE54C404C8649E136633DA6F4"><enum>(ii)</enum><text>that is not for commercial purposes.</text></clause></subparagraph><subparagraph id="HAA66ECAE16D64D3B9926F9D0B3D249C5"><enum>(B)</enum><header>Definition by Commission</header><text>The Commission may update this definition as the Commission determines to be necessary.</text></subparagraph></paragraph><paragraph id="H8DACA9D3C51946A9B47CEA3AAAE3147C"><enum>(2)</enum><header>Commission</header><text>The term <term>Commission</term> means the Federal Trade Commission.</text></paragraph><paragraph id="HBEC08643F9F842518D6ACDE92F4C5CC8"><enum>(3)</enum><header>Covered platform</header><subparagraph id="H552C5D7B9DE14032A2018809A6F9A4C2"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>covered platform</term> means any website, desktop application, or mobile application that is consumer-facing, sells digital advertising space, and has more than 100,000,000 monthly active users for a majority of months during the preceding 12 months. The Commission may update this definition as the Commission determines to be necessary.</text></subparagraph><subparagraph id="H6339BBC176FE42079205A48375D32FDA"><enum>(B)</enum><header>Definition by Commission</header><text>The Commission may update this definition as the Commission determines to be necessary.</text></subparagraph></paragraph><paragraph id="H7093510EA9954F849059A8E51A6DD752"><enum>(4)</enum><header>Interactive computer service</header><text>The term <term>interactive computer service</term> has the meaning given that term in section 230(f) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/230">47 U.S.C. 230(f)</external-xref>).</text></paragraph></subsection><subsection id="H3A428DCF01A847ECBC4295CFCABB09A2"><enum>(e)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">To assist the Commission in carrying out this Act, there is authorized to be appropriated and to remain available until expended—</text><paragraph id="H44070EF56879488DA6D2BFE08803A5C3"><enum>(1)</enum><text>for fiscal year 2022, $2,000,000; and</text></paragraph><paragraph id="HD6623ACC985342D9A6F9C78603991581"><enum>(2)</enum><text>for fiscal year 2023, $2,000,000.</text></paragraph></subsection></section></legis-body></bill> 

