    [House Hearing, 116 Congress]
    [From the U.S. Government Publishing Office]

               REAUTHORIZING BRAND USA AND THE U.S. SAFE WEB ACT

    =======================================================================

                                    HEARING

                                   BEFORE THE

                SUBCOMMITTEE ON CONSUMER PROTECTION AND COMMERCE

                                     OF THE

                        COMMITTEE ON ENERGY AND COMMERCE
                            HOUSE OF REPRESENTATIVES

                         ONE HUNDRED SIXTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                                OCTOBER 29, 2019

                                   __________

                               Serial No. 116-75

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

          Printed for the use of the Committee on Energy and Commerce

                       govinfo.gov/committee/house-energy
                            energycommerce.house.gov

                               ______

                 U.S. GOVERNMENT PUBLISHING OFFICE
    43-859 PDF            WASHINGTON : 2021

                        COMMITTEE ON ENERGY AND COMMERCE

                         FRANK PALLONE, Jr., New Jersey
                                     Chairman
    BOBBY L. RUSH, Illinois              GREG WALDEN, Oregon
    ANNA G. ESHOO, California              Ranking Member
    ELIOT L. ENGEL, New York             FRED UPTON, Michigan
    DIANA DeGETTE, Colorado              JOHN SHIMKUS, Illinois
    MIKE DOYLE, Pennsylvania             MICHAEL C. BURGESS, Texas
    JAN SCHAKOWSKY, Illinois             STEVE SCALISE, Louisiana
    G. K. BUTTERFIELD, North Carolina    ROBERT E. LATTA, Ohio
    DORIS O. MATSUI, California          CATHY McMORRIS RODGERS, Washington
    KATHY CASTOR, Florida                BRETT GUTHRIE, Kentucky
    JOHN P. SARBANES, Maryland           PETE OLSON, Texas
    JERRY McNERNEY, California           DAVID B. McKINLEY, West Virginia
    PETER WELCH, Vermont                 ADAM KINZINGER, Illinois
    BEN RAY LUJAN, New Mexico            H. MORGAN GRIFFITH, Virginia
    PAUL TONKO, New York                 GUS M. BILIRAKIS, Florida
    YVETTE D. CLARKE, New York, Vice     BILL JOHNSON, Ohio
        Chair                            BILLY LONG, Missouri
    DAVID LOEBSACK, Iowa                 LARRY BUCSHON, Indiana
    KURT SCHRADER, Oregon                BILL FLORES, Texas
    JOSEPH P. KENNEDY III,               SUSAN W. BROOKS, Indiana
        Massachusetts                    MARKWAYNE MULLIN, Oklahoma
    TONY CARDENAS, California            RICHARD HUDSON, North Carolina
    RAUL RUIZ, California                TIM WALBERG, Michigan
    SCOTT H. PETERS, California          EARL L. ``BUDDY'' CARTER, Georgia
    DEBBIE DINGELL, Michigan             JEFF DUNCAN, South Carolina
    MARC A. VEASEY, Texas                GREG GIANFORTE, Montana
    ANN M. KUSTER, New Hampshire
    ROBIN L. KELLY, Illinois
    NANETTE DIAZ BARRAGAN, California
    A. DONALD McEACHIN, Virginia
    LISA BLUNT ROCHESTER, Delaware
    DARREN SOTO, Florida
    TOM O'HALLERAN, Arizona
                                     ------

                               Professional Staff

                       JEFFREY C. CARROLL, Staff Director
                    TIFFANY GUARASCIO, Deputy Staff Director
                    MIKE BLOOMQUIST, Minority Staff Director
                Subcommittee on Consumer Protection and Commerce

                            JAN SCHAKOWSKY, Illinois
                                    Chairwoman
    KATHY CASTOR, Florida                CATHY McMORRIS RODGERS, Washington
    MARC A. VEASEY, Texas                  Ranking Member
    ROBIN L. KELLY, Illinois             FRED UPTON, Michigan
    TOM O'HALLERAN, Arizona              MICHAEL C. BURGESS, Texas
    BEN RAY LUJAN, New Mexico            ROBERT E. LATTA, Ohio
    TONY CARDENAS, California, Vice      BRETT GUTHRIE, Kentucky
        Chair                            LARRY BUCSHON, Indiana
    LISA BLUNT ROCHESTER, Delaware       RICHARD HUDSON, North Carolina
    DARREN SOTO, Florida                 EARL L. ``BUDDY'' CARTER, Georgia
    BOBBY L. RUSH, Illinois              GREG GIANFORTE, Montana
    DORIS O. MATSUI, California          GREG WALDEN, Oregon (ex officio)
    JERRY McNERNEY, California
    DEBBIE DINGELL, Michigan
    FRANK PALLONE, Jr., New Jersey (ex
        officio)
                                 C O N T E N T S

                                  ----------
                                                                       Page
    Hon. Jan Schakowsky, a Representative in Congress from the State
      of Illinois, opening statement.................................     1
        Prepared statement...........................................     2
    Hon. Cathy McMorris Rodgers, a Representative in Congress from
      the State of Washington, opening statement.....................     3
        Prepared statement...........................................     5
    Hon. Peter Welch, a Representative in Congress from the State of
      Vermont, opening statement.....................................     6
    Hon. Greg Walden, a Representative in Congress from the State of
      Oregon, opening statement......................................     6
        Prepared statement...........................................     8
    Hon. Frank Pallone, Jr., a Representative in Congress from the
      State of New Jersey, prepared statement........................    61

                                   Witnesses

    Christopher L. Thompson, President and Chief Executive Officer,
      Brand USA......................................................    10
        Prepared statement...........................................    12
        Additional material submitted for the record \1\
    Tori Emerson Barnes, Executive Vice President, Public Affairs and
      Policy, U.S. Travel Association................................    21
        Prepared statement...........................................    23
    Aaron Burstein, Partner, Wilkinson Barker Knauer, LLP............    28
        Prepared statement...........................................    30

                               Submitted Material

    H.R. 3851, the Travel Promotion, Enhancement, and Modernization
      Act of 2019....................................................    63
    Discussion Draft, H.R. 4779......................................    65
    Article of May 15, 2019, ```Brand USA' helps keep Oregon a world-
      class travel destination,'' by James Brandt, Hood River News,
      submitted by Mr. Walden........................................    67
    Letter of October 25, 2019, from Joseph J. Simons, Chairman,
      Federal Trade Commission, et al., to Ms. Schakowsky and Mrs.
      Rodgers, submitted by Ms. Schakowsky...........................    69
    Letter of October 29, 2019, from Marc Rotenberg, President,
      Electronic Privacy Information Center, et al., to Ms.
      Schakowsky and Mrs. Rodgers, submitted by Ms. Schakowsky \2\
    Letter of October 29, 2019, from Brian C. Crawford, Executive
      Vice President, Government Affairs, American Hotel & Lodging
      Association, to Mr. Pallone, et al., submitted by Ms.
      Schakowsky.....................................................    74

    ----------

    \1\ Two documents submitted by Mr. Thompson, ``Annual Report: Fiscal
    Year 2018, Brand USA'' and ``The Return on Investment of Brand USA
    Marketing: FY 2018,'' have been retained in committee files and also
    are available at https://docs.house.gov/Committee/Calendar/
    ByEvent.aspx?EventID=110153.
    \2\ The letter has been retained in committee files and also is
    available at http://docs.house.gov/meetings/IF/IF17/20191029/110153/
    HHRG-116-IF17-20191029-SD006.pdf.

               REAUTHORIZING BRAND USA AND THE U.S. SAFE WEB ACT

                                  ----------

                           TUESDAY, OCTOBER 29, 2019

                      House of Representatives,
      Subcommittee on Consumer Protection and Commerce,
                              Committee on Energy and Commerce,
                                                        Washington, DC.
        The subcommittee met, pursuant to call, at 2:28 p.m., in
    Room 2322, Rayburn House Office Building, Hon. Jan Schakowsky
    [chairwoman of the subcommittee] presiding.
        Members present: Representatives Schakowsky, Castor,
    Veasey, Kelly, O'Halleran, Blunt Rochester, Soto, Matsui,
    McNerney, Rodgers (subcommittee ranking member), Burgess,
    Latta, Guthrie, Bucshon, Hudson, Carter, and Walden (ex
    officio).
        Also present: Representatives Welch and Bilirakis.
        Staff present: Lisa Goldman, Senior Counsel; Waverly
    Gordon, Deputy Chief Counsel; Alex Hoehn-Saric, Chief Counsel,
    Communications and Consumer Protection; Zach Kahan, Outreach
    and Member Service Coordinator; Meghan Mullon, Staff Assistant;
    Joe Orlando, Executive Assistant; Alivia Roberts, Press
    Assistant; Tim Robinson, Chief Counsel; Chloe Rodriguez, Policy
    Analyst; Sydney Terry, Policy Coordinator; Rebecca Tomilchik,
    Staff Assistant; Anna Yu, Professional Staff Member; Margaret
    Tucker Fogarty, Minority Legislative Clerk/Press Assistant;
    Theresa Gambo, Minority Financial and Office Administrator;
    Bijan Koohmaraie, Minority Deputy Chief Counsel, Consumer
    Protection and Commerce; Tim Kurth, Minority Chief Counsel,
    Consumer Protection and Commerce; and Brannon Rains, Minority
    Legislative Clerk.
        Ms. Schakowsky. The Subcommittee on Consumer Protection and
    Commerce will now come to order. So let me thank all of you for
    coming. I appreciate it. We had a vote, and so I am glad that
    you are all here, and we can begin.

     OPENING STATEMENT OF HON. JAN SCHAKOWSKY, A REPRESENTATIVE IN
                  CONGRESS FROM THE STATE OF ILLINOIS

        So today we are going to be talking about reauthorizing two
    important programs in the subcommittee's jurisdiction.
        When I talk about my subcommittee to constituents of mine,
    I often tell them that the Energy and Commerce Committee has
    the broadest jurisdiction of any standing committee in the
    Congress, but also that this Subcommittee on Consumer
    Protection and Commerce also has the largest jurisdiction. And
    nothing makes this point more clear than today's hearing when
    we will discuss legislation to promote inbound travel and
    tourism to the United States and legislation to help the
    Federal Trade Commission protect Americans from fraud that
    originates overseas.
        Brand USA was authorized to work directly with the United
    States tourism and travel industry to maximize the social and
    economic benefits of travel. The bill we are considering today
    was introduced by my friend and colleague and author of the
    legislation, Peter Welch, and I want to thank him for his
    leadership on this very important issue.
        I am sure that all of my colleagues here would agree that
    their lives have been enhanced by their own travel, and we all
    appreciate tourism coming to our direction and experiencing
    what we each love so much about the districts that we
    represent.
        Brand USA has been great for Chicago, and I am so excited
    to make sure that the program is reauthorized.
        I am also pleased that we are reauthorizing the U.S. SAFE
    WEB Act. Congress amended the Federal Trade Commission Act in
    2006 to bolster the FTC's ability to combat fraud that
    originates overseas.
        Doing so strengthened the FTC in four ways. One, it
    confirmed that the agency's jurisdiction extends to foreign
    wrongdoers that harm U.S. consumers. Two, it authorizes limited
    but proper collaboration with foreign law enforcement,
    including investigative assistance and the sharing of
    information. Three, it enhances the FTC's ability to receive
    information from foreign countries by allowing confidential
    treatment of information received. And four, it promotes
    relationship building by allowing the FTC to participate in
    staff exchanges with their foreign counterparts.
        The bill we are discussing today, which would reauthorize
    these authorities for another 7 years, was introduced by my
    friend and colleague and ranking member of the subcommittee,
    Cathy McMorris Rodgers, and I want to thank her for her
    leadership on this issue and her partnership on the
    subcommittee as ranking member.
        I am proud to be the cosponsor of both these pieces of
    legislation and look forward to working with staff and
    stakeholders.
        [The proposed legislation appears at the conclusion of the
    hearing. The prepared statement of Ms. Schakowsky follows:]

                   Prepared Statement of Hon. Jan Schakowsky

        Good morning and thank you all for joining us today for a
    hearing on reauthorizing two important programs in this
    subcommittee's jurisdiction.
        When I talk to constituents about my role here in the
    Energy and Commerce Committee, I often tell them that Energy
    and Commerce has the broadest jurisdiction of any standing
    committee in the House, and that this subcommittee has the
    broadest jurisdiction of any Energy and Commerce subcommittee.
        And nothing makes this more clear than today's hearing,
    where we will discuss legislation to promote inbound travel and
    tourism to the United States, and legislation to help the
    Federal Trade Commission protect Americans from fraud that
    originates overseas.
        Brand USA was authorized to work directly with the United
    States' tourism and travel industry to maximize the social and
    economic benefits of travel. The bill we are considering today
    was introduced by my friend and colleague Peter Welch, and I
    thank him for his leadership on this important issue.
        I am sure that all of my colleagues here would agree that
    their lives have been enriched by their own travels, and we all
    appreciate tourists coming to our district and experiencing
    what we each love so much about the districts we represent.
        Brand USA has been great for Chicago, so I am excited to
    make sure that the program is reauthorized.
        I also am pleased that we are reauthorizing the U.S. SAFE
    WEB Act. Congress amended the Federal Trade Commission Act in
    2006 to bolster the FTC's ability to combat fraud that
    originates overseas. Doing so strengthened the FTC in four key
    ways:
        1. It confirmed the agency's jurisdiction extends to
    foreign wrongdoers that harm U.S. consumers.
        2. It authorized limited but proper collaboration with
    foreign law enforcement, including investigative assistance and
    the sharing of information.
        3. It enhanced the FTC's ability to receive information
    from foreign counterparts by allowing confidential treatment of
    information received.
        4. It promoted relationship building by allowing the FTC to
    participate in staff exchanges with their foreign counterparts.
        The bill we are discussing today, which would reauthorize
    these authorities for another seven years, was introduced by my
    friend, colleague, and Ranking Member Cathy McMorris Rodgers.
    Thank you for your leadership on this, and your partnership on
    the subcommittee, Ranking Member Rodgers.
        I am a proud cosponsor of both of these bills, and I look
    forward to working with stakeholders and colleagues to advance
    these important reauthorizations promptly.

        Ms. Schakowsky. And now I would like to yield the balance
    of my time to Congresswoman Robin Kelly.
        Ms. Kelly. Thank you, Chairwoman Schakowsky, for holding
    this legislative hearing on H.R. 4779, the SAFE WEB Act, and
    H.R. 3851, Reauthorizing Brand USA.
        H.R. 4779 is an important bipartisan bill that will allow
    the FTC to continue international cooperation for
    investigations of fraud and abuse. Online criminals know no
    borders, and Americans are often targeted from abroad. With the
    SAFE WEB Act, the FTC can share information and prohibit third-
    party recipients of a subpoena from notifying the target during
    an investigation. These are essential tools to build cases that
    can bring victims needed justice.
        As an international leader in consumer protection, the FTC
    will also be able to continue its relationship building with
    international staff exchanges. These exchanges provide
    continued leadership for the FTC and help train other partners
    in enforcementbest practices.
        It has been a true pleasure working with Ranking Member
    McMorris Rodgers on the SAFE WEB Act.
        And I yield back.
        Ms. Schakowsky. The gentlelady yields back.
        And now I am happy to recognize Mrs. Rodgers, our ranking
    member, for an opening statement of 5 minutes.

          OPENING STATEMENT OF HON. CATHY McMORRIS RODGERS, A
        REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON

        Mrs. Rodgers. Good afternoon, and welcome to the Consumer
    Protection and Commerce Subcommittee legislative hearing today
    on reauthorizing two important U.S. programs, Brand USA and the
    U.S. SAFE WEB Act.
        Earlier this year, this subcommittee held an oversight
    hearing with the Federal Trade Commission where we focused much
    of our attention on data privacy and how we can come together
    in Congress to deliver a Federal bill that provides uniform and
    strong consumer protections.
        At that same hearing, the Commission impressed upon us the
    importance of the U.S. SAFE WEB Act and the need to extend it.
    The Commissioners testified that it was key to the FTC's
    international work, and we agree.
        Today is the first step in extending this vital program. I
    want to thank the gentlelady from Illinois, Robin Kelly, along
    with Mr. Bucshon and Chair Schakowsky, for joining on this bill
    to extend the U.S. SAFE WEB Act so that it doesn't expire next
    September. Our proposal extends the program to 2027 and
    requires additional reporting from the 2006 bill so the FTC can
    report back on the critical work performed over the past
    decade.
        Since its passage in 2006 and its reauthorization, this
    program has proven to be an important part of the Commission's
    work. In our digital and connected world, the internet and e-
    commerce knows no boundaries, so it is vital to provide tools
    for the Commission's international work.
        Thanks to the internet, small businesses, like etailz in
    Spokane Valley, can now reach people and customers globally.
    The internet has also made life-changing innovations possible
    that have raised our standard of living and connected us with
    the world.
        However, it has also presented new opportunities for
    criminals and bad actors. There are spam, spyware, misleading
    claims, privacy violations, data security breaches,
    telemarketing fraud, and more.
        To protect Americans, the FTC is our top cop on the beat
    both here at home and abroad. Thanks to the SAFE WEB Act, the
    Commission can work on cases with an international dimension.
    Specifically, the Commission can share evidence and provide
    assistance to foreign authorities.
        The Commission can also enter into enhanced enforcement
    cooperation with foreign counterparts through staff exchanges,
    international agreements, and other mechanisms.
        And the program has been a resounding success. Because of
    the SAFE WEB, the Commission has responded to more than 130
    information-sharing requests, issued more than 115 civil
    investigative demands in more than 50 investigations on behalf
    of foreign agencies, and secured settlements against companies
    that violated children's privacy online, engaged in sweepstakes
    scams, deception, and so much more.
        The program has been critical to securing the EU-U.S.
    Privacy Shield, which was extended by the EU Commission last
    week. Because the internet is borderless, this agreement safely
    and securely preserves the ability for U.S. companies to do
    business online in the EU by allowing transatlantic data flows.
        U.S. SAFE WEB is a successful tool for the FTC to protect
    Americans from online threats from overseas, and I am so
    pleased that we are extending it today on a bipartisan basis.
        I also want to thank Mr. Welch and Mr. Bilirakis for their
    leadership in reauthorizing Brand USA. Brand USA is a vital
    program to attract foreign visitors to the U.S. at no cost to
    taxpayers. Their focus on bringing tourism to areas like
    eastern Washington is spurring economic growth and is creating
    excitement around other parts of the country outside of the
    big-city gateways.
        Thank you again to our witnesses for being with us today,
    and I look forward to discussing these two important bills.
        I now yield back.
        [The prepared statement of Mrs. Rodgers follows:]

               Prepared Statement of Hon. Cathy McMorris Rodgers

        Good afternoon and welcome to the Consumer Protection and
    Commerce Subcommittee legislative hearing today on
    reauthorizing two important U.S. programs: Brand USA and the
    U.S. SAFE WEB Act.
        Earlier this year, this subcommittee held an oversight
    hearing with the Federal Trade Commission where we focused much
    of our attention on data privacy and how we can come together
    in Congress to deliver a Federal bill that provides uniform and
    strong consumer protections.
        At that same hearing, the Commission impressed upon us the
    importance of the U.S. SAFE WEB Act and the need to extend it.
        The Commissioners testified that it was key to the FTC's
    international work--and we agree. Today is the first step in
    extending this vital program.
        I want to thank my good friend from Illinois, Ms. Robin
    Kelly, along with Mr. Bucshon and Chair Schakowsky, for joining
    me on this bill to extend the U.S SAFE WEB Act so that it
    doesn't expire next September.
        Our proposal extends the program to 2027 and requires
    additional reporting from the 2006 bill, so the FTC can report
    back on the critical work performed over the past decade.
        Since its passage in 2006, and its reauthorization, this
    program has proven to be an important part of the Commission's
    mission.
        In our digital and connected world, the internet and e-
    commerce know no borders, so it's vital to provide tools for
    the Commission's international work.
        Thanks to the Internet, small companies like etailz in
    Spokane Valley can now reach people and customers globally.
        The internet has also made life-changing innovations
    possible that have raised our standard of living and connected
    us with the world.
        However, it's also presented new opportunities for
    criminals and bad actors.
        There's spam, spyware, misleading claims, privacy
    violations, data security breaches, telemarketing fraud, and
    more.
        To protect Americans, the FTC is our top cop on the beat--
    both here at home and abroad.
        Thanks to the SAFE WEB Act, the Commission can work on
    cases with an international dimension.
        Specifically, the Commission can share evidence and provide
    assistance to foreign authorities.
        The Commission can also enter into enhanced enforcement
    cooperation with foreign counterparts through staff exchanges,
    international agreements, and other mechanisms.
        And the program has been a resounding success.
        Because of the SAFEWEB, the Commission has responded to
    more than 130 information sharing requests, issued more than
    115 civil investigative demands in more than 50 investigations
    on behalf of foreign agencies and secured settlements against
    companies that violated children's privacy online, engaged in
    sweepstakes scams, deception, and so much more.
        The program has been crucial to securing the EU-U.S.
    Privacy Shield, which was just extended by the EU Commission
    last week.
        Because the internet is borderless, this agreement safely
    and securely preserves the ability for U.S. companies to do
    business online in the EU by allowing transatlantic data flows.
        US SAFEWEB is a successful tool for the FTC to protect
    Americans from online threats from overseas. I'm glad we are
    extending it on a bipartisan basis.
        I also want to thank Mr. Welch and Mr. Bilirakis for their
    efforts to reauthorize Brand USA. Brand USA is a vital program
    to attract foreign visitors to the US, at no cost to taxpayers.
        Their focus on bringing tourism to areas like Eastern
    Washington is spurring economic growth and it's creating
    excitement around other parts of the country outside of big
    city gateways.
        Thank you again to our witnesses for being with us today
    and I look forward to discussing these two important bills.
        I yield back.

        Ms. Schakowsky. The gentlelady yields back.
        And the Chair now recognizes Mr. Welch for 5 minutes for an
    opening statement.

      OPENING STATEMENT OF HON. PETER WELCH, A REPRESENTATIVE IN
                   CONGRESS FROM THE STATE OF VERMONT

        Mr. Welch. Well, I will be brief, because I think, Madam
    Chair, in addition to saying thank you for holding this
    hearing, you really covered why this is so important.
        But Brand USA, why wouldn't we want to do it when it is
    working? And we have a challenge. There is a huge economic
    benefit from tourism. International tourism is especially
    useful for our economy, and we are going to be hearing from the
    witnesses about the thousands of jobs and billions and billions
    of dollars of revenue.
        But there is another reason, I think, Mr. Bilirakis and I
    have worked on this. We do have a dispute, by the way, the two
    of us. He has some illusion that foreign visitors are attracted
    to Disney World, not Ben & Jerry's, but there is room for both
    of us.
        Mr. Bilirakis. There is room for both of us, absolutely.
        Mr. Welch. But here is the thing that is so important and
    what I find so really good working on issues where there is
    common ground. The tourism industry, it really requires people
    who live in each one of our communities to be so invested in
    what it is they are offering, their bed and breakfast or their
    Disney World or their Ben & Jerry's, whatever it is. It is
    local people who have enormous pride of place. And what they
    are selling, in effect, or offering, is this invitation to
    visitors to come and enjoy it.
        And it is so beneficial not just for the folks who work
    there, not just for the State revenues, but for sustaining that
    sense of community that all of us, all of us, in every part of
    this country, eastern Washington, in Florida, in Vermont, in
    Illinois, that we want to encourage and assist.
        So this is a public-private partnership, you know, a little
    bit on the visa and then significant contributions from the
    industry in kind, and this advertising makes a difference.
        So it is really a thrill to have this hearing. And thank
    you so much for being so strong an advocate of this, Chairwoman
    Schakowsky and McMorris Rodgers.
        And to my partner, thank you. But come up and get some Ben
    & Jerry's, all right?
        Thank you.
        Ms. Schakowsky. You could bring it.
        Does the gentleman yield back?
        Mr. Welch. I am sorry. I yield back.
        If we get this bill passed, Ben & Jerry's all around.
        [Laughter.]
        Ms. Schakowsky. That is a deal. Hey.
        The Chair now recognizes Mr. Walden, ranking member of the
    full committee, for 5 minutes for his opening statement.

      OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN
                   CONGRESS FROM THE STATE OF OREGON

        Mr. Walden. Thank you, Madam Chair.
        And good afternoon to our witnesses.
        I am very pleased that the chairwoman has agreed to have
    this subcommittee hearing. It is really important work. And we
    have talked about this a time or two, about moving this
    forward.
        And while the Travel Promotion Act's funding authorization
    of Brand USA, as well as the U.S. SAFE WEB Act, do not expire
    until next year, I think it is really important. We know the
    challenges of successfully moving legislative priorities
    through both Chambers in a timely fashion. It is hard work no
    matter what is going on.
        This subcommittee can do great things for consumers and
    does, and I want to be optimistic we can move these items as
    well as other priorities, such as autonomous vehicles, and I
    know our teams are working on that, and privacy also, in a
    bipartisan manner.
        My friend Mrs. Rodgers and myself will surely--well, I
    guess they say here debate who has the better wineries in our
    neighboring States.
        Mrs. Rodgers. No debate.
        Mr. Walden. There is no debate, that is right. But maybe we
    can agree a good way to solve the argument is if travelers from
    abroad come find out for themselves, and we could be there to
    help referee this.
        The Bureau of Economic Analysis also reinforces our
    assessment of such benefits by reporting that foreign visitors
    account for a disproportionate amount of U.S. travel and
    tourism spending. And for those who might criticize the Brand
    USA program, they should know it does not cost taxpayers one
    dime.
        So please direct your travelers out our way if you are
    critical of it. I would like to make them aware of not just our
    great wineries and breweries, but also the deepest freshwater
    lake in America, Crater Lake, the Painted Hills, the Pendleton
    Round-Up, ``Let'er Buck,'' and our countless mountains, rivers,
    and forests.
        I am sure we all have similar stories, although certainly
    not as great as mine, from our districts. I mean, if you are
    just down to ice cream and nothing else to talk about, I mean,
    really? We have Tillamook ice cream. We could have, like, an
    ice cream-off here, you know, before I leave.
        Mr. Welch. No Ben & Jerry's to Mr. Walden.
        Mr. Walden. I don't think I yielded. I can't imagine why I
    would have.
        So anyway, we all think this is a great program, I believe.
        And I also want to thank Mr. Welch and Mr. Bilirakis in
    sponsoring this important legislation, too.
        I would also like to ask, Madam Chair, unanimous consent
    that an opinion piece by Jason Brandt, who is the CEO of the
    Oregon Restaurant and Lodging Association, it appeared in the
    Hood River News, my hometown paper, be included in the record,
    on the benefits of the program if that meets without objection.
        Ms. Schakowsky. So ordered.
        [The information appears at the conclusion of the hearing.]
        Mr. Walden. And let me segue to another important element
    in our international relationship.
        Since the committee first created the SAFE WEB Act and our
    former colleague, Mary Bono Mack, and our current colleague,
    Mr. Butterfield, extended that program in 2012, it has been a
    valuable tool for the Federal Trade Commission to cooperate
    with foreign enforcement agencies.
        So I appreciate that Mrs. McMorris Rodgers is leading this
    effort on the extension along with Ms. Kelly. And the way this
    program has served as such an important element of cooperation
    in dealing with online fraud and deception perhaps serves as a
    prelude to us doing another data privacy and protection bill
    that establishes strong uniform standards and protections.
    Maybe we can do that in the next hearing.
        The SAFE WEB Act program also clearly reaffirms the
    authority of the Federal Trade Commission, and that fact was
    reflected in our hearing with the agency earlier this year,
    which is that they know how to take on tough problems, and they
    do.
        As we have certainly learned in our efforts to fight
    robocalls this past year, a lot of harmful traffic we are
    dealing with is originating from beyond our borders. So we must
    act so we are not further inundated with spam and spyware meant
    to mislead us and even rob us.
        [The prepared statement of Mr. Walden follows:]

                     Prepared Statement of Hon. Greg Walden

        Good afternoon, and welcome to our witnesses. I am very
    pleased that the Consumer Protection and Commerce Subcommittee
    is moving these initiatives forward today.
        While the Travel Promotion Act's funding authorization of
    Brand USA, as well as the U.S. SAFE WEB Act, do not expire
    until next year, I believe we are all familiar with the present
    challenges of successfully moving legislative priorities
    through both chambers in a timely fashion. This subcommittee
    can do great things for consumers, and I want to be optimistic
    that we can move these items as well as other priorities on
    autonomous vehicles and privacy also in a bipartisan manner
    soon.
        My friend Ms. Rodgers and myself will surely debate who has
    the better wineries in our neighboring States, but maybe we can
    agree a good way to solve the argument is if travelers from
    abroad come find out for themselves. The Bureau of Economic
    Analysis also reinforces our assessment of such benefits by
    reporting that foreign visitors account for a disproportionate
    amount of US travel and tourism spending.
        For those that might criticize the Brand USA program they
    should know it does not cost taxpayers one dime, so please
    direct your travelers out our way. I'd like to make them aware
    of not just our wineries and breweries, but also beautiful
    Crater Lake, the Painted Hills, the Pendleton Round-Up and our
    countless mountains, rivers and forests.
        I'm sure we all have similar stories, although certainly
    not as great of examples as I do, from our districts. That
    represents the true benefits of the Brand USA program, which is
    having travelers to our largest gateway cities gain awareness
    of all the wonders the rest of our lands have to offer. I thank
    Mr. Welch and Mr. Bilirakis in sponsoring this important
    extension. I'd also like to ask for unanimous consent that an
    op-ed by Jason Brandt, CEO of the Oregon Restaurant and Lodging
    Association, that appeared in the Hood River News be included
    in the record on the benefits of the program.
        Let me segue to another important element in our
    international relationships. Since the committee first created
    the SAFE WEB Act, and our former colleague Mary Bono Mack and
    our current colleague Mr. Butterfield extended the program in
    2012, it has been a valuable tool for the Federal Trade
    Commission to cooperate with foreign enforcement agencies. I
    appreciate that Ms. Rodgers is leading this effort on the
    extension, along with Ms. Kelly. The way this program has
    served as such an important element of cooperation in dealing
    with online fraud and deception perhaps serves as a prelude to
    us doing another data privacy and protection bill that
    establishes strong uniform standards and protections--perhaps
    we can do that for the next hearing?
        The SAFE WEB program also clearly reaffirms the authority
    the FTC has. That fact was reflected in our hearing with the
    agency earlier this year, which is that they know how to take
    on tough problems. As we have certainly learned in our efforts
    to fight robocalls this past year, a lot of harmful traffic we
    are dealing with is originating from beyond our borders, so we
    must act so we are not further inundated with spam and spyware
    meant to mislead us and even rob us.
        With that, I'd like to yield my remaining time to Mr.
    Bilirakis to relay opposing views on the need to visit the East
    Coast of our country.
        Thank you.

        Mr. Walden. With that, Madam Chair, I would like to yield
    my remaining time to the gentleman from Florida, Mr. Bilirakis,
    to relay opposing views on the need to visit the East Coast of
    the country.
        Mr. Bilirakis, the time is yours if you so choose to use
    it.
        Mr. Bilirakis. Thank you. Thank you, Mr. Chairman. I want
    to thank you. You are a true statesmen. We are definitely going
    to miss you, Mr. Chairman. I appreciate you so very much.
        And we have the--Mr. Welch and I have probably the best
    darn title of all the legislation, I mean, there is no
    question, Brand USA. And it is a wonderful bill. And again, it
    is a no-brainer as far as I am concerned. But we have got to
    get it through the House and the Senate as soon as possible and
    get it to the President's desk.
        I want to thank the leadership on both sides of the
    committee for holding this hearing and for allowing me to wave
    onto the subcommittee to discuss the Brand USA program and the
    bipartisan bill I am coleading with my good friend and
    colleague Peter Welch, H.R. 3851.
        Brand USA is responsible for increasing international
    visits to the U.S. by 6.6 million since 2013 and generating
    $47.7 billion in economic impact, all at no cost to the
    taxpayer, I think the best public-private partnership that we
    have in this country. I previously worked on a bipartisan basis
    to reauthorize the program with Mr. Welch, and our bill this
    year will fix and extend the funding source for Brand USA
    through 2027.
        I want to thank our witnesses for testifying this
    afternoon. I look forward to hearing from all of you. And,
    again, I want to let you know that we have the number-one beach
    in the United States, Clearwater Beach, just outside----
        Mr. Walden. Reclaiming my time.
        Mr. Bilirakis. All right.
        Mr. Walden. We have a little ocean by our State, sir.
        Oh, look, we are out of time. I yield back.
        Ms. Schakowsky. The gentleman yields back.
        The Chair would like to remind Members that, pursuant to
    committee rules, all Members' written opening statements shall
    be made part of the record.
        And now I would like to introduce our witnesses at today's
    hearing. Mr. Christopher Thompson is the president and CEO of
    Brand USA. Ms. Tori Barnes is executive vice president of
    public affairs and policy for U.S. Travel Association. And Mr.
    Aaron Burstein is a partner at Wilkins Barker and Knauer.
        And we would like to thank all of our witnesses today for
    joining us. We look forward to hearing your testimony.
        At this time, the Chair will recognize each witness for 5
    minutes to provide an opening statement. Before we begin, I
    just want to make sure that everybody understands the lighting
    system here.
        In front of you is a series of lights. The light will be
    initially green at the start of your presentation, and the
    light will turn to yellow when there is 1 minute left, and
    please begin to wrap up at that time, and the light will turn
    red when your time has expired.
        So, Mr. Thompson, we welcome your presentation for 5
    minutes.

      STATEMENTS OF CHRISTOPHER L. THOMPSON, PRESIDENT AND CHIEF
     EXECUTIVE OFFICER, BRAND USA; TORI EMERSON BARNES, EXECUTIVE
        VICE PRESIDENT, PUBLIC AFFAIRS AND POLICY, U.S. TRAVEL
      ASSOCIATION; AND AARON BURSTEIN, PARTNER, WILKINS0N BARKER
                              KNAUER, LLP

                  STATEMENT OF CHRISTOPHER L. THOMPSON

        Mr. Thompson. Chairwoman Schakowsky, Ranking Member
    McMorris Rodgers, members of the subcommittee, thank you for
    inviting me to testify before you today. It is a great
    privilege to represent Brand USA, the destination marketing
    organization for the United States. I would also like to thank
    each of you for your support on behalf of Brand USA, because
    this body has demonstrated overwhelming support publicly for
    the reauthorization of Brand USA.
        As you know, Brand USA is a public-private partnership
    established by the Travel Promotion Act in 2009 and
    reauthorized in 2014. Our mission is to increase incremental
    international visitation, spend, and market share to fuel our
    Nation's economy and to improve and enhance the image of the
    USA worldwide.
        Brand USA inspires visitors from around the globe to visit
    the USA and showcases amazing destinations, experiences, and
    culture, one that you can only experience in the United States
    of America. We directly influence consumers and companies in
    the travel industry across international markets and through a
    variety of platforms and campaigns.
        One example of this type of engagement is our innovative
    megafamiliarization tours. We refer to them as MegaFams. We
    recruit qualified travel agents and tour operators and create
    multistate itineraries that not only take them to, but through
    and beyond, our gateway cities, as was stated earlier. We
    provide education tools and firsthand knowledge so that they
    will need to sell those destinations when they are back in
    their hometowns.
        Since the first MegaFam in 2013, 1,000 international travel
    sellers have visited 50 States, Puerto Rico, U.S. Virgin
    Islands, and our District of Columbia. Participants enjoy
    experiences such as a tour of Chicago's Chess Records, the
    unique atmosphere of Black Bart's Steakhouse in Flagstaff,
    Arizona, and strolling the quaint parks of Newark, Delaware,
    among many other places.
        We do all of this because it works. According to Oxford
    Economics, since 2013 Brand USA's marketing efforts have
    generated 6.6 incremental international visitors. They spent
    21.8 billion incremental dollars. It has generated $6.2 billion
    in Federal, State, and local sales taxes. Overall economic
    impact is $47.7 billion, and nearly 52,000 jobs are supported
    on an annual basis.
        These positive impacts benefit and affect the entirety of
    the U.S. economy, well beyond the travel and tourism sector.
    Roughly 50 percent of the direct, indirect, and induced spend
    include good jobs, created and supported by multiple
    industries, including finance, insurance, real estate, business
    services, and manufacturing.
        Detailed information about our campaigns, our economic
    impact, and our return on investment is available for you and
    your staffs in the annual report for fiscal 2018 that was
    included and submitted for the record.
        Brand USA is more important than ever. The United States
    faces stiff competition in the global tourism marketplace due
    to factors such as a strong U.S. dollar, growing investment
    from competitor destinations, and the misperception among
    travelers that they already know everything that there is to do
    in the United States of America.
        To maintain our effectiveness and not lose ground in
    markets around the globe, Brand USA needs to be reauthorized
    now. While the current authorization does not expire until
    September 30 of 2020, destination marketing plans are developed
    at least 12 months out, prior to the deployment of marketing
    campaigns.
        This means that Brand USA is currently planning for
    campaigns that extend beyond the current fiscal year. We are
    already making decisions about expenditures such as market
    research, message testing, and digital asset deployment that
    lay the foundation for our fiscal 2021 campaigns.
        This type of long-term planning is the reason our results
    have been so positive over the last 6 years. But without
    clarity beyond September, it is difficult to justify these
    types of expenditures.
        At the same time, tour operators and travel media companies
    around the world are making their investment decisions for
    travel that will occur in the next year. Without confidence
    that Brand USA will continue to promote the USA to consumers,
    connect U.S. destinations and travel retailers and more, these
    companies are far less likely to make investments in selling
    the USA.
        This will have a particularly acute impact for U.S.
    destinations beyond the gateways, because international tour
    operators and travel companies take more risk when they sell
    the destinations beyond the gateways. The longer the wait, the
    longer the recovery time. This will lead to a reduction in jobs
    supported by international travel.
        Delays in reauthorization will also impact our partners,
    who are also already in their business cycle planning and
    counting on Brand USA's presence in these key markets around
    the world.
        When Brand USA is reauthorized, we will continue to inspire
    people from all across the globe who enjoy the unique
    experiences that they can only enjoy in our 50 States, the five
    territories, and our District of Columbia. Our efforts will
    continue to power the economy, increase revenues, and create
    jobs across the country.
        I thank you again for each of your individual support and
    for the opportunity to testify before you today. I am happy to
    answer any questions you may have. Thank you very much.
        [The prepared statement of Mr. Thompson follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        [Two documents submitted by Mr. Thompson, ``Annual Report:
    Fiscal Year 2018, Brand USA'' and ``The Return on Investment of
    Brand USA Marketing: FY 2018,'' have been retained in committee
    files and also are available at https://docs.house.gov/
    Committee/Calendar/ByEvent.aspx?EventID=110153.]
        Ms. Schakowsky. Thank you.
        And now, Ms. Barnes, you are recognized for 5 minutes.

                    STATEMENT OF TORI EMERSON BARNES

        Ms. Barnes. Thank you. Chairwoman Schakowsky, Ranking
    Member McMorris Rodgers, members of the subcommittee, good
    afternoon. I am Tori Barnes, executive vice president of public
    affairs and policy for the U.S. Travel Association.
        I would like to thank the committee leadership, also
    Chairman Pallone and Ranking Member Walden, for prioritizing
    this critical issue, and I would also like to thank Congressman
    Welch and Congressman Bilirakis for leading this bill.
        Brand USA does all of this important work at no cost to
    U.S. taxpayers, and it is absolutely critical that Congress
    reauthorizes Brand USA this year.
        U.S. Travel is the only association that represents all
    sectors of the travel industry: hotels, airports, State and
    local tourism offices, car rental companies, theme parks and
    attractions, and many others. Our membership is diverse, but we
    are aligned behind a focused mission: to increase travel to and
    within the United States.
        In 2018, spending by nearly 80 million international
    visitors to the U.S. produced $256 billion in export income for
    the American economy. Overseas visitors spend approximately
    $4,200 per trip and stay an average of 18 days, spending money
    on hotels and transportation, as well as in restaurants, retail
    establishments, and more. And 74 percent of these visitors
    leave with a more favorable view of the United States.
        Travel is the seventh-largest industry in terms of
    employment, and international visitor spending is essential to
    growing the economy and the American workforce. But the United
    States is rapidly losing its share of the global travel market,
    falling 2 percent since 2015. That decline represents a
    difference of 14 million visitors and a hit to the economy of
    about $60 billion in spending and 120,000 American jobs. If
    nothing is done, our market share will continue to erode and is
    projected to fall below 11 percent by 2021.
        This is why it is crucial for Congress to reauthorize Brand
    USA this year. If Brand USA were eliminated, the United States
    would be the only top 20 country destination without a national
    travel promotion budget. Brand USA's proven effectiveness is
    jeopardized by uncertainty over its future. Budgets need to be
    written and campaigns need to be planned, none of which can
    effectively be done unless Brand USA is reauthorized now.
        Quite simply, this is a program that works. Brand USA keeps
    the United States competitive in the global race to attract
    visitors and prevents the decline in market share from being
    worse.
        Over the past 6 years, Brand USA's marketing has brought
    6.6 million international visitors to the United States, who
    created $47.7 billion in economic impact.
        Brand USA brings these visitors through and beyond the U.S.
    gateway cities, ensuring all pockets of America reap the
    economic benefits of international inbound travel. Some of
    these partnerships around the country include Meet Atlantic
    City in New Jersey, Visit Spokane in Washington, Choose
    Chicago, and Travel Oregon.
        Brand USA is also essential to improving the U.S. trade
    balance. Travel is America's second-largest export. While the
    overall U.S. economy ran a trade deficit in 2018, U.S. travel
    exports generated a $69 billion trade surplus. Without this
    surplus, the United States' overall trade deficit would have
    been 11 percent higher.
        It must be noted that Brand USA does not cost American
    taxpayers a dime. Other countries with whom we directly compete
    for tourism dollars, have large taxpayer-funded promotion
    budgets, but Brand USA instead is funded through a small fee
    charged to international visitors approved for travel here
    under the Visa Waiver Program, plus matching contributions from
    the American private sector.
        Earlier this year, more than 600 travel industry
    organizations representing all 50 States signed a letter in
    support of Brand USA to Speaker Pelosi and Leader McCarthy. And
    of course, Brand USA was reauthorized once, in 2014, with
    overwhelming bipartisan support.
        The time is now. The future of the United States' ability
    to welcome and attract international visitors as one collective
    voice and the health of the overall economy depend on it.
        I would like to thank once again the committee for
    recognizing the critical need to reauthorize Brand USA as soon
    as possible. We look forward to working with you to secure the
    future of this valuable program, and I look forward to your
    questions.
        [The prepared statement of Ms. Barnes follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Ms. Schakowsky. Thank you.
        Mr. Burstein, you are recognized for 5 minutes.

                      STATEMENT OF AARON BURSTEIN

        Mr. Burstein. Thank you. Chairwoman Schakowsky, Ranking
    Member McMorris Rodgers, and members of the subcommittee, thank
    you for the opportunity to testify today. My name is Aaron
    Burstein, and I am a partner at Wilkinson Barker Knauer in
    Washington, DC.
        Before joining Wilkinson Barker in 2016, I was a legal
    adviser on consumer protection matters to former FTC
    Commissioner Julie Brill. My perspective on the U.S. SAFE WEB
    Act is informed by my experiences at the FTC and in private
    practice. However, my testimony represents only my own views
    and not those of Wilkinson Barker or any of its clients.
        The SAFE WEB Act provides the FTC with important tools to
    protect U.S. consumers and enforce standards that responsible
    companies strive to meet. It bolsters the FTC's ability to work
    with its foreign counterparts and supports the FTC's
    international leadership and standing.
        Reauthorizing SAFE WEB would keep these essential tools in
    place and send a strong signal of support for the FTC's
    consumer protection mission and its role as an international
    leader in this arena.
        I support reauthorization through H.R. 4779, which would
    leave unchanged the core provisions of the SAFE WEB Act that
    were enacted in 2006 and reauthorized in 2012. I would like to
    highlight a few of the benefits of those provisions.
        First, SAFE WEB provides the FTC with a clear grant of
    extraterritorial authority. A core purpose of SAFE WEB is to
    help protect U.S. consumers from cross-border scams and fraud
    in a globalized and networked world.
        Consistent with this purpose, SAFE WEB expressly allows the
    FTC to prosecute overseas conduct that foreseeably harms
    American consumers. The act also expressly allows the FTC to
    take action against companies that operate in the U.S. and
    cause harm overseas.
        Second, SAFE WEB has allowed the FTC to build an impressive
    record of assisting its foreign counterparts in their
    investigations. As we heard, according to FTC data from March
    2019, the FTC has issued more than 115 administrative subpoenas
    and responded to more than 130 information-sharing requests
    under SAFE WEB.
        SAFE WEB requires the FTC to carefully evaluate these
    assistance requests under a variety of factors. For example,
    the FTC has to consider whether the requesting agency will
    reciprocate when the FTC makes its own requests. This helps to
    ensure that assistance is done carefully and is not a one-way
    street.
        This leads me to a third benefit of the SAFE WEB Act, which
    is the meaningful assistance the FTC obtains from foreign law
    enforcement agencies. In the past few years, the FTC has
    credited the act with securing assistance and cooperation in
    cases involving large-scale data breaches, children's privacy
    violations, and a sweepstakes scam that led the FTC to recover
    over $30 million.
        Finally, the SAFE WEB Act helps the FTC build relationships
    with foreign law enforcement agencies through staff exchanges.
    The officials the FTC hosts as international fellows or interns
    return to their home countries with a better understanding of
    the laws the FTC enforces, how it conducts investigations, and
    how it operates as an agency.
        These visitors also develop personal contacts within the
    agency, and these relationships can bolster trust, promote
    future enforcement cooperation, and facilitate communications
    between the FTC and its counterparts.
        All of these outcomes benefit U.S. companies and consumers.
        In conclusion, the FTC has used its SAFE WEB Act
    effectively in its own investigations and to assist its
    counterparts abroad.
        Thank you, and I look forward to your questions.
        [The prepared statement of Mr. Burstein follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Ms. Schakowsky. Thank you so much.
        We have concluded now witness opening statements. At this
    time, we will move to Member questions. Each Member will have 5
    minutes to ask questions of our witnesses, and I am going to
    start by recognizing myself for 5 minutes.
        You are going to hear a lot of touting of our hometowns,
    and that is all to the good.
        For the third consecutive year, Conde Nast Traveler has
    voted--the readers have voted Chicago as the, quote, ``best
    large city in the U.S. to visit,'' unquote. Pace Magazine
    praises Chicago's theater as, quote, ``one of the most thriving
    theater scenes on the planet,'' unquote. And Bon Appetit
    magazine has dubbed Chicago as ``America's most exciting city
    to eat in right now,'' unquote. And of course, Chicago is also
    home to the largest science museum in the Western Hemisphere,
    champion sports teams, and the famous Art Institute of Chicago.
        I have to express one gripe, however. Yesterday my city was
    maligned to some extent. The President of the United States was
    there, and Chicago, he said, quote, ``is embarrassing to us as
    a Nation,'' unquote, and that, quote, ``Afghanistan is a safer
    place by comparison than Chicago.'' Not helpful.
        But I wanted to ask you, Mr. Thompson, Chicago has a
    thriving tourism market, despite some other comments, and
    everything is in place to support even more tourism. How can
    Chicago specifically benefit from its partnership with Brand
    USA? We do have Choose Chicago--as I think you mentioned, Ms.
    Barnes, or one of you--that partners with Brand USA. But what
    recommendations do you have for cities in general to maximize
    the tourism?
        Mr. Thompson. So, Madam Chairwoman, this might be the
    answer to each and every one of your similar questions about
    your respective hometowns.
        The foundation of our marketing and promotion efforts
    really promote--and by law we are required to promote--the
    entirety of the USA, all 50 States, five territories, and the
    District of Columbia. So our marketing promotion campaigns
    through our own assets do that.
        But I am happy to report that both Choose Chicago and the
    Illinois Office of Tourism are some of our most active
    partners. So, beyond our foundational marketing campaigns, we
    have cooperative marketing across many channels, mostly on the
    digital platforms and in the social media, and both of those
    organizations, on behalf of the city and the State, have been
    very, very active.
        I don't have to tell their stories because on my best day I
    couldn't tell it as well as they could do. What we have to do
    is find ways to magnify their stories, and that is the way that
    we add value to what is being done at the local and State
    level.
        So I am proud to say that I am not sure what else more they
    can do other than what they have been doing, and it is our job
    to continue to bring forward programs and marketing
    opportunities that they see value in.
        Ms. Schakowsky. Thank you.
        So people from all over the world are visiting the United
    States, and today the top five countries for international
    tourism to the U.S. are Canada, Mexico, the United Kingdom,
    Japan, and China. However, there are certain countries where
    you probably see tremendous potential, even more than tourists
    right now who are visiting the U.S.
        So, Mr. Thompson, what are some countries that you view as
    emerging markets for inbound tourism to the United States?
        Mr. Thompson. Well, you mentioned four of our most stable
    markets, the two we share a border with and the U.K. and Japan.
    China is a market that has climbed the top 10 in a rapid pace.
    It is the largest outbound tourism market in the world, 140
    million Chinese travel outside the borders every year. The U.S.
    is the most aspirational destination for our Chinese visitors.
        So as lift improves, as access improves, our job is to
    continue to tell the stories that they actually know, which are
    many of the gateway cities and opportunities through those
    gateways, and more importantly, what they don't know, because
    they are very curious visitors and we expect them to grow in
    numbers.
        Ms. Schakowsky. And I assume you are trying to promote
    that.
        Mr. Thompson. Oh, absolutely. We have four offices in
    China.
        Ms. Schakowsky. Great.
        I now yield to the gentleman, Mr. Bucshon, who is the
    acting vice chair of this committee right now.
        Mr. Bucshon. Well, thank you very much.
        In a digital age where the world is simply a click away,
    bad actors often try to take advantage of international borders
    to defraud consumers. We should ensure that the FTC has the
    tools to work with international law enforcement to bring these
    bad actors to justice.
        That is why I am proud to colead the U.S. SAFE WEB
    Extension Act with Ranking Member McMorris Rodgers, Chairwoman
    Schakowsky, and Congresswoman Kelly, which reauthorizes the
    U.S. SAFE WEB Act of 2006.
        Mr. Burstein, you mentioned that the core purpose of the
    SAFE WEB Act was to affirm the FTC extraterritorial authority.
    Can you provide examples of how the foreseeable and materiality
    standard has protected consumers in the United States?
        Mr. Burstein. Certainly. This aspect of the SAFE WEB Act
    has come up in a couple of recent cases. And just to set the
    frame in a little bit larger perspective, part of the concern
    that would arise from the expiration of SAFE WEB Act authority
    is that, without that express authority in place, FTC
    defendants might have greater incentive to litigate the FTC's
    jurisdiction over them. So having it in place makes bringing
    cases a little bit easier for the FTC.
        That has come up in a couple of cases recently. One example
    would be the case against Triangle Media, which involved an
    operation that had a foreign component. Some of it was based in
    Bulgaria. And part of the defense against the FTC's action on
    the part of one of the defendants was that those operations
    were walled-off foreign channels entirely. The FTC presented
    evidence that that wasn't the case and that there was a
    material connection of sorts to the U.S. and was able to defeat
    that defense.
        Mr. Bucshon. Sounds great.
        Mr. Thompson, Indiana offers many great experiences for
    tourists, such as a chance to ride in the Spirit of Jasper
    Train, engulf themselves in the holidays in Santa Claus,
    Indiana.
        By the way, if you have children and they send a letter to
    Santa Claus, Santa Claus, Indiana, 47579, you will get a
    personal response. They have a whole team of people that work
    with Santa Claus to respond back to every letter, just so you
    know. And if you send a box of Christmas cards, which we get
    from all over the world, they will be personally stamped with a
    stamp in Santa Claus, Indiana, with a logo that is designed by
    local schoolchildren every year. So I just want to put that
    plug in.
        By the way, I love Chicago. I went to med school in
    Chicago. My son lives there.
        Ms. Schakowsky. And I have a house in Indiana.
        Mr. Bucshon. But in all seriousness, Mr. Thompson, can you
    expand on how Brand USA works with States like Indiana to help
    promote tourism?
        Mr. Thompson. Congressman, as I said earlier, I don't have
    to tell the Indiana story because, as you well do and as they
    do at the State office, they tell the story very well. But when
    we are able to take some of our dollars, match them with their
    dollars, and in many cases, we have city-State pairings, where
    the cities will actually partner with the States, then you take
    one plus one plus one, equaling four and five and six, so that
    we are all able to leverage our resources beyond what we would
    be able to do on our own. And I know in many cases that has
    proved to be very successful for many of the States.
        Mr. Bucshon. Great.
        In my remaining time, Mr. Burstein, can you describe how
    the SAFE WEB Act provides accountability measures for both the
    Commission and foreign law enforcement agencies?
        Mr. Burstein. I think one of the key features of SAFE WEB
    along those lines is that, when the FTC provides information to
    a foreign law enforcement agency, it requires certain
    certifications that the receiving agency will use it only for
    appropriate law enforcement purposes and will provide
    confidentiality protections. And those obligations also apply
    to information that the FTC receives from its overseas
    counterparts.
        Mr. Bucshon. Great. I appreciate that.
        And by the way, you can also hike in Hoosier National
    Forest. I just wanted to throw that in.
        With that, Madam Chairwoman, I yield back.
        Ms. Schakowsky. The gentleman yields back.
        And I now recognize Congresswoman Castor for 5 minutes.
        Ms. Castor. Well, thank you, Madam Chair, for organizing
    this hearing.
        Thanks to our witnesses today.
        I want to thank my good friends and colleagues Peter Welch
    and Gus Bilirakis for moving this bill. I am very pleased to be
    a cosponsor.
        Brand USA is working, and we really need to move this bill
    out of committee expeditiously and get it passed. I hear all of
    the reasons why that you have categorized for us. But it is so
    important in this big, diverse country that we have a focal
    point like Brand USA that can combine efforts and be as
    efficient as possible with the dollars--not the tax dollars,
    but the foreign dollars that come to help organize private-
    sector business partners with our public institutions and come
    up with a strategy to market all of the beautiful places and
    destinations across the United States.
        And this is who we are in the State of Florida. The Tampa
    Bay area, we are the hip urban heart of Florida's Gulf Coast.
    The hospitality there is as warm as the weather. Gus Bilirakis
    is absolutely right. Let the record reflect that the beaches of
    the Gulf Coast are the best in the world. In fact, Dr. Beach,
    when he announced the best beaches of 2019 this year, Florida
    was the only State with 2 of those beaches in the top 10, but
    they are all fabulous. I know Congressman Soto is going to
    second that motion.
        But I am concerned that the international traveler numbers
    are--I think, Ms. Barnes, you said the market has been falling
    since 2014, 2 percent, down 2 percent. That is what we see in
    the State of Florida, a lot of domestic travelers that--we love
    them. They all come to Florida to enjoy their vacations. But we
    want the international travelers back. They are important to
    us. As you said, they spend more money. They often stay longer.
        What are the trends? Mr. Thompson, you know the State of
    Florida very well, and I appreciate all of your years of
    service to our State. What is going on, Mr. Thompson, Ms.
    Barnes, on the international traveler numbers? What should we
    understand so that we can make sure that we are doing
    everything to attract those visitors?
        Mr. Thompson. Congresswoman, I was going to say, you know
    my home State is Florida, and I have a long track record with
    Visit Florida, so I know much of what you were saying about
    your area very well.
        I will say that, although the numbers have slowed, the near
    80 million visitors in 2018 and the over a quarter-trillion
    dollars in spend were record numbers. So we are still seeing
    increased visitation, just at a slower pace.
        You know, much of the reason why things slow has as much to
    do with the strength of the dollar, has much to do with, as I
    said earlier, competing destinations, and a lot to do with what
    people are feeling and experiencing back in their points of
    origin.
        So we have consumer sentiment that we track in 10 markets
    every month, so we have a good pulse about what people are
    thinking and what their intent to travel to the United States
    is in the next couple years, and we use that to inform a lot of
    our decisions.
        And I would say that is really the urgency of our request
    to be reauthorized now as opposed to later is a lot of our
    success that we have had over the last 6 years has really been
    dependent on that ability to plan 12 to 18 months out and to
    have the resources that informs those decisions so that we can
    stay on top of any issues that might be affecting people's
    ability or intent to travel.
        Ms. Barnes. And thank you for the question.
        I think I would add to that as well that we are seeing this
    global travel boom. Global travel is up about 5 to 7 percent.
    So, as Mr. Thompson noted, we are still continuing to see
    growth here in the U.S., but it could be that much more. We are
    losing the market share, really. Countries like Spain and
    Australia and Canada are beating us at this game, or have the
    potential to beat us at this game if we don't have Brand USA.
        So Brand USA, we think, is really what sustained this
    continued growth, and the urgency, as Mr. Thompson mentioned,
    is really around that certainty moving forward.
        As I noted in my opening statement, if Brand USA were to go
    away the U.S. would be the only 1 of the top 20 destinations to
    have no organized marketing arm, and that would be a real
    detriment to the economy. And quite frankly, because 74 percent
    of folks leave the U.S. with a more favorable view, it would
    also be a negative diplomatic impact as well.
        Ms. Castor. Well, thank you very much.
        And I imagine, Mr. Bucshon, if the U.S. Travel Association
    and Brand USA was going to write to Santa Claus, they would
    probably ask for swift passage of this bill out of committee
    and the floor, but also probably for all of us to get busy on
    an infrastructure package to help repair our airports, our
    roads, and make travel around the United States of America a
    little more pleasurable.
        So thank you very much. I yield back.
        Ms. Schakowsky. The gentlelady yields back.
        And now I recognize Mr. Latta for 5 minutes.
        Mr. Latta. Well, thank you very much, Madam Chair.
        And to our witnesses, thanks very much for being here.
        Before I do start, I would like to tell my good friend, the
    gentleman from Indiana, that I happen to have Rudolph, Ohio.
    And every year at Rudolph, they have tens of thousands of
    letters that come in that they will stamp with their famous
    Rudolph the Red-Nosed Reindeer postmark, so you can have that
    done in my district.
        So thank you very much again, Madam Chair, and thanks again
    to our witnesses. The first bill we are hearing in this
    legislative hearing today is H.R. 3851, would reauthorize the
    Brand USA program so that public and private resources will
    continue to be leveraged to promote the United States as a
    tourist attraction for international visitors.
        According to Ohio tourism, 46 million people came to Ohio
    in 2017, spending $19 billion and contributing $3.1 billion in
    tax revenue. Ohio has been my home for my entire life, and I
    believe it has much to offer to our visitors from inside the
    United States and from around the globe who are looking for new
    and memorable travel experiences.
        For example, every year in my hometown of Bowling Green, we
    host the National Tractor Pulling Championships, which draws
    thousands of visitors to Bowling Green from all over the
    country and the world for a 3-day event, and it also ends up
    contributing greatly to our local economy.
        In addition to events like the tractor pull, northwest Ohio
    welcomes millions of visitors to the world-class Toledo Zoo and
    Aquarium, Lake Erie shores, the historic Sauder Village, sports
    teams like the Toledo Mud Hens, the roller coaster capital of
    the world at Cedar Point, and the internationally renowned
    Toledo Museum of Art.
        I have heard from local business leaders that Brand USA has
    helped bring visitors to see these attractions and patronize
    local restaurants, hotels, and shops. Because of the positive
    economic benefits of this program--which doesn't, again, cost
    the taxpayer a dime--I am supporting its reauthorization.
        And, Ms. Barnes, if I could start my questions with you. In
    your testimony, you speak of bringing visitors to parts of the
    United States beyond those gateway cities. As I said earlier,
    we have a lot to offer in Ohio. What is Brand USA doing to
    promote the Midwest and the Great Lakes States as a tourist
    destination for international visitors?
        Ms. Barnes. Thank you.
        So I think Mr. Thompson can probably best answer this
    question, but I would note that part of Brand USA's
    requirements are that they actually go well beyond the gateways
    and help to promote all of the U.S.
        So I know that they are doing a lot of good work in Ohio. I
    was recently there for a big travel event, and your State was
    wonderful, a wonderful host. So if I may, Mr. Thompson might be
    able to best address this specific region.
        Mr. Latta. And also, Mr. Thompson, if you could also talk
    about some of the indirect impacts that the Brand USA has on
    our local economies back home along with that.
        Mr. Thompson. Congressman, I appreciate your comments. As I
    listen to all of you promoting your destinations, we have a
    campaign called Ask a Local, and we always say that you can
    know the heart and soul of a community if you know what the
    locals know. So I think if I just take this recording and send
    it out, you know, you guys are as good promoters as any of us.
        So I would reinforce what we said earlier as far as our
    core campaigns, which is our own assets that we promote through
    12 major markets around the world, promote the entirety of the
    United States, 50 States, five territories, and the District of
    Columbia.
        We layer in on top of that some streamed marketing
    campaigns. And I know, for example, we have a campaign that
    recently launched called United Storage, where we are sending
    content creation labs, real-time content creation labs, around
    the United States. And that campaign recently visited Cleveland
    and focused on what Cleveland has to offer and pushed it out on
    digital and social and other marketing platforms.
        I would also remind everyone that included in our testimony
    on the record is our annual report for 2018, and most every--
    all of the accountability that we have as it relates to the
    overall promotion and what we might have done in specific
    destinations is listed in there. So I don't have all of that
    committed to memory and certainly would refer to that as a
    resource to be able to do, and happy to provide after the fact
    any more detail.
        Mr. Latta. Well, thank you very much.
        Madam Chair, I will yield back the balance of my time.
        Ms. Schakowsky. Would you want to ask permission to put
    that in the record, what was just mentioned by Mr. Thompson?
        Mr. Latta. Absolutely.
        Ms. Schakowsky. So ordered.
        Mr. Latta. Ask unanimous consent.
        Ms. Schakowsky. So ordered.
        Ms. Schakowsky. And now Mr. O'Halleran is recognized for 5
    minutes.
        Mr. O'Halleran. Thank you, Madam Chairwoman.
        I am not going to start off with a long list of shameless
    promotions that the other districts have talked about. I am
    sorry. I am going to go back to where I started. I wanted to
    get that in early.
        I am glad that we are here having serious discussions about
    reauthorizing two very important pieces of legislation, and I
    want to thank the witnesses for their time today.
        First, I am proud to be a cosponsor of the legislation that
    would reauthorize Brand USA. It is critical that we pass this
    legislation by the end of the year to ensure that its operation
    and partnerships can continue well into the future.
        Brand USA has tremendous impacts on the First District of
    Arizona. We attract tourists from all over the world, millions
    of them. In 2018, domestic and international travel to my
    district generated $2.5 billion in economic impact and
    supported over 18,000 jobs. That is a pretty good return by
    brand on investment, I would think. The travel industry is the
    fourth-largest employer, and there may be partnerships between
    Brand USA and organizations in my district.
        Now getting back to the important issue of bragging about
    our districts. I would like to have anybody want to come out to
    the district that is larger than the State of Illinois. I grew
    up in Illinois, but----
        Ms. Schakowsky. A little respect.
        Mr. O'Halleran. Yes. I am sorry. But come to the Colorado
    Plateau or any of the 22 national parks and monuments, the Salt
    River Canyon, all of the wonderful water lands that we have
    that are contained in the 6 national forests that are within
    the district, Lake Powell, the 12 Native American Tribes in the
    district, heritage of the southwestern United States, and I
    almost forgot the Grand Canyon and Sedona, which are close to
    my heart also.
        Thank you very much. I yield.
        Ms. Schakowsky. The gentleman yields back.
        And next is Mr. Guthrie, who is now the----
        Mr. Guthrie. Acting ranking member.
        Ms. Schakowsky [continuing]. Acting ranking member.
        Mr. Guthrie. Thank you very much. I appreciate it very
    much.
        And we were talking earlier, I have got to go through my
    list. The Bluegrass Museum in Owensboro--you did a video
    there--which is the birthplace of one of America's forms of
    music, totally American, was born right next to my district,
    used to be my district, Jerusalem Ridge, with Bill Monroe.
        Abraham Lincoln. I know my friend from Illinois claims
    Abraham Lincoln. That is where he became an adult, but he was
    formed on the hardscrabble land of Kentucky, born, and then
    Hardin County and now LaRue County. Drank his first drink of
    water out of Sinking Creek. And then he learned his chores as a
    boy at the boyhood home that you can visit in Hardin.
        In LaRue County, Kentucky, Mammoth Cave National Park, one
    of the great cave systems of the world, is right near where I
    live. Unfortunately, we have new caves open up. We try to keep
    our water away from our houses so we don't become part of
    Mammoth Cave where we live.
        And then all the scenic rivers and small towns, of course
    the gold vault at Fort Knox, which you can only see from the
    road, but you can see it just like the movie ``Goldfinger.''
        And as I got to know Ms. Barnes when I first came to town,
    she used to represent another business that manufactures the
    great American sports car, Corvettes, in my hometown of Bowling
    Green. So if you bring a little cash, you can drive a Corvette
    away from my home district. They are worth every penny of it,
    that is what they are. So moving forward.
        But I want to get to a couple of questions, one for Mr.
    Thompson and Ms. Barnes. And my friend was talking about her
    great city of Chicago, and I agree, it is a great city, and I
    love the great museums and so forth. But we want people
    sometimes to get out of the big cities and see Kentucky and see
    other areas off the beaten path because, you know, when we go
    to some of those countries overseas in Europe, you want to see
    the great cities and the great cathedrals and things. But
    sometimes when you find that little surprising little town if
    you get off the beaten path, it really is what you come back
    and talk about.
        And so what kind of systems or things does Brand USA do to
    try to get people out of the gateway cities--which I am not
    dismissing them at all--but into the places like the Bourbon
    Trail and the bluegrass and things like that?
        Mr. Thompson. So, Congressman, aside from the plateau or
    the foundation of promotion that as a result of the internet
    and through our own channels promotes the entirety of the
    United States, we actually--through our campaigns that are
    otherwise cooperative marketing--we actually do a very
    calculated effort to make sure that we are covering the
    entirety of the United States.
        For example, you mentioned the Hear the Music campaign for
    Owensboro, Kentucky. I think a lot of people would not have
    known that Owensboro, Kentucky, was the home to Bluegrass Music
    Museum and the Hall of Fame there. And I think that is a great
    example. Of all the participants in that campaign, that
    Owensboro, Kentucky, video is actually indexing as high as any.
        Mr. Guthrie. That is great.
        Mr. Thompson. So that just goes to prove that many of our
    visitors know our gateway cities, they are familiar with our
    gateway cities.
        And I think that is the strength of the USA as a
    destination, that in times when people might be challenged,
    even with the U.S. dollar, that we have a variety of options
    even around gateways that give people tremendous opportunity so
    that they can change their travel plans and actually stay in
    and around the gateway, and within 4 or 5 hours of a gateway
    there are things that they have no idea that existed. So we
    take very seriously the charge of promoting beyond the
    gateways.
        Mr. Guthrie. Thanks.
        Ms. Barnes. And I would just add that the average
    international traveler spends about $4,200 when they come to
    the U.S. Travelers from China might spend upwards of $7,000.
    So, as Mr. Thompson noted, when they are staying in and around
    a gateway city, they also stay, on average, for 18 days, and so
    that allows for them to go and experience different
    opportunities.
        And I think one of the things that Brand USA has really
    done well, to highlight lately, in particular, is the desire of
    the traveler to participate in the authentic American
    experience, which obviously goes well beyond just our cities
    but to destinations within rural and suburban areas alike. So
    those international dollars are such a huge benefit to the
    economy. And when those folks come here and stay for that long
    period of time, it really helps them to experience the real
    America.
        Mr. Guthrie. Thank you.
        And I will transition. I know that you say a lot of it is
    through internet trafficking--or internet traffic, and so I
    wanted to talk to Mr. Burstein about the SAFE WEB Act. So we
    have another bill before us. It provides the Federal Trade
    Commission--so can you explain what tools the USA SAFE WEB Act
    provides the FTC that it would not otherwise have, and how does
    it use the tools?
        Mr. Burstein. Sure. Just briefly, there are four main areas
    of tools that SAFE WEB Act provides. First is a clear grant of
    authority to go after frauds and other types of consumer
    protection harms that occur overseas. The second is the ability
    to assist foreign law enforcement investigations that may
    involve conduct in the United States or that harm consumers in
    the U.S. The third is that the FTC can share information that
    it would otherwise be required to keep confidential or be
    prevented from sharing with foreign law enforcement partners.
    And then the fourth is that it allows for staff exchanges
    primarily so that foreign law enforcement officials can come to
    the U.S., get better acquainted with the FTC, build strong
    relationships, and provide a stronger foundation for future
    cooperation.
        Mr. Guthrie. Thank you.
        My time has expired. I yield back.
        Ms. Schakowsky. I didn't hear you say that when Mr. Welch
    brings ice cream, that you would provide a bourbon chaser. I
    was listening for that.
        Voice. Now you are talking.
        Ms. Schakowsky. Yes, yes.
        Mr. Guthrie. I want the maple syrup.
        Ms. Schakowsky. And, Congressman Kelly, you are recognized
    for 5 minutes.
        Ms. Kelly. Thank you so much, Madam Chair.
        I just want to remind my colleague from Kentucky that, yes,
    Lincoln was born in Kentucky, but his library is in--his museum
    is in Springfield, Illinois. But I do agree with him, as far as
    the big city. My district is urban, suburban, and rural, and
    most is out of Chicago, and I want to make sure that we do as
    much for those areas. And we do have--the chairwoman talked
    about all the virtues of Chicago, so I won't double down, but
    we have Olympia Fields Country Club, which is in the top 50 in
    the country, where the PGA has visited, and I am very proud
    that that is in my district. So we want them to keep on coming.
    So--and thank you for your testimony.
        I did want to turn to the SAFE WEB Act. Can you talk about
    what are some examples of how the U.S. and Canada have
    cooperated to the benefit of American consumers, since they
    modeled legislation after the SAFE WEB Act?
        Mr. Burstein. Sure. The FTC has cited cooperation with a
    variety of Canadian law enforcement agencies as being helpful
    in FTC investigations. Some of the places that that has come up
    recently include a children's privacy case involving the
    company V-Tech, that sold connected toys, wasn't obtaining--
    allegedly, wasn't obtaining--appropriate consent to collect
    information from children. The FTC apparently worked with the
    Canadian Office of the Privacy Commissioner, which conducted
    its own investigation and released its own findings.
        Also, another recent case involving Canadian assistance or
    cooperation was the Ashley Madison case, a breach of a dating
    website, involving millions of users of that site. There were
    reportedly users in some 46 countries, including Canada, and
    again, the FTC had obtained assistance from Canada to collect
    evidence in that case.
        Ms. Kelly. So when you talk about the U.S. SAFE WEB Act, it
    doesn't just protect consumers from traditional cases of fraud
    and deception, but as you said, also threats to privacy and
    children's privacy also?
        Mr. Burstein. That is correct.
        Ms. Kelly. And then also, can you discuss some of the types
    of cross-border fraud against U.S. consumers that you see
    originating from different countries? And are there some
    countries that are tougher to deal with or we see more fraud
    originating from?
        Mr. Burstein. From outside the FTC, which is where I
    currently sit, it is a little bit hard to really get a lot of
    insight into where specific things are coming from or where
    large trends come from. But, certainly, based on the cases the
    FTC brings, as well as some of what I hear in my practice
    currently, things like tech support scams remain a very large
    problem. I certainly hear from my father that he receives ads
    or popups indicating that he has some sort of problem and needs
    to employ the services of the company behind the advertiser.
    Those often have a cross-border component to them. And then
    also, things like even U.S.-mail-based scams promoting prizes
    that may not really exist as well as sweepstakes and those
    sorts of schemes can involve actors residing overseas or moving
    money around and keeping assets offshore.
        So those are all things that SAFE WEB gives the FTC the
    authority to work with foreign law enforcement agencies to
    investigate as well as to prosecute, if it is appropriate, the
    parties that are involved in the conduct.
        Ms. Kelly. Do you think there are certain groups that
    these, whoever, go after more than others, or is it equal
    across the board, or is it like seniors or children?
        Mr. Burstein. That is a great question. You know, these
    schemes can affect anyone. One of the recent cases that the FTC
    brought that involved SAFE WEB powers did involve, I believe,
    targeting of elderly consumers. So there certainly are
    vulnerable categories of consumers who can be targeted.
        Ms. Kelly. Thank you.
        And I want to yield some of my time to my colleague from
    Arizona.
        Mr. O'Halleran. I thank you.
        Just wanted to make a correction. It is the Colorado River,
    not Plateau. And it is the Coconino Plateau, and I should have
    fixed that in my notes. Thank you very much.
        And I yield.
        Ms. Schakowsky. We will get that correction in the record
    now.
        Who is it? Oh, Mr. Walden is back.
        Mr. Walden. I am back.
        Ms. Schakowsky. And I welcome your questioning for 5
    minutes.
        Mr. Walden. Thank you. Thank you, Madam Chair. And thanks
    again to our panel.
        Ms. Barnes, you got some explaining to do. Can you explain
    how Brand USA helps drive international visitors to parts of
    Oregon they may not otherwise hear about? I stayed up all night
    working on that one. And then I am going to ask you about
    whether you think Oregon wine is better than, say, Washington
    wine--but, no, I won't put you in that spot. Because we know
    the answer.
        Ms. Barnes. Thank you for the question, and the Oregon wine
    is quite good. I like that, thank you.
        You know, Brand USA really goes well beyond the gateways in
    their efforts, in what they do to market all of the United
    States as they are working throughout the world. And I think,
    as I noted previously, we have the opportunity here to really
    increase our market share. We are losing out to other countries
    that are doing a lot to try to gain the travelers that would
    otherwise come here. And without Brand USA we really would be
    hamstrung. We would be, without Brand USA, one of the top--the
    only one of the top 20 destinations that has no marketing arm.
    So reauthorization is critical. But Mr. Thompson probably can
    get more specific on exactly what is happening in Oregon.
        Mr. Walden. Thank you.
        Mr. Thompson. So, Congressman, as I said before, by law we
    are required to promote all 50 States, five territories, the
    District of Columbia, not only to, but through and beyond the
    gateways, and we are also, by law, responsible for promoting
    both urban and rural destinations. With that kind of charge and
    a lot of it being focused on geography, we don't really focus
    on geography. We focus on lifestyle interests. So in doing
    that, and particularly in your case, as you were referencing,
    people that are coming for a wine experience, certainly Oregon
    has a great opportunity to tell a great story about the wine
    experience that can be had there. And so on those platforms,
    where that storytelling is being told, Oregon is a prominent
    part of the story.
        Mr. Walden. Yep. And we got great breweries too. It is not
    just about the alcohol, but we have great food too and farm-to-
    table. It is really pretty cool what is happening in sort of
    the ecoterrorism world--ecoterrorism--ecotourism world. Yes,
    the other is not really cool. But ecotourism world. We see that
    a lot too and everything else out there.
        Mr. Burstein, robocalls, I know the FTC has been involved
    in a lot of different international cooperation issues and all,
    and I am just curious, this committee, at its larger level, has
    done a lot of work together in a bipartisan way to try and shut
    down these illegal calls that are often made from overseas.
    What guidance can you give us? What impact do you see? What can
    we do more to lessen the burden of these things?
        Mr. Burstein. Well, as far as robocalls specifically go, I
    don't have any recommendations right now, except to point to
    the SAFE WEB Act and what it does generally for the FTC's
    ability to cooperate with international partners.
        Mr. Walden. Yes.
        Mr. Burstein. All of the tools that it provides are useful
    with respect to international robocall schemes, whether it is
    working with law enforcement agencies abroad, getting
    information from them or, you know, helping them obtain
    evidence from the United States that might be useful to shut
    down operations.
        Mr. Walden. Yes, I guess that is kind of what I am looking
    for, is how do we build on those international partnerships.
    Because what we find is this stuff doesn't stop at the water's
    edge, it keeps going. And I know there are scams in the hotel
    lodging industry as well where there are third-party operators
    alleging to be XYZ Hotel, and turns out it was a total fraud,
    and the guest shows up and--I actually was at a hotel in my
    district and overheard one of these conversations, somebody at
    the desk talking--you know, a guest thought they were all
    signed up, and it is like, nope, and they were a victim of a
    fraud. And I think we are all trying to figure out how do we
    stop that as we encourage tourism.
        So, Madam Chair, I don't have anything else. Thanks for
    having this hearing. This is really an important set of issues
    we hopefully will move forward on soon and get them across the
    finish line. So with that, I yield back.
        Ms. Schakowsky. The gentleman yields back.
        And now I recognize Congresswoman Matsui for 5 minutes.
        Ms. Matsui. Thank you very much, Madam Chair.
        And it seems like we are having a competition here about
    which got the best breweries and wineries and things like that,
    but, you know, I have to hand it to Brand USA, you seem to keep
    it all kind of balanced out.
        Because tourism in California in particular is a major
    economic driver, in my district of Sacramento alone, the travel
    industry earned $4.1 billion in spending and supported more
    than 31,000 jobs. And Visit California is a founding partner of
    Brand USA, and this partnership has been really vital to our
    State's economy. And as tourism in California continues to
    grow, I want new international tourists coming to experience my
    district of Sacramento's wineries, museums, and restaurants.
        Now, I have to compliment Brand USA, because we always hear
    about the gateway cities like Los Angeles and New York, but the
    midsize cities like Sacramento really do appreciate your
    emphasis, in a sense, attention to these cities, because we
    have a growing economy with interesting types of tourist
    attractions.
        I want to talk about the international competition. Since
    it was authorized, Brand USA has helped the U.S. stay relevant
    in an increasingly competitive international tourism
    marketplace. While tourism in the United States still makes a
    significant contribution to the economy, it has been declining
    recently. The United States' share of the international tourism
    marketplace dropped from 13.7 percent in 2015 to just 11.7
    percent in 2018. Brand USA's campaigns have supported nearly
    52,000 incremental jobs per year and helped combat this drop.
        Ms. Barnes, what risk do you see associated with failing to
    promptly reauthorize Brand USA in terms of employment in the
    travel and travel-related industries?
        Ms. Barnes. Sure. So, in the travel industry, it is a top-
    10 employer in the United States, and without Brand USA, we
    would be at a real risk of losing not only the international
    visitors that spend on average $4,200, but we would be putting
    ourselves in a position, vis-a-vis the market share with other
    countries, of being the only one of the top 20 destinations
    that would have no marketing arm. And with $47.7 billion of
    economic input as a result of Brand USA and the 52,000
    incremental jobs each year that you have noted, it would really
    be bad for the economy.
        Furthermore, 74 percent of international travelers, when
    they come to the U.S., leave with a more favorable view of the
    U.S. And so the diplomacy value is also very significant. So it
    would be negative from an economic perspective, and it would be
    negative from a diplomatic perspective. So we need Brand USA to
    continue to welcome international visitors here.
        Ms. Matsui. OK, certainly. Now, Brand USA plays a critical
    role in marketing the U.S. as a travel destination to
    international travelers, but marketing is only part of the
    solution to increase international tourism spending in the
    United States. International visitors often struggle with the
    long Customs lines at airports, and we know that some are so
    concerned about uncertainty and wait times that they choose not
    to visit at all. These delays can really stifle tourism and
    hamper economic growth.
        Mr. Thompson, can you describe Brand USA's role in
    communicating U.S. visa and entry policies to international
    travelers?
        Mr. Thompson. Yes, Congresswoman. Aside from the legal
    responsibility on the promotion side, we are also responsible
    for communicating accurate and timely travel policy. So in many
    cases, we are dealing with perceptions versus reality of what
    is actually happening versus what people are perceived that is
    happening. And that has to do with people's abilities to get
    visas. Certainly, there are isolated instances of longer wait
    times, but for the most part, the wait times have come down
    pretty drastically over the last couple of years.
        As it relates to how we welcome everybody, certainly there
    are isolated instances of long lines, but again, those are, in
    most part, the exceptions to the rule, and our job is to make
    sure that we separate the perception from the reality and make
    sure people understand how easy it is to get here and how easy
    it is still to get a visa.
        Ms. Matsui. OK. I was wondering about this, because you all
    have been very successful on marketing yourself and our
    country, but how does Brand USA's funding structure differ from
    other countries'?
        Mr. Thompson. I will start. I can't speak to every other
    country, but I think the one thing that makes ours very
    different--and I like to say it in lay terms--ours is visitors
    paying to grow the visitor entry. So our funding comes from the
    small fee that members of the visa waiver countries, visitors
    from visa waiver countries pay. So I think that is the biggest
    difference. I think Ms. Barnes in her testimony suggested that
    much of our competition that is as well-funded or more funded
    than us are public dollars that are actually being contributed.
    Ours is no tax dollars, no tax burden.
        Ms. Matsui. Fine. Thank you. And I ran out of time.
        Appreciate it. Thanks. I yield back.
        Ms. Schakowsky. The gentlewoman yields back.
        And now we have yet another acting----
        Mr. Carter. Not just another, Madam Chair, this is a
    special one.
        Ms. Schakowsky [continuing]. A special acting, and I
    recognize Mr. Carter for 5 minutes.
        Mr. Carter. Thank you, Madam Chair. And thank all of you
    for being here.
        I am sorry to tell you that I represent an area, the
    coastal area of Georgia--unfortunately, we don't have a lot of
    tourism. I mean, all we have to offer is the largest national
    historic landmark district in the United States in Savannah,
    Georgia. All we have to offer is the beautiful hundred miles of
    pristine coastline with the Golden Isles. All we have to offer
    is the Okefenokee Swamp and the Land of the Trembling Earth. So
    tourism is not really that important to us, I will tell you.
        We are very proud, as you can tell. Savannah is my home. It
    is where I have lived all my time. I was born and raised there,
    intend to live the rest of my life. And I am so proud of it,
    and so proud of the tourism part of it because, obviously, it
    is a job producer for us. Our economy depends so much on it. So
    that is why this is so very important to us and so very
    important to me as well. And I mentioned the Golden Isles, Sea
    Island, St. Simons, everything that we have--all that we have
    to be proud of, and that is certainly important.
        I wanted to ask you, Ms. Barnes, since 2013, do you know
    how many international visitors have come to the U.S.?
        Ms. Barnes. Oh, sorry. I believe that there have been--it
    has created 1.2 million American jobs, and Mr. Thompson
    probably has the exact number, but we have had--I am--it is
    lost my head.
        Mr. Carter. That is OK.
        Mr. Thompson?
        Ms. Barnes. Sorry, 52,000 incremental American jobs each
    year.
        Mr. Carter. Wow.
        Mr. Thompson. Yes, sir.
        Mr. Carter. So very important, obviously, to the First
    Congressional District of Georgia that I have the honor and
    privilege of representing. So thank you for your work.
        Can you explain to me, Ms. Barnes, how does the partnership
    model work between Brand USA? And how do you equate that
    marketing specific areas of the United States?
        Ms. Barnes. Sure. So I am going to let Mr. Thompson answer
    that question.
        Mr. Carter. Yes, that is fine.
        Mr. Thompson. So we deploy resources, Congressman, across
    three major buckets. One is our direct-to-consumer messaging,
    which is our owned assets that we take to 14 markets around the
    world. We have an active relationship with the travel trade
    around the world with 16 offices that we actually have. And
    over half of our resources are spent in cooperative marketing.
    That is with us channeling our dollars in partnership with the
    cities and States all around the country.
        And, again, that is a formula of cooperative marketing that
    allows us all to extend our resources so that, if it is one
    plus one, it equals three or four. If it is one plus one plus
    one, it equals four or five, six or seven. And that is the
    ability that we bring mostly because of the economies to scale
    that we have in the marketing relationships we have with media
    sources around the world.
        Mr. Carter. So the model that you use, which applies the
    fees through ESTA and the Visa Waiver Program, is that better
    than any other model that you can think of?
        Mr. Thompson. Congressman, as for what I know, I know of no
    other that does not involve tax dollars. Or if there are, there
    are very few of them.
        Mr. Carter. Great.
        Mr. Thompson. And I think that is the beauty of this
    public-private partnership, that it is, in layman terms, as I
    said earlier, visitors paying to grow the visitor industry,
    which makes it one of the purest public-private partnerships
    and allows us all to extend resources to the benefit of the
    entire country.
        Mr. Carter. Right. You know, not only are we home to all
    the great things that I mentioned before, but we also have two
    major seaports, the port of Savannah and the port of Brunswick,
    that we are very proud of. And one of the things that we often
    talk about there is the trade deficit.
        And I wanted to ask you, Ms. Barnes, in your testimony, you
    said that travel is America's second-largest export. If we
    didn't have that, would our trade deficit be even higher?
        Ms. Barnes. Absolutely. In 2018, we had a travel trade
    surplus of $69 billion. Without international travel, it would
    have been 11--the trade deficit would have been 11 percent
    higher. So when international visitors come here, they spend
    money in our restaurants, in our hotels, in retail and
    otherwise. That is considered an export. And in the travel
    industry, it is the number-two export for the U.S. economy
    overall.
        Mr. Carter. Great. And that only adds to the fact, and I
    certainly would be remiss if I didn't mention that the Port of
    Savannah is one of the few ports in America that consistently
    has more exports than they do imports. So adding onto that with
    the tourism, we are doing our part in that part of the country
    as well.
        Mr. Burstein, can you explain very quickly the SAFE WEB
    Act's provision that authorizes staff exchanges between our
    benefits and how it benefits the Commission?
        Mr. Burstein. In a nutshell, basically, this provision
    allows the FTC to onboard visiting officials from foreign
    agencies, subject to appropriate security and confidentiality
    requirements. The benefits of doing that are--sort of play out
    over the long term. It helps a lot to have partners overseas
    who understand the FTC well and the laws that it enforces. That
    just helps build trust and helps both agencies on both sides
    identify opportunities for cooperation and figure out how to
    navigate it in specific cases.
        Mr. Carter. Great. Well, thank you very much, and thank all
    of you for your work. As I say, this benefits our district and
    our country tremendously. So thank you.
        Ms. Schakowsky. The gentleman yields back.
        And, Mr. McNerney, you are recognized for 5 minutes.
        Mr. McNerney. I thank the chair, and I thank the acting
    ranking member. And I thank the panel for your time today.
        There are some lesser-known destinations, like my district,
    that are really hidden gems for foreign tourists. Whether it is
    visiting Lodi wineries or the Bay Delta or Big Break or Antioch
    Dunes, there is a lot in my district for travelers around the
    world to look at.
        Mr. Thompson, can you talk about how Brand USA benefits
    less traditional destination spots?
        Mr. Thompson. Yes, sir. Again, the legal charge is that we
    are responsible for doing that, promoting beyond the gateways.
    So the beauty of the internet, the beauty of the fact that most
    of our marketing is done on digital and social marketing
    channels, allows us to see those conversations on those social
    marketing channels, see the conversations that are deployed and
    the marketing that we do on the digital channels, and then it
    all refers back to our website. And on our website, we have the
    ability to promote the entire geographic experiences, the
    lifestyle experiences that you can have anywhere in the United
    States. So most of what would be represented in your great part
    of the State of California would be included in that overall
    promotion.
        Mr. McNerney. Well, thanks. So how could smaller towns and
    businesses take advantage of Brand USA's resources?
        Mr. Thompson. Well, in a lot of cases, there is a local
    convention and visitors bureau or one nearby that is charged
    with telling the story, specifically about that part of the
    State of California. And, as was mentioned by the Congresswoman
    also from California, Visit California is a very good statewide
    representation of what all there is to see and do in
    California. We would not attempt to try to tell those stories
    on our own because we couldn't tell it as well as those
    destinations tell those stories.
        Mr. McNerney. True.
        Mr. Thompson. Our job is to make sure those stories are on
    our platforms, are amplified through our platforms, and are
    pushed out to those that are interested in those type of
    lifestyle interests or specifically visiting the State of
    California.
        Mr. McNerney. Well, thank you. That is good.
        Mr. Thompson. Yes, sir.
        Mr. McNerney. Mr. Burstein, a lot has changed since 2006
    when the SAFE WEB Act was passed. Ninety-eight percent of
    Americans own cell phones. Eighty-one percent own smartphones.
    Internet usage has exploded. And that really opens up
    opportunities for malicious actors who are employing more
    sophisticated techniques and technologies.
        Would you agree that the need for the U.S. SAFE WEB Act has
    increased since 2006?
        Mr. Burstein. I would certainly agree, for the reasons that
    you point out. And as use of connected devices has increased
    and the number of devices has increased, perpetrators of fraud
    and scams have also become increasingly sophisticated and can
    take advantage of other ways to carry out their schemes.
        Mr. McNerney. Are there specific types of cross-border
    fraud that we ought to be aware of?
        Mr. Burstein. You know, I think any of the types of
    consumer protection matters that the FTC deals with generally
    can have a cross-border element. It becomes especially
    challenging for the FTC and helpful to have SAFE WEB authority
    where there is money moving overseas, and the Act gives the FTC
    the authority to go after--very specific authority to go after
    foreign actors and to potentially obtain assets to help
    compensate victims.
        Mr. McNerney. I mean, for an individual that has been
    defrauded, is it viable for them to go to the FTC and get some
    remedy?
        Mr. Burstein. The FTC, I think, as a general matter,
    doesn't really address specific individual complaints but
    instead looks at trends and looks at cases where they can
    obtain relief for a significant number of consumers. And that
    is sort of what guides the agency's decision, but certainly,
    they receive individual complaints, and those are important
    elements of determining what to investigate and which cases to
    bring.
        Mr. McNerney. What would happen to U.S. companies if the
    U.S. SAFE Act were to expire?
        Mr. Burstein. If the act were to expire, all of the
    authorities that it provides to the FTC currently would go
    away. So, for example, the fact that some companies are victims
    of cross-border frauds, you know, whether it is sort of
    business-to-business types of schemes, those could potentially
    be more difficult for the FTC to prosecute. Sometimes
    companies' names might be used. For example, a company's name
    might be used to, say, tell a consumer that they need to get
    their device serviced as a sort of tech support scam. So that
    would be another way that companies could lose out if SAFE WEB
    were not to be renewed.
        Mr. McNerney. OK. I yield back.
        Ms. Schakowsky. The gentleman yields back.
        And now I recognize Congressman Soto for 5 minutes for
    questioning.
        Mr. Soto. Thank you, Madam Chairwoman.
        Certainly, we are big supporters of Brand USA in the
    Orlando and central Florida area. I think it bears discussing
    real quick how Brand USA works for my constituents. Fourteen
    dollars through the Visa Waiver Program for the Electronic
    System Travel Authorization, passenger screening fees, all that
    goes together to develop $100 million paid for by tourists
    coming into the country and matched by private-sector money. So
    $200 million. Plus, another $60 million back to the Treasury,
    which certainly is no shabby feat there. So this is a self-
    funded program with $47.7 billion in economic output. So
    definitely a great value.
        We know the story in Orlando: 126 million tourists to
    Florida, seventy-five million of those went to our region. Of
    those, about 10.8 million international tourists. We are up
    with Canada, we are up with Brazil, but we are down with the
    U.K. and some of our European brothers and sisters. So we know
    we can't take it for granted, international travel, and that is
    where Brand USA, with our partners in Florida and other States,
    play such a critical role.
        The other thing to understand, and I know our panel
    understands, is the big attractions they are already
    advertising: Disney, Universal, Sea World, Legoland. Try to go
    to any State or territory in the Nation and beyond and not see
    the commercials. But it is the small businesses that seem to
    get the most bang for the buck out of Brand USA and Visit
    Florida. Like the U.S. Tennis Association and Gatorland in
    eastern Orlando, east Orange County; the Paddling Center, if
    you want to paddle on the Shingle Creek; or Pioneer Village in
    Osceola County, and see our rancher heritage there; Bok Tower,
    where you can see unique flora and fauna, as well as the
    central Florida sports complex, both in Polk County; and then
    all the mom-and-pop hotels that are along 192, and I drive, all
    benefit from having those little internet ads and getting those
    Google searches right and all the other little tricks of the
    trade to connect to this.
        So it would be helpful if I could hear from both Mr.
    Thompson and Ms. Barnes about your opinions on how this helps
    small tourist businesses in a lot of our districts. And we will
    start with Ms. Barnes and then Mr. Thompson.
        Ms. Barnes. So thank you for the question. I think one of
    the things to highlight or that you noted is that the Disneys
    of the world, who are very important members and partners in
    this, have the resources to sort of market themselves. But it
    is these smaller destinations that don't have the resources
    without collaborating with Brand USA that wouldn't be able to
    market in such platforms across the globe. So it is really
    those smaller destinations that benefit the most. And I will
    let Mr. Thompson answer more specifically that answer as well.
        Mr. Soto. Sure.
        Mr. Thompson. Congressman, I appreciate your comments.
    Again, Florida is my home State. And I was with Visit Florida
    for 15 years, so I know that model well, and I know the
    relationship that we have had with them.
        You know, even though Disney and those major players in
    Orlando do a lot on their own, they also find ways to partner
    with us.
        Mr. Soto. And we don't take them for granted----
        Mr. Thompson. Yes, sir.
        Mr. Soto [continuing]. That they are leading the charge in
    central Florida. But I think sometimes there is a notion that
    it is just going to some of these major tourism attractions,
    when it goes all throughout.
        Mr. Thompson. And I think with our sensitivity to and legal
    responsibility to looking beyond the gateways, I will use a
    destination that often--that doesn't have the recognition
    Orlando has, which is Kissimmee. You mentioned 192.
        Mr. Soto. Sure----
        Mr. Thompson. Kissimmee is a major cooperative marketing
    partner with us because--for that very reason. They see the
    opportunity to raise the awareness of that destination, which
    is, you know, right border to Orange County and oftentimes not
    recognized at the same level that Orange County because of all
    the major infrastructure. A lot of people don't realize there
    is a big portion of Disney that is actually in Osceola County.
        Mr. Soto. Sure. It is in my district.
        Mr. Thompson. Yes, sir. So you know it well. So I think
    that is--I think you are just preaching the real value
    proposition that we bring to the equation, is that we certainly
    do not take our gateways for granted, because other than the
    two countries we share a border with, that is the only way
    people get here. But once they get here, we make sure they
    understand that, not only are there those opportunities in
    those gateways, but within just a couple hours of each of those
    gateways, there is opportunities they are not even aware of.
        Mr. Soto. Sure.
        Mr. Thompson. Yes, sir.
        Mr. Soto. Well, thanks for that.
        I just want to end with a brief story that I was kayaking
    at the Paddling Center in Osceola and Kissimmee. It is no more
    than probably 5 miles, 7 miles from Disney World, and you get
    to kayak on Shingle Creek. And they get pretty much most if not
    all their customers from just a simple Google search of Disney
    and kayaking, or Orlando or Kissimmee and kayaking. And it is
    all based upon those ads that come from Visit Florida that work
    with Brand USA. So we appreciate what you all do.
        And I yield back.
        Ms. Schakowsky. The gentleman yields back.
        And now I recognize Mr. Bilirakis for--what? I am sorry.
    What? Oh.
        Mrs. Rodgers. Go to Bill.
        Ms. Schakowsky. Thank you. Out of order, but still I
    recognize Mr. Bilirakis.
        Mr. Bilirakis. Thank you. I appreciate the recognition.
        OK. Well, Madam Chair, I know a lot has been said, and this
    is a great program, particularly for our hidden treasures. And
    I represent the Tampa Bay area, and we have many, many hidden
    treasures in the Tampa Bay area. I am not going to go through
    all of them, but this is a wonderful program, particularly for
    entities, whether they are cities, counties, chambers, what
    have you, and they don't have a lot of money to advertise. And
    this is a great partnership.
        So I have a couple questions. Mr. Thompson and Ms. Barnes,
    is there any other program in the Government that doesn't cost
    taxpayers a dime but provides 25-to-1 return on investment? And
    can you explain how Brand USA determines its success in this
    regard? It is a tough question, right?
        Mr. Thompson. So, Congressman, thank you for your
    sponsorship of this bill and for all you have done for the
    State of Florida, my home State, and for what you are doing for
    Brand USA. We are very--I am not in a position to speak to any
    other program and how they are funded and how it would compare
    to ours. All I can speak to is ours. We are very proud of our
    ROI study. You mentioned the 25-to-1 return on investment. That
    is consistent over the 6 years of our existence. It is verified
    by an outside third party with credibility. It measures our
    reach into markets across all of our marketing channels and our
    ability to influence the intent to travel to the United States.
    It has been consistent over the 6 years, and the numbers that
    have been well documented and articulated here is that it is
    in--you know, resulted in the over 6 million incremental
    visitors over those 6 years and the collective spend of nearly
    $48 billion.
        So I would say that that has been the one consistent thing
    that I think we have been able to bring forward as our
    accountability to Congress. And the methodology, the entire
    study for the last year's ROI, is included on the record and is
    available for each and every one of you and your staff to be
    able to look at, as far as the methodology and the end result.
        Mr. Bilirakis. I appreciate it very much. Again, the proof
    is in the pudding.
        Mr. Thompson. Yes, sir.
        Mr. Bilirakis. And we did put in--when we reauthorized 5
    years ago, we put in further accountability measures, and we
    have improved the bill as well this year.
        So another softball here. Mr. Thompson and Ms. Barnes, your
    testimonies both discuss the urgency of reauthorizing Brand USA
    and extending its funding source. Can you elaborate on this and
    explain why we need to get this done this year as opposed to
    waiting until next year? And I know that is very important. It
    is critical.
        Mr. Thompson. Congressman, I will take that one, if you
    don't mind, also.
        Mr. Bilirakis. Sure.
        Mr. Thompson. I emphasized that in my testimony and the
    fact that destination marketing requires at least a 12-year
    planning window and--I mean, excuse me, 12-month planning
    window. In many cases, it is 18 months.
        Mr. Bilirakis. Right.
        Mr. Thompson. Our success over these 6 years, documented by
    our ROI study, is our ability to go in and do the research
    necessary to qualify the markets, to qualify the opportunities,
    and to make sure that we are deploying the resources in the
    most efficient and effective way that we can do it. We are
    already inside the 12-month window for planning for 2021, much
    less the current fiscal year. So every month that goes by, it
    is compromising our ability to have an influence on this
    current fiscal year and also compromising our ability to have
    the same influence we have had over the last 6 years and the
    following fiscal year.
        And that is not just for us, it is our partners here in the
    United States who also have their own planning cycles, and as
    important, our tour operators and our media companies that we
    work with in the markets that we are promoting in. They are
    also making decisions on where they are going to deploy their
    dollars and who they are going to promote. Without adequate
    planning time, we compromise our ability to be as efficient and
    as effective as we have been in the past.
        Mr. Bilirakis. The bottom line is, you need certainty.
        Ms. Barnes, do you want to add anything?
        Ms. Barnes. Sure. I would just add that the certainty
    really is critical. I mean, this is not a typical government
    program. It can't be retroactively reinstated in a way that
    would allow Brand USA to continue the strong work that it does,
    as Mr. Thompson just noted. And I would also just highlight
    that, you know, as I noted, if Brand USA were to go away, we
    would be one of the top 20 destinations, the only one, that
    doesn't have a travel promotion marketing budget, and that
    would be really catastrophic from an economic perspective.
        Mr. Bilirakis. I agree.
        I have a couple more questions but, Madam Chair, in the
    interest of time, I will submit them for the record. But I will
    encourage all Members to please cosponsor this bill, and also,
    the people listening at home, this is really great for your
    economy, and encourage your Member. Please encourage your
    Member to cosponsor the bill and support the bill.
        Thank you, and I yield back, Madam Chair.
        Ms. Schakowsky. The gentleman yields back, and I thank him
    for his leadership.
        And now I recognize for 5 minutes Congresswoman Blunt
    Rochester.
        Ms. Blunt Rochester. Thank you, Madam Chairwoman. And thank
    you to the panelists.
        I would be remiss if I did not do a commercial for the
    First State, which no one can take away from us, because we are
    the first State, Delaware, and in that regard, we have culture,
    everything from the Clifford Brown Jazz Festival and Rehoboth
    Beach Jazz Festival to the Bob Marley People's Festival,
    Firefly, and the Apple Scrapple Festival, for those of you who
    like apples and scrapple. We also are very historic, including
    stops on the Underground Railroad. We have farms that grow
    great vegetables and fruit, but also we have dairy. So we have
    the best ice cream in the United States of America. And also,
    we are known for tax-free shopping. I know there are some snaps
    out there for tax-free shopping. And last but not least, I
    would just mention our pristine beaches. We have some beautiful
    beaches. Our slogan is ``endless discoveries'' because there
    are many discoveries that a lot of times people don't know
    about such a small State. And I think that is why this hearing
    is really vitally important for the economic viability of our
    country, but also just to share across the world the things
    that we have.
        And I had the opportunity to live in China for a few years,
    and the country of America is called Meiguo. Mei is for
    beautiful. We are known as the beautiful country. And so what
    you do is really an opportunity for us to showcase that.
        And my questions really start with taking up with Mr.
    Soto's comment about small areas, small States. Particularly, I
    understand that the Travel Promotion Act mandated that Brand
    USA treat rural and urban markets equally, including smaller
    markets that are not as visited by international travelers.
        And so I just wanted to ask Mr. Thompson, does Brand USA
    face any barriers to achieving that goal of promoting travel to
    small and rural markets? Are there areas of improvement that
    you see? And then, how can we as Members of Congress help in
    those areas of improvement, in addition to supporting the great
    work of Mr. Welch and Mr. Bilirakis?
        Mr. Thompson. Congresswoman, lots of questions. I would
    say, as it relates to our mandate to promote the entirety of
    the United States, a State like yours is well represented on
    our digital platforms. You know, traditional advertising in the
    destination space was a 30-second ad, and it would be
    impossible to talk about what there is to see and do in the
    United States in a 30-second ad. So that is why we really
    concentrate on the digital platforms, the social media
    platforms. And so all the stories being told by your
    destinations within your State that are on the internet are
    then amplified by what we are doing.
        You know, support of this bill and our ability to move
    forward is the most critical part of what we are looking for.
    Obviously, there are other travel policy issues that are
    related, but being selfish, our reauthorization is the one I am
    focused on right at the moment.
        Ms. Blunt Rochester. Well, I want to tie it into your
    reauthorization. That is why I asked the question.
        And, Ms. Barnes, you might want to answer as well, if there
    are things that we could do, particularly for smaller and rural
    areas.
        Ms. Barnes. I think, quite honestly, the voice of Members
    of adding as a cosponsor, which I believe you are, encouraging
    other colleagues from other small States as well, I think
    States throughout all of the United States, and I think also
    voicing, you know, the strong bipartisan support, moving
    forward with the congressional leadership and really urging
    this to be, you know, not only marked up but included in a
    must-pass legislation before the end of this year.
        Ms. Blunt Rochester. Gotcha. Great.
        One other question I had was about people who travel here
    internationally but they are already in the country. And I
    know, through concierges and other ways, you are able to reach
    out to them, but can you describe just some successful efforts
    that you had in that regard, people who get here and then have
    to go out to other places?
        Mr. Thompson. You know, long-haul travel is a major
    investment, not only of dollars, but of planning. So in many
    cases, our visitors are coming here, and as Ms. Barnes stated,
    they stay for an extended period of time. So they are here for
    weeks at a time. So much of what they are planning is they know
    that they are going to come in at one destination, and they may
    be leaving at another destination, and they may be driving or
    flying in between.
        The ability that we have on our platforms to be able to
    talk about what there is to see and do in between is what fuels
    a lot of those decisions, yes, ma'am.
        Ms. Blunt Rochester. Great. Thank you.
        And I yield back.
        Ms. Schakowsky. And now it is my pleasure to yield 5
    minutes to the real ranking member of this committee, Mrs.
    McMorris Rodgers.
        Mrs. Rodgers. I thank the chair for yielding.
        And I apologize, I was down at DOT speaking on autonomous
    vehicles, self-driving cars, which is also exciting. Clearly,
    though, I am picking up on here, I think we are going to have
    to do a taste test on ice cream, because we have the Washington
    State University Creamery that I will put up against anyone
    else, and we will have a little social in our future. That will
    be good.
        But great to hear about Brand USA. I wanted to go back to
    the legislation that I am proud to be helping lead this
    Congress, and that is the reauthorization of the U.S. SAFE WEB
    Act. And we had a hearing earlier this year with the FTC. All
    five FTC Commissioners were at the hearing, and they were
    talking about how critical it was to reauthorize the
    legislation, critical to the agency's international work.
        So I wanted to ask Mr. Burstein--and Robin Kelly and I are
    working on this legislation together--would you just explain
    how the Commission uses the tools the Act provides, and what
    the effect would be if we failed to reauthorize it?
        Mr. Burstein. Yes. Thank you for the question. I think
    there are three main ways that the FTC uses the SAFE WEB Act in
    its investigative capacity, and then one that is more of a
    general agency relationship-building mechanism.
        In terms of its use in investigations, you can think of it
    as helping information to flow in two directions. One is that
    it allows the FTC to provide assistance to foreign law
    enforcement agencies, to provide information to them, and the
    actions of those agencies can support or complement actions
    that the FTC itself brings. The Act also allows the FTC to
    guarantee confidentiality of information that it receives from
    foreign law enforcement agencies. And then a third
    investigative and operational impact of the Act is that it
    gives a very clear grant of authority for the FTC to bring
    cases against foreign actors who cause harm in the United
    States, as well as to bring actions against entities that have
    some aspect of their conduct occur in the U.S. but harm
    consumers overseas.
        So those are the three main ways that the act supports the
    FTC's investigations and enforcement actions.
        In addition to that, there is a provision that allows the
    FTC to conduct staff exchanges, and under this authority the
    FTC has hosted dozens of officials from foreign law enforcement
    agencies. Those folks gain a better understanding of how the
    FTC works. And when they return to their home countries and go
    back to working in their law enforcement agencies, they can
    become better contacts, trusted contacts at the FTC, and that
    can establish a foundation for more effective enforcement
    cooperation.
        Mrs. Rodgers. Would you give us some examples of what would
    happen if we did not have the U.S. SAFE WEB Act in law?
        Mr. Burstein. So I think, generally, it would impair the
    FTC's ability to get information from foreign sources. The
    confidentiality protections are very important in that regard,
    and it might make foreign law enforcement agencies less willing
    to provide information that can help the FTC conduct its
    investigations.
        The extraterritorial authority that I mentioned is also, I
    think, extremely useful in some FTC cases. Foreign defendants
    might become more willing or emboldened to challenge the FTC's
    authority if there weren't this clear statutory authorization
    saying that they are subject to the FTC's authority.
        Mrs. Rodgers. OK, thank you.
        And then, Ms. Barnes, I know we have been talking a lot
    about USA Brand. Would you just speak to the economic impact
    and the number of American jobs that Brand USA has meant?
        Ms. Barnes. Sure. So since 2013, Brand USA has brought
    $47.7 billion in economic input to the U.S., creating 52,000
    jobs annually, incrementally, incremental jobs. And
    importantly, international travelers, when they come here, they
    spend $4,000. Chinese travelers, for example, might spend as
    much as $7,000. So in addition to the positive, economic
    benefits when these international travelers come here and
    leave, that is considered an export. And so there has also been
    a $69 billion travel trade surplus created by international
    travel, helped by Brand USA in 2018. And were it not for
    international travel, the trade deficit would be 11 percent
    higher, so significant economic input and jobs created.
        Mrs. Rodgers. Super. Thank you.
        I yield back.
        Ms. Schakowsky. Thank you. The ranking member yields back.
        And now, last but not least, I want to give 5 minutes for
    questioning to the sponsor of the legislation, and that is
    Peter Welch.
        Mr. Welch. Thank you very much.
        You have been good witnesses, so we have gotten the
    information. I was going to reiterate the importance--you have
    been clear about the importance of passing this now because of
    the lead time, so I won't ask you to say it again. I think you
    have made the point very, very clearly. But I do want to
    emphasize the urgency that we act. And I want to thank
    Chairwoman Schakowsky because she realized that very much, and
    that is why we are having this hearing.
        Secondly, though, I do want to talk a little bit about what
    is happening with China, because we used to have significant
    visitors from China. Obviously, there is some turmoil. We have
    got a battle about trade and other political issues. And their
    visits are down and their spending is down.
        How can Brand USA help us mitigate that loss of a very
    important market?
        Ms. Barnes. Thank you. And thank you so much, Congressman,
    for your leadership on this important issue. Brand USA is so
    important, and we would not be where we are without you, so
    thank you.
        Travel from Chinese is, in fact, down. It is down from
    about 3.2 million visitors to about 3 million. And a lot of
    that is a result of not only the strong dollar, but the trade
    tensions with China. I will let Mr. Thompson talk a little bit
    more about this, but from our perspective, from an industry
    perspective, were Brand USA not in China with their four
    offices, we would be in a really bad position, because we know
    that they are there, and they are still encouraging and working
    to drive international travel.
        Mr. Welch. So you have to get the counter story out----
        Ms. Barnes. Yes, absolutely.
        Mr. Welch [continuing]. That it is safe to be here, you are
    welcome to be here, and we are waiting for you to come.
        Go ahead, Mr. Thompson.
        Mr. Thompson. Congressman, I will add my thanks for your
    leadership in this regard. It is very much appreciated.
        You know, I said in my testimony and in response to some of
    the questions, the amazing power about travel is that it has
    the ability to transcend politics. We have our fingers on the
    pulse of the sentiment in China, and the sentiment in China as
    it relates to U.S. being the most aspirational destination in
    the world has not changed.
        Mr. Welch. That is good.
        Mr. Thompson. So, as there are trade tensions between our
    two countries, what makes the United States aspirational has
    little to do with politics. It has everything to do with the
    destinations, the experiences you can have here, and also some
    of the most welcoming people in the world.
        Mr. Welch. Great.
        Mr. Thompson. So our ability to stay connected to the
    travel trade through our four offices, our ability to stay
    active on the digital and the social media platforms, and doing
    it in China is like no other place. We had to build a whole
    separate digital platform to do so. So we are there and we are
    staying strong as far as our commitment there, because it is
    such an emerging market.
        Mr. Welch. Thank you very much.
        And one other question that always arises when there are
    advertising campaigns is how do you measure whether it is
    working, because you can't link a particular purchase to a
    particular ad. But on the other hand, it is in your interest,
    obviously, to have some confidence that it is working. And can
    you just speak to that?
        Mr. Thompson. Well, I would speak to it in two ways. One is
    the ROI study that is on the record that talks about our ROI,
    which over 6 years has been 25 to 1, as far as dollars
    invested. Again, no taxpayer dollars but----
        Mr. Welch. Right.
        Mr. Thompson [continuing]. Visitor dollars that are
    invested to grow the visitor industry, a 25-to-1 return. And I
    would suggest the other way that we measure that is, over our
    history, we now have over a thousand partners that partner with
    us on a regular basis. Those are destinations and brands here
    in the United States, it is tour operator companies, and it is
    media companies around the world. And we have a 94 percent
    retention rate with those partnerships. And, if what we were
    doing in deploying in market wasn't working, I don't think that
    we would have that high of a retention rate.
        Mr. Welch. Ms. Barnes, do you have anything to add?
        Ms. Barnes. No. I would just echo that. And I think that,
    in addition to that, testimonials on the ground. I know you
    were recently at a fall foliage festival in Vermont, and I
    think hearing firsthand from the bed and breakfasts and the
    other folks in different States highlighting the importance of
    Brand USA driving customers, there is another important touch
    point in the testimonial voice.
        Mr. Welch. Great. Thank you.
        I yield back.
        Ms. Schakowsky. Thank you.
        I want to thank our witnesses. You had an opportunity to
    have a little travelogue here, yourselves, the wonderful
    districts that we are so proud to represent. And I want to
    thank all of you for coming, sometimes having to repeat
    yourself, but I am so happy that people were in and out of this
    hearing and were able to hear the background on both of these
    pieces of legislation.
        I remind Members that, pursuant to committee rules, you
    have 10 business days to submit additional questions for the
    record to be answered by the witnesses who have appeared. And I
    ask the witnesses, please, to respond promptly to any questions
    that you may receive.
        I request unanimous consent now to enter the following
    documents into the record: a letter from the Federal Trade
    Commission, a letter from the Electronic Privacy Information
    Center, and a letter from the American Hotel & Lodging
    Association. And with no objection, so ordered.
        [The information appears at the conclusion of the
    hearing.]\1\
    ---------------------------------------------------------------------------
        \1\ The Electronic Privacy Information Center letter has been
    retained in committee files and also is available at http://
    docs.house.gov/meetings/IF/IF17/20191029/110153/HHRG-116-IF17-20191029-
    SD006.pdf.
    ---------------------------------------------------------------------------
        Ms. Schakowsky. At this time, the subcommittee, with our
    thanks, is adjourned.
        [Whereupon, at 4:25 p.m., the subcommittee was adjourned.]
        [Material submitted for inclusion in the record follows:]

                 Prepared Statement of Hon. Frank Pallone, Jr.

        We are here today to discuss the reauthorization of two
    important programs that protect and support American consumers
    and businesses. The first promotes foreign travel to the United
    States, which bolsters our economy and creates American jobs.
    The second enhances the Federal Trade Commission's cross-border
    cooperation and enforcement so it can protect U.S. consumers
    and businesses from foreign actors engaged in fraud and
    deception.
        Our Nation has a broad variety of unique treasures that
    attract tourists from all around the world. Whether you're
    looking for arts or adventure, nature or theme parks, music or
    sports, there is something for everyone in our country.
        Tourism is a critical industry in my district and
    throughout New Jersey. From hiking in Sandy Hook to pilgrimages
    to the Stone Pony in Asbury Park, foreign and domestic
    travelers are helping hotels, restaurants, and other small
    businesses grow and succeed. But we can always welcome more
    visitors from abroad.
        Brand USA--established by the Travel Promotion Act of
    2009--makes sure that foreign tourists are aware of the endless
    possibilities available to them when they travel to the United
    States.
        I applaud Representatives Welch and Bilirakis for their
    work over the years to ensure the success and long-term
    viability of this important program. They have now introduced
    legislation that would ensure Brand USA is funded through 2027.
        It's important that we continue to support Brand USA's
    mission. International travel to the United States supports 1.2
    million American jobs. It also adds billions of dollars to our
    economy. A new study shows Brand USA's global marketing
    initiatives deliver an excellent bang for the buck. For every
    dollar spent on marketing by Brand USA, 28 dollars are added to
    the U.S. economy. As we continue to work to strengthen our
    economy, we should certainly look at extending Brand USA beyond
    next year.
        I also look forward to discussing legislation introduced by
    Ranking Member McMorris Rodgers and Representative Kelly to
    extend the U.S. SAFE WEB Act of 2006. Last reauthorized in
    2012, the SAFE WEB Act enhances the FTC's ability to protect
    U.S. consumers and businesses from cross-border fraud and
    deception.
        With the internet, advances in telecommunications, and our
    increasingly connected homes and businesses, Americans are more
    susceptible than ever to foreign actors engaged in fraud and
    deception, illegal scams, and spyware.
        The SAFE WEB Act affirms the FTC's ability to go after
    foreign actors engaged in wrongdoing. The law also bolsters the
    FTC's ability to exchange information and to provide
    investigative assistance to foreign law enforcement agencies.
    This kind of cross-border cooperation is crucial to the FTC's
    ability to bring strong enforcement actions.
        The FTC has relied on provisions of the SAFE WEB Act for a
    wide range of cases--from its takedown of a sweepstakes
    telemarketing scam targeting older adults to its action against
    a manufacturer of connected toys that violated the Children's
    Online Privacy Protection Act.
        However, without Congressional action this law will expire
    next year.
        We should extend both these programs to protect American
    businesses and consumers.

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