Congressional Record, Volume 167 Issue 108 (Tuesday, June 22, 2021)

[Congressional Record Volume 167, Number 108 (Tuesday, June 22, 2021)]
[House]
[Pages H2944-H2947]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CONSUMER SAFETY TECHNOLOGY ACT

MR. PALLONE. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3723) to direct the Consumer Product Safety Commission to
establish a pilot program to explore the use of artificial intelligence
in support of the mission of the Commission and direct the Secretary of
Commerce and the Federal Trade Commission to study and report on the
use of blockchain technology and digital tokens, respectively.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 3723

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Consumer
Safety Technology Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

TITLE I--ARTIFICIAL INTELLIGENCE AND CONSUMER PRODUCT SAFETY

Sec. 101. Short title.
Sec. 102. Pilot program for use of artificial intelligence by Consumer
Product Safety Commission.

TITLE II--BLOCKCHAIN TECHNOLOGY INNOVATION

Sec. 201. Short title.
Sec. 202. Study on blockchain technology and its use in consumer
protection.

TITLE III--DIGITAL TOKEN TAXONOMY

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Reports on unfair or deceptive acts or practices in
transactions relating to digital tokens.

SEC. 2. DEFINITIONS.

In this Act--
(1) the term ``consumer product'' has the meaning given
such term in section 3(a) of the Consumer Product Safety Act
(15 U.S.C. 2052(a)); and
(2) the term ``Secretary'' means the Secretary of Commerce.

TITLE I--ARTIFICIAL INTELLIGENCE AND CONSUMER PRODUCT SAFETY

SEC. 101. SHORT TITLE.

This title may be cited as the ``AI for Consumer Product
Safety Act''.

SEC. 102. PILOT PROGRAM FOR USE OF ARTIFICIAL INTELLIGENCE BY
CONSUMER PRODUCT SAFETY COMMISSION.

(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Consumer Product Safety Commission
shall establish a pilot program to explore the use of
artificial intelligence by the Commission in support of the
consumer product safety mission of the Commission.
(b) Requirements.--In conducting the pilot program
established under subsection (a), the Commission shall do the
following:
(1) Use artificial intelligence for at least 1 of the
following purposes:
(A) Tracking trends with respect to injuries involving
consumer products.
(B) Identifying consumer product hazards.
(C) Monitoring the retail marketplace (including internet
websites) for the sale of recalled consumer products
(including both new and used products).
(D) Identifying consumer products required by section 17(a)
of the Consumer Product Safety Act (15 U.S.C. 2066(a)) to be
refused admission into the customs territory of the United
States.
(2) Consult with the following:
(A) Technologists, data scientists, and experts in
artificial intelligence and machine learning.
(B) Cybersecurity experts.
(C) Members of the retail industry.
(D) Consumer product manufacturers.
(E) Consumer product safety organizations.
(F) Any other person the Commission considers appropriate.
(c) Report to Congress.--Not later than 180 days after the
conclusion of the pilot program established under subsection
(a), the Consumer Product Safety Commission shall submit to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate, and make publicly available on
the website of the Commission, a report on the findings and
data derived from such program, including whether and the
extent to which the use of artificial intelligence improved
the ability of the Commission to advance the consumer product
safety mission of the Commission.

TITLE II--BLOCKCHAIN TECHNOLOGY INNOVATION

SEC. 201. SHORT TITLE.

This title may be cited as the ``Blockchain Innovation
Act''.

SEC. 202. STUDY ON BLOCKCHAIN TECHNOLOGY AND ITS USE IN
CONSUMER PROTECTION.

(a) In General.--
(1) Study required.--Not later than one year after the date
of enactment of this Act, the Secretary of Commerce, in
consultation with the Federal Trade Commission, and in
consultation with the any other appropriate Federal agency
the Secretary determines appropriate, shall conduct a study
on current and potential use of blockchain technology in
commerce and the potential benefits of blockchain technology
for limiting fraud and other unfair and deceptive acts and
practices.
(2) Requirements for study.--In conducting the study, the
Secretary shall examine--
(A) trends in the commercial use of and investment in
blockchain technology;
(B) best practices in facilitating public-private
partnerships in blockchain technology;
(C) potential benefits and risks of blockchain technology
for consumer protection;
(D) how blockchain technology can be used by industry and
consumers to reduce fraud and increase the security of
commercial transactions;
(E) areas in Federal regulation of blockchain technology
that greater clarity would encourage domestic innovation; and
(F) any other relevant observations or recommendations
related to blockchain technology and consumer protection.
(3) Public comment.--In producing the study required in
subsection (a)(2), the Secretary shall provide opportunity
for public comment and advice relevant to the production of
the study.
(b) Report to Congress.--Not later than 6 months after the
completion of the study required pursuant to subsection (a),
the Secretary shall submit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the

[[Page H2945]]

Senate, and make publicly available on the website of the
Department of Commerce, a report that contains the results of
the study conducted under subsection (a).

TITLE III--DIGITAL TOKEN TAXONOMY

SEC. 301. SHORT TITLE.

This title may be cited as the ``Digital Taxonomy Act''.

SEC. 302. FINDINGS.

Congress finds that--
(1) it is important that the United States remains a leader
in innovation;
(2) digital tokens and blockchain technology are driving
innovation and providing consumers with increased choice and
convenience;
(3) the use of digital tokens and blockchain technology is
likely to increase in the future;
(4) the Federal Trade Commission is responsible for
protecting consumers from unfair or deceptive acts or
practices, including relating to digital tokens;
(5) the Commission has previously taken action against
unscrupulous companies and individuals that committed unfair
or deceptive acts or practices involving digital tokens; and
(6) to bolster the Commission's ability to enforce against
unfair or deceptive acts or practices involving digital
tokens, the Commission should ensure staff have appropriate
training and resources to identify and pursue such cases.

SEC. 303. REPORTS ON UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN
TRANSACTIONS RELATING TO DIGITAL TOKENS.

Not later than one year after the date of enactment of this
Act and each year thereafter until fiscal year 2024, the
Federal Trade Commission shall transmit to the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate, and make publicly available on its website, a report
of--
(1) any actions taken by the Commission relating to unfair
or deceptive acts or practices in transactions relating to
digital tokens;
(2) the Commission's other efforts to prevent unfair or
deceptive acts or practices relating to digital tokens; and
(3) any recommendations by the Commission for legislation
that would improve the ability of the Commission and other
relevant Federal agencies--
(A) to further protect consumers from unfair or deceptive
acts or practices in the digital token marketplace; and
(B) to promote competition and promote innovation in the
global digital token sector.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
Jersey (Mr. Pallone) and the gentleman from Florida (Mr. Bilirakis)
each will control 20 minutes.
The Chair recognizes the gentleman from New Jersey.

General Leave

Mr. PALLONE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on H.R. 3723.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New Jersey?
There was no objection.
Mr. PALLONE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise to speak in support of H.R. 3723, the Consumer
Safety Technology Act, and I want to begin by thanking Representatives
McNerney and Burgess for their leadership on this bill, which they
reintroduced this Congress.
This legislation will help modernize our consumer protection agencies
and encourage the use of advanced technologies, like artificial
intelligence and blockchain in support of product safety and consumer
protection.
These technologies can help the Consumer Product Safety Commission
and the Federal Trade Commission improve their operations and more
effectively carry out their mission.
Technological advances and globalization have greatly expanded the
range of consumer products on the market. And as consumers shop online,
more and more of these products are being shipped directly to homes.
Artificial intelligence could help the CPSC oversee the increasingly
complex range of products under its jurisdiction by helping to identify
new injury trends and emerging hazards.
AI can also help the CPSC monitor online marketplaces for the illegal
sale of recalled products. The persistence of recalled products on
online third-party marketplaces is a particularly pernicious problem
that puts Americans needlessly at risk.
For example, months after the dangerous Fisher-Price Rock `n Play and
other infant inclined sleepers were recalled, a Consumer Reports
investigation found that these products were still being sold on sites
like Facebook Marketplace and Craigslist, even though they had been
linked to dozens of infant fatalities. I am hopeful that artificial
intelligence can be harnessed here to help eradicate the illegal sale
of recalled products on online marketplaces.
The CPSC could also use AI to assess the risks of the growing number
of imported consumer products entering our country and being sent
directly to consumers.
This bill incorporates a bill originally introduced by Representative
Soto and Guthrie, the Blockchain Innovation Act, and a bill originally
introduced by Representatives Davidson and Soto, the Digital Taxonomy
Act.
As incorporated in this legislation, these bills will help identify
ways blockchain technology can be used to further support consumer
protection. It will also make sure that scammers and fraudsters don't
get ahead of consumers and law enforcement in the realm of blockchain
and digital tokens.
Mr. Speaker, finally, I thank Ranking Member Rodgers and Consumer
Protection and Commerce Subcommittee Ranking Member Bilirakis for
working with us to move this bill; and as always, to the chairwoman of
the subcommittee, the gentlewoman from Illinois (Ms. Schakowsky).
Mr. Speaker, I call on my colleagues to support this measure, and I
reserve the balance of my time.
Mr. BILIRAKIS. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of H.R. 3723, the Consumer
Safety Technology Act.
I thank Representatives Burgess, McNerney, Guthrie, Soto, and
Davidson for their leadership on this effort and, of course, our
chairman and our ranking member, and our ranking member on the
subcommittee, as well as the chairman of the subcommittee.
Mr. Speaker, the bipartisan bill directs the Consumer Product Safety
Commission to conduct a pilot program to determine how artificial
intelligence may be used to advance the agency's product safety
mission.
Given the agency's broad jurisdiction over so many consumer products,
efficiently and accurately analyzing data in the marketplace is
critical to its effective operation.
This bill also includes an important study of how blockchain
technology may be used to prevent fraud, increase privacy, and bolster
our Nation's supply chain. This is complementary to the American
COMPETE Act that also prioritizes this emerging technology to ensure
America leads in the technology and in its development.
Furthermore, H.R. 3723 also focuses on digital tokens, which are
seeing increased adoption by consumers. The bill targets ways in which
we can protect consumers from fraud in the digital token marketplace, a
dangerous trend that has recently become more apparent.
Mr. Speaker, I thank my colleagues for their important work on this
particular piece of legislation, and I urge all my colleagues to
support this bill.

{time} 1445

Mr. PALLONE. Mr. Speaker, I yield 4 minutes to the gentleman from
California (Mr. McNerney), who is the prime sponsor of this bill.
Mr. McNERNEY. Mr. Speaker, I thank the chairman for yielding and for
recognizing this legislation.
Mr. Speaker, I rise today in support of my legislation, H.R. 3723,
the Consumer Safety Technology Act.
H.R. 3723 will encourage the use of emerging technologies,
specifically artificial intelligence and blockchains, to help keep
consumers safe. It will aid our consumer protection agencies with
carrying out their missions.
H.R. 3723 incorporates the AI for Consumer Product Safety Act
legislation that I authored with Representative Burgess. These
provisions direct the Consumer Product Safety Commission, CPSC, to
establish a pilot program for the agency to use AI in furtherance of
the agency's work to protect consumers from unsafe products.
For example, the CPSC could use artificial intelligence to more
quickly and efficiently identify consumer product hazards, such as
exploding laptops that have faulty batteries, defective USB chargers,
furniture that tips over, and unsafe infant sleeping products.
Being able to identify these hazards more quickly will enable the
CPSC to

[[Page H2946]]

help also recall products more quickly and, in turn, help save lives.
We have heard firsthand from CPSC commissioners when they testified
before the House Energy and Commerce Committee that artificial
intelligence can benefit the agency's work in serving the American
people.
I am pleased that last year my legislation, the AI in Government Act,
was enacted into law. Among other things, the AI in Government Act
establishes an AI Center of Excellence to facilitate adoption of AI
technology in the Federal Government. This will provide a central
resource within the government to aid agencies with AI adoption and
help agencies share best practices.
But it is also critical that agencies build up their capacity
internally to adopt AI technology. H.R. 3723 will empower the CPSC to
do just that. The CPSC's experience here will also serve as an example
for other agencies that are looking to integrate AI in furtherance of
their agency's missions.
H.R. 3723 also incorporates the Blockchain Innovation Act introduced
by Representative Soto and Guthrie. These provisions will help ensure
that we use the benefits of blockchain technology to help stop scams
and fraud.
Additionally, H.R. 3723 incorporates the Digital Taxonomy Act from
Representatives Soto and Davidson. These provisions will help ensure
the scammers and fraudsters don't get ahead of consumers and law
enforcement in the realm of blockchain and digital tokens.
Mr. Speaker, I thank Representatives Burgess, Soto, Guthrie, and
Davidson for their work in H.R. 3723, and Chairman Pallone and Ranking
Member Rodgers for helping to move this important bill. Mr. Speaker, I
urge all of my colleagues to support it.
Mr. BILIRAKIS. Mr. Speaker, I yield 4 minutes to the gentleman from
Texas (Mr. Burgess).
Mr. BURGESS. Mr. Speaker, I rise in support of the legislation with
Representative McNerney, H.R. 3723, the Consumer Safety Technology Act.
You know, over my time in the Energy and Commerce Committee, I have
made several trips out to the CPSC and observed firsthand how the men
and women dedicate their lives to ensuring that consumers have safe
products, that consumers have products that are not going to cause harm
to the user.
And as we approach the anniversary of our Nation's independence on
July 4, I also have a lot of respect for these same individuals who
ensure that our fireworks that are sold at the commercial stands at the
side of the road also meet certain specifications.
So as we approach Independence Day, it is always a good time to
acknowledge the work done by the men and women in the Consumer Product
Safety Commission.
The bill we are talking about today actually passed the last Congress
by a voice vote, but it did fail to advance in the United States
Senate. It includes the bill that Mr. McNerney and I introduced, the
Artificial Intelligence for Consumer Product Safety legislation, along
with, as referenced, the Blockchain Innovation Act and the Digital
Taxonomy Act.
We are once again considering this bill because this is commonsense
legislation that should be signed into law to improve and modernize our
consumer protection agencies.
The Consumer Product Safety Commission has jurisdiction over 15,000
consumer products. Many of these are purchased online without the
consumer reviewing or assessing the product in person. Throughout the
time of the pandemic, Americans have sought to fulfill their needs
through online shopping, and many companies and small businesses have
innovated products to further increase convenience of daily life. The
pool of products available to consumers is continually expanding,
putting further strain on the Consumer Product Safety Commission to
ensure the safety of those products.
While technological advances are increasing the number of types of
products available for consumption, the Consumer Product Safety
Commission can employ advanced technology to assist in that mission.
This bill directs the Consumer Safety Product Commission to establish
a pilot program to use artificial intelligence for tracking injury
trends, identifying consumer product hazards, monitoring the retail
marketplace for the sale of recalled products, or identifying unsafe
imported consumer products.
It is safe to say that when the Consumer Product Safety Commission
was created, no one anticipated the sheer volume of material that would
be being imported, for which they now have responsibility.
Artifical intelligence uses algorithms to quickly automate human
functions and to filter and analyze data. Artificial intelligence is
already advancing capabilities in multiple sectors to better serve
consumers by increasing capacity and enhancing outcomes. As artificial
intelligence advances, it should be capable of helping predict fail
rates and identifying problems in consumer products before they can
significantly impact the market.
If we want the United States to stay ahead of China and other global
competitors, we must advance and utilize artificial intelligence in all
appropriate products and processes. I can think of no better place to
implement these capabilities than in the protection of products used
every single day by American consumers.
Mr. Speaker, I urge colleagues to support this bill. Again, it passed
the last Congress in a voice vote. We should advance it today.
Mr. PALLONE. Mr. Speaker, I yield 3 minutes to the gentleman from
Florida (Mr. Soto), another sponsor of the bill from the Energy and
Commerce Committee.
Mr. SOTO. Mr. Speaker, I thank Chairman Pallone, Chairwoman
Schakowsky, Representative McNerney, Ranking Member Rodgers, Ranking
Member Bilirakis, and Representative Guthrie for bringing forward these
key bills on technology.
Emerging technologies like artificial intelligence, blockchain
technologies, and cryptocurrency are playing a growing importance in
our daily lives and are going to be an economic driver for the 21st
century economy.
Blockchain, in essence, is a fixed ledger. Once you add data or a
transaction, it cannot be changed. Therefore, it makes the data have
integrity and makes sure that, as we are doing transactions and adding
data over the internet, it can't be changed and that there is certainty
to it. That is why it is so critical.
Then once we add AI to analyze this fixed data, we could help solve
some of the largest problems that we face as a nation: healthcare,
climate change, to be two examples; the delivery of personal protection
equipment during a pandemic.
And, of course, cryptocurrency allows for small businesses, in
particular, to provide services across the world without the
transaction costs of exchanging currencies. It will help with
remittances and other ways that we can modernize our economy.
It is essential that the United States continue to be a global leader
in these emerging technologies to ensure our democratic values remain
at the forefront of this technological development. Authoritarian
regimes like China and Russia are investing heavily in these areas. It
is absolutely critical for the free world to invest and to win the
future in these areas.
Also, as a responsible global leader, the United States must strike
the appropriate balance of providing an environment that fosters
innovation while ensuring appropriate consumer protection.
That is why I am proud to work with Representative McNerney on H.R.
3723. It includes parts of the Digital Taxonomy Act and all of the
Blockchain Innovation Act. As many of you know, blockchain technology
will be helpful in the ways we discussed already.
First, H.R. 3639, the Blockchain Innovation Act, directs the
Department of Commerce, in consultation with the FCC, to conduct a
study and submit to Congress a report on the state of blockchain
technology in commerce, including its use to reduce fraud and increase
security.
Mr. Speaker, I thank Representative Guthrie for cosponsoring and co-
introducing this bill. This is a first step toward a long-term goal of
setting up a Blockchain Center of Excellence in the Department of
Commerce.
In addition, the Digital Taxonomy Act requires a similar report from
the FCC to report recommendations on deceptive practices, and the
relationship between the FTC, FCC, and the CFTC.

[[Page H2947]]

Mr. Speaker, I thank Representative Davidson for his cosponsorship.
When we look at market volatility, the use of cryptocurrency for
ransomware in recent attacks like the Colonial Pipeline and tax
evasion, it is critical that we get in on the front end of this.
Mr. Speaker, I am pleased to work with Representative McNerney, and I
urge support for H.R. 3723.
Mr. BILIRAKIS. Mr. Speaker, I yield 1 minute to the gentlewoman from
Arizona (Mrs. Lesko), an important member of the Energy and Commerce
full committee and also the subcommittee.
Mrs. LESKO. Mr. Speaker, I thank the gentleman from Florida (Mr.
Bilirakis) for yielding to me.
Mr. Speaker, I rise in support of H.R. 3723, the Consumer Safety
Technology Act.
This is important legislation that helps the U.S. solidify its
position as a world leader in technology and innovation while
protecting our constituents.
This legislation builds on the American COMPETE Act, which sought to
remove burdensome regulatory barriers to promote American innovation
and consider how safely using artificial intelligence can transform the
future.
This is also a critical step in maintaining our global competitive
edge in emerging technologies over foreign adversaries like China. It
will make us less reliant on these bad actors for important
technologies.
The Consumer Safety and Technology Act establishes a pilot program to
explore how to safely use artificial intelligence to protect consumers
from unsafe products while advancing cutting-edge American innovation.
Mr. Speaker, I urge my colleagues to support this legislation.
Mr. PALLONE. Mr. Speaker, I yield 3 minutes to gentlewoman from
Illinois (Ms. Schakowsky), the chairwoman of the subcommittee.
Ms. SCHAKOWSKY. Mr. Speaker, I thank the authors of this bipartisan
legislation, Representatives McNerney, Burgess, Soto, Guthrie, and
Davidson.
Mr. Speaker, the Federal Government should put the incredible
technological innovation of the last few years to work for the American
people, and that is exactly what this bill does. It promotes the use of
artificial intelligence in product safety and studies how blockchain
can protect consumers.

{time} 1500

Regulators will be stronger and the American consumer safer when we
consider how these technologies can help them achieve this mission.
Part of the mission of the Federal Trade Commission is to protect
consumers from unfair and deceptive business practices. It is important
to keep track of any such practices in the digital token ecosystem
where unscrupulous businesspeople may be seeking to take advantage of
the vast wealth created by digital tokens. This bill directs the
Federal Trade Commission to report on its work keeping users of the
digital token system safe.
Emerging technologies pose both perils and promise. That is why we
must direct Federal agencies to make sure that consumers are safe.
Mr. BILIRAKIS. Mr. Speaker, I have no other speakers.
Mr. Speaker, this is a very important bill. We have to get it past
the finish line this time. I urge all of my colleagues to support this
bill, and I yield back the balance of my time.
Mr. PALLONE. Mr. Speaker, I also urge support for this bill, and I
yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from New Jersey (Mr. Pallone) that the House suspend the
rules and pass the bill, H.R. 3723.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROSENDALE. Mr. Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.

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