[House Report 116-545]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-545
======================================================================
CONSUMER SAFETY TECHNOLOGY ACT
_______
September 29, 2020.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Pallone, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 8128]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 8128) to direct the Consumer Product Safety
Commission to establish a pilot program to explore the use of
artificial intelligence in support of the consumer product
safety mission of the Commission, having considered the same,
reports favorably thereon with amendments and recommends that
the bill as amended do pass.
CONTENTS
Page
I. Purpose and Summary.............................................. 4
II. Background and Need for the Legislation.......................... 4
III. Committee Hearings............................................... 5
IV. Committee Consideration.......................................... 6
V. Committee Votes.................................................. 7
VI. Oversight Findings............................................... 7
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures 7
VIII.Federal Mandates Statement....................................... 7
IX. Statement of General Performance Goals and Objectives............ 7
X. Duplication of Federal Programs.................................. 7
XI. Committee Cost Estimate.......................................... 8
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits...... 8
XIII.Advisory Committee Statement..................................... 8
XIV. Applicability to Legislative Branch.............................. 8
XV. Section-by-Section Analysis of the Legislation................... 8
XVI. Changes in Existing Law Made by the Bill, as Reported........... 10
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
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 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.
Amend the title so as to read:
A bill 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.
I. PURPOSE AND SUMMARY
H.R. 8128, the ``Consumer Safety Technology Act'', was
introduced on August 28, 2020, by Representatives Jerry
McNerney (D-CA) and Michael C. Burgess (R-TX). H.R. 8128, as
remoted, incorporates text based on two additional bills that
together help modernize our consumer protection agencies.
H.R. 8128 requires the Consumer Product Safety Commission
(CPSC) to establish a pilot program to explore the use of
artificial intelligence for at least one of the following
purposes: (1) tracking injury trends; (2) identifying consumer
product hazards; (3) monitoring the retail marketplace for the
sale of recalled consumer products; or (4) identifying unsafe
imported consumer products.
During its consideration of the bill, the full Committee
adopted an amendment in the nature of a substitute
incorporating text based on two other bills referred to the
Committee on Energy and Commerce: H.R. 8153, the ``Blockchain
Innovation Act'' and an amended version of H.R. 2154, the
``Digital Taxonomy Act''. H.R. 8153 directs the Department of
Commerce (DOC), in consultation with the Federal Trade
Commission (FTC), 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. H.R.
2154, as incorporated, directs the FTC to submit to Congress a
report and recommendations on unfair or deceptive acts or
practices relating to digital tokens.
II. BACKGROUND AND NEED FOR LEGISLATION
The Consumer Product Safety Commission is charged with
protecting the public from unreasonable risks of injury or
death associated with the use of the thousands of types of
consumer products under the agency's jurisdiction.\1\ The CPSC
has various tools to support its consumer product safety
mission but faces growing challenges. The CPSC has broad
jurisdiction over more than 15,000 consumer products used in
and around the home, in recreation, in schools, and more.\2\ In
addition, international trade and technological advances have
further expanded the range of products in the market, making
overseeing and regulating consumer products even more
complex.\3\ Changing consumer trends, including the rise of
online shopping, also requires the CPSC to refocus its efforts
to protect consumers from unsafe e-commerce shipments entering
the United States.\4\
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\1\U.S. Consumer Product Safety Commission, About CPSC
(www.cpsc.gov/About-CPSC).
\2\Recalls.gov, Your Online Source for Recalls (www.recalls.gov/
cpsc.html).
\3\U.S. Consumer Product Safety Commission, Strategic Plan 2018-
2022 (www.cpsc.gov/s3fs-public/CPSC_2018-2022_Strategic_Plan.pdf).
\4\U.S. Consumer Product Safety Commission, CPSC e-Commerce
Assessment Report (Nov. 2019) (www.cpsc.gov/s3fs-public/CPSC-e-
Commerce-Assessment-Report.pdf).
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Artificial intelligence (AI) and machine learning, a subset
of AI, have vast potential benefits and can support the CPSC's
product safety mission and improve the agency's operations. AI
could help identify hazardous products, assess the risk of
imported consumer products and monitor online marketplaces for
recalled products. At a recent Subcommittee on Consumer
Protection and Commerce hearing, former CPSC Acting Chairman
Ann Marie Buerkle testified that the CPSC is not currently
using AI but that AI could help the agency analyze more
data.\5\
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\5\Subcommittee on Consumer Protection and Commerce, House
Committee on Energy and Commerce, Protecting Americans from Dangerous
Products: Is the Consumer Product Safety Commission Fulfilling Its
Mission?, 116th Cong. (2019) (H. Rept. 116-23).
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Another emerging technology that can be useful in promoting
consumer protection is blockchain technology.\6\ Already widely
used in cryptocurrencies, blockchain has the potential to
benefit many other industries because of its ability to keep
track of transactions accurately, securely, and efficiently.\7\
At the same time, blockchain technology, including its use in
cryptocurrencies, may come with risks for consumers.\8\
---------------------------------------------------------------------------
\6\Investopedia, Blockchain Explained (Feb. 1, 2020)
(www.investopedia.com/terms/b/blockchain.asp).
\7\The Growing List of Applications and Use Cases of Blockchain
Technology in Business And Life, Business Insider (Mar. 2, 2020)
(www.businessinsider.com/blockchain-technology-applications-use-cases).
\8\Federal Trade Commission, Know the Risks Before Investing in
Cryptocurrencies
(Feb. 16, 2018) (www.ftc.gov/news-events/blogs/business-blog/2018/02/
know-risks-investing-cryptocurrencies); See note 7.
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H.R. 8128 is needed to help ensure our consumer protection
agencies stay up to date with emerging technologies and to
encourage the use of emerging technologies such as AI and
blockchain in support of product safety and consumer
protection.
III. COMMITTEE HEARINGS
For the purposes of section 103(i) of H. Res. 6 of the
116th Congress, the following hearing was used to develop or
consider H.R. 8128:
In the 114th Congress, the Subcommittee on Commerce,
Manufacturing, and Trade held an informational hearing on March
16, 2016. The hearing was entitled, ``The Disrupter Series:
Digital Currency and Blockchain Technology.'' The Subcommittee
received testimony from the following witnesses:
John A. Beccia III, General Counsel and
Chief Compliance Officer, Circle Internet Financial (on
behalf of the Electronic Transactions Association)
Jerry Brito, Executive Director, Coin Center
Jerry Cuomo, Vice President Blockchain
Technologies, IBM
Matthew Roszak, Chairman, Chamber of Digital
Commerce, and Co-Founder, Bloq. Inc.
Paul Snow, Chief Architect, Factom
Juan Suarez, Counsel, Coinbase
Dana Syracuse, Counsel, BuckleySandler LLP
In the 116th Congress, the Subcommittee on Consumer
Protection and Commerce held an oversight hearing on April 9,
2019. The hearing was entitled, ``Protecting Americans from
Dangerous Products: Is the Consumer Product Safety Commission
Fulfilling Its Mission?'' The Subcommittee received testimony
from the following witnesses:
Panel I:
The Honorable Ann Marie Buerkle, Acting
Chairman, Consumer Product Safety Commission
The Honorable Elliot F. Kaye, Commissioner,
Consumer Product Safety Commission
The Honorable Robert S. Adler, Commissioner,
Consumer Product Safety Commission
The Honorable Dana Baiocco, Commissioner,
Consumer Product Safety Commission
The Honorable Peter A. Feldman,
Commissioner, Consumer Product Safety Commission
Panel II:
Rachel Weintraub, Legislative Director and
General Counsel, Consumer Federation of America
Nancy Cowles, Executive Director, Kids in
Danger
Remington A. Gregg, Counsel for Civil
Justice and Consumer Rights, Public Citizen
Mike Gentine, Counsel, Schiff Hardin LLP
In the 116th Congress, the Subcommittee on Consumer
Protection and Commerce held an oversight hearing on May 8,
2019. The hearing was entitled, ``Oversight of the Federal
Trade Commission: Strengthening Protections for Americans'
Privacy and Data Security?'' The Subcommittee received
testimony from the following witnesses:
The Honorable Joseph J. Simons, Acting
Chairman, Federal Trade Commission
The Honorable Noah Joshua Phillips,
Commissioner, Federal Trade Commission
The Honorable Rohit Chopra, Commissioner,
Federal Trade Commission
The Honorable Rebecca Kelly Slaughter,
Commissioner, Federal Trade Commission
The Honorable Christine S. Wilson,
Commissioner, Federal Trade Commission
IV. COMMITTEE CONSIDERATION
Representatives McNerney (D-CA) and Burgess (R-TX)
introduced H.R. 8128, the ``Consumer Safety Technology Act'',
on August 28, 2020, and the bill was referred to the Committee
on Energy and Commerce. The bill was referred to the
Subcommittee on Consumer Protection and Commerce on August 31,
2020.
On September 9, 2020, the bill was discharged from further
consideration by the Subcommittee on Consumer Protection and
Commerce as the bill was called up for markup by the full
Committee. The Committee on Energy and Commerce met in virtual
open markup session, pursuant to notice, on September 9, 2020,
to consider H.R. 8128. During consideration of the bill, an
amendment in the nature of a substitute offered by Mr.
McNerney, on behalf of himself, Mr. Burgess, and Mr. Guthrie,
was agreed to by a voice vote. Mr. Pallone, Chairman of the
committee, subsequently moved that H.R. 8128 be ordered
reported favorably to the House, amended, and the Committee on
Energy and Commerce agreed to the motion on final passage by a
voice vote, a quorum being present.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list each record vote
on the motion to report legislation and amendments thereto. The
Committee advises that there were no record votes taken on H.R.
8128, including the motion for final passage of the bill.
VI. OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the
oversight findings and recommendations of the Committee are
reflected in the descriptive portion of the report.
VII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to 3(c)(2) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
The Committee has requested but not received from the
Director of the Congressional Budget Office a statement as to
whether this bill contains any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
VIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
IX. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to direct
the Consumer Product Safety Commission to explore the use of
artificial intelligence in support of the CPSC's mission to
require the Department of Commerce and the Federal Trade
Commission to study and report on the use of blockchain
technology and digital tokens.
X. DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 8128 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
XI. COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
XII. EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 8128 contains no earmarks, limited
tax benefits, or limited tariff benefits.
XIII. ADVISORY COMMITTEE STATEMENT
No advisory committee within the meaning of section 5(b) of
the Federal Advisory Committee Act was created by this
legislation.
XIV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title; Table of contents
Section 1(a) designates that the short title may be cited
as the ``Consumer Safety Technology Act''. Section 1(b)
provides the table of contents.
Sec. 2. Definitions
Section 2 defines terms used throughout the bill, including
the term ``consumer product''.
TITLE I--ARTIFICIAL INTELLIGENCE AND CONSUMER PRODUCT SAFETY
Sec. 101. Short title
Section 101 designates that 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
Subsection (a) specifies that not later than one year after
the date of enactment, the CPSC shall establish a pilot program
to explore the use of artificial intelligence in support of the
CPSC's consumer product safety mission.
Subsection (b) further specifies that the pilot program
shall be used for at least one of the following purposes: (1)
tracking injury trends; (2) identifying consumer product
hazards; (3) monitoring the retail marketplace for the sale of
recalled consumer products; or (4) identifying unsafe imported
consumer products. This subsection also requires the CPSC to
consult with certain stakeholders in conducting the pilot
program, including cybersecurity experts, the retail industry,
consumer product manufacturers, and consumer product safety
organizations.
Subsection (c) requires the CPSC, not later than 180 days
after the conclusion of the pilot program, to issue a report on
the findings and success of the pilot program.
TITLE II--BLOCKCHAIN TECHNOLOGY INNOVATION
[This title incorporates text based on H.R. 8153, sponsored
by Representatives Darren Soto (D-FL), Brett Guthrie (R-KY),
and Doris Matsui (D-CA).]
Sec. 201. Short title
Section 201 designates that this title may be cited as the
``Blockchain Innovation Act''.
Sec. 202. Study on blockchain technology and its use in consumer
protection
Subsection (a) requires the DOC, in consultation with the
FTC, to 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. This subsection further requires
the DOC to provide opportunity for public comment.
Subsection (b) requires the DOC, not later than six months
after the completion of the study, to issue a report on the
results of the study.
TITLE III--DIGITAL TOKEN TAXONOMY
[This title incorporates text based on H.R. 2154, sponsored
by Representatives Soto (D-FL) and Warren Davidson (R-OH).]
Sec. 301. Short title
Section 301 designates that this title may be cited as the
``Digital Taxonomy Act''.
Sec. 302. Findings
This section lists the summarized findings of Congress
regarding digital tokens, including a finding by Congress that
the FTC should ensure staff have appropriate training and
resources to identify and pursue cases against unfair or
deceptive acts or practices involving digital tokens.
Sec. 303. Reports on unfair or deceptive acts or practices in
transactions relating to digital tokens
This section requires the FTC, not later than one year
after the date of enactment, to issue a report on (1) the FTC's
actions regarding digital tokens; (2) any other efforts by the
FTC to prevent unfair or deceptive acts or practices relating
to digital tokens; and (3) any recommendations by the FTC for
legislation that would improve the ability of the FTC to
further protect consumers in the digital token marketplace and
to promote competition and innovation in the global digital
token sector.
XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
No changes in existing law were made by H.R. 8128, as
reported.
[all]