[House Report 118-498]
[From the U.S. Government Publishing Office]


118th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      118-498

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



 
                     CONSUMER SAFETY TECHNOLOGY ACT

                                _______
                                

  May 10, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4814]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4814) 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 to direct the Secretary of Commerce and the 
Federal Trade Commission to study and report on the use of 
blockchain technology and digital tokens, respectively, having 
considered the same, reports favorably thereon with amendments 
and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     4
Committee Action.................................................     5
Committee Votes..................................................     6
Oversight Findings and Recommendations...........................     8
New Budget Authority, Entitlement Authority, and Tax Expenditures     8
Congressional Budget Office Estimate.............................     8
Federal Mandates Statement.......................................     8
Statement of General Performance Goals and Objectives............     8
Duplication of Federal Programs..................................     8
Related Committee and Subcommittee Hearings......................     8
Committee Cost Estimate..........................................     9
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     9
Advisory Committee Statement.....................................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
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--TOKEN TAXONOMY

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Report on unfair or deceptive acts or practices in 
transactions relating to 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));
          (2) the term ``Secretary'' means the Secretary of Commerce; 
        and
          (3) the term ``token'' means a transferrable, digital 
        representation of information recorded on a blockchain or other 
        distributed ledger technology.

      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 the 
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, as described in section 2(b) of the Consumer Product 
Safety Act (15 U.S.C. 2051(b)).
  (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) Consistent with section 6 of the Consumer Product Safety 
        Act (15 U.S.C. 2055), 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 1 year 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 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 1 year after the date of 
        the enactment of this Act, the Secretary of Commerce, in 
        consultation with the Federal Trade Commission and any other 
        Federal agency the Secretary determines appropriate, shall 
        complete a study on the possible uses of blockchain technology 
        for consumer protection purposes, including preventing or 
        mitigating fraud and other unfair or deceptive acts or 
        practices.
          (2) Requirements for study.--In conducting the study required 
        by paragraph (1), the Secretary shall examine--
                  (A) existing and emerging uses of blockchain 
                technology that could help protect consumers, including 
                by preventing or mitigating fraud and other unfair or 
                deceptive acts or practices within the meaning of 
                section 5 of the Federal Trade Commission Act (15 
                U.S.C. 45);
                  (B) trends in the commercial use of and investment in 
                blockchain technology to prevent or mitigate fraud and 
                other unfair or deceptive acts or practices as 
                described in subparagraph (A);
                  (C) best practices in facilitating public-private 
                partnerships in blockchain technology to prevent or 
                mitigate fraud and other unfair or deceptive acts or 
                practices as described in subparagraph (A);
                  (D) potential benefits and risks related to the use 
                of blockchain technology to prevent or mitigate fraud 
                and other unfair or deceptive acts or practices as 
                described in subparagraph (A);
                  (E) possible modifications to Federal regulations 
                that could encourage the use of blockchain technology 
                to prevent or mitigate fraud and other unfair or 
                deceptive acts or practices as described in 
                subparagraph (A); and
                  (F) any other relevant observations or 
                recommendations related to the use of blockchain 
                technology for consumer protection purposes, including 
                preventing or mitigating fraud and other unfair or 
                deceptive acts or practices as described in 
                subparagraph (A).
          (3) Public comment.--In conducting the study required by 
        paragraph (1), the Secretary shall provide opportunity for 
        public comment and advice relevant to conducting the study.
  (b) Report to Congress.--Not later than 6 months after the completion 
of the study required by subsection (a)(1), 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 such study.

                       TITLE III--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) tokens and blockchain technology are driving innovation 
        and providing consumers with increased choice and convenience;
          (3) the use of 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 tokens;
          (5) the Commission has previously taken action against 
        unscrupulous companies and individuals that committed unfair or 
        deceptive acts or practices involving tokens; and
          (6) to bolster the Commission's ability to enforce against 
        unfair or deceptive acts or practices involving tokens, the 
        Commission should ensure staff have appropriate training and 
        resources to identify and pursue such cases.

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

  Not later than 1 year after the date of the enactment of this Act, 
the Federal Trade 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--
          (1) any actions taken by the Commission relating to unfair or 
        deceptive acts or practices in transactions relating to tokens;
          (2) any other efforts of the Commission to prevent unfair or 
        deceptive acts or practices relating to tokens; and
          (3) any recommendations by the Commission for legislation 
        that would improve the ability of the Commission and other 
        relevant Federal agencies to further protect consumers from 
        unfair or deceptive acts or practices in the token marketplace.

    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 to 
direct the Secretary of Commerce and the Federal Trade 
Commission to study and report on the use of blockchain 
technology and tokens, respectively.

                          PURPOSE AND SUMMARY

    H.R. 4814, the Consumer Safety Technology Act was 
introduced by Representative Soto on July 20, 2023, and 
referred to the Committee on Energy and Commerce. H.R. 4814 
directs the Consumer Product Safety Commission (CPSC) to 
establish a pilot program to explore the use of artificial 
intelligence in support of the mission of the Commission and to 
direct the Secretary of Commerce and the Federal Trade 
Commission (FTC) to study and report on the use of blockchain 
technology and tokens, respectively.

                  BACKGROUND AND NEED FOR LEGISLATION

    The CPSC 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 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, requires the 
CPSC to increase its efforts to protect consumers from unsafe 
e-commerce shipments entering the United States.\4\
---------------------------------------------------------------------------
    \1\United States Consumer Product Safety Commission, About CPSC, 
(www.cpsc.gov/About-CPSC) (accessed January 10, 2024).
    \2\Recalls.gov, Your Online Source for Recalls (www.recalls.gov/
cpsc.html) (accessed January 10, 2024).
    \3\United States Consumer Product Safety Commission, Strategic Plan 
2018-2022 (2017).
    \4\United States Consumer Product Safety Commission, CPSC e-
Commerce Assessment Report, (Nov. 2019).
---------------------------------------------------------------------------
    Artificial intelligence (AI) and machine learning, a subset 
of AI, have vast potential benefits. It is important that the 
United States act as a global leader in this space. H.R. 4814 
ensures that the CPSC studies AI and related technologies, 
pilots their use in the agency's day-to-day functions, and 
understands the ways AI tools could be used to protect the 
public against unreasonable risk of injury or death from 
consumer products.
    Blockchain technology and tokens are two closely related 
emerging technologies with new benefits and risks for 
consumers. For example, blockchain has the potential to benefit 
many industries through its ability to track of transactions 
accurately, securely, and efficiently.\5\ It is important for 
agencies to understand how these properties could be used in 
new ways to protect consumers from fraud and other unfair or 
deceptive acts or practices. At the same time, blockchain 
technology and tokens come with new risks for consumers.\6\ 
Blockchain technology and tokens are not well understood by 
consumers and some users may choose to act maliciously if that 
provides greater rewards.\7\ Federal agencies must understand 
the ways blockchain technology and tokens could be used to 
provide benefits to consumers and how they could be used by bad 
actors for unfair or deceptive acts or practices.
---------------------------------------------------------------------------
    \5\ Business Insider India, The Growing List of Applications and 
Use Cases of Blockchain Technology in Business and Life, (Mar. 2, 2020) 
(https://www.businessinsider.in/finance/news/the-growing-list-of-
applications-and-use-cases-of-blockchain-technology-in-business-and-
life/articleshow/74447275.cms).
    \6\United States Federal Trade Commission, Know the Risks Before 
Investing in Cryptocurrencies (Feb. 16, 2018) (www.ftc.gov/news-events/
blogs/business-blog/2018/02/.
    \7\Dylan Yaga, Peter Mell, Nik Roby, Karen Scarfone, Blockchain 
Technology Overview, U.S. Department of Commerce National Institute of 
Standards and Technology (October 2018), https://nvlpubs.nist.gov/
nistpubs/ir/2018/NIST.IR.8202.pdf.
---------------------------------------------------------------------------
    H.R. 4814 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.

                            COMMITTEE ACTION

    On June 7, 2023, the Subcommittee on Innovation, Data, and 
Commerce held a hearing on blockchains and distributed ledger 
technologies. The title of the hearing was ``Building 
Blockchains: Exploring Web3 and Other Applications for 
Distributed Ledger Technologies.'' The Subcommittee received 
testimony from:
           Professor Carla L. Reyes, Associate 
        Professor of Law, SMU Dedman School of Law;
           Professor Hasshi Sudler, Professor and 
        Chief Executive Officer, Villanova University College 
        of Engineering and Internet Think Tank, Inc.;
           Ryan Wyatt, President, Polygon Labs; and
           Ross Schulman, Senior Fellow, 
        Decentralization, Electronic Frontier Foundation.
    On September 27, 2023, the Subcommittee on Innovation, 
Data, and Commerce held a hearing on H.R. 4814. The title of 
the hearing was ``Proposals to Enhance Product Safety and 
Transparency for Americans.'' The Subcommittee received 
testimony from:
           Kathleen Callahan, Owner, Xpertech Auto 
        Repair;
           Scott Benavidez, Chairman, Automotive 
        Service Association;
           Steven Michael Gentine, Counsel, Arnold 
        & Porter, LLP;
           John Breyault, Vice President of Public 
        Policy, Telecommunications and Fraud, National 
        Consumers League; and
           David Touhey, Principal, Connett 
        Consulting, appearing on behalf of International 
        Association of Venue Managers.
    On November 2, 2023, the Subcommittee on Innovation, Data, 
and Commerce met in open markup session and forwarded H.R. 
4814, without amendment, to the full Committee by voice vote.
    On December 5 and 6, 2023, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 4814, as 
amended, favorably reported to the House by a record vote of 45 
yeas and 0 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration: 




    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                 OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 4814 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       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.

         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 establish a pilot 
program to explore the use of artificial intelligence in 
support of the mission of the Commission and to direct the 
Secretary of Commerce and the Federal Trade Commission to study 
and report on the use of blockchain technology and tokens, 
respectively.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 4814 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.

              RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS

    Pursuant to clause 3(c)(6) of rule XIII, the following 
related hearings were used to develop or consider H.R. 4814:
           On June 7, 2023, the Subcommittee on 
        Innovation, Data, and Commerce held a hearing on 
        blockchains and distributed ledger technologies. The 
        title of the hearing was ``Building Blockchains: 
        Exploring Web3 and Other Applications for Distributed 
        Ledger Technologies.'' The Subcommittee received 
        testimony from:
                   Professor Carla L. Reyes, 
                Associate Professor of Law, SMU Dedman School 
                of Law;
                   Professor Hasshi Sudler, 
                Professor and Chief Executive Officer, 
                Villanova University College of Engineering and 
                Internet Think Tank, Inc.;
                   Ryan Wyatt, President, Polygon 
                Labs; and
                   Ross Schulman, Senior Fellow, 
                Decentralization, Electronic Frontier 
                Foundation.
           On September 27, 2023, the Subcommittee on 
        Innovation, Data, and Commerce held a hearing on H.R. 
        4814. The title of the hearing was ``Proposals to 
        Enhance Product Safety and Transparency for 
        Americans.'' The Subcommittee received testimony from:
                   Kathleen Callahan, Owner, 
                Xpertech Auto Repair;
                   Scott Benavidez, Chairman, 
                Automotive Service Association;
                   Steven Michael Gentine, Counsel, 
                Arnold & Porter, LLP;
                   John Breyault, Vice President of 
                Public Policy, Telecommunications and Fraud, 
                National Consumers League; and
                   David Touhey, Principal, Connett 
                Consulting, appearing on behalf of 
                International Association of Venue Managers.

                        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. At the time this report was 
filed, the estimate was not available.

       EARMARK, 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. 4814 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  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.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 provides that the Act may be cited as the 
``Consumer Safety Technology Act.''

Section 2. Definitions

    Section 2 defines key terms in H.R. 4814.

Title I--Artificial Intelligence and Consumer Product Safety

    Title I requires the CPSC to establish a pilot program to 
explore the use of artificial intelligence by the CPSC. The 
pilot program must use artificial intelligence for tracking 
trends with respect to injuries involving consumer products, 
identifying consumer product hazards, monitoring the retail 
marketplace for the sale of recalled consumer products, or 
identifying consumer products to be refused entry by United 
States customs. Title I also requires the CPSC to consult with 
cyber security experts, the retail industry, consumer product 
manufacturers, and consumer product safety organizations when 
establishing the program and to report to Congress no later 
than 1 year after conclusion of the pilot program on the 
findings and data derived from the program.

Title II--Blockchain Technology Innovation

    Title II requires the Secretary of Commerce, in 
consultation with the FTC and any other federal agency it deems 
appropriate, to study the possible uses of blockchain 
technology for consumer protection purposes. In conducting the 
study, the Secretary must examine existing and emerging uses of 
blockchain technology to protect consumers, trends in the 
commercial use and investment in blockchain technology to help 
prevent fraud, best practices in facilitating public-private 
partnerships in blockchain technology to prevent fraud, and 
potential benefits and risks related to the use of blockchain 
technology to prevent fraud. The Secretary must provide an 
opportunity for public comment and submit a report to Congress 
that contains the results of the study.

Title III--Token Taxonomy

    Title III includes Congressional findings and a requirement 
that the FTC submit a report to Congress on the actions taken 
by the FTC related to unfair or deceptive acts or practices in 
transactions relating to tokens, any efforts to prevent unfair 
or deceptive acts or practices related to tokens, and any 
recommendations for legislation that would improve the ability 
of the FTC and other relevant agencies to further protect 
consumers from unfair and deceptive acts or practices in the 
token marketplace.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                                  [all]