[House Report 119-72]
[From the U.S. Government Publishing Office]
119th Congress } { REPORT
HOUSE OF REPRESENTATIVES
1st Session } { 119-72
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INFORMING CONSUMERS ABOUT SMART DEVICES ACT
_______
April 24, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Guthrie, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 859]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 859) to require the disclosure of a camera or
recording capability in certain internet-connected devices,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Committee Action................................................. 2
Committee Votes.................................................. 3
Oversight Findings and Recommendations........................... 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Congressional Budget Office Estimate............................. 3
Federal Mandates Statement....................................... 3
Statement of General Performance Goals and Objectives............ 3
Duplication of Federal Programs.................................. 3
Related Committee and Subcommittee Hearings...................... 4
Committee Cost Estimate.......................................... 4
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 4
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
PURPOSE AND SUMMARY
H.R. 859, the ``Informing Consumers about Smart Devices
Act'', was introduced by Representative Fulcher on January 31,
2025, and was referred to the Committee on Energy and Commerce.
H.R. 859 requires manufacturers to disclose whether certain
internet-connected devices are equipped with a camera or a
microphone. The bill does not apply to a telephone, laptop,
tablet, or any device that a consumer would reasonably expect
to have a camera or microphone or to any device that is
specifically marketed as a camera, telecommunications device,
or microphone.
BACKGROUND AND NEED FOR LEGISLATION
Consumers increasingly purchase internet-connected devices
for use in their homes. The number of so-called ``smart
homes,'' where internet-connected appliances, controls, and
devices are used, is expected to reach 103 million by 2028.\1\
In one survey, consumers who embraced smart home devices
believed these technologies improved their quality of life
because of real-time notifications and the ability to easily
adjust home and appliance settings, among other features.\2\
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\1\Statista, Number of users of smart homes in the United States
from 2019 to 2028 (Feb. 28, 2025), https://www.statista.com/forecasts/
887611/number-of-smart-homes-in-the-smart-home-market-in-the-united-
states.
\2\Jana Arbanas, Paul H. Silverglate, and Susanne Hupfer,
``Consumer make their homes smart, with a focus on security,'' Deloitte
Insights (Sep. 6, 2023), https://www2.deloitte.com/us/en/insights/
industry/telecommunications/connectivity-mobile-trends-survey/2023/
smart-home-industry-adoption-trend.html.
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At the same time, consumers may not be aware that many
internet-connected devices contain cameras or microphones that
record them. One investigation found that a smart refrigerator
used a small camera to photograph its contents and gathered
additional information on its users.\3\ A robot vacuum was also
found to have also collected and shared compromising images of
its owner.\4\ In addition to consumers being unaware of these
features, internet-connected devices may pose new data security
risks to consumers because of the collection, processing, and
storage of this information.
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\3\Tate Ryan-Mosley, ``How to Hack a Smart Fridge,'' MIT Technology
Review (May 8, 2023), https://www.technologyreview.com/2023/05/08/
1072708/hack-smart-fridge-digital-forensics/.
\4\Eileen Guo, ``A Roomba recorded a woman the toilet. How did
screenshots end up on Facebook?,'' MIT Technology Review (Dec 19,
2022), https://www.technologyreview.com/2022/12/19/1065306/roomba-
irobot-robot-vacuums-artificial-intelligence-training-data-privacy/.
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Given the proliferation of internet-connected devices in
American homes and the potential data security risks to
consumers, consumers should be informed when a smart device is
capable of recording or listening to them before purchasing the
device. The Federal Trade Commission Act's prohibition on
unfair or deceptive acts or practices broadly applies to the
marketing of smart devices by manufacturers. Nonetheless,
specific legislation is necessary to ensure manufacturers take
these steps before additional consumer harm occurs in the
marketplace and to ensure that consumers can make informed
purchasing decisions.
COMMITTEE ACTION
On February 1, 2023, the Subcommittee on Innovation, Data,
and Commerce held a hearing entitled ``Economic Danger Zone:
How America Competes to Win the Future Versus China.'' The
Subcommittee received testimony from:
Brandon Pugh, Policy and Resident Senior
Fellow, R Street Institute;
Jeff Farrah, Executive Director, Autonomous
Vehicle Industry Association;
Samm Sacks, Cyber Policy Fellow,
International Security Program, New America; and
Marc Jarsulic, Senior Fellow and Chief
Economist, Center for American Progress.
On March 1, 2023, the Subcommittee on Innovation, Data, and
Commerce held a hearing entitled ``Promoting U.S. Innovation
and Individual Liberty through a National Standard for Data
Privacy.'' The Subcommittee received testimony from:
Alexandra Reeve Givens, President and CEO,
Center for Democracy & Technology;
Graham Mudd, Founder and Chief Product
Officer, Anonym; and
Jessica Rich, Of Counsel and Senior Policy
Advisor for Consumer Protection, Kelley Drye & Warren,
LLP.
On April 8, 2025, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 859, without
amendment, favorably reported to the House by a voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
recorded votes on the motion to report legislation and
amendments thereto. There were no record votes taken in
connection with ordering H.R. 859 reported.
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing 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. 859 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 require
labeling on certain internet connected devices to designate
they are equipped with a microphone or camera.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 859 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. 859:
On February 1, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing entitled
``Economic Danger Zone: How America Competes to Win the
Future Versus China.'' The Subcommittee received
testimony from:
Brandon Pugh, Policy and
Resident Senior Fellow, R Street Institute;
Jeff Farrah, Executive Director,
Autonomous Vehicle Industry Association;
Samm Sacks, Cyber Policy Fellow,
International Security Program, New America;
and
Marc Jarsulic, Senior Fellow and
Chief Economist, Center for American Progress.
On March 1, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing entitled
``Promoting U.S. Innovation and Individual Liberty
through a National Standard for Data Privacy.'' The
Subcommittee received testimony from:
Alexandra Reeve Givens,
President and CEO, Center for Democracy &
Technology;
Graham Mudd, Founder and Chief
Product Officer, Anonym; and
Jessica Rich, Of Counsel and
Senior Policy Advisor for Consumer Protection,
Kelley Drye & Warren, LLP.
On April 27, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing entitled
``Addressing America's Data Privacy Shortfalls: How a
National Standard Fills Gaps to Protect Americans'
Personal Information.'' The Subcommittee received
testimony from:
Morgan Reed, President, ACT |
The App Association;
Donald Codling, Senior Advisor
for Cybersecurity and Privacy, REGO Payment
Architectures, Inc.;
Edward Britan, Head of Global
Privacy, Salesforce, Inc.;
Amelia Vance, Founder and
President, Public Interest Privacy Center.
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. 859 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
``Informing Consumers about Smart Devices Act.''
Section 2. Required disclosure of a camera or recording capability in
certain internet-connected devices
Section 2 requires manufacturers of covered devices to
clearly and conspicuously disclose prior to purchase whether a
covered device contains a camera or microphone.
Section 3. Enforcement
Section 3 provides that a violation of the Act shall be
treated as a violation of a rule defining an unfair or
deceptive practice prescribed under section 18(a)(1)(B) of the
Federal Trade Commission Act, and authorizes the Federal Trade
Commission (FTC) to enforce the Act in the same manner, by the
same means, and with the same jurisdiction, powers, and duties
as applicable under the Federal Trade Commission Act.
This section also directs the FTC, within 180 days of the
Act's enactment, to issue guidance to help manufacturers comply
with the Act's requirements, including guidance about
bestpractices for making required disclosures as clear and
conspicuous and age appropriate as practicable, and best
practices for using a pictorial visual representation of the
information to be disclosed. Manufacturers may petition the FTC
for tailored guidance on how to meet the disclosure
requirements consistent with existing rules of practice or any
successor rules. The FTC's guidance shall not confer rights on
any person or entity and shall not operate to bind the FTC or
any person to the approach recommended in the guidance. The FTC
shall not base an enforcement action or execute a consent order
based on practices that are alleged to be inconsistent with
such guidance unless the practices allegedly violate section 2
of the Act.
Section 4. Definition of covered device
Section 4 defines the term ``covered device'' to: (1) mean
a consumer product, as defined by section 3(a) of the Consumer
Product Safety Act that is capable of connecting to the
internet, a component of which is a camera or microphone; and
(2) not include: (A) a telephone (including a mobile phone), a
laptop, tablet, or any device that a consumer would reasonably
expect to have a microphone or camera; (B) any device that is
specifically marketed as a camera, telecommunications device,
or microphone; or (C) any device or apparatus described in
sections 255, 716, and 718, and subsections (aa) and (bb) of
section 303 of the Communications Act of 1934, and any
regulations promulgated thereunder.
Section 5. Effective date
Section 4 provides that the Act would apply to all covered
devices manufactured after the date that is 180 days after the
date the FTC issues the guidance required by section 3. The Act
would not apply to covered devices manufactured, sold, or
otherwise introduced into interstate commerce before that date.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
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