[Senate Report 119-13]
[From the U.S. Government Publishing Office]
Calendar No. 47
119th Congress } { Report
SENATE
1st Session } { 119-13
_______________________________________________________________________
INFORMING CONSUMERS ABOUT
SMART DEVICES ACT
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE,
AND TRANSPORTATION
on
S. 28
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
April 28, 2025.--Ordered to be printed
_______
U.S. GOVERNMENT PUBLISHING OFFICE
59-010 WASHINGTON : 2025
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred nineteenth congress
first session
TED CRUZ, Texas, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROGER F. WICKER, Mississippi AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
TODD YOUNG, Indiana TAMMY DUCKWORTH, Illinois
TED BUDD, North Carolina JACKY ROSEN, Nevada
ERIC SCHMITT, Missouri BEN RAY LUJAN, New Mexico
JOHN CURTIS, Utah JOHN W. HICKENLOOPER, Colorado
BERNIE MORENO, Ohio JOHN FETTERMAN, Pennsylvania
TIM SHEEHY, Montana ANDY KIM, New Jersey
SHELLEY MOORE CAPITO, West Virginia LISA BLUNT ROCHESTER, Delaware
CYNTHIA M. LUMMIS, Wyoming
Brad Grantz, Majority Staff Director
Lila Harper Helms, Democratic Staff Director
Calendar No. 47
119th Congress } { Report
SENATE
1st Session } { 119-13
======================================================================
INFORMING CONSUMERS ABOUT SMART DEVICES ACT
_______
April 28, 2025.--Ordered to be printed
_______
Mr. Cruz, from the Committee on Commerce, Science, and Transportation,
submitted the following
R E P O R T
[To accompany S. 28]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 28) 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.
PURPOSE OF THE BILL
The purpose of S. 28 is to require the disclosure of a
camera or recording capability in certain internet-connected
devices.
BACKGROUND AND NEEDS
Internet-connected smart devices are becoming increasingly
common in U.S. households. Sixty-nine percent of U.S. houses
have at least one smart home product; 83 million households own
more than one such product.\1\ The U.S. smart home market is
expected to reach $87.25 billion by 2032, up from $31.85
billion in 2023.\2\ While internet-connected devices can
provide enhanced capabilities for household products and
increase consumer convenience, consumers may not expect their
refrigerators, thermostats, or other products to contain a
camera or microphone that could surveil, record, and transmit
to others their private home activity. Consumers have a strong
privacy interest in knowing whether a household product has
audio or video recording and transmission capabilities before
they purchase the product.
---------------------------------------------------------------------------
\1\PR Newswire, ``United States Smart Home Market Analysis &
Forecasts 2020-2026 by Application, Products, Active Household Numbers,
Penetration Rate, Company Analysis,'' May 10, 2021 (https://
www.prnewswire.com/news-releases/united-states-smart-home-market-
analysis--
forecasts-2020-2026-by-application-products-active-household-numbers-
penetration-rate-company-
analysis-301287760.html).
\2\Research and Markets, ``United States Smart Home Market Report
by Product Application States and Company Analysis, 2024-2032,''
January 2024 (https://www.researchandmarkets .com/report/united-states-
smart-home-market?).
---------------------------------------------------------------------------
SUMMARY OF PROVISIONS
S. 28 would do the following:
Require each manufacturer of a covered device to
disclose, clearly and conspicuously and prior to
purchase, whether the covered device contains a camera
or microphone as a component of the covered device.
Authorize the Federal Trade Commission (FTC) to
enforce the Act as a violation of a rule prescribed
under section 18 of the Federal Trade Commission
Act.\3\
---------------------------------------------------------------------------
\3\15 U.S.C. 57a.
---------------------------------------------------------------------------
Require the FTC to issue guidance (including
tailored guidance) to assist manufacturers in complying
with the requirements of the Act.
LEGISLATIVE HISTORY
S. 28, the Informing Consumers About Smart Devices Act, was
introduced on January 7, 2025, by Senator Cruz (for himself and
Senators Cantwell and Curtis) and was referred to the Committee
on Commerce, Science, and Transportation of the Senate. On
March 12, 2025, the Committee met in open Executive Session
and, by voice vote, ordered S. 28 reported favorably without
amendment.
118th Congress
S. 90, the Informing Consumers About Smart Devices Act, was
introduced on January 25, 2023, by Senator Cruz (for himself
and Senator Cantwell) and was referred to the Committee on
Commerce, Science, and Transportation of the Senate. On March
22, 2023, the Committee met in open Executive Session and, by
voice vote, ordered S. 90 reported favorably with amendments.
Senator Warnock became an additional cosponsor on March 28,
2023.
H.R. 538, a House bill similar to S. 90, was introduced on
January 26, 2023, by Representative Curtis (for himself and
Representative Moulton) and was referred to the Committee on
Energy and Commerce of the House of Representatives. On
February 27, 2023, H.R. 538 passed the House by a vote of 406-
12.
ESTIMATED COSTS
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 28 would require manufacturers of Internet-connected
devices to disclose to consumers whether such devices have
microphones or cameras. The bill would direct the Federal Trade
Commission (FTC) to establish guidance for manufacturers to
follow when notifying consumers and to enforce any violations
of the bill's requirements.
Using information from the FTC and the cost of similar
requirements, CBO expects that the FTC would need three
employees to issue guidance in 2026 and four employees in each
year from 2027 through 2030 to enforce the bill's requirements.
CBO estimates that the average cost for salaries and benefits
for an FTC employee would be $240,000 in 2025. After accounting
for anticipated inflation, CBO estimates that implementing S.
28 would cost $4 million over the 2025-2030 period; any related
spending would be subject to the availability of appropriated
funds.
The bill would authorize the FTC to collect civil monetary
penalties from businesses found in violation of the bill, along
with pursuing other remedies. Civil monetary penalties are
generally remitted to the Treasury and recorded as revenues.
However, CBO estimates that the additional revenues collected
over the next decade would be insignificant. The extent to
which business would violate the new rules after they go into
effect is uncertain.
Furthermore, if a business does violate the new rules and
the FTC chooses to proceed with an enforcement action, the
extent to which the agency pursues civil penalties versus other
remedies is also uncertain, as is the amount of time it would
take to resolve a case.
S. 28 would impose a private-sector mandate as defined in
the Unfunded Mandates Reform Act (UMRA) by requiring
manufacturers of Internet-connected devices to disclose to the
consumer if a component of the device includes a microphone or
camera. According to industry sources, most manufacturers
already disclose such information on the device's exterior
packaging or other forms of advertising. Therefore, CBO
estimates that the cost for manufacturers to comply with the
bill would not exceed the annual threshold established in UMRA
($203 million in 2025, adjusted annually for inflation).
S. 28 contains no intergovernmental mandates as defined in
UMRA.
The CBO staff contacts for this estimate are Margot Berman
(for the FTC) and Rachel Austin (for mandates). The estimate
was reviewed by H. Samuel Papenfuss, Deputy Director of Budget
Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
REGULATORY IMPACT STATEMENT
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
Number of Persons Covered
S. 28 would require manufacturers of certain consumer
products that are capable of connecting to the internet to
disclose to consumers whether such products contain a camera or
microphone. As such, the number of persons covered would be
approximately equivalent to the number of manufacturers of such
products.
Economic Impact
S. 28 would not have a significant economic impact. It may
require some increased expenditures by manufacturers in order
to add clear and conspicuous labeling to such products as
required under the Act.
Privacy
S. 28 would have a positive impact on individual privacy
because it would provide transparency to consumers about
whether household devices capable of connecting to the internet
have cameras or microphones.
Paperwork
S. 28 would not create additional paperwork.
CONGRESSIONALLY DIRECTED SPENDING
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title.
This section would provide that the bill 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.
This section would require manufacturers of covered devices
to clearly and conspicuously disclose prior to purchase whether
a covered device contains a camera or microphone.
Section 3. Enforcement by the Federal Trade Commission.
This section would provide 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,\4\ and would authorize the 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.\5\
---------------------------------------------------------------------------
\4\15 U.S.C. 57a.
\5\15 U.S.C. 41 et seq.
---------------------------------------------------------------------------
This section would also direct 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
best practices 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 decision on practices that are
alleged to be inconsistent with such guidance unless the
practices allegedly violate section 2.
Section 4. Definition of covered device.
This section would define 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.
This section would provide that the Act applies 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
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law.
[all]