Federal

Protecting Military Servicemembers' Data Act of 2023

Source: Congress.gov · 1,796 words in original text

What This Bill Does

This bill makes it illegal for data brokers (companies that collect and sell personal information) to sell, resell, trade, or give military servicemembers' personal information lists to covered nations (foreign countries identified in other federal law). The Federal Trade Commission and state attorneys general can enforce this law and take companies to court if they violate it.

Who It Affects

- Data brokers that sell military servicemembers' information - The Federal Trade Commission - State attorneys general - Current and former military servicemembers - Residents of U.S. states and territories

Key Provisions

- Data brokers cannot sell, resell, trade, license, or otherwise provide military servicemembers' lists to covered nations (Sec. 2(a)) - The Federal Trade Commission must create rules to enforce this law within one year of the bill becoming law (Sec. 3(a)(3)) - The Federal Trade Commission can file lawsuits in federal court to stop violations, force companies to follow the law, and obtain money for affected consumers (Sec. 3(a)(2)(E)) - State attorneys general can also file lawsuits on behalf of their residents, but must notify the Federal Trade Commission at least 10 days before filing (Sec. 3(b)(1) and 3(b)(2)(A)) - State attorneys general cannot file a lawsuit if the Federal Trade Commission is already pursuing the same case (Sec. 3(b)(4))

What Changes

If this bill becomes law, data brokers must stop selling military servicemembers' personal information lists to covered nations or face federal enforcement action and legal penalties.

Important Definitions

- **Data broker:** A company that collects and sells the personal information of customers to third parties when the company and customers have no direct business relationship - **Military servicemembers' list:** A list containing personal information (other than information from public records) specifically created to identify people who are current or former military servicemembers - **Personal information:** Information connected to or traceable to any identified or identifiable person or device - **Public record information:** Information lawfully available from federal, state, or local government records, as long as the data broker follows any restrictions or rules the government placed on that information - **Covered nation:** Not specified in bill text - **Consumer:** An individual living in a U.S. state or territory

Effective Date

The prohibition on selling military servicemembers' lists becomes law on whichever comes first: the date the Federal Trade Commission issues its final rules, or one year after the bill becomes law (Sec. 2(b))

II 118TH CONGRESS 1ST SESSION S. 1029 To prohibit data brokers from selling, reselling, trading, licensing, or otherwise providing for consideration lists of military servicemembers to a covered nation. IN THE SENATE OF THE UNITED STATES MARCH 29, 2023 Mr. CASSIDY (for himself, Ms. WARREN, and Mr. RUBIO) introduced the fol- lowing bill; which was read twice and referred to the Committee on Com- merce, Science, and Transportation A BILL To prohibit data brokers from selling, reselling, trading, li- censing, or otherwise providing for consideration lists of military servicemembers to a covered nation. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the Protecting Military 4 Servicemembers’ Data Act of 2023. 5 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1029 IS SEC. 2. UNFAIR AND DECEPTIVE ACTS AND PRACTICES RE- 1 LATING TO MILITARY SERVICEMEMBER 2 LISTS. 3 (a) IN GENERAL.—It shall be unlawful for a data 4 broker to sell, resell, license, trade, or otherwise provide 5 or make available for consideration a military servicemem- 6 ber list to any covered nation. 7 (b) EFFECTIVE DATE.—The prohibition under sub- 8 section (a) shall take effect on the earlier of— 9 (1) the date the Commission issues the final 10 rule under section 3(a)(3); or 11 (2) 1 year after the date of enactment of this 12 Act. 13 SEC. 3. ENFORCEMENT. 14 (a) ENFORCEMENT BY THE FEDERAL TRADE COM- 15 MISSION.— 16 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC- 17 TICES.—A violation of section 2 shall be treated as 18 a violation of a rule defining an unfair or a deceptive 19 act or practice under section 18(a)(1)(B) of the Fed- 20 eral Trade Commission Act (15 U.S.C. 21 57a(a)(1)(B)). 22 (2) POWERS OF COMMISSION.— 23 (A) IN GENERAL.—Except as provided in 24 subparagraphs (D) and (E), the Commission 25 shall enforce section 2 in the same manner, by 26 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1029 IS the same means, and with the same jurisdic- 1 tion, powers, and duties as though all applicable 2 terms and provisions of the Federal Trade 3 Commission Act (15 U.S.C. 41 et seq.) were in- 4 corporated into and made a part of this Act. 5 (B) PRIVILEGES AND IMMUNITIES.—Any 6 person who violates section 2 shall be subject to 7 the penalties and entitled to the privileges and 8 immunities provided in the Federal Trade Com- 9 mission Act (15 U.S.C. 41 et seq.). 10 (C) AUTHORITY PRESERVED.—Nothing in 11 this Act shall be construed to limit the author- 12 ity of the Federal Trade Commission under any 13 other provision of law. 14 (D) NONPROFIT ORGANIZATIONS.—Not- 15 withstanding section 4 of the Federal Trade 16 Commission Act (15 U.S.C. 44) or any jurisdic- 17 tional limitation of the Commission, the Com- 18 mission shall also enforce this Act, in the same 19 manner provided in subparagraphs (A) and (B), 20 with respect to organizations not organized to 21 carry on business for their own profit or that 22 of their members. 23 (E) INDEPENDENT LITIGATION AUTHOR- 24 ITY.—In any case in which the Commission has 25 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 1029 IS reason to believe that a data broker is violating 1 or has violated section 2, the Commission may 2 bring a civil action in an appropriate district 3 court of the United States— 4 (i) to enjoin further violation of such 5 section by such person; 6 (ii) to compel compliance with such 7 section; and 8 (iii) to obtain damages, restitution, or 9 other compensation on behalf of aggrieved 10 consumers. 11 (3) RULEMAKING.—Pursuant to section 553 of 12 title 5, United States Code, the Commission shall 13 promulgate regulations to carry out the provisions of 14 this Act. The Commission shall issue a final rule by 15 not later than 1 year after the date of enactment of 16 this Act. 17 (b) ENFORCEMENT BY STATES.— 18 (1) IN GENERAL.—In any case in which the at- 19 torney general of a State has reason to believe that 20 an interest of the residents of the State has been or 21 is threatened or adversely affected by the engage- 22 ment of any data broker subject to section 2 in a 23 practice that violates such section, the attorney gen- 24 eral of the State may, as parens patriae, bring a 25 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 1029 IS civil action on behalf of the residents of the State in 1 an appropriate district court of the United States— 2 (A) to enjoin further violation of such sec- 3 tion by such person; 4 (B) to compel compliance with such sec- 5 tion; and 6 (C) to obtain damages, restitution, or other 7 compensation on behalf of such residents. 8 (2) RIGHTS OF FEDERAL TRADE COMMIS- 9 SION.— 10 (A) NOTICE TO FEDERAL TRADE COMMIS- 11 SION.— 12 (i) IN GENERAL.—Except as provided 13 in clause (iii), the attorney general of a 14 State shall notify the Commission in writ- 15 ing that the attorney general intends to 16 bring a civil action under paragraph (1) 17 not later than 10 days before initiating the 18 civil action. 19 (ii) CONTENTS.—The notification re- 20 quired by clause (i) with respect to a civil 21 action shall include a copy of the complaint 22 to be filed to initiate the civil action. 23 (iii) EXCEPTION.—If it is not feasible 24 for the attorney general of a State to pro- 25 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 1029 IS vide the notification required by clause (i) 1 before initiating a civil action under para- 2 graph (1), the attorney general shall notify 3 the Commission immediately upon insti- 4 tuting the civil action. 5 (B) INTERVENTION BY FEDERAL TRADE 6 COMMISSION.—The Commission may— 7 (i) intervene in any civil action 8 brought by the attorney general of a State 9 under paragraph (1); and 10 (ii) upon intervening— 11 (I) be heard on all matters aris- 12 ing in the civil action; and 13 (II) file petitions for appeal of a 14 decision in the civil action. 15 (3) INVESTIGATORY POWERS.—Nothing in this 16 subsection may be construed to prevent the attorney 17 general of a State from exercising the powers con- 18 ferred on the attorney general by the laws of the 19 State to conduct investigations, to administer oaths 20 or affirmations, or to compel the attendance of wit- 21 nesses or the production of documentary or other 22 evidence. 23 (4) PREEMPTIVE ACTION BY FEDERAL TRADE 24 COMMISSION.—If the Commission institutes a civil 25 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 1029 IS action or an administrative action with respect to a 1 violation of section 2, the attorney general of a State 2 may not, during the pendency of such action, bring 3 a civil action under paragraph (1) against any de- 4 fendant named in the complaint of the Commission 5 for the violation with respect to which the Commis- 6 sion instituted such action. 7 (5) VENUE; SERVICE OF PROCESS.— 8 (A) VENUE.—Any action brought under 9 paragraph (1) may be brought in— 10 (i) the district court of the United 11 States that meets applicable requirements 12 relating to venue under section 1391 of 13 title 28, United States Code; or 14 (ii) another court of competent juris- 15 diction. 16 (B) SERVICE OF PROCESS.—In an action 17 brought under paragraph (1), process may be 18 served in any district in which the defendant— 19 (i) is an inhabitant; or 20 (ii) may be found. 21 SEC. 4. DEFINITIONS. 22 In this Act: 23 (1) COMMISSION.—The term ‘‘Commission’’ 24 means the Federal Trade Commission. 25 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 1029 IS (2) CONSUMER.—The term ‘‘consumer’’ means 1 an individual residing in a State. 2 (3) COVERED NATION.—The term ‘‘covered na- 3 tion’’ has the meaning given that term in section 4 4872(d)(2) of title 10, United States Code. 5 (4) DATA BROKER.—The term ‘‘data broker’’ 6 means a business that knowingly collects and sells to 7 third parties the personal information of a consumer 8 with whom the business does not have a direct rela- 9 tionship. 10 (5) MILITARY SERVICEMEMBER LIST.—The 11 term ‘‘military servicemember list’’ means a list that 12 includes personal information (other than public 13 record information) about one or more individuals or 14 households which is created for the express or im- 15 plied purpose of compiling information about individ- 16 uals who are current or former servicemembers (as 17 that term is defined in section 3911(1) of title 50, 18 United States Code). 19 (6) PERSONAL INFORMATION.—The term ‘‘per- 20 sonal information’’ means information that is linked 21 or reasonably linkable to any identified or identifi- 22 able person or device. 23 (7) PUBLIC RECORD INFORMATION.—The term 24 ‘‘public record information’’ means information that 25 VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •S 1029 IS is lawfully made available from Federal, State, or 1 local government records provided that the data 2 broker processes and transfers such information in 3 accordance with any restrictions or terms of use 4 placed on the information by the relevant govern- 5 ment entity. 6 (8) STATE.—The term ‘‘State’’ means any 7 State of the United States, the District of Columbia, 8 the Commonwealth of Puerto Rico, Guam, American 9 Samoa, the Commonwealth of the Northern Mariana 10 Islands, and the United States Virgin Islands. 11 Æ VerDate Sep 11 2014 03:55 Apr 08, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\S1029.IS S1029 pbinns on DSKJLVW7X2PROD with $$_JOB

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