What This Bill Does
This bill requires toy manufacturers to label internet-connected toys and provide clear information in user agreements about how children's personal information is collected and used. The bill directs a federal agency to create rules within one year that toy makers must follow when selling toys that connect to the internet.
Who It Affects
Manufacturers of internet-connected toys sold across state lines. Children who use these toys. Parents of children who use these toys. The Federal Trade Commission (a federal agency that enforces consumer protection rules).
Key Provisions
Toy manufacturers must place a label on toy packaging clearly stating that the toy can connect to the internet and collect personal information about users (Sec. 2(a)(1)).
Toy packaging labels must indicate whether personal information stays in the toy itself or is sent to the manufacturer or another company (Sec. 2(a)(1)(B)).
User agreements and privacy policies must display easy-to-read highlighted information at the very beginning explaining what personal information the toy collects, who receives it, and how it is used (Sec. 2(a)(2)).
User agreements must describe what actions the manufacturer takes to limit collecting, keeping, or sending personal information (Sec. 2(a)(2)(E)).
User agreements must explain whether the toy can be used without internet connection to prevent personal information collection (Sec. 2(a)(2)(G)).
What Changes
If this bill becomes law, toy manufacturers will have to follow new federal labeling and disclosure rules. Toys sold in the United States will carry warning labels about internet connectivity and data collection. Privacy policies for these toys must be clearer and place important information first where consumers see it immediately.
Important Definitions
Internet-connected toy: A device sold across state lines intended for children that connects to the internet (directly or through another device) and can collect and send a child's personal information to someone other than the child or parent (Sec. 2(c)(1)).
Personal information: Information that identifies an individual, including name, physical address, email, phone number, Social Security number, photos, videos, audio recordings, or other identifiers that let someone contact a specific person (Sec. 2(c)(2)).
Child, Commission, parent, and person: These terms have the meanings given in the Children's Online Privacy Protection Act of 1998 (Sec. 2(c)(3)).
Effective Date
The Federal Trade Commission must create the regulations within one year after the bill becomes law. Not specified in bill text when the regulations take effect after creation.
I
118TH CONGRESS
1ST SESSION
H. R. 413
To establish requirements for the labeling and user agreements of internet-
connected toys for children, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 2023
Mr. EDWARDS introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To establish requirements for the labeling and user agree-
ments of internet-connected toys for children, and for
other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Transparency Over
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Toys Spying Act’’ or the ‘‘TOTS Act’’.
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SEC. 2. LABELING AND USER AGREEMENT REQUIREMENTS
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FOR INTERNET-CONNECTED TOYS.
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(a) REGULATIONS.—Not later than 1 year after the
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date of the enactment of this Act, the Commission shall
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promulgate under section 553 of title 5, United States
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•HR 413 IH
Code, regulations that require a manufacturer introducing
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into interstate commerce an internet-connected toy to in-
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clude—
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(1) on the packaging associated with the toy, a
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label that clearly indicates—
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(A) that the toy has the ability to—
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(i) connect to the internet; and
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(ii) collect and transmit the personal
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information of a user of the toy; and
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(B) whether personal information collected
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by the toy is retained—
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(i) in the toy; or
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(ii) by the manufacturer or another
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entity; and
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(2) in any user agreement or privacy policy as-
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sociated with the toy, highlighted information that is
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easy to read, is the first text presented by the agree-
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ment or policy, and describes—
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(A) how personal information may be col-
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lected by the toy and what personal information
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may be collected;
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(B) what personal information may be re-
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tained in the toy;
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•HR 413 IH
(C) what personal information may be
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transmitted from the toy and to whom the per-
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sonal information may be transmitted;
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(D) how transmitted personal information
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may be provided to, retained, and used by the
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manufacturer or another entity;
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(E) any actions taken by the manufacturer
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to minimize the collection, retention, or trans-
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mission of personal information;
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(F) the protections available to the user
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with respect to collected, retained, or trans-
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mitted personal information, including protec-
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tions under Federal law; and
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(G) whether the toy can be used in a man-
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ner that prevents the collection, retention, or
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transmission of personal information, including
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without connection to the internet or another
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internet-connected device.
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(b) ENFORCEMENT BY FEDERAL TRADE COMMIS-
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SION.—
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(1) UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
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TICES.—A violation of a regulation promulgated
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under subsection (a) shall be treated as a violation
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of a regulation under section 18(a)(1)(B) of the
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Federal
Trade
Commission
Act
(15
U.S.C.
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•HR 413 IH
57a(a)(1)(B)) regarding unfair or deceptive acts or
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practices.
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(2) POWERS
OF
COMMISSION.—The Commis-
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sion shall enforce the regulations promulgated under
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subsection (a) in the same manner, by the same
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means, and with the same jurisdiction, powers, and
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duties as though all applicable terms and provisions
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of the Federal Trade Commission Act (15 U.S.C. 41
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et seq.) were incorporated into and made a part of
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this Act. Any person who violates such a regulation
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shall be subject to the penalties and entitled to the
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privileges and immunities provided in the Federal
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Trade Commission Act.
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(c) DEFINITIONS.—In this section:
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(1) INTERNET-CONNECTED
TOY.—The term
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‘‘internet-connected toy’’ means a device—
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(A) introduced into interstate commerce
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and targeted to a child or likely to be operated
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by a child;
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(B) the purpose of which is entertainment
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or amusement;
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(C) that is able to be connected to the
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internet, directly or through another internet-
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connected device; and
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•HR 413 IH
(D) through which the personal informa-
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tion of a child may be collected and transmitted
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to a person other than the child or the parent
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of the child.
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(2) PERSONAL INFORMATION.—The term ‘‘per-
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sonal information’’ means individually identifiable
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information about an individual, including—
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(A) a first and last name;
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(B) a home or other physical address, in-
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cluding street name and name of a city or town;
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(C) an e-mail address;
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(D) a telephone number;
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(E) a Social Security number;
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(F) a photo, video, or audio recording;
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(G) any other identifier that the Commis-
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sion determines permits the physical or online
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contacting of a specific individual; or
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(H) information concerning a child or the
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parents of that child collected from the child
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and combined with an identifier described in
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this paragraph.
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(3) TERMS DEFINED IN CHILDREN’S ONLINE
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PRIVACY
PROTECTION
ACT
OF
1998.—The terms
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‘‘child’’, ‘‘Commission’’, ‘‘parent’’, and ‘‘person’’
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have the meanings given each of those terms respec-
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•HR 413 IH
tively in section 1302 of the Children’s Online Pri-
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vacy Protection Act of 1998 (15 U.S.C. 6501).
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Æ
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