22 October 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[Congressional Record: October 19, 1998 (House)]
[Page H11503-H11545]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr19oc98-36]
 
[[pp. H11503-H11545]] CONFERENCE REPORT ON H.R. 4328, MAKING OMNIBUS CONSOLIDATED AND 
       EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1999

[Snip]

                 TITLE XIV--CHILD ONLINE PROTECTION ACT

       The conference agreement includes Title XIV, The Child 
     Online Protection Act, which amends the Communications Act of 
     1934 to require commercial distributors of material through 
     the World Wide Web that is harmful to minors to restrict 
     access to such material by minors. This title also 
     establishes a temporary Commission on Online Child 
     Protection, which is required to produce a report within one 
     year, and to terminate 30 days after producing the report.


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[DOCID: f:h3783eh.txt]
105th CONGRESS

  2d Session

                               H. R. 3783

_______________________________________________________________________

                                 AN ACT

  To amend the Communications Act of 1934 to require persons who are
  engaged in the business of distributing, by means of the World Wide
  Web, material that is harmful to minors to restrict access to such
              material by minors, and for other purposes.



105th CONGRESS
  2d Session
                                H. R. 3783

_______________________________________________________________________

                                 AN ACT


  To amend the Communications Act of 1934 to require persons who are
  engaged in the business of distributing, by means of the World Wide
  Web, material that is harmful to minors to restrict access to such
              material by minors, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Online Protection Act''.

      TITLE I--PROTECTION FROM MATERIAL THAT IS HARMFUL TO MINORS

SEC. 101. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) while custody, care, and nurture of the child resides
        first with the parent, the widespread availability of the
        Internet presents opportunities for minors to access materials
        through the World Wide Web in a manner that can frustrate
        parental supervision or control;
            (2) the protection of the physical and psychological well-
        being of minors by shielding them from materials that are
        harmful to them is a compelling governmental interest;
            (3) to date, while the industry has developed innovative
        ways to help parents and educators restrict material that is
        harmful to minors through parental control protections and
        self-regulation, such efforts have not provided a national
        solution to the problem of minors accessing harmful material on
        the World Wide Web;
            (4) a prohibition on the distribution of material harmful
        to minors, combined with legitimate defenses, is currently the
        most effective and least restrictive means by which to satisfy
        the compelling government interest; and
            (5) notwithstanding the existence of protections that limit
        the distribution over the World Wide Web of material that is
        harmful to minors, parents, educators, and industry must
        continue efforts to find ways to protect children from being
        exposed to harmful material found on the Internet.

SEC. 102. REQUIREMENT TO RESTRICT ACCESS BY MINORS TO MATERIALS
              COMMERCIALLY DISTRIBUTED BY MEANS OF THE WORLD WIDE WEB
              THAT ARE HARMFUL TO MINORS.

    Part I of title II of the Communications Act of 1934 (47 U.S.C. 201
et seq.) is amended by adding at the end the following new section:

``SEC. 231. RESTRICTION OF ACCESS BY MINORS TO MATERIALS COMMERCIALLY
              DISTRIBUTED BY MEANS OF WORLD WIDE WEB THAT ARE HARMFUL
              TO MINORS.

    ``(a) Requirement To Restrict Access.--
            ``(1) Prohibited conduct.--Whoever knowingly and with
        knowledge of the character of the material, in interstate or
        foreign commerce by means of the World Wide Web, makes any
        communication for commercial purposes that is available to any
        minor and that includes any material that is harmful to minors
        shall be fined not more than $50,000, imprisoned not more than
        6 months, or both.
            ``(2) Intentional violations.--In addition to the penalties
        under paragraph (1), whoever intentionally violates such
        paragraph shall be subject to a fine of not more than $50,000
        for each violation. For purposes of this paragraph, each day of
        violation shall constitute a separate violation.
            ``(3) Civil penalty.--In addition to the penalties under
        paragraphs (1) and (2), whoever violates paragraph (1) shall be
        subject to a civil penalty of not more than $50,000 for each
        violation. For purposes of this paragraph, each day of
        violation shall constitute a separate violation.
    ``(b) Inapplicability of Carriers and Other Service Providers.--For
purposes of subsection (a), a person shall not be considered to make
any communication for commercial purposes to the extent that such
person is--
            ``(1) a telecommunications carrier engaged in the provision
        of a telecommunications service;
            ``(2) a person engaged in the business of providing an
        Internet access service;
            ``(3) a person engaged in the business of providing an
        Internet information location tool; or
            ``(4) similarly engaged in the transmission, storage,
        retrieval, hosting, formatting, or translation (or any
        combination thereof) of a communication made by another person,
        without selection or alteration of the content of the
        communication, except that such person's deletion of a
        particular communication or material made by another person in
        a manner consistent with subsection (c) or section 230 shall
        not constitute such selection or alteration of the content of
        the communication.
    ``(c) Affirmative Defense.--
            ``(1) Defense.--It is an affirmative defense to prosecution
        under this section that the defendant, in good faith, has
        restricted access by minors to material that is harmful to
        minors--
                    ``(A) by requiring use of a credit card, debit
                account, adult access code, or adult personal
                identification number;
                    ``(B) by accepting a digital certificate that
                verifies age; or
                    ``(C) by any other reasonable measures that are
                feasible under available technology.
            ``(2) Protection for use of defenses.--No cause of action
        may be brought in any court or administrative agency against
        any person on account of any activity that is not in violation
        of any law punishable by criminal or civil penalty, and that
        the person has taken in good faith to implement a defense
        authorized under this subsection or otherwise to restrict or
        prevent the transmission of, or access to, a communication
        specified in this section.
    ``(d) Privacy Protection Requirements.--
            ``(1) Disclosure of information limited.--A person making a
        communication described in subsection (a)--
                    ``(A) shall not disclose any information collected
                for the purposes of restricting access to such
                communications to individuals 17 years of age or older
                without the prior written or electronic consent of--
                            ``(i) the individual concerned, if the
                        individual is an adult; or
                            ``(ii) the individual's parent or guardian,
                        if the individual is under 17 years of age; and
                    ``(B) shall take such actions as are necessary to
                prevent unauthorized access to such information by a
                person other than the person making such communication
                and the recipient of such communication.
            ``(2) Exceptions.--A person making a communication
        described in subsection (a) may disclose such information if
        the disclosure is--
                    ``(A) necessary to make the communication or
                conduct a legitimate business activity related to
                making the communication; or
                    ``(B) made pursuant to a court order authorizing
                such disclosure.
    ``(e) Definitions.--For purposes of this subsection, the following
definitions shall apply:
            ``(1) By means of the world wide web.--The term `by means
        of the World Wide Web' means by placement of material in a
        computer server-based file archive so that it is publicly
        accessible, over the Internet, using hypertext transfer
        protocol or any successor protocol.
            ``(2) Commercial purposes; engaged in the business.--
                    ``(A) Commercial purposes.--A person shall be
                considered to make a communication for commercial
                purposes only if such person is engaged in the business
                of making such communications.
                    ``(B) Engaged in the business.--The term `engaged
                in the business' means that the person who makes a
                communication, or offers to make a communication, by
                means of the World Wide Web, that includes any material
                that is harmful to minors, devotes time, attention, or
                labor to such activities, as a regular course of such
                person's trade or business, with the objective of
                earning a profit as a result of such activities
                (although it is not necessary that the person make a
                profit or that the making or offering to make such
                communications be the person's sole or principal
                business or source of income). A person may be
                considered to be engaged in the business of making, by
                means of the World Wide Web, communications for
                commercial purposes that include material that is
                harmful to minors, only if the person knowingly causes
                the material that is harmful to minors to be posted on
                the World Wide Web or knowingly solicits such material
                to be posted on the World Wide Web.
            ``(3) Internet.--The term `Internet' means the combination
        of computer facilities and electromagnetic transmission media,
        and related equipment and software, comprising the
        interconnected worldwide network of computer networks that
        employ the Transmission Control Protocol/Internet Protocol or
        any successor protocol to transmit information.
            ``(4) Internet access service.--The term `Internet access
        service' means a service that enables users to access content,
        information, electronic mail, or other services offered over
        the Internet, and may also include access to proprietary
        content, information, and other services as part of a package
        of services offered to consumers. Such term does not include
        telecommunications services.
            ``(5) Internet information location tool.--The term
        `Internet information location tool' means a service that
        refers or links users to an online location on the World Wide
        Web. Such term includes directories, indices, references,
        pointers, and hypertext links.
            ``(6) Material that is harmful to minors.--The term
        `material that is harmful to minors' means any communication,
        picture, image, graphic image file, article, recording,
        writing, or other matter of any kind that is obscene or that--
                    ``(A) the average person, applying contemporary
                community standards, would find, taking the material as
                a whole and with respect to minors, is designed to
                appeal to, or is designed to pander to, the prurient
                interest;
                    ``(B) depicts, describes, or represents, in a
                manner patently offensive with respect to minors, an
                actual or simulated sexual act or sexual contact, an
                actual or simulated normal or perverted sexual act, or
                a lewd exhibition of the genitals or post-pubescent
                female breast; and
                    ``(C) taken as a whole, lacks serious literary,
                artistic, political, or scientific value for minors.
            ``(7) Minor.--The term `minor' means any person under 17
        years of age.''.

SEC. 103. NOTICE REQUIREMENT.

    (a) Notice.--Section 230 of the Communications Act of 1934 (47
U.S.C. 230) is amended--
            (1) in subsection (d)(1), by inserting ``or 231'' after
        ``section 223'';
            (2) by redesignating subsections (d) and (e) as subsections
        (e) and (f), respectively; and
            (3) by inserting after subsection (c) the following new
        subsection:
    ``(d) Obligations of Interactive Computer Service.--A provider of
interactive computer service shall, at the time of entering an
agreement with a customer for the provision of interactive computer
service and in a manner deemed appropriate by the provider, notify such
customer that parental control protections (such as computer hardware,
software, or filtering services) are commercially available that may
assist the customer in limiting access to material that is harmful to
minors. Such notice shall identify, or provide the customer with access
to information identifying, current providers of such protections.''.
    (b) Conforming Amendment.--Section 223(h)(2) of the Communications
Act of 1934 (47 U.S.C. 223(h)(2)) is amended by striking ``230(e)(2)''
and inserting ``230(f)(2)''.

SEC. 104. STUDY BY COMMISSION ON ONLINE CHILD PROTECTION.

    (a) Establishment.--There is hereby established a temporary
Commission to be known as the Commission on Online Child Protection (in
this section referred to as the ``Commission'') for the purpose of
conducting a study under this section regarding methods to help reduce
access by minors to material that is harmful to minors on the Internet.
    (b) Membership.--The Commission shall be composed of 19 members, as
follows:
            (1) Industry members.--The Commission shall include--
                    (A) 2 members who are engaged in the business of
                providing Internet filtering or blocking services or
                software;
                    (B) 2 members who are engaged in the business of
                providing Internet access services;
                    (C) 2 members who are engaged in the business of
                providing labeling or ratings services;
                    (D) 2 members who are engaged in the business of
                providing Internet portal or search services;
                    (E) 2 members who are engaged in the business of
                providing domain name registration services;
                    (F) 2 members who are academic experts in the field
                of technology; and
                    (G) 4 members who are engaged in the business of
                making content available over the Internet.
        Of the members of the Commission by reason of each subparagraph
        of this paragraph, an equal number shall be appointed by the
        Speaker of the House of Representatives and by the Majority
        Leader of the Senate.
            (2) Ex officio members.--The Commission shall include the
        following officials:
                    (A) The Assistant Secretary (or the Assistant
                Secretary's designee).
                    (B) The Attorney General (or the Attorney General's
                designee).
                    (C) The Chairman of the Federal Trade Commission
                (or the Chairman's designee).
    (c) Study.--
            (1) In general.--The Commission shall conduct a study to
        identify technological or other methods that--
                    (A) will help reduce access by minors to material
                that is harmful to minors on the Internet; and
                    (B) may meet the requirements for use as
                affirmative defenses for purposes of section 231(c) of
                the Communications Act of 1934 (as added by this Act).
        Any methods so identified shall be used as the basis for making
        legislative recommendations to the Congress under subsection
        (d)(3).
            (2) Specific methods.--In carrying out the study, the
        Commission shall identify and analyze various technological
        tools and methods for protecting minors from material that is
        harmful to minors, which shall include (without limitation)--
                    (A) a common resource for parents to use to help
                protect minors (such as a ``one-click-away'' resource);
                    (B) filtering or blocking software or services;
                    (C) labeling or rating systems;
                    (D) age verification systems;
                    (E) the establishment of a domain name for posting
                of any material that is harmful to minors; and
                    (F) any other existing or proposed technologies or
                methods for reducing access by minors to such material.
            (3) Analysis.--In analyzing technologies and other methods
        identified pursuant to paragraph (2), the Commission shall
        examine--
                    (A) the cost of such technologies and methods;
                    (B) the effects of such technologies and methods on
                law enforcement entities;
                    (C) the effects of such technologies and methods on
                privacy;
                    (D) the extent to which material that is harmful to
                minors is globally distributed and the effect of such
                technologies and methods on such distribution;
                    (E) the accessibility of such technologies and
                methods to parents; and
                    (F) such other factors and issues as the Commission
                considers relevant and appropriate.
    (d) Report.--Not later than 1 year after the enactment of this Act,
the Commission shall submit a report to the Congress containing the
results of the study under this section, which shall include--
            (1) a description of the technologies and methods
        identified by the study and the results of the analysis of each
        such technology and method;
            (2) the conclusions and recommendations of the Commission
        regarding each such technology or method;
            (3) recommendations for legislative or administrative
        actions to implement the conclusions of the committee; and
            (4) a description of the technologies or methods identified
        by the study that may meet the requirements for use as
        affirmative defenses for purposes of section 231(c) of the
        Communications Act of 1934 (as added by this Act).
    (e) Staff and Resources.--The Assistant Secretary for Communication
and Information of the Department of Commerce shall provide to the
Commission such staff and resources as the Assistant Secretary
determines necessary for the Commission to perform its duty efficiently
and in accordance with this section.
    (f) Termination.--The Commission shall terminate 30 days after the
submission of the report under subsection (d).
    (g) Inapplicability of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Commission.

SEC. 105. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect
30 days after the date of enactment of this Act.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

SEC. 201. DEFINITIONS.

    In this title:
            (1) Child.--The term ``child'' means an individual under
        the age of 13.
            (2) Operator.--The term ``operator'' means any person
        operating a website on the World Wide Web or any online service
        for commercial purposes, including any person offering products
        or services for sale through that website or online service,
        involving commerce--
                    (A) among the several States or with 1 or more
                foreign nations;
                    (B) in any territory of the United States or in the
                District of Columbia, or between any such territory
                and--
                            (i) another such territory; or
                            (ii) any State or foreign nation; or
                    (C) between the District of Columbia and any State,
                territory, or foreign nation.
        For purposes of this title, the term ``operator'' does not
        include any non-profit entity that would otherwise be exempt
        from coverage under section 5 of the Federal Trade Commission
        Act (15 U.S.C. 45).
            (3) Commission.--The term ``Commission'' means the Federal
        Trade Commission.
            (4) Disclosure.--The term ``disclosure'' means, with
        respect to personal information--
                    (A) the release of personal information collected
                from a child in identifiable form by an operator for
                any purpose, except where such information is provided
                to a person other than the operator who provides
                support for the internal operations of the website and
                does not disclose or use that information for any other
                purpose; and
                    (B) making personal information collected from a
                child by a website or online service directed to
                children or with actual knowledge that such information
                was collected from a child, publicly available in
                identifiable form, by any means including by a public
                posting, through the Internet, or through--
                            (i) a home page of a website;
                            (ii) a pen pal service;
                            (iii) an electronic mail service;
                            (iv) a message board; or
                            (v) a chat room.
            (5) Federal agency.--The term ``Federal agency'' means an
        agency, as that term is defined in section 551(1) of title 5,
        United States Code.
            (6) Internet.--The term ``Internet'' means collectively the
        myriad of computer and telecommunications facilities, including
        equipment and operating software, which comprise the
        interconnected world-wide network of networks that employ the
        Transmission Control Protocol/Internet Protocol, or any
        predecessor or successor protocols to such protocol, to
        communicate information of all kinds by wire or radio.
            (7) Parent.--The term ``parent'' includes a legal guardian.
            (8) Personal information.--The term ``personal
        information'' means individually identifiable information about
        an individual collected online, including--
                    (A) a first and last name;
                    (B) a home or other physical address including
                street name and name of a city or town;
                    (C) an e-mail address;
                    (D) a telephone number;
                    (E) a Social Security number;
                    (F) any other identifier that the Commission
                determines permits the physical or online contacting of
                a specific individual; or
                    (G) information concerning the child or the parents
                of that child that the website collects online from the
                child and combines with an identifier described in this
                paragraph.
            (9) Verifiable parental consent.--The term ``verifiable
        parental consent'' means any reasonable effort (taking into
        consideration available technology), including a request for
        authorization for future collection, use, and disclosure
        described in the notice, to ensure that a parent of a child
        receives notice of the operator's personal information
        collection, use, and disclosure practices, and authorizes the
        collection, use, and disclosure, as applicable, of personal
        information and the subsequent use of that information before
        that information is collected from that child.
            (10) Website or online service directed to children.--
                    (A) In general.--The term ``website or online
                service directed to children'' means --
                            (i) a commercial website or online service
                        that is targeted to children; or
                            (ii) that portion of a commercial website
                        or online service that is targeted to children.
                    (B) Limitation.--A commercial website or online
                service, or a portion of a commercial website or online
                service, shall not be deemed directed to children
                solely for referring or linking to a commercial website
                or online service directed to children by using
                information location tools, including a directory,
                index, reference, pointer, or hypertext link.
            (11) Person.--The term ``person'' means any individual,
        partnership, corporation, trust, estate, cooperative,
        association, or other entity.
            (12) Online contact information.--The term ``online contact
        information'' means an e-mail address or another substantially
        similar identifier that permits direct contact with a person
        online.

SEC. 202. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN
              CONNECTION WITH THE COLLECTION AND USE OF PERSONAL
              INFORMATION FROM AND ABOUT CHILDREN ON THE INTERNET.

    (a) Acts Prohibited.--
            (1) In general.--It is unlawful for an operator of a
        website or online service directed to children, or any operator
        that has actual knowledge that it is collecting personal
        information from a child, to collect personal information from
        a child in a manner that violates the regulations prescribed
        under subsection (b).
            (2) Disclosure to parent protected.--Notwithstanding
        paragraph (1), neither an operator of such a website or online
        service nor the operator's agent shall be held to be liable
        under any Federal or State law for any disclosure made in good
        faith and following reasonable procedures in responding to a
        request for disclosure of personal information under subsection
        (b)(1)(B)(iii) to the parent of a child.
    (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of
        the enactment of this Act, the Commission shall promulgate
        under section 553 of title 5, United States Code, regulations
        that--
                    (A) require the operator of any website or online
                service directed to children that collects personal
                information from children or the operator of a website
                or online service that has actual knowledge that it is
                collecting personal information from a child--
                            (i) to provide notice on the website of
                        what information is collected from children by
                        the operator, how the operator uses such
                        information, and the operator's disclosure
                        practices for such information; and
                            (ii) to obtain verifiable parental consent
                        for the collection, use, or disclosure of
                        personal information from children;
                    (B) require the operator to provide, upon request
                of a parent whose child has provided personal
                information to that website or online service--
                            (i) a description of the specific types of
                        personal information collected from the child
                        by that operator;
                            (ii) notwithstanding any other provision of
                        law, the opportunity at any time to refuse to
                        permit the operator's further use or
                        maintenance in retrievable form, or future
                        online collection, of personal information on
                        that child; and
                            (iii) a means that is reasonable under the
                        circumstances for the parent to obtain any
                        personal information collected from that child;
                    (C) prohibit conditioning a child's participation
                in a game, the offering of a prize, or another activity
                on the child disclosing more personal information than
                is reasonably necessary to participate in such
                activity;
                    (D) require the operator of such a website or
                online service to establish and maintain reasonable
                procedures to protect the confidentiality, security,
                and integrity of personal information collected from
                children; and
                    (E) permit the operator of such a website or online
                service to collect, use, and disseminate such
                information as is necessary--
                            (i) to protect the security or integrity of
                        its website;
                            (ii) to take precautions against liability;
                            (iii) to respond to judicial process; and
                            (iv) to provide information to law
                        enforcement agencies or for an investigation on
                        a matter related to public safety.
            (2) When consent not required.--Verifiable parental consent
        under paragraph (1)(A)(ii) is not required in the case of--
                    (A) online contact information collected from a
                child that is used only to respond directly on a one-
                time basis to a specific request from the child and is
                not used to recontact the child and is not maintained
                in retrievable form by the operator;
                    (B) a request for the name or online contact
                information of a parent or child that is used for the
                sole purpose of obtaining parental consent or providing
                notice under this section and where such information is
                not maintained in retrievable form by the operator if
                parental consent is not obtained after a reasonable
                time;
                    (C) online contact information collected from a
                child that is used only to respond more than once
                directly to a specific request from the child and is
                not used to recontact the child beyond the scope of
                that request--
                            (i) if, before any additional response
                        after the initial response to the child, the
                        operator uses reasonable efforts to provide a
                        parent notice of the online contact information
                        collected from the child, the purposes for
                        which it is to be used, and an opportunity for
                        the parent to request that the operator make no
                        further use of the information and that it not
                        be maintained in retrievable form; or
                            (ii) without notice to the parent in such
                        circumstances as the Commission may determine
                        are appropriate, taking into consideration the
                        benefits to the child of access to information
                        and services, and risks to the security and
                        privacy of the child, in regulations
                        promulgated under this subsection; or
                    (D) the name of the child and online contact
                information (to the extent necessary to protect the
                safety of a child participant in the site)--
                            (i) used only for the purpose of protecting
                        such safety;
                            (ii) not used to recontact the child or for
                        any other purpose; and
                            (iii) not disclosed on the site,
                if the operator uses reasonable efforts to provide a
                parent notice of the name and online contact
                information collected from the child, the purposes for
                which it is to be used, and an opportunity for the
                parent to request that the operator make no further use
                of the information and that it not be maintained in
                retrievable form.
    (c) Enforcement.--Subject to sections 203 and 205, a violation of a
regulation prescribed under subsection (a) shall be treated as a
violation of a rule defining an unfair or deceptive act or practice
prescribed under section 18(a)(1)(B) of the Federal Trade Commission
Act (15 U.S.C. 57a(a)(1)(B)).
    (d) Inconsistent State Law.--No State or local government may
impose any liability for commercial activities or actions by operators
in interstate or foreign commerce in connection with an activity or
action described in this title that is inconsistent with the treatment
of those activities or actions under this section.

SEC. 203. SAFE HARBORS.

    (a) Guidelines.--An operator may satisfy the requirements of
regulations issued under section 202(b) by following a set of self-
regulatory guidelines, issued by representatives of the marketing or
online industries, or by other persons, approved under subsection (b).
    (b) Incentives.--
            (1) Self-regulatory incentives.--In prescribing regulations
        under section 202, the Commission shall provide incentives for
        self-regulation by operators to implement the protections
        afforded children under the regulatory requirements described
        in subsection (b) of that section.
            (2) Deemed compliance.--Such incentives shall include
        provisions for ensuring that a person will be deemed to be in
        compliance with the requirements of the regulations under
        section 202 if that person complies with guidelines that, after
        notice and comment, are approved by the Commission upon making
        a determination that the guidelines meet the requirements of
        the regulations issued under section 202.
            (3) Expedited response to requests.--The Commission shall
        act upon requests for safe harbor treatment within 180 days of
        the filing of the request, and shall set forth in writing its
        conclusions with regard to such requests.
    (c) Appeals.--Final action by the Commission on a request for
approval of guidelines, or the failure to act within 180 days on a
request for approval of guidelines, submitted under subsection (b) may
be appealed to a district court of the United States of appropriate
jurisdiction as provided for in section 706 of title 5, United States
Code.

SEC. 204. ACTIONS BY STATES.

    (a) In General.--
            (1) Civil actions.--In any case in which the attorney
        general of a State has reason to believe that an interest of
        the residents of that State has been or is threatened or
        adversely affected by the engagement of any person in a
        practice that violates any regulation of the Commission
        prescribed under section 202(b), the State, as parens patriae,
        may bring a civil action on behalf of the residents of the
        State in a district court of the United States of appropriate
        jurisdiction to--
                    (A) enjoin that practice;
                    (B) enforce compliance with the regulation;
                    (C) obtain damage, restitution, or other
                compensation on behalf of residents of the State; or
                    (D) obtain such other relief as the court may
                consider to be appropriate.
            (2) Notice.--
                    (A) In general.--Before filing an action under
                paragraph (1), the attorney general of the State
                involved shall provide to the Commission--
                            (i) written notice of that action; and
                            (ii) a copy of the complaint for that
                        action.
                    (B) Exemption.--
                            (i) In general.--Subparagraph (A) shall not
                        apply with respect to the filing of an action
                        by an attorney general of a State under this
                        subsection, if the attorney general determines
                        that it is not feasible to provide the notice
                        described in that subparagraph before the
                        filing of the action.
                            (ii) Notification.--In an action described
                        in clause (i), the attorney general of a State
                        shall provide notice and a copy of the
                        complaint to the Commission at the same time as
                        the attorney general files the action.
    (b) Intervention.--
            (1) In general.--On receiving notice under subsection
        (a)(2), the Commission shall have the right to intervene in the
        action that is the subject of the notice.
            (2) Effect of intervention.--If the Commission intervenes
        in an action under subsection(a), it shall have the right--
                    (A) to be heard with respect to any matter that
                arises in that action; and
                    (B) to file a petition for appeal.
            (3) Amicus curiae.--Upon application to the court, a person
        whose self-regulatory guidelines have been approved by the
        Commission and are relied upon as a defense by any defendant to
        a proceeding under this section may file amicus curiae in that
        proceeding.
    (c) Construction.--For purposes of bringing any civil action under
subsection (a), nothing in this title shall be construed to prevent an
attorney general of a State from exercising the powers conferred on the
attorney general by the laws of that State to--
            (1) conduct investigations;
            (2) administer oaths or affirmations; or
            (3) compel the attendance of witnesses or the production of
        documentary and other evidence.
    (d) Actions by the Commission.--In any case in which an action is
instituted by or on behalf of the Commission for violation of any
regulation prescribed under section 202, no State may, during the
pendency of that action, institute an action under subsection (a)
against any defendant named in the complaint in that action for
violation of that regulation.
    (e) Venue; Service of Process.--
            (1) Venue.--Any action brought under subsection (a) may be
        brought in the district court of the United States that meets
        applicable requirements relating to venue under section 1391 of
        title 28, United States Code.
            (2) Service of process.--In an action brought under
        subsection (a), process may be served in any district in which
        the defendant--
                    (A) is an inhabitant; or
                    (B) may be found.

SEC. 205. ADMINISTRATION AND APPLICABILITY OF ACT.

    (a) In General.--Except as otherwise provided, this title shall be
enforced by the Commission under the Federal Trade Commission Act (15
U.S.C. 41 et seq.).
    (b) Provisions.--Compliance with the requirements imposed under
this title shall be enforced under--
            (1) section 8 of the Federal Deposit Insurance Act (12
        U.S.C. 1818), in the case of--
                    (A) national banks, and Federal branches and
                Federal agencies of foreign banks, by the Office of the
                Comptroller of the Currency;
                    (B) member banks of the Federal Reserve System
                (other than national banks), branches and agencies of
                foreign banks (other than Federal branches, Federal
                agencies, and insured State branches of foreign banks),
                commercial lending companies owned or controlled by
                foreign banks, and organizations operating under
                section 25 or 25(a) of the Federal Reserve Act (12
                U.S.C. 601 et seq. and 611 et. seq.), by the Board; and
                    (C) banks insured by the Federal Deposit Insurance
                Corporation (other than members of the Federal Reserve
                System) and insured State branches of foreign banks, by
                the Board of Directors of the Federal Deposit Insurance
                Corporation;
            (2) section 8 of the Federal Deposit Insurance Act (12
        U.S.C. 1818), by the Director of the Office of Thrift
        Supervision, in the case of a savings association the deposits
        of which are insured by the Federal Deposit Insurance
        Corporation;
            (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.)
        by the National Credit Union Administration Board with respect
        to any Federal credit union;
            (4) part A of subtitle VII of title 49, United States Code,
        by the Secretary of Transportation with respect to any air
        carrier or foreign air carrier subject to that part;
            (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et.
        seq.) (except as provided in section 406 of that Act (7 U.S.C.
        226, 227)), by the Secretary of Agriculture with respect to any
        activities subject to that Act; and
            (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.)
        by the Farm Credit Administration with respect to any Federal
        land bank, Federal land bank association, Federal intermediate
        credit bank, or production credit association.
    (c) Exercise of Certain Powers.--For the purpose of the exercise by
any agency referred to in subsection (a) of its powers under any Act
referred to in that subsection, a violation of any requirement imposed
under this title shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under any provision
of law specifically referred to in subsection (a), each of the agencies
referred to in that subsection may exercise, for the purpose of
enforcing compliance with any requirement imposed under this title, any
other authority conferred on it by law.
    (d) Actions by the Commission.--The Commission shall prevent any
person from violating a rule of the Commission under section 202 in the
same manner, by the same means, and with the same jurisdiction, powers,
and duties as though all applicable terms and provisions of the Federal
Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and
made a part of this title. Any entity that violates such rule shall be
subject to the penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act in the same manner, by the
same means, and with the same jurisdiction, power, and duties as though
all applicable terms and provisions of the Federal Trade Commission Act
were incorporated into and made a part of this title.
    (e) Effect on Other Laws.--Nothing contained in this title shall be
construed to limit the authority of the Commission under any other
provisions of law.

SEC. 206. REVIEW.

    Not later than 5 years after the effective date of the regulations
initially issued under section 202, the Commission shall--
            (1) review the implementation of this title, including the
        effect of the implementation of this title on practices
        relating to the collection and disclosure of information
        relating to children, children's ability to obtain access to
        information of their choice online, and on the availability of
        websites directed to children; and
            (2) prepare and submit to Congress a report on the results
        of the review under paragraph (1).

SEC. 207. EFFECTIVE DATE.

    Sections 202(a), 204, and 205 of this title take effect on the
later of--
            (1) the date that is 18 months after the date of enactment
        of this Act; or
            (2) the date on which the Commission rules on the first
        application for safe harbor treatment under section 203 if the
        Commission does not rule on the first such application within
        one year after the date of enactment of this Act, but in no
        case later than the date that is 30 months after the date of
        enactment of this Act.

            Passed the House of Representatives October 7, 1998.

            Attest:

                                                                 Clerk.


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