Overview
Title
To require that any person that maintains an internet website or that sells or distributes a mobile application that stores and maintains information collected from such website or application in the People’s Republic of China to disclose that such information is stored and maintained in the People’s Republic of China and whether the Chinese Communist Party or a Chinese State-owned entity has access to such information.
ELI5 AI
H. R. 2403 is a rule that says if someone puts your information on a website or app that keeps it in China, they have to tell you. They also need to tell you if people from the Chinese government can see your information.
Summary AI
H. R. 2403, also known as the "TELL Act," requires that any person who manages a website or sells/distributes a mobile app, and stores user information in China, must clearly disclose this fact to users. They must also inform users if the Chinese Communist Party or a Chinese State-owned entity has access to the data. Providing false information about data storage or access is illegal under this bill. The Federal Trade Commission is responsible for enforcing these rules, treating violations as unfair or deceptive practices under existing U.S. law.
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AnalysisAI
General Summary of the Bill
The bill, known as the "Telling Everyone the Location of data Leaving the U.S. Act" or the "TELL Act," proposes that any company maintaining an internet website or distributing a mobile application should disclose if user data is stored in the People's Republic of China. Additionally, companies must inform users if the Chinese Communist Party or any Chinese State-owned entity has access to this data. This bill seeks to increase transparency about where user data is stored and who might access it, specifically when this data is stored in China.
Summary of Significant Issues
One significant issue with the bill is its lack of specified penalties or enforcement mechanisms if companies fail to comply or provide false information. Without clear consequences, the bill's effectiveness in compelling compliance is questionable. Another concern is the vague language used in the bill, particularly the term "clear and conspicuous manner," which might lead to varied interpretations by businesses on how to present disclosure information to users.
Additionally, the bill does not specify if it applies retroactively to data collected before the enactment of the law. This ambiguity could lead to legal uncertainties regarding existing data. Also, the bill does not provide a mechanism for users to verify the accuracy of the disclosure, limiting individuals' ability to ensure their data rights are respected. Finally, the reliance on cross-referencing the Federal Trade Commission Act without clear articulation within the bill makes it less accessible to those without legal expertise.
Impact on the Public and Specific Stakeholders
The proposed bill could have a broad impact on the public by aiming to provide greater transparency regarding data storage and potential governmental access. For general consumers, this transparency could mean a better understanding of where their personal information resides and possibly greater control over their data privacy.
For businesses, particularly internet and mobile application companies, this bill could introduce additional compliance burdens, necessitating clear communication and potential infrastructure changes to meet disclosure requirements. Companies might face legal risks and financial costs associated with updating their privacy policies and disclosures.
Stakeholders in the tech industry may see this as either a beneficial move toward greater transparency and consumer trust or as an additional regulatory hurdle. Conversely, the bill might be viewed positively by privacy advocates who see it as a step toward ensuring data protection and transparency, especially with geopolitical sensitivities surrounding China and data security. However, without clearly defined penalties or enforcement measures, the ability of the bill to drive meaningful change could be limited.
Overall, while the intention behind the TELL Act aligns with enhancing transparency in data handling, its ambiguities and lack of specified enforcement mechanisms may hinder its effectiveness and clarity for public understanding and compliance.
Issues
The bill lacks specific penalties or enforcement mechanisms for failure to comply with the disclosure requirements or for providing false information (Section 2). This omission could significantly weaken the bill's effectiveness and enforcement.
The term 'clear and conspicuous manner' in the disclosure requirements (Section 2) is vague, potentially leading to varied interpretations and compliance challenges for companies required to make disclosures.
The bill does not address how it applies to information collected before the act is enforced (Section 2). This could create legal ambiguity regarding the applicability to existing databases.
There is no guidance for users to verify the disclosure accuracy or demand corrections of false information (Section 2), potentially limiting the capacity for individuals to ensure their data rights.
Issues could arise from the bill's failure to clarify whether it applies to information stored temporarily versus permanently in China (Section 2). This ambiguity might lead to inconsistent application across different technological infrastructures.
There is potential ambiguity in defining 'unfair or deceptive acts or practices' (Section 3), which is crucial for enforcement clarity but relies heavily on referencing the Federal Trade Commission Act instead of providing specific guidelines.
The reliance on cross-referencing the Federal Trade Commission Act (Section 3) without elaborating the specific elements within the bill might cause confusion, making it less accessible to stakeholders without legal expertise.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill introduces the short title, which states that the Act may be called the "Telling Everyone the Location of data Leaving the U.S. Act" or simply the "TELL Act."
2. Country disclosure requirements Read Opens in new tab
Summary AI
Any company with a website or app that stores user data in China must clearly inform users that their data is stored there and whether the Chinese government can access it. It is illegal for these companies to provide false information about this.
3. Enforcement Read Opens in new tab
Summary AI
The section explains that breaking this law is considered an unfair or deceptive act, similar to breaking certain rules under the Federal Trade Commission Act. It states that the Federal Trade Commission will enforce this law using its usual powers, and anyone who violates it will face penalties and may have some protections like those under the Federal Trade Commission Act.