Consumer Safety Technology Act

Floor Speech

Date: Sept. 29, 2020
Location: Washington, DC

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Mr. PALLONE. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 8128) to direct the Consumer Product Safety Commission to establish a pilot program to explore the use of artificial intelligence in support of the consumer product safety mission of the Commission, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 8128

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Consumer Safety Technology Act''.

(b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions.

TITLE I--ARTIFICIAL INTELLIGENCE AND CONSUMER PRODUCT SAFETY Sec. 101. Short title. Sec. 102. Pilot program for use of artificial intelligence by Consumer Product Safety Commission. TITLE II--BLOCKCHAIN TECHNOLOGY INNOVATION Sec. 201. Short title. Sec. 202. Study on blockchain technology and its use in consumer protection. TITLE III--DIGITAL TOKEN TAXONOMY Sec. 301. Short title. Sec. 302. Findings. Sec. 303. Reports on unfair or deceptive acts or practices in transactions relating to digital tokens. SEC. 2. DEFINITIONS.

In this Act--

(1) the term ``consumer product'' has the meaning given such term in section 3(a) of the Consumer Product Safety Act (15 U.S.C. 2052(a)); and

(2) the term ``Secretary'' means the Secretary of Commerce.

TITLE I--ARTIFICIAL INTELLIGENCE AND CONSUMER PRODUCT SAFETY SEC. 101. SHORT TITLE.

This title may be cited as the ``AI for Consumer Product Safety Act''. SEC. 102. PILOT PROGRAM FOR USE OF ARTIFICIAL INTELLIGENCE BY CONSUMER PRODUCT SAFETY COMMISSION.

(a) Establishment.--Not later than 1 year after the date of enactment of this Act, the Consumer Product Safety Commission shall establish a pilot program to explore the use of artificial intelligence by the Commission in support of the consumer product safety mission of the Commission.

(b) Requirements.--In conducting the pilot program established under subsection (a), the Commission shall do the following:

(1) Use artificial intelligence for at least 1 of the following purposes:

(A) Tracking trends with respect to injuries involving consumer products.

(B) Identifying consumer product hazards.

(C) Monitoring the retail marketplace (including internet websites) for the sale of recalled consumer products (including both new and used products).

(D) Identifying consumer products required by section 17(a) of the Consumer Product Safety Act (15 U.S.C. 2066(a)) to be refused admission into the customs territory of the United States.

(2) Consult with the following:

(A) Technologists, data scientists, and experts in artificial intelligence and machine learning.

(B) Cybersecurity experts.

(C) Members of the retail industry.

(D) Consumer product manufacturers.

(E) Consumer product safety organizations.

(F) Any other person the Commission considers appropriate.

(c) Report to Congress.--Not later than 180 days after the conclusion of the pilot program established under subsection (a), the Consumer Product Safety Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, and make publicly available on the website of the Commission, a report on the findings and data derived from such program, including whether and the extent to which the use of artificial intelligence improved the ability of the Commission to advance the consumer product safety mission of the Commission. TITLE II--BLOCKCHAIN TECHNOLOGY INNOVATION SEC. 201. SHORT TITLE.

This title may be cited as the ``Blockchain Innovation Act''. SEC. 202. STUDY ON BLOCKCHAIN TECHNOLOGY AND ITS USE IN CONSUMER PROTECTION.

(a) In General.--

(1) Study required.--Not later than one year after the date of enactment of this Act, the Secretary of Commerce, in consultation with the Federal Trade Commission, and in consultation with the any other appropriate Federal agency the Secretary determines appropriate, shall conduct a study on current and potential use of blockchain technology in commerce and the potential benefits of blockchain technology for limiting fraud and other unfair and deceptive acts and practices.

(2) Requirements for study.--In conducting the study, the Secretary shall examine--

(A) trends in the commercial use of and investment in blockchain technology;

(B) best practices in facilitating public-private partnerships in blockchain technology;

(C) potential benefits and risks of blockchain technology for consumer protection;

(D) how blockchain technology can be used by industry and consumers to reduce fraud and increase the security of commercial transactions;

(E) areas in Federal regulation of blockchain technology that greater clarity would encourage domestic innovation: and

(F) any other relevant observations or recommendations related to blockchain technology and consumer protection.

(3) Public comment.--In producing the study required in subsection (a)(2), the Secretary shall provide opportunity for public comment and advice relevant to the production of the study.

(b) Report to Congress.--Not later than 6 months after the completion of the study required pursuant to subsection (a), the Secretary shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, and make publicly available on the website of the Department of Commerce, a report that contains the results of the study conducted under subsection (a). TITLE III--DIGITAL TOKEN TAXONOMY SEC. 301. SHORT TITLE.

This title may be cited as the ``Digital Taxonomy Act''. SEC. 302. FINDINGS.

Congress finds that--

(1) it is important that the United States remains a leader in innovation;

(2) digital tokens and blockchain technology are driving innovation and providing consumers with increased choice and convenience;

(3) the use of digital tokens and blockchain technology is likely to increase in the future;

(4) the Federal Trade Commission is responsible for protecting consumers from unfair or deceptive acts or practices, including relating to digital tokens;

(5) the Commission has previously taken action against unscrupulous companies and individuals that committed unfair or deceptive acts or practices involving digital tokens; and

(6) to bolster the Commission's ability to enforce against unfair or deceptive acts or practices involving digital tokens, the Commission should ensure staff have appropriate training and resources to identify and pursue such cases. SEC. 303. REPORTS ON UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN TRANSACTIONS RELATING TO DIGITAL TOKENS.

Not later than one year after the date of enactment of this Act and each year thereafter until fiscal year 2024, the Federal Trade Commission shall transmit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, and make publicly available on its website, a report of--

(1) any actions taken by the Commission relating to unfair or deceptive acts or practices in transactions relating to digital tokens;

(2) the Commission's other efforts to prevent unfair or deceptive acts or practices relating to digital tokens; and

(3) any recommendations by the Commission for legislation that would improve the ability of the Commission and other relevant Federal agencies--

(A) to further protect consumers from unfair or deceptive acts or practices in the digital token marketplace; and

(B) to promote competition and promote innovation in the global digital token sector.

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Mr. PALLONE. 8128.

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Mr. PALLONE. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise in support of H.R. 8128, and I want to begin by thanking Representatives McNerney and Burgess for their leadership on H.R. 8128, the Consumer Safety Technology Act. This bill advanced out of the Energy and Commerce Committee earlier this month, on September 9, by voice vote.

The legislation will help modernize our consumer protection agencies and encourage the use of advanced technologies, like artificial intelligence and blockchain, in support of product safety and consumer protection. These technologies can help the Consumer Product Safety Commission and the Federal Trade Commission improve their operations and more effectively carry out their mission.

Technological advances and globalization have greatly expanded the range of consumer products on the market, and as consumers shop online, more and more of these products are being shipped directly to homes. AI could help the CPSC oversee the increasingly complex range of products under its jurisdiction by helping identify new injury trends and emerging hazards.

AI can also help the CPSC monitor online marketplaces for the illegal sale of recalled products. The persistence of recalled products on online third-party marketplaces is a particularly pernicious problem that puts Americans needlessly at risk.

For example, months after the dangerous Fisher-Price Rock `n Play and other infant inclined sleepers were recalled, a Consumer Reports investigation found that these products were still being sold on sites like Facebook Marketplace and Craigslist, even though they had been linked to dozens of infant fatalities. I am hopeful that AI can be harnessed here to help eradicate the sale of recalled products in these online marketplaces.

Madam Speaker, the CPSC could also use AI to assess the risk of the growing number of imported consumer products entering our country and being sent directly to consumers.

I want to thank Representatives Soto, Guthrie, and Matsui for introducing the Blockchain Innovation Act, which was incorporated into H.R. 8128 during the full committee's consideration of the bill. So, too, was the Digital Taxonomy Act, which was introduced by Representatives Davidson and Soto.

Together, these bills will help identify ways blockchain technology can be used to further support consumer protection. It will also make sure that scammers and fraudsters don't get ahead of consumers and law enforcement in the realm of blockchain and digital tokens.

Finally, I want to thank Ranking Member Walden and subcommittee Ranking Member Rodgers for working with us to move this bill through the Energy and Commerce Committee on a bipartisan basis.

Madam Speaker, I call on my colleagues to support the measure, and I reserve the balance of my time.

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Mr. PALLONE. Madam Speaker, I yield such time as he may consume to the gentleman from California (Mr. McNerney).

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Mr. PALLONE. Madam Speaker, I yield such time as she may consume to the gentlewoman from Illinois (Ms. Schakowsky), the chairwoman of the subcommittee.

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Mr. PALLONE. Madam Speaker, let me just thank my colleagues and urge support of this legislation, and I yield back the balance of my time.

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