H.R. 1770

119th CONGRESS 1st Session

To direct the Consumer Product Safety Commission to establish a pilot program to explore the use of artificial intelligence in support of the mission of the Commission and to direct the Secretary of Commerce and the Federal Trade Commission to study and report on the use of blockchain technology and tokens, respectively.

IN THE HOUSE OF REPRESENTATIVES

Sec. 1. Short title; table of contents.

(a) Short title
- This Act may be cited as the Consumer Safety Technology Act.
(b) Table of contents

Sec. 2. Definitions.

In this Act—

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)
the term Secretary means the Secretary of Commerce; and
the term token means a transferrable, digital representation of information recorded on a blockchain or other distributed ledger technology.

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 the 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, as described in section 2(b) of the Consumer Product Safety Act (). 15 U.S.C. 2051(b)
(b) Requirements
- In conducting the pilot program established under subsection (a), the Commission shall do the following:
  - Use artificial intelligence for at least 1 of the following purposes:
    - Tracking trends with respect to injuries involving consumer products.
    - Identifying consumer product hazards.
    - Monitoring the retail marketplace (including internet websites) for the sale of recalled consumer products (including both new and used products).
    - Identifying consumer products required by section 17(a) of the Consumer Product Safety Act () to be refused admission into the customs territory of the United States. 15 U.S.C. 2066(a)
  - Consistent with section 6 of the Consumer Product Safety Act (), consult with the following: 15 U.S.C. 2055
    - Technologists, data scientists, and experts in artificial intelligence and machine learning.
    - Cybersecurity experts.
    - Members of the retail industry.
    - Consumer product manufacturers.
    - Consumer product safety organizations.
    - Any other person the Commission considers appropriate.
(c) Report to Congress
- Not later than 1 year 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 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 1 year after the date of the enactment of this Act, the Secretary of Commerce, in consultation with the Federal Trade Commission and any other Federal agency the Secretary determines appropriate, shall complete a study on the possible uses of blockchain technology for consumer protection purposes, including preventing or mitigating fraud and other unfair or deceptive acts or practices.
- (2) Requirements for study
  - In conducting the study required by paragraph (1), the Secretary shall examine—
    - existing and emerging uses of blockchain technology that could help protect consumers, including by preventing or mitigating fraud and other unfair or deceptive acts or practices within the meaning of section 5 of the Federal Trade Commission Act (); 15 U.S.C. 45
    - trends in the commercial use of and investment in blockchain technology to prevent or mitigate fraud and other unfair or deceptive acts or practices as described in subparagraph (A);
    - best practices in facilitating public-private partnerships in blockchain technology to prevent or mitigate fraud and other unfair or deceptive acts or practices as described in subparagraph (A);
    - potential benefits and risks related to the use of blockchain technology to prevent or mitigate fraud and other unfair or deceptive acts or practices as described in subparagraph (A);
    - possible modifications to Federal regulations that could encourage the use of blockchain technology to prevent or mitigate fraud and other unfair or deceptive acts or practices as described in subparagraph (A); and
    - any other relevant observations or recommendations related to the use of blockchain technology for consumer protection purposes, including preventing or mitigating fraud and other unfair or deceptive acts or practices as described in subparagraph (A).
- (3) Public comment
  - In conducting the study required by paragraph (1), the Secretary shall provide opportunity for public comment and advice relevant to conducting the study.
(b) Report to Congress
- Not later than 6 months after the completion of the study required by subsection (a)(1), 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 such study.

Title III—Token Taxonomy

Sec. 301. Short title.

This title may be cited as the Digital Taxonomy Act.

Sec. 302. Findings.

Congress finds that—

it is important that the United States remains a leader in innovation;
tokens and blockchain technology are driving innovation and providing consumers with increased choice and convenience;
the use of tokens and blockchain technology is likely to increase in the future;
the Federal Trade Commission is responsible for protecting consumers from unfair or deceptive acts or practices, including relating to tokens;
the Commission has previously taken action against unscrupulous companies and individuals that committed unfair or deceptive acts or practices involving tokens; and
to bolster the Commission’s ability to enforce against unfair or deceptive acts or practices involving tokens, the Commission should ensure staff have appropriate training and resources to identify and pursue such cases.

Sec. 303. Report on unfair or deceptive acts or practices in transactions relating to tokens.

Not later than 1 year after the date of the enactment of this Act, the Federal Trade 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—

any actions taken by the Commission relating to unfair or deceptive acts or practices in transactions relating to tokens;
any other efforts of the Commission to prevent unfair or deceptive acts or practices relating to tokens; and
any recommendations by the Commission for legislation that would improve the ability of the Commission and other relevant Federal agencies to further protect consumers from unfair or deceptive acts or practices in the token marketplace.