Consumer Safety Technology Act
The Consumer Safety Technology Act would advance federal use of modern technology to protect consumers. It establishes three main tracks: (1) a pilot program at the Consumer Product Safety Commission (CPSC) to explore artificial intelligence (AI) applications in consumer product safety, including tracking injuries, identifying hazards, monitoring recalls online (including used items), and screening imports at the border; with broad expert and industry consultation and a public report to Congress and on the CPSC website after the pilot. (2) a study led by the Secretary of Commerce, in coordination with the Federal Trade Commission (FTC) and other agencies, to examine how blockchain technology could bolster consumer protection, including fraud prevention, and to solicit public input, culminating in a published report. (3) a “Digital Taxonomy Act,” requiring the FTC to report within a year on actions concerning unfair or deceptive practices in token-related transactions, potential enforcement improvements, and legislative recommendations to strengthen protections in the token market. The bill defines tokens as transferable digital representations on a blockchain or distributed ledger. Overall, the bill aims to signpost federal exploration of AI and blockchain as tools for safety and enforcement, while ensuring public reporting and congressional oversight.
Key Points
- 1AI Pilot Program at CPSC (Title I)
- 2- Within 1 year, CPSC must establish a pilot program to use AI for at least one purpose such as tracking injury trends, identifying hazards, monitoring online recalls, and screening imported products.
- 3- Requires consultation with technologists, cybersecurity experts, retailers, manufacturers, consumer safety groups, and others.
- 4- A report detailing findings and the program’s impact on advancing consumer safety must be submitted to Congress and publicly posted within 1 year after the pilot ends.
- 5Blockchain Technology Study (Title II)
- 6- Within 1 year, the Secretary of Commerce (with FTC and appropriate agencies) must complete a study on potential uses of blockchain for consumer protection, including fraud prevention.
- 7- The study should cover existing and emerging uses, market trends, best public-private partnership practices, benefits/risks, potential regulatory modifications to encourage use, and other relevant observations.
- 8- Public comment is to be sought during the study, and a final report must be released to Congress and the public within 6 months of study completion.
- 9Token Taxonomy and Enforcement (Title III)
- 10- The FTC must, within 1 year, report on actions relating to unfair or deceptive practices in token transactions, other enforcement efforts, and recommendations for legislation to improve protections in the token marketplace.
- 11- The report and related findings will be shared with Congress and made publicly available on the FTC website.
- 12Definitions and Scope
- 13- Defines “consumer product,” “Secretary” (Secretary of Commerce), and “token” (a transferable digital representation on a blockchain or distributed ledger).
- 14- The act references existing statutes (e.g., Consumer Product Safety Act, FTC Act) to frame authority and context.