The TELL Act (H.R. 2403) would require any U.S. or other operator that runs an internet website or distributes a mobile app to disclose, to users, whether information collected by that site or app is stored in the People’s Republic of China (PRC) and whether the Chinese Communist Party or a Chinese state-owned entity has access to that information. The disclosure must be clear and conspicuous for users who download or use the site or app. It also bars knowingly providing false information. If violated, the act would be enforced by the Federal Trade Commission (FTC) as an unfair or deceptive trade practice, with FTC-like enforcement powers and penalties. In short, the bill aims to increase transparency about where user data is stored and who can access it when data is kept in China, with FTC oversight to deter misrepresentation.
Key Points
- 1Scope: Applies to any person who maintains an internet website or sells/distributes a mobile application that stores and maintains information collected from that site or app in the PRC.
- 2Disclosure requirements: Must tell users, in a clear and conspicuous manner, that the information is stored in the PRC and whether the Chinese Communist Party or a Chinese state-owned entity has access to that information.
- 3Truthfulness: Prohibits knowingly providing false information about data storage or access.
- 4Enforcement mechanism: Violations are treated as unfair or deceptive acts or practices under the FTC Act, and the FTC would enforce the act using its existing authority and procedures.
- 5Penalties and remedies: Brings the violator under the penalties and immunities provided by the FTC Act.