TELL Act
- Bill Number
- H.R. 2403
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-03-27: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2025-11-18T09:05:40Z
AI-Generated Summary
Purpose of the Legislation
The TELL Act (H.R. 2403) aims to promote transparency about data privacy by requiring operators of websites and mobile applications that store user information in the People's Republic of China (PRC) to inform users about the storage location and potential access by Chinese government entities. This addresses concerns over data security and foreign access to personal information.
Key Provisions
- Disclosure Requirements: Any person or company maintaining a website or selling/distributing a mobile app must clearly and conspicuously notify users (e.g., those who download or use the service) of two things:
- That collected information (such as user data) is stored and maintained in the PRC.
- Whether the Chinese Communist Party (CCP) or a Chinese state-owned entity has access to that information.
- Prohibition on False Disclosures: It is illegal for covered entities to knowingly provide inaccurate information in these disclosures.
- Enforcement Mechanism: Violations are treated as unfair or deceptive acts under the Federal Trade Commission Act (FTC Act). The Federal Trade Commission (FTC) enforces the law using its existing powers, including investigations, penalties, and remedies, as if the provisions were part of the FTC Act.
Significant Changes to Existing Law
This bill introduces new mandatory disclosure rules specifically targeting data storage in the PRC, which were not previously required under U.S. federal law. It builds on the FTC Act's framework for unfair or deceptive practices (which prohibits misleading business conduct) but applies it narrowly to China-related data practices, without altering the core FTC Act itself.
Potential Impacts
- On Citizens: Users of websites and apps will gain clearer awareness of risks to their personal data, potentially encouraging more informed choices about online services and enhancing privacy protections.
- On Government Agencies: The FTC will handle enforcement, which may increase its workload in monitoring digital platforms but leverages its established authority without needing new resources.
- On International Relations: The law could heighten U.S. scrutiny of Chinese tech practices, potentially straining relations with the PRC by signaling distrust in its data handling, though it focuses on disclosure rather than bans.
Main Stakeholders Affected
- Website and App Operators: Companies that store user data in the PRC (e.g., tech firms, app developers) must comply with disclosures or face penalties.
- Consumers/Users: Individuals downloading or using these services, who benefit from transparency about data risks.
- Federal Trade Commission (FTC): The primary enforcer, gaining jurisdiction over these specific disclosures.
- Chinese Entities: Indirectly affected, as the law highlights potential access by the CCP or state-owned companies, which could influence U.S.-based operations.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Expands the FTC's role in data privacy enforcement by classifying non-disclosure as a deceptive practice, potentially leading to civil penalties (fines up to $50,120 per violation under FTC rules) or injunctions. It does not create criminal liability but relies on administrative actions.
- Constitutional Implications: No major challenges anticipated, as the bill involves compelled commercial speech (disclosures), which courts have upheld under the First Amendment if it is factual and not unduly burdensome (similar to existing FTC labeling rules).
- Political Implications: Reflects bipartisan concerns over national security and data sovereignty amid U.S.-China tensions, potentially influencing broader tech policy debates without directly restricting trade or operations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Kaptur, Marcy [D-OH-9], Rep. Vindman, Eugene Simon [D-VA-7]
Recent Actions
- 2025-03-27: Referred to the House Committee on Energy and Commerce.
- 2025-03-27: Introduced in House
- 2025-03-27: Introduced in House
Bill Versions
- Telling Everyone the Location of data Leaving the U.S. Act — issued 2025-03-27 — PDF (3 pages)