Internet Application Integrity and Disclosure Act; Internet Application I.D. Act
Summary
The Internet Application Integrity and Disclosure Act aims to increase transparency regarding foreign ownership and data storage practices of internet websites and mobile applications. It mandates disclosures to users about whether a service is owned or controlled by a foreign adversary, if user data is stored in a foreign adversary country, and whether those adversaries have access to the data. The bill defines 'foreign adversary country' by referencing existing US Code.
This bill seeks to protect user data and inform individuals about potential risks associated with using certain online services. Enforcement would fall under the purview of the Federal Trade Commission (FTC), treating violations as unfair or deceptive acts.
The Act focuses on ensuring users are aware of the origins and data handling practices of the digital services they use, particularly those linked to foreign adversaries.
Expected Effects
This Act will likely lead to increased awareness among users about the ownership and data storage practices of online services. Companies may face increased scrutiny and potential reputational risks if they are linked to foreign adversaries. The FTC will gain additional enforcement responsibilities in the digital space.
It could also lead to some companies changing their data storage practices to avoid being labeled as a 'covered service'. The effectiveness of the law will depend on the FTC's enforcement and how clearly the disclosure requirements are implemented.
Potential Benefits
- Increased transparency for users regarding the ownership and data handling practices of online services.
- Potential reduction in the use of services controlled by foreign adversaries due to increased user awareness.
- Empowerment of individuals to make more informed decisions about their data privacy and security.
- Strengthening of national security by reducing the potential for foreign adversaries to access sensitive user data.
- Greater accountability for companies regarding their relationships with foreign entities.
Potential Disadvantages
- Potential for increased compliance costs for businesses that fall under the definition of a 'covered service'.
- Risk of overly broad interpretation, potentially capturing legitimate businesses with minor foreign connections.
- Possible chilling effect on innovation if companies are hesitant to engage with foreign entities due to disclosure requirements.
- Enforcement challenges for the FTC, particularly in identifying and monitoring foreign ownership and data storage practices.
- Potential for the law to be circumvented through complex corporate structures or data storage arrangements.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on disclosure requirements aligns with the First Amendment's principles regarding freedom of speech, as it aims to provide users with information necessary to make informed decisions. However, overly broad or burdensome disclosure requirements could potentially raise concerns about infringing on commercial speech rights.
The enforcement mechanism through the FTC aligns with Congress's power to regulate interstate commerce (Article I, Section 8, Clause 3). The bill does not appear to infringe on any other specific constitutional provisions.
It is important to note that the definition of 'foreign adversary country' relies on existing US Code, which is subject to change and could impact the scope of the bill's application.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).