H.R. 2403: Telling Everyone the Location of data Leaving the U.S. Act

This bill, known as the Telling Everyone the Location of data Leaving the U.S. Act (TELL Act), aims to require certain disclosures regarding the storage and handling of data collected from individuals by websites and mobile applications.

Key Provisions

• Disclosure Requirements: Any person or entity that operates a website or sells mobile applications which store information in the People’s Republic of China (PRC) must inform users clearly and prominently that their data is being stored in the PRC.
• Access Information: These operators must also disclose whether the Chinese Communist Party or any Chinese state-owned entity has access to the data.
• False Information Penalty: It will be illegal for these operators to knowingly provide false information about the data storage and access under this act.

Enforcement Mechanisms

• Regulation on Unfair Practices: Violations of this bill will be treated as unfair or deceptive acts, similar to violations under the Federal Trade Commission (FTC) Act.
• FTC Enforcement Powers: The Federal Trade Commission will have the authority to enforce this act, using the same methods and powers it has under existing laws.
• Penalties: Individuals or entities violating the provisions of this act may face penalties as defined by the Federal Trade Commission Act.

Overall Intent

The overall intention of the TELL Act is to enhance transparency regarding where certain data is stored and who has access to it, particularly concerning the involvement of the Chinese government and state-owned enterprises. This could provide users with more informed choices about the services they use and the data they share.

Relevant Companies

• AAPL - Apple Inc. may need to disclose if any of its app data is stored in China.
• GOOGL - Alphabet Inc. may be affected if any of its services utilize data storage in the PRC.
• FB - Meta Platforms, Inc. might need to assess and disclose data handling for its applications used in China.