S. 28: Informing Consumers about Smart Devices Act

This bill, known as the Informing Consumers about Smart Devices Act, seeks to improve transparency regarding certain internet-connected devices that have recording capabilities. Specifically, the key provisions of the bill include:

Disclosure Requirements

Manufacturers of designated internet-connected devices, referred to as "covered devices," would be required to inform consumers about the presence of a camera or microphone in their products. This disclosure must be:

• Clearly and conspicuously: The information should be easy to find and understand.
• Prior to purchase: Consumers must be aware of this information before making a buying decision.

Definition of Covered Devices

Covered devices are defined as consumer products that:

• Connect to the internet and include a camera or microphone as part of their function.
• Exclusions: Devices that consumers would typically expect to have these features, such as mobile phones, laptops, tablets, or devices expressly marketed as cameras or microphones, are not included.

Enforcement by the Federal Trade Commission (FTC)

The FTC would be responsible for enforcing this bill. Key aspects regarding enforcement include:

• A violation of the disclosure requirements would be treated as an unfair or deceptive act under existing law.
• The FTC can impose penalties on manufacturers who fail to comply with the requirements.
• Guidance will be provided by the FTC to help manufacturers understand how to meet the disclosure requirements effectively.

Timeline

The law would come into effect for all covered devices manufactured after 180 days from the issuance of FTC guidance, which is not specified in the bill but would follow the passage of the act.

Additional Provisions

The bill also allows manufacturers to request tailored guidance from the FTC if they have concerns about compliance with the disclosure requirements. It clarifies that any guidance from the FTC does not impose legal obligations or rights outside the provisions of the law itself.

Impact on Consumers

Ultimately, the goal of this legislation is to ensure that consumers are well-informed about the devices they purchase, specifically regarding surveillance capabilities, thereby promoting consumer trust in internet-connected technologies.

Relevant Companies

• GOOGL (Alphabet Inc.): As a major manufacturer of smart devices, such as Google Nest, this company would necessitate clear disclosures regarding any built-in cameras or microphones in their products.
• AAPL (Apple Inc.): With products like iPhones, iPads, and MacBooks that contain cameras and microphones, Apple would be required to provide disclosures prior to purchase.
• AMZN (Amazon.com, Inc.): Amazon’s range of Echo devices and other smart products would be impacted by the disclosure requirements outlined in this bill.
• FB (Meta Platforms, Inc.): Devices such as Portal, which have video conferencing capabilities, would need to adhere to the new disclosure mandates.