1. Short title
This Act may be cited as the “Protecting Military Servicemembers' Data Act of 2022”.
Protecting Military Servicemembers' Data Act of 2022
A BILL
To prohibit data brokers from selling, reselling, trading, licensing, or otherwise providing for consideration lists of military servicemembers to a covered nation.
2. Unfair and deceptive acts and practices relating to military servicemember lists
In general— It shall be unlawful for a data broker to sell, resell, license, trade, or otherwise provide or make available for consideration a military servicemember list to any covered nation.
Effective date— The prohibition under subsection (a) shall take effect on the earlier of—
the date the Commission issues the final rule under section 3(a)(3); or
1 year after the date of enactment of this Act.
3. Enforcement
Enforcement by the Federal Trade Commission—
Unfair or deceptive acts or practices— A violation of section 2 shall be treated as a violation of a rule defining an unfair or a deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
Powers of Commission—
In general— Except as provided in subparagraphs (D) and (E), the Commission shall enforce section 2 in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act.
Privileges and immunities— Any person who violates section 2 shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.).
Authority preserved— Nothing in this Act shall be construed to limit the authority of the Federal Trade Commission under any other provision of law.
Nonprofit organizations— Notwithstanding section 4 of the Federal Trade Commission Act (15 U.S.C. 44) or any jurisdictional limitation of the Commission, the Commission shall also enforce this Act, in the same manner provided in subparagraphs (A) and (B), with respect to organizations not organized to carry on business for their own profit or that of their members.
Independent litigation authority— In any case in which the Commission has reason to believe that a data broker is violating or has violated section 2, the Commission may bring a civil action in an appropriate district court of the United States—
to enjoin further violation of such section by such person;
to compel compliance with such section; and
to obtain damages, restitution, or other compensation on behalf of aggrieved consumers.
Rulemaking— Pursuant to section 553 of title 5, United States Code, the Commission shall promulgate regulations to carry out the provisions of this Act. The Commission shall issue a final rule by not later than 1 year after the date of enactment of this Act.
Enforcement by States—
In general— In any case in which the attorney general of a State has reason to believe that an interest of the residents of the State has been or is threatened or adversely affected by the engagement of any data broker subject to section 2 in a practice that violates such section, the attorney general of the State may, as parens patriae, bring a civil action on behalf of the residents of the State in an appropriate district court of the United States—
to enjoin further violation of such section by such person;
to compel compliance with such section; and
to obtain damages, restitution, or other compensation on behalf of such residents.
Rights of Federal Trade Commission—
Notice to Federal Trade Commission—
In general— Except as provided in clause (iii), the attorney general of a State shall notify the Commission in writing that the attorney general intends to bring a civil action under paragraph (1) not later than 10 days before initiating the civil action.
Contents— The notification required by clause (i) with respect to a civil action shall include a copy of the complaint to be filed to initiate the civil action.
Exception— If it is not feasible for the attorney general of a State to provide the notification required by clause (i) before initiating a civil action under paragraph (1), the attorney general shall notify the Commission immediately upon instituting the civil action.
Intervention by Federal Trade Commission— The Commission may—
intervene in any civil action brought by the attorney general of a State under paragraph (1); and
upon intervening—
be heard on all matters arising in the civil action; and
file petitions for appeal of a decision in the civil action.
Investigatory powers— Nothing in this subsection may be construed to prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of the State to conduct investigations, to administer oaths or affirmations, or to compel the attendance of witnesses or the production of documentary or other evidence.
Preemptive action by Federal Trade Commission— If the Commission institutes a civil action or an administrative action with respect to a violation of section 2, the attorney general of a State may not, during the pendency of such action, bring a civil action under paragraph (1) against any defendant named in the complaint of the Commission for the violation with respect to which the Commission instituted such action.
Venue; service of process—
Venue— Any action brought under paragraph (1) may be brought in—
the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code; or
another court of competent jurisdiction.
Service of process— In an action brought under paragraph (1), process may be served in any district in which the defendant—
is an inhabitant; or
may be found.
4. Definitions
In this Act:
Commission— The term Commission means the Federal Trade Commission.
Consumer— The term consumer means an individual residing in a State.
Covered nation— The term covered nation has the meaning given that term in section 4872(d)(2) of title 10, United States Code.
Data broker— The term data broker means a business that knowingly collects and sells to third parties the personal information of a consumer with whom the business does not have a direct relationship.
Military servicemember list— The term military servicemember list means a list that includes personal information (other than public record information) about one or more individuals or households which is created for the express or implied purpose of compiling information about individuals who are current or former servicemembers (as that term is defined in section 3911(1) of title 50, United States Code).
Personal information— The term personal information means information that is linked or reasonably linkable to any identified or identifiable person or device.
Public record information— The term public record information means information that is lawfully made available from Federal, State, or local government records provided that the data broker processes and transfers such information in accordance with any restrictions or terms of use placed on the information by the relevant government entity.
State— The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands.