S. 2766 — Consumer Safety Technology Act

This section directs the Consumer Product Safety Commission (CPSC) to establish, not later than one year after enactment, a pilot program to explore the use of artificial intelligence in support of CPSC's consumer product safety mission (i.e., protecting the public against unreasonable risks of injury associated with consumer products, assisting consumers in evaluating comparative safety, developing uniform safety standards, and promoting research into product-related deaths, illnesses, and injuries, as described in 15 U.S.C. 2051(b)). Under the pilot program, CPSC must (1) use artificial intelligence for at least one of the following: tracking trends in consumer product-related injuries, identifying consumer product hazards, monitoring the retail marketplace (including internet websites) for recalled products, or identifying products required to be refused admission into U.S. customs territory; and (2) consult with technologists, data scientists, artificial intelligence and machine learning experts, cybersecurity experts, retailers, consumer product manufacturers, consumer product safety organizations, and others. Not later than one year after the pilot program's conclusion, CPSC must submit to the House Energy and Commerce Committee and Senate Commerce, Science, and Transportation Committee, and make publicly available on its website, a report on the program's findings and data, including the extent to which artificial intelligence improved CPSC's ability to advance its safety mission.

This section directs the Secretary of Commerce, in consultation with the Federal Trade Commission (FTC) and other appropriate federal agencies, to complete a study within one year of enactment on uses of blockchain technology for consumer protection purposes, including preventing or mitigating fraud and unfair or deceptive acts or practices under section 5 of the FTC Act (15 U.S.C. 45). The study must examine (1) existing and emerging blockchain uses to protect consumers from such fraud and practices; (2) trends in commercial use and investment; (3) best practices for public-private partnerships; (4) potential benefits and risks; (5) possible modifications to federal regulations to encourage blockchain use; and (6) other relevant observations or recommendations, with an opportunity for public comment. Within six months after completing the study, the Secretary must submit a report containing the results to the House Committee on Energy and Commerce and the Senate Committee on Commerce, Science, and Transportation and make it publicly available on the Department of Commerce website.

This section declares congressional findings recognizing the importance of U.S. leadership in innovation; the role of tokens and blockchain technology in driving innovation, consumer choice, and convenience; the expected growth in their use; the Federal Trade Commission's (FTC) responsibility to protect consumers from unfair or deceptive acts or practices involving tokens; the FTC's prior enforcement actions against unscrupulous actors in this area; and the need for the FTC to train staff and allocate resources to identify and pursue such cases.

This section directs the Federal Trade Commission (FTC) to submit to the House Committee on Energy and Commerce and the Senate Committee on Commerce, Science, and Transportation, and to make publicly available on its website, a report not later than one year after enactment of this Act on (1) any FTC actions taken relating to unfair or deceptive acts or practices in transactions relating to tokens; (2) any other FTC efforts to prevent such acts or practices relating to tokens; and (3) any FTC recommendations for legislation to improve the ability of the FTC and other federal agencies to protect consumers from such acts or practices in the token marketplace.