§4.Federal trade commission study and report on neural data governance
This section directs the Federal Trade Commission (FTC) to conduct a study on (1) additional federal authorities needed to regulate neural data and related data that can reveal an individual's mental state or activity (i.e., data from neurotechnology), including privacy protections; (2) private sector best practices for privacy and data security; and (3) gaps in existing laws such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) (Public Law 104-191). In conducting the study, the FTC must consult the Director of the Office of Science and Technology Policy, the FDA Commissioner, other relevant agencies, and stakeholders including private sector representatives, academia, civil society, consumer and patient advocates, labor organizations, and health professionals.
Not later than one year after enactment, the FTC must submit to Congress and publish online a report including (1) analysis of neural data collection, processing, storage, sale, transfer, and neurotechnology uses; (2) summary of ethical, legal, and regulatory landscape (e.g., consent, individual rights, predictive modeling); (3) assessment of interstate commerce benefits (e.g., public interest, innovation) and risks (e.g., to vulnerable populations); (4) recommendations for data categorization, oversight frameworks distinguishing beneficial (e.g., medical) vs. harmful uses, governance requirements (e.g., stricter consent, prohibitions), AI integration standards, safeguards against unfair practices, and impermissible applications (e.g., behavior manipulation); (5) examination of AI applications to such data; and (6) recommendations for consumer transparency, consent, and restrictions (e.g., limiting uses to disclosed purposes, prohibiting resale/profiling/advertising, separate consents for brain models, public disclosures, and consent-independent prohibitions). (Thus, the report must describe a regulatory framework maximizing neurotechnology innovation while minimizing risks such as discrimination, surveillance, manipulation, and neural data misuse in employment, healthcare, finance, education, commerce, and public life.)