The Consumer Safety Technology Act directs the CPSC to explore AI's role in product safety, requires a study on blockchain's consumer protection uses, and mandates an FTC report on unfair token transaction practices.
Darren Soto
Representative
FL-9
The Consumer Safety Technology Act aims to explore and utilize new technologies to enhance consumer product safety and prevent fraud. It directs the Consumer Product Safety Commission to create a pilot program for using artificial intelligence to track injury trends, find hazards, monitor recalled products, and identify unsafe imports. The Act also requires the Secretary of Commerce to study how blockchain technology can protect consumers and directs the FTC to report on unfair or deceptive practices in token transactions, ensuring the agency is equipped to address these issues.
Consumer Safety Tech Bill: AI to Scan for Recalled Products, Blockchain Studied for Fraud Prevention
The Consumer Safety Technology Act is a new bill that pushes for using AI and blockchain to boost consumer protection. It's split into three main parts: using AI to improve product safety, studying how blockchain can prevent scams, and figuring out how to regulate digital tokens.
AI Joins the Consumer Product Safety Squad
This section tells the Consumer Product Safety Commission (CPSC) to test out AI for things like spotting dangerous products and tracking injury trends. Think of it like giving the CPSC an AI-powered assistant to help them find and flag risky stuff faster. For example, if a certain type of toy keeps showing up in injury reports, the AI could help the CPSC identify the problem and potentially issue a recall quicker. The CPSC has to report back to Congress within a year after the pilot program ends with details on how the AI did (Sec. 102).
Blockchain: The New Sheriff for Scams?
This part orders a study on how blockchain technology – the tech behind cryptocurrencies – can be used to fight fraud and protect consumers (Sec. 202). The Department of Commerce, along with the Federal Trade Commission (FTC), has a year to dig into this. They're looking at how blockchain could make transactions safer and more transparent. Imagine buying a used car online: blockchain could potentially verify the car's history and prevent sellers from tampering with the odometer or hiding past accidents. The report from this study is due to Congress six months after the study ends. The report will also be published on the Department of Commerce website.
Decoding the Digital Token Jungle
The last part focuses on "tokens," which are basically digital assets on a blockchain (Sec. 2). The bill wants the FTC to get better at spotting and stopping scams related to these tokens (Sec. 303). The FTC has one year to submit a report to Congress and publish it online. This is all about making sure people don't get ripped off when buying or using digital tokens. For example, if a company promises a token will have certain features but it doesn't deliver, the FTC would step in.
Overall, this bill is trying to get ahead of the curve by using new technology to tackle consumer protection issues. It's a mix of immediate action (the AI pilot program) and longer-term planning (the blockchain and token studies). The immediate impact will likely be felt by those working at government agencies like CPSC and FTC, but the long-term effects could be much wider, touching anyone who buys products online or deals with digital assets.