TELL Act Mandates Disclosure if Websites, Apps Store Your Data in China

The "Telling Everyone the Location of data Leaving the US Act," or TELL Act, introduces a straightforward requirement for websites and mobile apps: if they store user data within the borders of China, they must explicitly tell users. This disclosure isn't just about location; it must also state whether the Chinese Communist Party or a Chinese state-owned entity could potentially access that information. The bill makes it illegal to knowingly provide false details in these disclosures.

Spotlight on Storage: What You Need to Know

The core of the TELL Act (Sec. 2) is this transparency mandate. Imagine opening your favorite app or visiting a website – under this act, if your personal information (like your profile details, usage habits, etc.) is kept on servers physically located in China, the service provider has to make that clear. They also need to address the possibility of Chinese government or state-owned company access. This aims to give you, the user, a clearer picture of where your digital footprint resides and who might have eyes on it. It puts the onus on companies to be upfront about using data infrastructure within China.

Enforcement and The Bigger Picture

So, what happens if a company doesn't comply or lies? The TELL Act doesn't create a new enforcement agency. Instead, Section 3 designates the Federal Trade Commission (FTC) as the enforcer, treating violations as "unfair or deceptive practices" – similar to how the FTC handles false advertising or misleading business tactics. This means the FTC can use its existing powers and penalties. While the goal is transparency, the act specifically targets data storage in China, leaving out potential concerns about data held in other countries. It also relies on the FTC's existing framework, meaning the practical impact could depend on how vigorously the agency enforces these new rules and interprets the disclosure requirements.