H.R. 742 would require entities that own, provide, or control websites or mobile applications that store or maintain individuals’ information in China to disclose to users the following information: If their information is stored and maintained in China, and whether or not the Chinese government can access their information. The bill would direct the Federal Trade Commission (FTC) to enforce that requirement.
Using information from the FTC, CBO estimates that implementing H.R. 742 would cost $3 million over the 2024-2028 period; any spending would be subject to the availability of appropriated funds. CBO expects that the FTC would need one employee in 2024, at an average annual cost of $225,000, to issue guidance to clarify the content of the disclosures and which entities would need to make such disclosures. Beginning in 2025, CBO estimates that the FTC would need three employees to enforce potential violations.
