Description:
S. 90 would require manufacturers of Internet-connected devices to disclose to consumers whether such devices have microphones or cameras. The bill would direct the Federal Trade Commission (FTC) to establish guidance for manufacturers to follow when notifying consumers and to enforce any violations of the bill’s requirements. Using information from the FTC and the cost of similar requirements, CBO expects that the FTC would need three employees to issue guidance in 2024 and four employees in each year from 2025 through 2028 to enforce the bill’s requirements. CBO estimates that the average cost for salaries and benefits for an FTC employee would be $240,000 in 2024. After accounting for anticipated inflation, CBO estimates that implementing S. 90 would cost $4 million over the 2023-2028 period; any spending would be subject to the availability of appropriated funds. The bill would authorize the FTC to collect civil monetary penalties from businesses found in violation of the act, along with pursuing other remedies. Civil monetary penalties are generally remitted to the Treasury and recorded as revenues. However, CBO estimates that the additional revenues collected over the next decade would be insignificant. The extent to which businesses would violate the new rules after they go into effect is uncertain.
