Background
The Consumer Safety Technology Act, also known as H.R. 1770 or the CSTA, is a bill sponsored by Representative Darren Soto (D-FL). The CSTA creates a pilot Artificial Intelligence (AI) program that will be used by the Consumer Product Safety Commission, Department of Commerce, and Federal Trade Commission to monitor financial actions and prevent fraud. The program will also address consumer threats and regulate blockchain technologies while reducing human oversight.
Already passed in the House of Representatives and awaiting a vote in the Senate, the goal of the CSTA described by Soto and his cosigners is to enable the government to fight technology crimes with the same technology being used to commit them. By increasing our technology proficiencies and collaboration between departments, Soto hopes to effectively monitor technology use in the United States while simultaneously supporting American consumers.
Blockchain Technologies Explained
Blockchain technologies are secure shared records that track assets within a business network. They provide security and transparency about assets without any intermediate third parties. The most common example of using blockchain technology is securing cryptocurrencies, such as Bitcoin, by recording every transaction carried out across multiple computers to ensure transparency and prevent financial tampering. The use of blockchain technology may pose risks if not implemented securely. According to the World Economic Forum, blockchains put an organization at risk if they are a core part of the company’s infrastructure and, if these systems were to fail, vital information risks may occur.
Key Provisions
H.R. 1770 requires the Consumer Product Safety Commission to launch a pilot AI program for one year to track injury trends, identify product hazards, monitor recalled products, and identify products that do not meet importation requirements. This pilot program will be developed by a team of “technologists, data scientists, machine learning specialists, retailers, consumer product safety groups, and manufacturers” to ensure the system is technologically strong and aligned with consumer safety standards and regulations. The bill leaves what the exact technology to be implemented is and what data is referenced at the experts’ discretion.
Arguments in Favor of the CSTA
Supporters of H.R. 1770 pose the argument that the pilot AI program would equip the government to spot and prevent any online risks of fraud to secure the financial protection of consumers in the United States. By automating consumer regulation, any leaks or weaknesses in the financial sphere could be spotted and protected faster than if monitored by employees alone. In addition, the specifications of the Consumer Safety Technology Act require mandatory reports to Congress on work carried out by the pilot program. These reports would increase government transparency regarding the use of the pilot program for the American public. In the long term, the pilot program will be able to “flag unsafe imports more quickly” than before, potentially affecting the global supply chain and reliance on American-made products. Major companies will be subjected to increases in safety and financial monitoring, resulting in better-informed consumers.
Senator John Curtis (R-UT), a member of the Committee on Commerce, Science, and Technology, supports H.R. 1770, saying the bill will “help American innovation thrive” while increasing cooperative efforts between Republicans and Democrats to best support American citizens. The cosponsorship of the bill by Democrats and Republicans, its shared goal of protecting the American consumer, and balanced and transparent oversight demonstrate cooperation between political parties to enhance public trust in emerging technologies.
Arguments Against CSTA
Many large tech companies are wary of stricter regulation and the potential enactment of the CSTA as increased regulation of their work may hinder technological development by reducing experimentation and investment in the industry. This increase in regulation is also viewed by Big Tech companies, such as Amazon and Apple, as a decrease in autonomy and an overstepping of the American government into the private sector.
Another major concern from citizens is the potential for sensitive data leaks and cybersecurity threats. H.R. 1770 hopes to remove substantial human oversight for the financial decisions of American companies and committees, which raises fears that automated systems may not successfully protect private information of consumers. If faced with a cybersecurity threat, consumers worry that the newly implemented pilot program will not contain the necessary safeguards to prevent data breaches.
Implications if Passed
The potential passing of the Consumer Safety Technology Act would increase the study of AI as a tool for banking and fraud prevention for consumers. Within the first year, Congress will receive updates on the success of the pilot program and adjust its work accordingly. Lastly, the passing of the CSTA would signal more bipartisan coordination between Democrats, Republicans, tech experts, and government commissions.
Conclusion
Representative Soto’s Consumer Safety Technology Act reflects a new desire to utilize technology to enhance the country’s consumer and economic activities regarding Artificial Intelligence and blockchain technologies. While the bill aims to support American consumers and technological innovation, concerns about data security and interference in the private sector raise questions about its effectiveness as a bipartisan regulation of emerging technologies.