Innovation, Data, and Commerce

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) issued the following statement after the United States Supreme Court struck down the “Chevron Deference” in Loper Bright Enterprises, et al. v. Raimondo : “Article I of the Constitution established Congress’s role to write the laws of the land—not the Executive Branch. The Supreme Court’s ruling today will help restore the proper balance of power as the Founders envisioned it. Moving forward, major decision-making authority will no longer automatically be deferred to unelected, unaccountable bureaucrats. Power has been placed back in the hands of the American people and their elected representatives, as the Constitution prescribes.” 

Washington D.C. —  House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) delivered the following opening remarks at today’s Innovation, Data, and Commerce Subcommittee hearing titled “The Fiscal Year 2025 Department of Commerce Budget.” “Thank you, Chair Bilirakis. “I appreciate your continued leadership on so many issues important to this committee, many of which touch the Department of Commerce, like travel and tourism.   “And welcome back, Secretary Raimondo.   “We appreciate you being here and your cooperation with the Committee as we work to ensure America’s continued economic and technological leadership.  “This Committee plays a vital role in preserving and bolstering that leadership, which is currently being threatened by countries, like China.  “It’s critical that we work together to ensure that America is setting rules of the road for the technologies of tomorrow.   “In part, that requires that we make sure these technologies are developed here in the U.S. in an ecosystem that promotes America’s values   “As you know, this Committee has a rich history of bipartisanship, and we’ve worked this past Congress to advance U.S. priorities domestically and internationally.   “Your department plays a key role in implementing the policies we advance, from improving data privacy, to strengthening supply chains, to helping to build emerging technologies. “Those efforts are essential as we work towards our shared goals of winning the future and beating China.”  AMERICAN PRIVACY RIGHTS ACT    “Tomorrow this committee will markup the American Privacy Rights Act .     “This bipartisan legislation will not only give Americans the right to privacy and control over their data, but it will also benefit the Department of Commerce when representing American business interests on the world stage.     “According to the most recent data from the International Association of Privacy Professionals, almost 80 percent of developed countries have some form of comprehensive data privacy laws on the books, with one very notable exception—the U.S.   “This lack of comprehensive privacy protections puts us at a competitive disadvantage and prevents us from clearly articulating how to balance personal rights with promoting innovation.   “That’s especially true when dealing with allies in the European Union who can disproportionately influence outcomes through GDPR and other laws.   “These overly burdensome foreign regulations hamper innovation at the expense of Americans.   “Passing APRA will send a clear message to the world that we are serious about protecting our data and provides the opportunity to put our imprint on future international laws, like rules on cross-border data flow.     “If we fail to do this, adversaries will fill the void and weaken our leadership ability, as well as leave Americans’ information open to exploitation from them.”  AMERICAN LEADERSHIP IN AI AND CHIPS    “Getting APRA across the finish line is also essential to our shared goal of cementing U.S. leadership in artificial intelligence.  “Your goals to promote cutting edge semiconductor technology through the CHIPS program, as well as your efforts to promote AI safety, are not mutually exclusive.     “We need to ensure America is leading both in semiconductor and AI technology development.   “And that means fostering a healthy business environment, securing our supply chains, and streamlining—rather than restricting—permitting to secure the domestic supply of critical materials necessary for these technologies.     “Otherwise, we will cede our leadership in AI and other technologies of the future to China and others.   “Money and mandates are not enough.   “We must have an approach that fosters the culture of ingenuity and entrepreneurship America needs to move our country forward.   “This subcommittee has worked on several important solutions this past Congress that Chair Bilirakis alluded to.     “I hope that we can continue to move these priorities forward to improve the deployment of emerging technologies, encourage foreign investment into American companies, streamline permitting for our critical supply chains, and enhance our nation’s cybersecurity.   “We look forward to working with you on these efforts and continuing to build on the economic legacy that has made this country great.” 

Washington D.C. —  House Energy and Commerce Innovation, Data, and Commerce Subcommittee Chair Gus Bilirakis (R-FL) delivered the following opening remarks at today’s subcommittee  hearing  titled “The Fiscal Year 2025 Department of Commerce Budget.”  DEPARTMENT OF COMMERCE MUST STRENGTHEN U.S. COMPETITIVENESS “I would like to welcome everyone to today’s hearing where we will be examining and discussing the Department of Commerce’s Fiscal Year 2025 budget request.  “I want to thank Secretary Raimondo for appearing before us and look forward to conducting important Congressional oversight of this agency as we look to fund ways to strengthen our economy and compete on the global stage.  “This Committee has been active on both of these fronts.  “Last month, the House passed H.R. 6571, the Promoting Resilient Supply Chains Act, led by Reps. Bucshon and Blunt Rochester, which would establish a mapping program at the Department of Commerce to examine our supply chains to better prepare our economy for any future shocks that we may see.  “Monitoring these trends will help protect us from reliance on our nation’s enemies and instead help industries to adapt quickly.  “The Department would also be tasked with partnering with the private sector to better understand vulnerabilities in our supply chains, including supply chains for emerging technologies, and provide recommendations for promoting emerging technologies and making critical supply chains more resilient and closer to home.  “Secretary Raimondo, thank you for being here before us to discuss these issues.”  SECURING AMERICAN SUPPLY CHAINS   “I’m interested to hear from you on these supply chain issues, as well as the state of our country’s global competition with China, and the status of our travel and tourism sector.  “Last Congress, we worked on a bipartisan basis with Rep. Schakowsky to pass the Restoring Brand USA Act and the Visit America Act to ensure the U.S. remains a top destination for visitors around the globe, and that we have oversight mechanisms and a plan in place at Commerce to prepare the nation for the next decade in travel and tourism trends.  “I am concerned that the U.S. is starting to lag behind other top nations in the travel sector, and I look forward to discussing ways to modernize and advance our nation’s tourism priorities through your Department by reducing red tape and bureaucratic barriers and instead embrace the power of our private sector and our great local economies.”  ENABLING ENTREPRENEURSHIP IN EMERGING TECHNOLOGIES   “Lastly, I hope to be able to discuss the continued importance of American leadership in emerging technologies, such as blockchain, A.I., and quantum computing.  “Our Subcommittee has again conducted bipartisan work on these topics, including passing H.R. 6572, the Deploying American Blockchains Act, in May, which will direct the Department of Commerce to take action in promoting U.S. competitiveness in the deployment and use of blockchain technologies.  “We cannot cede American leadership in these fields, and it is critical that we continue to employ new strategies that let innovators thrive here in the United States.  “That also includes the critical infrastructure manufacturing necessary to develop these emerging technologies.  “Rep. Miller Meeks’ bill that we passed would do just that by finding pathways to increase our capacity for domestic manufacturing, reducing barriers to entry, and becoming less reliant on countries like China for critical components necessary for these innovations to continue.  “With all of these pieces of legislation I hope we can get those past the Senate and across the finish line to the President’s desk.  “Secretary Raimondo, I look forward to hearing from you about how we can align these goals, secure American leadership, reduce red tape for industry stakeholders—we cannot let a ‘top-down’ approach get in the way and hope that we can instead let the American innovative economy thrive.  “The Budget needs to reflect these key priorities without breaking the bank, and I am interested to hear your perspective.” 

Washington, D.C. — House Energy and Commerce Committee (E&C) Chair Cathy McMorris Rodgers (R-WA), E&C Subcommittee on Communications and Technology Chair Bob Latta (R-OH), E&C Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), E&C Subcommittee on Innovation, Data, and Commerce Chair Gus Bilirakis (R-FL), and House Select Committee on the Chinese Communist Party, launched an investigation into grants made to an AI scientist at the University of California, Los Angeles (UCLA) with ties to the Chinese Communist Party (CCP).  The Chairs made requests for documents to UCLA, the National Science Foundation (NSF), and the U.S. Department of Defense (DOD).  BACKGROUND :  On November 1, 2023, a Newsweek investigation found that the federal government awarded at least $30 million in federal research grants led by Mr. Song-Chun Zhu, who is now “at the forefront of China's race to develop the most advanced artificial intelligence.”  The investigation further revealed the NSF and DOD continued funding Mr. Zhu even as he “set up a parallel institute near Wuhan, took a position at a Beijing university whose primary goal is to support Chinese military research, and joined a CCP ‘talent plan’ whose members are tasked with transferring knowledge and technology to China.”  In particular, Newsweek found that the project once led by Mr. Zhu received $1.2 million in two grants from the Office of Naval Research in 2021, the year following his departure to China.  KEY LETTER EXCERPT:   “Mr. Zhu has openly discussed how if China takes the lead in developing a ‘truly universal intelligence,’ then it will ‘become the winner of the international technology competition.’ He has also referred to the AI race as being equivalent in military importance to the race for the atomic bomb. In a period of intensifying geopolitical competition with the CCP, ceasing federal government support for Chinese AI development is a critical national security imperative.”  CLICK HERE to read the letter to UCLA Chancellor Gener Block.  CLICK HERE to read the letter to NSF Director Sethuraman Panchanathan.  CLICK HERE to read the letter to Defense Secretary Lloyd Austin. 

Washington D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Innovation, Data, and Commerce Subcommittee Chair Gus Bilirakis (R-FL), on behalf of subcommittee Republicans, sent a letter to China-based e-commerce companies raising concerns over data privacy and security risks for American users, the counterfeit products flourishing on these platforms, and reports of horrific human rights abuses.   BACKGROUND:   China-based e-commerce marketplaces, like TikTok, TaoBao, Pinduoduo, Temu, Alibaba, AliExpress, and Shein, have recently increased in popularity in the U.S.  The Chinese Communist Party (CCP) requires that all Chinese tech companies allow the CCP to access all user information, raising serious data privacy and security concerns for Americans using these platforms .  These marketplaces commonly offer “knock off” versions of products, which often undermine intellectual property laws.  Furthermore, reports have alleged that some of the sellers on these platforms may have committed egregious human rights violations, including the use of forced labor and the selling of products, like wigs, that use hair from Uyghur women forced to shave their heads.  KEY LETTER EXCERPTS:   “The rise in popularity of apps and marketplaces like, TikTok, TaoBao, Pinduoduo, Temu, Alibaba, AliExpress, and Shein, has resulted in sharp public scrutiny regarding the business practices of these companies.”  […]  “Lax policies and practices are leaving American’s data at risk of theft, leading consumers to unknowingly purchase counterfeit goods. In addition to these lax policies and practices, it is important to ensure that supply chains are free of forced labor.”  The Chairs asked companies to respond to the following questions by January 12, 2024:   Please outline the steps taken to delete personal data when requested or ordered by a user, the parent of a user who is a minor, or others authorized to make such a request.  What protections do you have in place to prevent children from spending large amounts of money on your platform?  What data practices do you require of your third-parties?  What data practices do you require of your service providers?  Please individually confirm you are not collecting or compiling the following information:  Religious beliefs;  Political opinions;  Genetic data;  Biometric data;  Data concerning health;  Data concerning racial or ethnic origin;  Data about minors.  Similar to ByteDance, does your company have an internal CCP Committee?  Please document all meetings, communication, or interactions you—or any other senior company executives—have had with members of the Chinese government or the CCP while serving as officers.   Can you provide a complete software bill of materials for all components and components of the components in the mobile app? Please include the developer information and country of origin for all listed components.  Where does your company store the signing key for iOS and Android applications? How is access to the signing keys managed, and who are the developers with access to the signing keys for the mobile application?  Please detail the data security and protections you have to prevent unauthorized access to such signing key.  How frequently is your mobile app or backend security tested? Are they tested by US personnel? To what security standard are they tested?  How frequently is user location data transmitted? Within how many feet is this location data measured?  What compliance procedures do you have in place to ensure compliance with the INFORM Consumers Act ?  We have heard employees of companies associated with the Chinese government, such as TikTok, disagree with notion that Uyghur people are facing a genocide in the Xinjian region of China. Do you agree that there is a genocide occurring in the Xinjiang region of China?  Are you aware of the PRC’s persecution of the Uyghur people, including the reports that Uyghur women’s heads have been shaved to be used for products that are shipped into the U.S.?  Are there products using natural hair that originate in the Xinjiang region available on your e-commerce marketplace?  Are there any other products that have originated from, or contain components or material that originated from the Xinjiang region?  Given the human rights abuses occurring in the Xinjiang region, do you require any additional steps or increased scrutiny for products coming from such region?   If yes, please explain.   Can you unequivocally state that your supply chain is free of forced labor?  What steps are you taking to ensure that your supply chain does not include forced labor?   CLICK HERE to read the full letter to TikTok.  CLICK HERE to read the full letter to Whaleco Inc.  CLICK HERE to read the full letter to Alibaba.  CLICK HERE to read the full letter to Shein. 

Letter comes after Eventbrite censored conservative event while permitting pro-Hamas events Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Communications and Technology Chair Bob Latta (R-OH), Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), and Subcommittee on Innovation, Data, & Commerce Chair Gus Bilirakis (R-FL), along with Senate Commerce, Science, and Transportation Committee Ranking Member Ted Cruz (R-TX) today wrote Eventbrite President and CEO Julia Hartz. The letter raises concerns over Eventbrite’s enforcement practices. BACKGROUND :  On October 23, 2023, Eventbrite removed an event listing titled, “Protecting Women’s Sports with Riley Gaines,” from its platform.    This event was intended to be a public forum for participants, including female athletes, to express issues, experiences, and consequences of biological males competing in their competitions.  Eventbrite listed “Rahm 4 Palestine (GAZA): Talk & Dinner,” scheduled for October 27, featuring a headline speaker who, after the October 7 Israeli massacre, using his verified X account, publicly posted antisemitic messaging that was viewed more than 1 million times.  A sold-out conference scheduled for November 10 in Washington, D.C., “Palestine Center 2023 Annual Conference,” was promoted on Eventbrite.    In advertising this event, organizers referred to the country of Israel as “Israeli apartheid” under Eventbrite’s “About this event” tab.  KEY LETTER EXCERPTS :  “In the last few weeks, Eventbrite, it seems, has selectively enforced its terms of service by removing some events while allowing potentially violative events to remain on the site. We raise the issues below not to dictate or remove events and users from your marketplace, but to better understand your Community Guidelines enforcement process .”  […]  “We struggle to comprehend the rationale for removing this event, while other Eventbrite listings that seemingly violate several of Eventbrite’s Community Guidelines remain live, including some that feature speakers espousing allegiance to entities designated by the U.S. Government as foreign terrorist organizations.”  […]  “Because Gaines’s promotion of the widely held view to preserve women’s athletics starkly contrasts with events on Eventbrite featuring speakers sympathetic to mass murder, this leads us to wonder if pro-terrorist and antisemitic events and event speakers do not plainly violate Eventbrite’s prohibition of content that would ‘discriminate against, harass, disparage, threaten, incite violence against, or otherwise target individuals or groups based on their actual or perceived race, ethnicity, religion, national origin.’ We seek information on what metrics Eventbrite uses to enforce its Community Guidelines on selected issues such as women’s athletics versus terrorism and antisemitism .”    CLICK HERE to read the full letter.