Consumer Safety Technology Act
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Would direct the Consumer Product Safety Commission to launch an artificial intelligence pilot program for detecting product hazards and recalled goods, while also requiring the Department of Commerce and the Federal Trade Commission to study and report on blockchain technology and digital token fraud.
The bill bundles three technology-focused consumer protection efforts — AI in safety enforcement, blockchain's consumer-protection potential, and FTC oversight of token markets — into a single package aimed at modernizing federal consumer-protection tools.
What this bill would do
What it would do
The bill would require the Consumer Product Safety Commission (CPSC) to establish, within one year of enactment, a pilot program using artificial intelligence for at least one of four purposes: tracking injury trends, identifying product hazards, monitoring online and retail marketplaces for recalled items, or flagging unsafe imports. The CPSC would also have to consult a broad set of stakeholders — including data scientists, cybersecurity experts, retailers, and manufacturers — and submit a report to Congress within one year of the program's conclusion.
The bill would separately require the Secretary of Commerce to complete, within one year, a study on how blockchain technology could help prevent fraud and other deceptive practices, with a public comment period and a report to Congress within six months of completion. It would also require the Federal Trade Commission to report, within one year, on its past enforcement actions and recommendations for legislation targeting unfair or deceptive practices in digital token transactions.
Key provisions
- 1Would require the CPSC to establish an AI pilot program within one year to track injury trends, identify product hazards, monitor recalled-product sales, or flag unsafe imports.
- 2Would require the CPSC to consult technologists, cybersecurity experts, retailers, manufacturers, and consumer safety organizations while conducting the pilot program.
- 3Would require the CPSC to submit a public report to Congress within one year after the pilot program ends, detailing findings and AI's impact on the agency's mission.
- 4Would require the Secretary of Commerce to complete a study on blockchain technology's uses for consumer protection, including fraud prevention, with opportunity for public comment.
- 5Would require the Secretary of Commerce to submit a report to Congress within six months of completing the blockchain study.
- 6Would require the FTC to report to Congress on its enforcement actions and legislative recommendations related to unfair or deceptive practices in digital token transactions.
Who would be affected
The CPSC, the Department of Commerce, and the Federal Trade Commission would each be assigned new duties. Consumer product manufacturers, retailers (including online platforms), technology and data-science experts, and consumer safety organizations would be consulted under the AI pilot. Consumers who buy products online or in stores — and participants in digital token markets — are the populations the bill aims to protect.
Why it matters
For the CPSC, the AI pilot could improve how quickly the agency spots dangerous products or recalled goods circulating in online marketplaces. For regulators and the public, the Commerce Department study could surface concrete ways blockchain could reduce consumer fraud. The FTC token report would create a public record of enforcement actions and could lay the groundwork for future legislation governing digital asset markets.
What would change
Changes to existing law
Amends Consumer Product Safety Act (Sec. 102)
Adds an AI pilot program authority for the CPSC, referencing and building on the agency's existing mission statement and importation-refusal provisions.
Agencies directed to act
Effective dates
- CPSC must establish the AI pilot program
- CPSC must submit report to Congress after the pilot program ends
- Secretary of Commerce must complete the blockchain study
- Secretary of Commerce must submit blockchain study report to Congress
- FTC must submit token enforcement and recommendations report to Congress
Funding and costs
Congressional Budget Office estimate
CBO estimates that enacting H.R. 1770 would increase discretionary spending (subject to appropriation) by $2 million over the 2025–2030 period, with no effect on direct spending, revenues, or the deficit.
CBO estimates that H.R. 1770 would cost $2 million in discretionary spending over the 2025–2030 period, reflecting costs to the Consumer Product Safety Commission (CPSC) to establish an AI pilot program, and to the Department of Commerce and the Federal Trade Commission to conduct studies and submit reports on blockchain technology for consumer protection and anticompetitive behavior involving digital tokens. The bill would have no effect on direct (mandatory) spending or revenues, so it would not increase the deficit over the 2025–2035 period or in any subsequent 10-year window. CBO identified no intergovernmental or private-sector mandates in H.R. 1770.
How implementation would work
The CPSC must stand up the AI pilot within one year and may use any of four enumerated functions, with stakeholder consultation required throughout. It must report findings to Congress and post them publicly within one year of the program's end. The Commerce Department runs a notice-and-comment study process, consulting the FTC and other agencies, and files a report within six months of completing the study. The FTC independently compiles its token-enforcement report and legislative recommendations, also due within one year, with public posting required for all three outputs.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Commerce, Science, and Transportation.
Official CRS summary
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This bill (1) establishes a pilot program to explore the use of artificial intelligence to support the Consumer Product Safety Commission (CPSC), and (2) requires reports related to blockchain technology and digital tokens.
Specifically, the CPSC must consult with relevant stakeholders, such as data scientists and product manufacturers, and use artificial intelligence for a least one of the following purposes: (1) tracking trends in injuries involving consumer products, (2) identifying consumer product hazards, (3) monitoring the sale of recalled consumer products, or (4) identifying consumer products that do not meet specified importation requirements related to product safety.
The bill also requires (1) the Department of Commerce to report on existing and emerging uses of blockchain technology for consumer protection, and (2) the Federal Trade Commission to report on its efforts to prevent unfair or deceptive practices relating to digital tokens.
Legislative subjects
Advanced technology and technological innovations; Advisory bodies; Commerce; Computers and information technology; Consumer affairs; Currency; Fraud offenses and financial crimes
Committee report
H. Rept. 119-157