Applications and Use Cases

Blockchain and AI Added to Proposed U.S. Consumer Safety Legislation


September 17, 2020

Blockchain technology matters may be added to new U.S. consumer protection legislation based on proposals in the House of Representatives. The Committee on Energy and Commerce has supported a motion to incorporate parts of the Digital Taxonomy Act as well as the Blockchain Innovation Act into the recently amended Consumer Safety Technology Act.

The proposed legislation would give blockchain technology legal parity with AI, while also requiring both the FTC and the Department of Commerce to examine and reduce possible future consumer risks. The new law would specifically aim to identify and tackle alleged deceptive practices in digital currency, like the sale of misleading or valueless digital tokens.

The legislation offers the most comprehensive approach to managing blockchain technology and its consequences. It would also include research of how blockchain may assist governments in fighting fraud as well as uncovering deceptive practices in other industries. The Act would also create a new Blockchain Center for Excellence within the Department of Commerce.

The Consumer Safety Technology Act, previously known as the AI for Consumer Product Safety Act, would mandate that the Consumer Product Safety Commission use AI to track and identify consumer product-related injuries and hazards. AI would also be used to screen the sale of products that have been recalled, as well as label imported products that have been marked unsafe.

According to Florida Representative Darren Soto, blockchain technology could also help prevent new market monopolies from forming. He believes the proposed legislation signals awareness and respect for blockchain and digital currency, and may lead to further legislation in the U.S. Passage of the Act could also pave the way for a more intricate legal framework for blockchain companies and digital currency.

“I believe our government needs to support that growth, establish light-touch regulations to ensure certainty, protect innovation, stop fraud and enable its appropriate use for government, business and consumers,” said Soto.

To learn more about how blockchain is being used by the government, enterprises and beyond, TMC is hosting The BlockChain Event on February 19-21, 2021, at the Miami Beach Convention Center. The event will feature panel discussions, keynotes and case studies about the role of blockchain in a variety of industries and vertical markets.




Edited by Maurice Nagle

HOME


FEATURED RESOURCE


Social media is impacting the value of your cryptocurrency. This cross-platform audit will show how to improve consumer and influencer sentiment.

CONTACT US