Congress demands transparency: where is your data stored?
H.R. 2403 — TELL Act · Filed by Rick Allen (R-GA) · 2 cosponsors · Introduced Mar 27, 2025 · Referred to committee
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What it does
This bill requires any website or mobile app that stores user data in China to disclose that fact clearly to users, and to state whether the Chinese Communist Party or Chinese state-owned entities can access that data. The FTC enforces it as an unfair or deceptive practice, with penalties under existing FTC authority.
Why we flagged it
The bill's operative mechanism is a mandatory disclosure requirement for companies storing user data in China. It is a consumer-protection and transparency measure, not a ban or restriction on data storage itself—companies may continue storing data in China, but must disclose it.
What the text implies
- Disclosure requirement may incentivize some companies to move data storage out of China to avoid negative user perception, though the bill does not mandate this.
- Enforcement relies on FTC's existing unfair/deceptive-practice authority; no new enforcement mechanism or funding is created, so FTC capacity to investigate and prosecute violations is unclear.
The full analysis lists 4 implications of this text.
Who it affects
Citizens gain material transparency about where their personal data is stored and who may access it, enabling informed consent and choice. The disclosure requirement creates no new restrictions on citizens' rights or remedies; it only requires companies to tell the truth about data practices.