To amend title 38, United States Code, to provide the same type of vocational rehabilitation benefits and services under laws administered by the Secretary of Veterans Affairs for certain children with spina bifida as are currently available to veterans with service-connected disabilities.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 29) to protect users of the Internet from unknowing transmission of their personally identifiable information through spyware programs, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and insert extraneous material in the Record.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today the House will consider legislation to prohibit Internet spying. Spyware is a growing danger to Internet users and one that demands our immediate attention. Recent statistics indicate that spyware is on the rise, with the highest areas of growth in Trojans, keystroke loggers and system monitors, the worst-of-the-worst spyware technologies.

The Committee on Energy and Commerce has worked expeditiously this Congress to move antispyware legislation through the committee for consideration by the House. This legislation is largely the same as H.R. 2929 from the 108th Congress, a bill that passed the House by a vote of 399-1. It is my hope that H.R. 29 will receive a similar endorsement today on this floor.

The changes that have been made to the SPY ACT since the last Congress are of two general types. The Committee on Energy and Commerce worked hard to refine the legislation to take into account legitimate and benign business functions, as well as standard functionalities of the Internet while preserving meaningful consumer notice and consent. The committee has also continued to strengthen the antifraud provisions of the bill by giving the Federal Trade Commission better enforcement tools against the ever-increasing types of fraudulent behavior associated with Internet spying.

The legislation that we are considering today, number one, prohibits unfair and deceptive practices like home page hijacking, keystroke logging, and Web-based phishing; two, provides for a prominent opt-in for consumers prior to the collection of personally identifiable information by monitoring spyware. This is a very, very important provision of the bill. Three, provides for a prominent opt-in for consumers prior to the collection of information regarding Web pages accessed and the subsequent delivery of advertisements based on that information; four, requires that monitoring software be easily disabled at the direction of the consumer; five, requires companies that are sending ads to computers to identify with each ad the information collection program that is generating the ad. With this disclosure, consumers will know who is bombarding them with ads and will be able to make decisions about those pieces of software accordingly. Number six, provides for FTC enforcement with significant monetary penalties for those who knowingly violate the act; and, seven, sets up a uniform national rule. Internet commerce is inherently interstate in nature. We need one set of rules for such commerce, not 50.

We have just today also passed a bill that makes explicit some criminal penalties for purveyors of the worst kinds of spyware. I think it is appropriate that in certain instances, such as deceptive phishing leading to identity theft, the perpetrators need to go to jail. I want to thank the Committee on the Judiciary for their work in that area. However, I believe we need to do more to protect consumers. I believe we need to recognize the right of each consumer to be informed of spying taking place on his or her computer and be able to say no to that spying. This bill does that. The bill that we just passed from the Committee on the Judiciary does not do that.

I believe that we need to require of ad companies the responsibility to inform consumers and to get their consent before they start installing devices on consumers' computers that keep track of everything that they do, and their children do, on the Internet. This bill does that. The bill from the Committee on the Judiciary does not do that.

And I believe that companies have an obligation to disable spying programs if the consumers no longer want them. A consumer should have more options than just throwing away his computer if it is infected with spyware. This bill does that. The bill that came out of the Committee on the Judiciary does not do that.

It is this empowerment of consumers and the recognition that each consumer has the right to control what goes on his or her own computer that makes this bill, H.R. 29, a very important tool to protect consumers against spyware. That consumer protection will be my goal when we go to conference with the Senate.

I want to commend a number of Members for their outstanding leadership on this issue. The gentlewoman from California (Mrs. Bono) who will speak later in the debated introduced the original bill in the last Congress and has been a tireless educator on the dangers of spyware. The gentleman from New York (Mr. Towns) cosponsored the original legislation with the gentlewoman from California (Mrs. Bono), and he has been great in his bipartisan support of this particular project. The gentleman from Florida (Mr. Stearns), the chairman of the Subcommittee on Trade and Consumer Protection, has been a leader on all the privacy-related issues in the committee and has worked with the gentlewoman from California (Mrs. Bono) and the gentleman from New York (Mr. Towns) on this legislation.

The gentleman from Michigan (Mr. Dingell), the ranking member of the full committee, and the gentlewoman from Illinois (Ms. Schakowsky), who is leading the floor debate on the Democratic side, have worked tirelessly in both the subcommittee and the full committee to perfect this bipartisan legislation.

This is a good bill. It is a bipartisan bill. It passed the Committee on Energy and Commerce unanimously. I would urge that it pass the floor later this afternoon with that same level of support.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 5 minutes to the gentleman from Florida (Mr. Stearns), subcommittee chairman.

(Mr. STEARNS asked and was given permission to revise and extend his remarks.)

Mr. Speaker, I yield 5 minutes to the distinguished gentlewoman from Palm Springs, California (Mrs. Bono), the author of the original bill, who knows more about these types of issues than anybody on the committee.

Mr. Speaker, I yield myself the balance of my time to close.

Mr. Speaker, I would like to read into the Record the companies and the organizations that support H.R. 29. This is with letters on the Record where they have written to me and the gentleman from Michigan (Mr. Dingell) that they support the legislation: the Business Software Alliance; the Center For Democracy and Technology; the Council For Marketing and Opinion Research; Dell Corporation; DoubleClick, Incorporated, and ValueClick, Incorporated; eBay, Incorporated; Fidelity; Humana, Incorporated; Microsoft; 180 Solutions; the Recording Industry of America; Time Warner/AOL; United States Telecom Association; Webroot Software, Incorporated; WhenU; and Yahoo. These companies all officially on the record support H.R. 29.

Mr. Speaker, I think as the debate has shown, there is broad bipartisan support for this. There is also a need for this. I have spoken with Senator Burns of the other body. He is preparing to move a companion bill. We have also obviously talked to the gentleman from Wisconsin (Chairman Sensenbrenner) and the subcommittee chairman, the gentleman from Virginia (Mr. Goodlatte), on their bill; and we are prepared to work with them to merge the bills at the appropriate time.

This is an issue whose time has come. Almost every American household now has a personal computer, and almost every one of those computers has spyware on them; and in most cases the owner of that computer does not know it. It is time to put a stop to that foolishness. It is time to say enough is enough. It is time to pass H.R. 29, work with the other body to pass a companion bill, go to conference, create a compromise bill, and then send the bill to the President's desk.

So I would encourage a ``yes'' vote, Mr. Speaker, and before I yield back, compliment you on your work on this. I think we should say the gentleman from California (Mr. Radanovich) also has been tireless in his support for the bill.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I yield myself such time as I may consume.

I rise today as a cosponsor and in support of a strong consumer and privacy protection bill, H.R. 29, the Securely Protect Yourself Against Cyber Trespass Act, or the SPY ACT. I want to thank the gentleman from Texas (Mr. Barton), the gentleman from Michigan (Mr. Dingell), the gentleman from Florida (Mr. Stearns), the gentleman from New York (Mr. Towns), and the gentlewoman from California (Mrs. Bono) for their work on the SPY ACT.

I would like first to commend the manner in which this bill was handled. The process was thorough, open to input and willing to address each other's concerns; and, most importantly, the work was organized around the goal of creating a strong and effective consumer protection bill. I believe we have accomplished our goal.

Spyware is software that has tracking capabilities so pervasive that it can record every keystroke computer users enter. It can take pictures of personal computer screens. It can snatch personal information from consumers' hard drives. People can see their bank account numbers, passwords, and other personal information stolen because they quite innocently went to a bad Web site or clicked a misleading agreement. Spyware is a serious threat to consumer privacy and potentially a powerful tool for identity theft, a serious crime that is on the rise. Spyware is a nonpartisan issue. As we learned last year while not yet a household word, spyware is a household phenomenon.

America Online recently released a study which found that 80 percent of families with broadband access had spyware on their computers. Earthlink found that in 3 million scans of computers, there was an average of 26 instances of spyware on each and every computer. With those kinds of numbers, spyware will soon be a part of everyone's vocabulary.

Technological advances have brought ``the world into our homes,'' and the purveyors of spyware have interpreted that as an open door to come in whenever they want, whether invited or not. Still, because the software does have shady purposes, it usually comes in through the back door of consumers' computers. Because consumers do not know that spyware is on their computers, people are still surprised to hear about it. They experience the noticeable effects of the software, impossibly slow computers, hijacked home pages, unstoppable pop-ups, but they do not know where their problems are coming from or what is going on behind the scenes.

For instance, someone's computer may be sluggish because she may unwittingly have downloaded a program that records every key stroke entered and passes it on to a third party who wants to steal bank account numbers and passwords. The explosion of pop-up

ads may be because a program has been tracking a consumer's every move on the Web. Serious privacy and security issues are at stake here. Spyware could be a major contributor to the fact that identity theft is the fastest-growing financial crime today.

The time has come for a bill like the Spy Act. The gentleman from Texas (Chairman Barton) very clearly outlined the specific provisions of the bill, but it bears briefly repeating. The Spy Act ensures that consumers are protected from the truly bad acts and actors while also protecting proconsumer functions of the software. It prohibits indefensible uses of the software like keystroke logging or the copying of every keystroke entered. Additionally, it gives the consumer the choice to opt in to the installation or activation of information collection programs on their computers, but only when they know exactly what information will be collected and what will be done with it. Furthermore, the Spy Act gives the Federal Trade Commission the power it needs on top of laws already in place to pursue deceptive uses of the software. The Spy Act puts the control of computers and privacy back in consumers' hands, and I am very glad I was a part of the process that brought this bill to the floor today.

So, again, I thank my colleagues for their work on this proconsumer, proprivacy, and bipartisan legislation, and I urge all Members to support it.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

I can only heartily agree with all that has been said. Let me just add a few words.

Spyware has changed the computing experience for so many people. Increasingly, consumers are finding that their home Web pages are changed or that their computers are sluggish; and they get, as I said, the pop-up ads that will not go away no matter how many times they try to close them. They find software in their computer they did not install and they cannot uninstall; and their computers are no longer their own, and they cannot figure out why. And consumers tend to blame viruses on their old computer or their Internet service providers, but because spyware is bundled with software people do want to download or because it is drive-by downloaded from unknowingly visiting the wrong Web site, people do not know that in many cases the real cause of their headaches is spyware.

And some of the above examples can be written off as merely annoying. Spyware is so much more than merely annoying, as we have pointed out, and there are these serious privacy and security issues at stake.

These problems of slow computers and pop-up ads are just symptoms of the real trouble spyware can cause. Again, the software is so resourceful that it can snatch personal information from computer hard drives and track every Web site visited and log every keystroke entered.

Spyware is a serious threat to consumer privacy and potentially a powerful tool for identity theft, a serious crime on the rise. As the FTC, the Federal Trade Commission, reports, in 2003 there were nearly 10 million Americans victimized by identity theft. Over the past 5 years, there have been 27 million victims, and my State of Illinois is in the top 10 for identity theft occurrences. On-line predators, like spyware transmitters, provide an easy access to personally identifiable information that can be used to steal people's identities and put them at greater risk of

being financially and otherwise victimized.

So this is now the time, once again, for the House to pass this important bipartisan legislation. And I too want to thank all of the leaders who have been involved in bringing this bill once again to the floor. I want to particularly thank the gentleman from Michigan (Mr. Dingell), whose statement, though he could not be here today, will be in the Record, and the gentleman from New York (Mr. Towns), who has worked on this legislation from the very beginning with the gentlewoman from California (Mrs. Bono). And I want to thank the staff on our side, Diane Beedle and Consuela Washington, and the Republican staff for their hours of work.

I want to join the gentleman from Florida (Chairman Stearns) in urging our Senate colleagues to move on this very important legislation. It is time that we not only pass it in the House, but that we make it the law of the land, and I look forward to seeing that happen in the near future. I thank my colleagues for the opportunity to work with all of them.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. Speaker, I want to thank the gentleman from Texas for yielding me this time.

The gentleman from Texas (Chairman Barton) has been a steadfast leader and advocate for spyware legislation. He has worked tirelessly on this important issue. I appreciate his efforts in bringing H.R. 29 to the floor. I also extend my appreciation to the gentleman from Michigan (Mr. Dingell), ranking member; the gentleman from Florida (Chairman Stearns); the gentlewoman from Illinois (Ms. Schakowsky), ranking member; and the gentleman from New York (Mr. Towns), the original Democratic cosponsor. Each of them, as well as their staff, David Cavicke, Shannon Jacquot, Consuela Washington, Chris Leahy, Diane Beedle, Andy Delia, Dave Grimaldi; as well as my staffers, Jennifer Baird and Chris Lynch, have all worked diligently over the past 2 years to improve and refine this legislation.

I would also like to thank the industry participants and consumer groups who have contributed hundreds of comments on this legislation. I am confident that we have drafted a bill that incorporates several improvements that will empower consumers without impeding the growth of technology or on-line business models.

In the wake of recent data security breaches by ChoicePoint, DSW, Lexis-Nexis, and other companies, consumers are finally realizing the importance of data security and their vulnerability to identity theft. While consumers are waking up to these risks, many continue to remain unaware of the consequences of having spyware programs on their computers. Spyware is software that is downloaded on one's computer that collects personally identifiable information such as Social Security numbers, credit card numbers, addresses, and phone numbers. This software passes personal information on to third parties without consent, or it is used to drive advertising to their computer. In short, it compromises personal data and can physically harm their computer.

Just how prolific is this problem? Here are a few of the staggering statistics: In a recent study by Webroot, the company identified at least one form of an unwanted program in 87 percent of the personal computers it scanned. Results from a consumer spy audit in 2005 found that 88 percent of personal computers scanned were infected with an average of 25 different spyware programs in each computer. In March, 2005, alone, a research system identified over 4,000 Web sites within nearly 90,000 total associated Web pages containing some form of spyware. Trojan horse infections grew by 30 percent since last year.

Mr. Speaker, this is not just a problem; it is an outright epidemic. As this Nation continues to push towards a global e-commerce marketplace, spyware stands to undermine the security and integrity of e-commerce and data security. Daily Web activities by consumers have become stalking grounds for computer hackers through spyware.

Consumers regularly and unknowingly download software programs that have the ability to track their every move. While some argue that consumers consented to these spyware downloads, the National Cyber Security Alliance and AOL found that 89 percent of users had no idea they had spyware on their computers. Moreover, there are Web sites and e-mail messages that deliberately trick computer users into downloading spyware.

In response to the rapid proliferation of spyware, the gentleman from New York (Mr. Towns) and I introduced H.R. 29. This bill prohibits such behavior by specifically outlawing Web hijacking, keystroke logging, drive-by downloads, phishing, evil-twin attacks and, several other perverse behaviors.

The concept of H.R. 29 is simple: tell consumers in plain English what personally identifiable information is going to be collected and how that information is going to be used. Consumers have a right to know and have a right to decide who has access to such highly personal information. Therefore, it is imperative that Congress pass this legislation and empower consumers while not impeding the growth of technology.

Earlier we heard my colleagues from the Committee on the Judiciary bring up their bill and talk about targeting behavior and not technology. I would ask them, what is Kazaa? Is Kazaa behavior or technology? What is Bonzi Buddy? Bonzi Buddy downloads a beautiful little purple gorilla which will dance about your screen which you cannot possibly eradicate from your computer. What is the Weather Bug? Again, the Committee on the Judiciary would say this is simply technology. I disagree. I say it is a terrible, terrible business practice, and it needs to be recognized by Congress. We need to stamp this out.

Mr. Speaker, I urge my colleagues to support H.R. 29.

Mr. Speaker, I thank the gentleman from Texas (Mr. Barton), my distinguished chairman of the full committee, for yielding me this time.

This is a very important bill. We have passed this bill once before, so it is clear the House is going to pass this. The question is, we have got to appeal to the Senate to pass this thing and move forward.

During the hearings we had on this bill, there were lots of witnesses that talked about this spyware Internet-based technology that can be used to defraud Americans today. So this bill is very important. We need to move it, and we need to move the Senate to move it. That is what we need to do.

This bill describes a broad array of activity, including keystroke logging, which tracks all of a computer user's keystrokes, they are recorded and then sent to a third party; homepage hijacking, in which spyware can take control of a computer and hijack the user's homepage to a commercial site or even to a pornographic site; and phishing, in which spyware directs a computer user with false messages purporting to be from some reputable merchant to basically steal the credit card, steal the credit card numbers and other financial information from a user.

In all of these cases, Mr. Speaker, spyware is downloaded without the knowledge and without the consent of the user. It is just not another cyber nuisance. It is a major Internet plague that threatens the privacy of the American consumer, and of course the very integrity of the Internet marketplace, on which we are relying more and more. I continue to meet people who have had their Web pages hijacked, their browsers corrupted, in some cases, their children exposed to inappropriate material from these dangerous programs hidden in their family computers.

Mr. Speaker, the Spy Act will bring control back to the consumer and give the on-line computer experience a positive message. It will preserve confidence in the Internet and its related technologies that make the lives of the consumer better and more convenient, more productive, and, of course, more secure. The Spy Act strikes a right balance between preserving legitimate and benign uses of this technology, while still, at the same time, protecting unwitting consumers from the harm caused when it is misused and, of course, designed for nefarious purposes.

The Spy Act prohibits keystroke logging, hijacking, and phishing. I mentioned that. It also provides a well-crafted opt-in for consumers before personal information is collected or prior to collection of Web history information. We in the Committee on Energy and Commerce think that is extremely important to have an opt-in for consumers. The legislation specifies that monitoring software should be easily disabled and requires companies that deliver ads to simply identify themselves. Further and more importantly, it gives the Federal Trade Commission the power to severely sanction violators with significant monetary penalties. In short, Mr. Speaker, this legislation creates a uniform Federal regulatory regime that will provide clear and consistent regulation in this area.

At the bottom, the elimination of spyware and the preservation of privacy for the consumer are critical goals if the Internet is to remain safe and reliable and credible.

As I mentioned earlier, the House passed the bill H.R. 2929 by a vote of 399 to 1. This year this legislation was passed unanimously out of the Committee on Energy and Commerce, 43 to zero. I expect the same strong showing this afternoon.

So, in conclusion, Mr. Speaker, H.R. 29, the Spy Act, has been a great exercise, as mentioned by the gentlewoman from Illinois (Ms. Schakowsky), ranking member, of our bipartisan leadership. Leadership that has been focused on achieving equitable results, that is good for the consumer, good for business, and good for America.

With that in mind, I would like to thank my colleagues on the Committee on Energy and Commerce, particularly the gentleman from Texas (Chairman Barton) and the gentlewoman from California (Mrs. Bono), whose leadership provided this bill, for their consistent and, of course, their longstanding leadership in this area. I would also like to acknowledge the superb bipartisanship of my staff working with the staff of the gentlewoman from Illinois (Ms. Schakowsky).

And, of course, I would also like to thank the gentleman from Michigan (Mr. Dingell), the ranking member of the full committee, and the gentleman from New York (Mr. Towns) for his support.

So, all in all, Mr. Speaker, we have a great bill. We need to move the Senate forward. Our bill will make America greater, and I urge support for the Spy Act of 2005.

Mr. Speaker, identity theft is fast reaching epidemic proportions. Today we

will address one aspect of the problem--spyware.

Spyware programs sneak into your computer, and allow a third party to harvest your personal information. It is the equivalent of putting a wiretap on your phone and listening to your conversations. Adware tracks your Web surfing or online shopping so that marketers can send you unwanted ads. Spyware can hijack your computer to pornographic or gambling sites, or steal your passwords and credit care information.

The rapid proliferation of spyware and adware threatens legitimate Internet commerce. The most common consumer complaints are: hijacked home pages, redirected Web searches, a flood of pop-up ads, and sluggish and crashed computers.

This bill is carefully balanced. It prohibits a number of unfair and deceptive acts or practices related to spyware, and provides for strong Federal Trade Commission (FTC) enforcement and enhanced civil fines. It also recognizes that there are legitimate, applications of spyware and, thus, exempts law enforcement, national security, network security and maintenance, and fraud detection from the SPY Act. It contains narrowly prescribed exceptions for benign internal navigation tracking on Web sites, and the ordinary construction of Web pages that do not collect personal information. It preserves legitimate online commerce.

Most importantly, this legislation requires companies that distribute spyware and adware to obtain permission from consumers through an easily understood licensing agreement before installing spyware or adware on their computers. The programs, once downloaded, would have to provide a means to identify the spyware or adware and easily uninstall or disable it.

Without aggressive enforcement, the goals of this bill will not be met. We are asking the FTC to do a great deal in a very complex area and I trust that the appropriators will provide them with sufficient resources to fulfill these tasks. If not, this bill will be an empty promise, unless the state attorneys general step in forcefully.

This legislation is supported by a coalition that includes: the Business Software Alliance, the Center for Democracy and Technology, the Council for Marketing and Opinion Research, Dell, eBay Inc., Fidelity, Humana, Inc., Microsoft, 180 Solutions, Recording Industry Association of America, Time Warner/AOL, United States Telecom Association, Webroot Software, Inc., WhenU, and Yahoo!--all of whom have submitted letters of support. The coalition also includes DoubleClick, Inc., and ValueClick, Inc.--two of the leading companies in the rapidly growing online advertising industry.

The bill has improved at every stage of its consideration, and I want to commend the leadership and hard work of Chairman Barton, Representatives Stearns and Schakowsky, the Chairman and Ranking Member, respectively of the Subcommittee on Commerce, Trade, and Consumer Protection, and Representatives Bono and Towns, the lead Republican and Democratic sponsors of the bill. I also commend the bipartisan staff team who worked very hard to get this bill to the House floor.

I am proud to cosponsor this bill. I urge my colleagues to vote ``yes'' on passage of H.R. 29. It is a good bill. It is good for consumers. And it is good for honest commerce on the Internet.