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Drone Aircraft Privacy and Transparency Act of 2017 This bill amends the FAA Modernization and Reform Act of 2012 to direct the Department of Transportation (DOT) to establish procedures to ensure that the integration of unmanned aircraft (drone) systems into the national airspace system is done in compliance with privacy principles. Such procedures shall not apply to a drone system operated for news-gathering activities protected by the First Amendment to the Constitution. DOT may not approve, issue, or award any certificate, license, or other grant of authority to operate a drone system in the national airspace system unless the pertinent application includes a data collection statement that provides reasonable assurance that the applicant will operate the drone in accordance with privacy principles. The same requirement shall apply to any drone system to be operated by a law enforcement agency, except that the application shall include a data minimization statement, instead of a data collection statement, that provides the same assurance. The Federal Aviation Administration (FAA) shall make any approved grant of authority, each such statement, and information about the drone's owner, operator, and technical capability available in a searchable format on the public FAA website. A governmental entity may not use a drone system, or request information collected by another entity through a drone system, for protective activities or for law enforcement or intelligence purposes except pursuant to a warrant or as permitted under the Foreign Intelligence Surveillance Act of 1978, except when: (1) a law enforcement entity reasonably believes there is an imminent danger of death or serious physical injury, or (2) the Department of Homeland Security determines that credible intelligence indicates there is a high risk of an imminent terrorist attack by a specific individual or organization. It shall be unlawful to operate a drone system in a manner that is not in accordance with the terms of a data collection statement or that violates the rule implementing the procedures required by this bill. Any such violation shall be treated as an unfair or deceptive act or practice under the Federal Trade Commission Act. This bill provides for enforcement by the Federal Trade Commission, by a civil action brought by a state, or by a private action. The FAA shall revoke the certificate, license, or other grant of authority of a drone system operated in a violation of this bill.

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