Sponsors (2)
The bill strengthens transparency, consumer safety, enforcement, and individual remedies for online platform harms, but does so by imposing significant new compliance and litigation risks and regulatory complexity that may raise costs and prompt platforms to restrict content.
All online users gain clearer, machine-readable plain-language rules, defined terms (e.g., platform, seller, cyber harassment), and mandatory notice/appeal processes so people better understand platform policies and can contest removals.
Consumers and marketplace buyers/sellers face fewer scams and harmful offerings because platforms must implement risk‑proportionate safety programs, recall/notification processes, and mitigation for consumer-safety risks (including harassment).
The Federal Trade Commission gains explicit enforcement and rulemaking authority, centralized oversight (the Commission designation), and public disclosure of platform filings, enabling stronger federal oversight and more transparent enforcement.
Online platforms and intermediaries face substantially higher compliance and legal costs (new programs, disclosures, litigation risk), costs that are likely to be passed on to users, advertisers, and small sellers via higher fees or reduced services.
Platforms may respond to increased liability and disclosure obligations by over‑removing content or listings to limit risk, which could reduce lawful speech and the availability of certain online goods or services.
Removing some Section 230 protections and voiding arbitration/class‑waivers increases litigation exposure for businesses, causing higher defense costs and legal risk for platforms, sellers, and intermediaries.
Based on analysis of 7 sections of legislative text.
Requires platforms/marketplaces to publish plain-language machine-readable terms, run consumer protection programs, file FTC reports, removes §230 immunity for violations, and creates FTC and private enforcement.
Introduced April 10, 2025 by Janice D. Schakowsky · Last progress April 10, 2025
Requires social media platforms and online marketplaces to publish machine-readable, plain-language terms of service and to operate a certified consumer protection program that addresses content, safety, moderation, seller practices, and cyber-harassment. The Federal Trade Commission would study and likely require short-form disclosures/icons, collect annual filings from larger platforms, enforce the law (including rulemaking), and the bill removes Section 230 immunity for conduct that violates this law while creating a private right of action and state attorney general enforcement powers.