Online Consumer Protection Act

This bill sets new consumer protections for social media sites and online shopping platforms. It would require them to post clear, easy‑to‑read terms of service and to run a consumer protection program that covers content rules and user safety, including steps to reduce cyber harassment . Breaking this law would be treated like an unfair or deceptive practice, and the Federal Trade Commission (FTC) could enforce it.

The terms must explain what is allowed, how reports and removals work, how appeals happen, and what support is available to people facing online abuse. Marketplaces must also explain product rules, recall notices, how to report fraud or dangerous items, and what remedies users and sellers can expect .

• Who is affected: Social media platforms, online marketplaces, their users, and their sellers.
• What changes on platforms: Post plain‑language rules; include content and behavior standards, reporting and appeals, and tools for users who experience cyber harassment.
• What changes on marketplaces: Spell out what products and marketing are allowed, how recalls are shared, how users can report fraud or danger, how sellers are notified, and how refunds/repairs or other remedies work.
• Consumer protection program: Each company must set up and maintain a program to prevent harm and follow the rules, appoint a consumer protection officer who reports to the CEO, and put controls in place to spot and reduce risks to consumers.
• Transparency to the FTC and public: If a company made over $250,000 last year or averaged more than 10,000 monthly users, it must file a detailed annual report to the FTC, signed by the CEO and the consumer protection officer. The FTC will post these filings online, with limited exceptions for sensitive information.
• Enforcement and your rights: The FTC can bring cases and write rules. State attorneys general can also go to court to stop violations and seek penalties. People can sue in court for actual damages and may recover attorney’s fees; companies cannot force people into private arbitration or ban class or group lawsuits for these claims .
• Other legal notes: Section 230 protections will not shield companies from violations of this bill, and state and local consumer protection laws still apply.
• When: The FTC must study simple “short‑form” labels or icons within 180 days and may require them about one year after the bill becomes law. The company reports are filed every year .