Sponsors (2)
The bill increases transparency, accountability, and legal remedies to protect consumers and curb harassment online, but does so at the cost of substantial compliance and litigation burdens that may raise costs, concentrate market power, and prompt conservative moderation by platforms.
Online users and buyers/sellers gain clearer, machine‑readable platform rules plus standardized notice and appeal rights so people know what conduct and products are allowed and can challenge removals or sanctions.
Consumers and harmed users can obtain stronger remedies — including private suits for actual damages, attorney's fees, state AG actions, and expanded FTC enforcement — increasing deterrence and chances of monetary recovery.
Users (including small businesses and nonprofits) gain better protection from harassment, scams, and unsafe content because the bill requires risk‑mitigation programs, defines cyber‑harassment, and clarifies enforcement over deceptive/unfair online practices.
Platform operators, sellers, and ultimately consumers face substantial increased compliance, litigation, and enforcement costs that are likely to raise prices, reduce free features, or shrink services.
Removing Section 230 protections for violations of this Act and preserving state enforcement creates legal uncertainty and multiple avenues for suits, increasing litigation risk for platforms and third parties.
Expanded enforcement risk and executive certifications may induce platforms to become more risk‑averse, altering features or over‑removing borderline content and thereby chilling lawful speech and innovation.
Based on analysis of 7 sections of legislative text.
Requires platforms to publish machine-readable plain-language terms, run consumer-protection programs with annual FTC filings, and allows FTC, states, and private suits for violations.
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 a consumer protection policy that explains allowed/prohibited content, removal and appeals processes, and supports for harmed users. Platforms must run a consumer protection program, appoint an officer, file annual public reports with the FTC, and meet transparency and risk-mitigation standards. Enables enforcement by the Federal Trade Commission, gives state attorneys general parallel enforcement powers, and creates a private right of action for individuals (including damages and attorneys’ fees). The law carves out these violations from Section 230 immunity and directs the FTC to study and issue disclosure and rulemaking deadlines (180 days for a study; 1 year to finalize short-form/icon disclosure rules unless the FTC explains otherwise).