Sponsors (2)
The bill strengthens consumer safety, transparency, and legal remedies for online users and empowers the FTC and states to police platforms, but it also raises compliance and litigation costs, risks over‑moderation that can chill speech, and creates regulatory complexity that may raise prices or reduce services.
Consumers and internet users get clearer, machine-readable, plain-language platform terms and greater transparency about platform policies and practices, making rules easier to understand and enabling third-party tools and research.
Users and consumers gain stronger remedies and process protections — clearer notice, appeal and moderation processes plus private and state enforcement (ability to sue for damages, attorney’s fees; arbitration/class-waiver void where Act applies) — improving access to compensation and contesting wrongful removals.
Online users (including marketplace buyers/sellers) should face fewer scams, harmful listings, and safety risks because covered platforms must implement risk‑proportionate consumer safety and content‑mitigation programs and enable recall/notification and remedy processes.
Most online platforms will face higher compliance, reporting, and litigation costs, which are likely to be passed on to users, sellers, and advertisers as higher fees, reduced services, or higher prices.
Removing certain §230 protections, voiding arbitration/class-waivers for Act claims, and expanding FTC/state enforcement significantly increases litigation exposure and regulatory uncertainty for platforms and intermediaries.
Platforms may respond to increased liability risk by over‑removing or conservatively moderating user content and listings, chilling lawful speech and harming content creators, sellers, and communities.
Based on analysis of 7 sections of legislative text.
Requires platforms and marketplaces to publish machine‑readable terms, run consumer protection programs, report to the FTC, allows private suits, and removes §230 protection for violations.
Official title: To clarify that a violation of certain terms of service and related materials is an unfair or deceptive act or practice and subject to enforcement by the Federal Trade Commission.
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 run formal consumer protection programs that manage risks like cyberharassment and unsafe products. Gives the Federal Trade Commission rulemaking and enforcement authority, creates a private right of action and state‑attorney‑general enforcement powers, and removes Section 230 immunity for conduct that violates the Act.