“To prohibit certain online platforms from materially contributing to fraudulent content, and for other purposes.”
No CRS summary available for this bill.
This section prohibits covered platforms from materially contributing to fraudulent content directed at consumers. It requires platforms to provide a “Report Scam” mechanism within 180 days that allows sworn good-faith reports, counter-notices, and acknowledgments within 30 days; to set default privacy settings that hide accounts, media, messaging, locations, connections, and search indexing from unconnected users unless users opt in; to detect and block multiple accounts used to evade enforcement; and to avoid design features that facilitate fraud while preventing fake profiles and engagement metrics. It creates a safe harbor for platforms that review reports within 48 hours and resolve them within 7 days (extendable to 37 days with notice), and it directs the Federal Trade Commission to issue implementing regulations within 180 days.
This section authorizes the Federal Trade Commission to enforce section 2 as an unfair or deceptive act or practice under the Federal Trade Commission Act, using the same powers, jurisdiction, and penalties. It permits state attorneys general to bring parens patriae civil actions for injunctive relief, compliance, damages, or other relief on behalf of residents, subject to notice to the Commission and a bar on parallel state suits during pending federal actions. It establishes a private right of action for injured persons to obtain injunctions or damages up to the amount in section 5(l) of the Federal Trade Commission Act (as inflation-adjusted), with treble damages for willful violations, costs and attorney fees for prevailing plaintiffs, and a 3-year statute of limitations from discovery. The Commission may promulgate implementing regulations.
This section limits the Act's application by exempting interactive computer services that function primarily as internet service providers, email providers, or data storage providers, and by exempting content transmitted through but not stored on covered platforms. It also clarifies that the Act imposes no requirement to monitor all content before posting or transmission and that Section 230 liability protections do not impair enforcement of the Act.
This section defines terms used in the Act. It sets "covered platform" as an interactive computer service with at least 100,000 monthly active users or $25 million in annual gross revenue (adjusted for CPI). It defines "fraud" as a material misleading representation or omission in commerce, "fraudulent content" as content constituting fraud, "materially contribute" as conduct beyond neutral tools such as targeting or promoting known fraudulent content, "reasonable steps" as proactive and reactive measures scaled to platform size and resources, and related terms including advertiser, operator, mutual connection, and unconnected user.