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.
About This Bill
Committee
Latest Action · July 28, 2023
Referred to the Subcommittee on Innovation, Data, and Commerce.
The Online Consumer Protection Act would require social media platforms and online marketplaces to establish clear, easy-to-understand terms of service and consumer protection policies covering topics like content ownership, third-party data sharing, content moderation procedures, and appeal processes. Companies with annual revenue over $250,000 or more than 10,000 monthly active users would need to file annual disclosures with the Federal Trade Commission, appoint a consumer protection officer, and implement comprehensive programs to protect consumers from fraud and harm. The FTC would enforce the law by treating violations as unfair or deceptive practices, and individuals harmed by violations could sue companies directly for damages and attorney's fees, with prohibitions on forced arbitration agreements preventing class action lawsuits. The legislation would also amend existing law to clarify that Section 230 immunity does not shield social media companies or online marketplaces from FTC enforcement of this new consumer protection statute.
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