I
119THCONGRESS
1
STSESSION H. R. 2889
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.
IN THE HOUSE OF REPRESENTATIVES
APRIL10, 2025
Ms. S
CHAKOWSKY(for herself and Ms. CASTORof Florida) introduced the
following bill; which was referred to the Committee on Energy and Commerce
A BILL
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 Com-
mission.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Online Consumer Pro-4
tection Act’’. 5
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SEC. 2. TERMS OF SERVICE REQUIRED FOR SOCIAL MEDIA 1
PLATFORMS AND ONLINE MARKETPLACES. 2
(a) I
NGENERAL.—Each social media platform or on-3
line marketplace shall establish, maintain, and make pub-4
licly available at all times and in a machine-readable for-5
mat, terms of service in a manner that is clear, easily un-6
derstood, and written in plain and concise language. The 7
terms of service shall meet the following requirements: 8
(1) The terms of service shall include— 9
(A) any terms or conditions of use of any 10
service provided by such person to a consumer; 11
(B) any policies of such person with regard 12
to such service or use of such service by a con-13
sumer; and 14
(C) the consumer protection policy con-15
sistent with subsection (b). 16
(2) The terms of service shall cover issues re-17
lated to the behavior of a service or a user of such 18
service, and shall at a minimum include terms of use 19
related to— 20
(A) payment methods; 21
(B) content ownership, including content 22
generated by a user; 23
(C) policies related to sharing user content 24
with third parties; 25
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(D) any disclaimers, limitations, notices of 1
nonliability, or the consequences of not agreeing 2
to or complying with the terms of service; and 3
(E) any other topic the Commission deems 4
appropriate. 5
(b) R
EQUIREDCONSUMERPROTECTIONPOLICY.— 6
(1) F
OR SOCIAL MEDIA PLATFORMS .—For so-7
cial media platforms, the consumer protection policy 8
required by subsection (a) shall include— 9
(A) a description of the content and behav-10
ior permitted or prohibited on its service both 11
by the platform and by users; 12
(B) whether content may be blocked, re-13
moved, or modified, or if service to users may 14
be terminated and the grounds upon which such 15
actions will be taken; 16
(C) whether a person can request that con-17
tent be blocked, removed, or modified, or that 18
a user’s service be terminated, and how to make 19
such a request; 20
(D) a description of how a user will be no-21
tified of and can respond to a request that his 22
or her content be blocked, removed, or modified, 23
or service be terminated, if such actions are 24
taken; 25
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(E) whether a user who requested content 1
be blocked, removed, or modified will be notified 2
of whether action was taken as a result of the 3
request, the action that was taken, the reason 4
why action was taken or not taken, and how the 5
user will be notified; 6
(F) how a person can appeal a decision to 7
block, remove, or modify content, allow content 8
to remain, or terminate or not terminate service 9
to a user, if such actions are taken; 10
(G) a description of how a user will be no-11
tified of the result of the appeal; 12
(H) a description of the tools and support 13
available to users who have experienced cyber 14
harassment; and 15
(I) any other topic the Commission deems 16
appropriate. 17
(2) F
OR ONLINE MARKETPLACES .—For online 18
marketplaces, the consumer protection policy re-19
quired by subsection (a) shall include— 20
(A) a description of the products, product 21
descriptions, and marketing material, allowed or 22
disallowed on the marketplace; 23
(B) whether a product, product descrip-24
tions, and marketing material may be blocked, 25
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removed, or modified, or if service to a user 1
may be terminated and the grounds upon which 2
such actions will be taken; 3
(C) whether users will be notified of prod-4
ucts that have been recalled or are dangerous, 5
and how they will be notified; 6
(D) for users— 7
(i) whether a user can report sus-8
pected fraud, deception, dangerous prod-9
ucts, or violations of the online market-10
place’s terms of service, and how to make 11
such report; 12
(ii) whether a user who submitted a 13
report will be notified of whether action 14
was taken as a result of the report, the ac-15
tion that was taken and the reason why ac-16
tion was taken or not taken, and how the 17
user will be notified; 18
(iii) how to appeal the result of a re-19
port; 20
(iv) whether a user who appealed the 21
result of a report will be notified of wheth-22
er action was taken as a result of the ap-23
peal, the action that was taken, the reason 24
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why action was taken or not taken, and 1
how the user will be notified; and 2
(v) under what circumstances a user 3
is entitled to refund, repair, or other rem-4
edy and the remedy to which the user may 5
be entitled, how the user will be notified of 6
such entitlement, and how the user may 7
claim such remedy; and 8
(E) for sellers— 9
(i) how sellers are notified of a report 10
by a user or a violation of the terms of 11
service or consumer protection policy; 12
(ii) how to contest a report by a user; 13
(iii) how a seller who is the subject of 14
a report will be notified of what action will 15
be or must be taken as a result of the re-16
port and the justification for such action; 17
(iv) how to appeal a decision of the 18
online marketplace to take an action in re-19
sponse to a user report or for a violation 20
of the terms of service or consumer protec-21
tion policy; and 22
(v) the policy regarding refunds, re-23
pairs, replacements, or other remedies as a 24
result of a user report or a violation of the 25
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terms of service or consumer protection 1
policy. 2
(c) S
TANDARDSHORT-FORMSTATEMENTS AND 3
G
RAPHICICONS FOR CONSUMERPROTECTIONPRAC-4
TICES.— 5
(1) S
TUDY AND REPORT .—Not later than 180 6
days after the date of the enactment of this Act, the 7
Commission shall conduct a study to determine the 8
most effective method of communicating common 9
consumer protection practices in short-form con-10
sumer disclosure statements or graphic icons that 11
disclose the consumer protection and content mod-12
eration practices of social media platforms and on-13
line marketplaces. The Commission shall submit a 14
report to the Committee on Energy and Commerce 15
of the House of Representatives and the Committee 16
on Commerce, Science, and Transportation of the 17
Senate with the results of the study. The report 18
shall also be made publicly available on the website 19
of the Commission. 20
(2) R
EGULATIONS.—Except as provided in 21
paragraph (3), after completion of the study and not 22
later than 1 year after the date of the enactment of 23
this Act, the Commission shall finalize regulations 24
based on the results of such study that require social 25
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media platforms and online marketplaces to commu-1
nicate their consumer protection and content mod-2
eration practices, and any other information as the 3
Commission may determine, in a clear and con-4
spicuous manner. 5
(3) E
XCEPTION.—If the Commission deter-6
mines, by a majority vote of the Commissioners, that 7
short-form consumer disclosure statements or graph-8
ic icons will not advance consumer understanding of 9
consumer protection and content moderation prac-10
tices of social media platforms and online market-11
places, the Commission shall include its reasoning 12
for making that determination in the report to Con-13
gress required by paragraph (1) and shall not final-14
ize the rulemaking until it determines such rules 15
would advance consumer understanding of consumer 16
protection and content moderation practices of social 17
media platforms and online marketplaces. 18
SEC. 3. CONSUMER PROTECTION PROGRAM. 19
(a) I
NGENERAL.—Each social media platform and 20
online marketplace shall establish and implement a con-21
sumer protection program that includes policies, practices, 22
and procedures regarding consumer protection and con-23
tent moderation— 24
(1) to— 25
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(A) ensure compliance with applicable Fed-1
eral, State, and local consumer protection laws; 2
(B) develop, implement, and ensure com-3
pliance with the terms of service required by 4
section 2; 5
(C) develop and implement policies regard-6
ing the content and behavior permitted on its 7
service both by the platform and users, and en-8
sure compliance with such policies, practices 9
and procedures; 10
(D) mitigate risks that could be harmful to 11
consumers’ safety, well-being, and reasonable 12
expectations of users of the social media plat-13
form or online marketplace, including cyber 14
harassment; 15
(E) implement reasonable safeguards with-16
in, and training and education of employees and 17
contractors of, the social media platform or on-18
line marketplace to promote compliance with all 19
consumer protection laws and the consumer 20
protection program; and 21
(F) disclose any other requirement the 22
Commission deems appropriate; and 23
(2) taking into consideration— 24
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(A) the size of, and the nature, scope, and 1
complexity of the activities engaged in by the 2
social media platform and online marketplace; 3
(B) the activities engaged in by users on 4
the social media platform or online market-5
place; and 6
(C) the cost of implementing the program. 7
(b) A
DDITIONALREQUIREMENTS.—As part of the 8
consumer protection program, a social media platform or 9
online marketplace shall— 10
(1) establish processes to monitor, manage, and 11
enforce the social media platform’s or online market-12
place’s consumer protection program, and dem-13
onstrate the covered entity’s compliance with Fed-14
eral, State, and local consumer protection laws; 15
(2) establish processes to assess and mitigate 16
the risks to individuals resulting from the social 17
media platform’s or online marketplace’s amplifi-18
cation of content or products not in compliance with 19
its terms of service; 20
(3) establish a process to periodically review 21
and update the consumer protection program; 22
(4) appoint a consumer protection officer, who 23
reports directly to the chief executive officer; and 24
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(5) establish and implement controls to monitor 1
and mitigate known or reasonably foreseeable risks 2
to consumers resulting from hosting content or prod-3
ucts. 4
(c) A
NNUALFILINGS TO THEFTC.— 5
(1) F
ILING REQUIREMENTS .—Each social 6
media platform or online marketplace that either has 7
annual revenue in excess of $250,000 in the prior 8
year or that has more than 10,000 monthly active 9
users on average in the prior year, shall be required 10
to submit to the Commission, on an annual basis, a 11
filing that includes— 12
(A) a detailed and granular description of 13
each of the requirements in section 2 and this 14
section; 15
(B) the name and contact information of 16
the consumer protection officer required under 17
subsection (b)(4); and 18
(C) a description of any material changes 19
in the consumer protection program or the 20
terms of service since the most recent prior dis-21
closure to the Commission. 22
(2) O
FFICER CERTIFICATION.—For each entity 23
that submits an annual filing under paragraph (1), 24
the entity’s principal executive officer and the con-25
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sumer protection officer required under subsection 1
(b)(4), shall be required to certify in each such an-2
nual filing that— 3
(A) the signing officer has reviewed the fil-4
ing; 5
(B) based on such officer’s knowledge, the 6
filing does not contain any untrue statement of 7
a material fact or omit to state a material fact 8
necessary to make the statements, in light of 9
the circumstances under which such statements 10
were made, not misleading; 11
(C) based on such officer’s knowledge, the 12
filing fairly presents in all material respects the 13
consumer protection practices of the social 14
media platform or online marketplace; and 15
(D) the signing consumer protection offi-16
cer— 17
(i) is responsible for establishing and 18
maintaining safeguards and controls to 19
protect consumers and administer the con-20
sumer protection program; and 21
(ii) has provided all material conclu-22
sions about the effectiveness of such safe-23
guards and controls. 24
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(3) PUBLIC AVAILABILITY.—The Commission 1
shall make publicly available on the website of the 2
Commission the filings submitted under paragraph 3
(1). The Commission may withhold information in-4
cluded in such a filing if the Commission determines 5
such information should not be public. If the Com-6
mission withholds any information, the Commission 7
shall make publicly available on the website the cat-8
egory of information withheld and the reasons for 9
withholding it. 10
SEC. 4. ENFORCEMENT. 11
(a) E
NFORCEMENT BY FEDERALTRADECOMMIS-12
SION.— 13
(1) U
NFAIR OR DECEPTIVE ACTS OR PRAC -14
TICES.—Any violation of this Act shall be treated as 15
a violation of a regulation under section 18(a)(1)(B) 16
of the Federal Trade Commission Act (15 U.S.C. 17
57a(a)(1)(B)) regarding unfair or deceptive acts or 18
practices. 19
(2) P
OWERS OF COMMISSION .—The Commis-20
sion shall enforce this Act in the same manner, by 21
the same means, and with the same jurisdiction, 22
powers, and duties as though all applicable terms 23
and provisions of the Federal Trade Commission Act 24
(15 U.S.C. 41 et seq.) were incorporated into and 25
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made a part of this Act. Any person who violates 1
this Act shall be subject to the penalties and entitled 2
to the privileges and immunities provided in the 3
Federal Trade Commission Act. 4
(b) R
EGULATIONS.—The Commission shall promul-5
gate regulations under section 553 of title 5, United 6
States Code, to carry out the purposes of this Act. 7
(c) P
RIVATERIGHT OFACTION.— 8
(1) E
NFORCEMENT BY INDIVIDUALS .— 9
(A) I
N GENERAL.—An individual alleging 10
damages as a result of a violation of this Act 11
may bring a civil action in any court of com-12
petent jurisdiction, State or Federal. 13
(B) R
ELIEF.—In a civil action brought 14
under subparagraph (A) in which the plaintiff 15
prevails, the court may award— 16
(i) damages as provided in subpara-17
graph (C); 18
(ii) reasonable attorney’s fees and liti-19
gation costs; and 20
(iii) any other relief, including equi-21
table or declaratory relief, that the court 22
determines appropriate. 23
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(C) DAMAGES.—A prevailing plaintiff is 1
entitled to actual damages as a result of the 2
violation of this Act. 3
(2) I
NVALIDITY OF PRE-DISPUTE ARBITRATION 4
AGREEMENTS AND PRE -DISPUTE JOINT-ACTION 5
WAIVERS.— 6
(A) I
N GENERAL.—Notwithstanding any 7
other provision of law, no pre-dispute arbitra-8
tion agreement or pre-dispute joint-action waiv-9
er shall be valid or enforceable with respect to 10
a dispute arising under this Act. 11
(B) A
PPLICABILITY.—Any determination 12
as to whether or how this paragraph applies to 13
any dispute shall be made by a court, rather 14
than an arbitrator, without regard to whether 15
such agreement purports to delegate such deter-16
mination to an arbitrator. 17
(C) D
EFINITIONS.—In this paragraph: 18
(i) P
RE-DISPUTE ARBITRATION 19
AGREEMENT.—The term ‘‘pre-dispute arbi-20
tration agreement’’ means any agreement 21
to arbitrate a dispute that has not arisen 22
at the time of making the agreement. 23
(ii) P
RE-DISPUTE JOINT -ACTION 24
WAIVER.—The term ‘‘pre-dispute joint-ac-25
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tion waiver’’ means an agreement, whether 1
or not part of a pre-dispute arbitration 2
agreement, that would prohibit, or waive 3
the right of, one of the parties to the 4
agreement to participate in a joint, class, 5
or collective action in a judicial, arbitral, 6
administration, or other forum, concerning 7
a dispute that has not yet arisen at the 8
time of making the agreement. 9
(iii) D
ISPUTE.—The term ‘‘dispute’’ 10
means any claim related to an alleged vio-11
lation of this Act and between an indi-12
vidual and a covered organization. 13
(d) E
NFORCEMENT BY STATEATTORNEYSGEN-14
ERAL.— 15
(1) I
N GENERAL.—If the chief law enforcement 16
officer of a State, or an official or agency designated 17
by a State, has reason to believe that any person has 18
violated or is violating this Act, the attorney general, 19
official, or agency of the State, in addition to any 20
authority it may have to bring an action in State 21
court under its consumer protection law, may bring 22
a civil action in any appropriate United States dis-23
trict court or in any other court of competent juris-24
diction, including a State court, to— 25
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(A) enjoin further such violation by such 1
person; 2
(B) enforce compliance with this Act; 3
(C) obtain civil penalties; and 4
(D) obtain damages, restitution, or other 5
compensation on behalf of residents of the 6
State. 7
(2) N
OTICE AND INTERVENTION BY THE 8
FTC.—The attorney general of a State shall provide 9
prior written notice of any action under paragraph 10
(1) to the Commission and provide the Commission 11
with a copy of the complaint in the action, except in 12
any case in which such prior notice is not feasible, 13
in which case the attorney general shall serve such 14
notice immediately upon instituting such action. The 15
Commission shall have the right— 16
(A) to intervene in the action; 17
(B) upon so intervening, to be heard on all 18
matters arising therein; and 19
(C) to file petitions for appeal. 20
(3) L
IMITATION ON STATE ACTION WHILE FED -21
ERAL ACTION IS PENDING .—If the Commission has 22
instituted a civil action for violation of this Act, no 23
State attorney general, or official or agency of a 24
State, may bring an action under this subsection 25
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during the pendency of that action against any de-1
fendant named in the complaint of the Commission 2
for any violation of this Act alleged in the complaint. 3
(4) R
ELATIONSHIP WITH STATE -LAW CLAIMS.— 4
If the attorney general of a State has authority to 5
bring an action under State law directed at acts or 6
practices that also violate this Act, the attorney gen-7
eral may assert the State-law claim and a claim 8
under this Act in the same civil action. 9
SEC. 5. RELATIONSHIP TO OTHER LAWS. 10
(a) E
FFECT OFOTHERLAWS.—Section 230 of the 11
Communications Act of 1934 (47 U.S.C. 230) shall not 12
apply to any violation of this Act. 13
(b) E
FFECT ONSTATELAWS.—Nothing in this Act 14
or any regulation promulgated under this Act shall pre-15
empt or otherwise affect any State or local law. 16
(c) S
EVERABILITY.—If any provision of this Act, or 17
the application thereof to any person or circumstance, is 18
held invalid, the remainder of this Act and the application 19
of such provision to other persons not similarly situated 20
or to other circumstances shall not be affected by the in-21
validation. 22
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SEC. 6. FTC ENFORCEMENT AUTHORITY. 1
(a) I
NGENERAL.—Section 230(e) of the Commu-2
nications Act of 1934 (47 U.S.C. 230(e)) is amended by 3
adding at the end the following: 4
‘‘(6) N
O EFFECT ON FTC ENFORCEMENT .— 5
Nothing in this section shall be construed to impair 6
the enforcement by the Federal Trade Commission 7
of any provision of law enforced by the Federal 8
Trade Commission.’’. 9
(b) A
PPLICABILITY.—The amendment made by this 10
section shall apply with respect to any action or pro-11
ceeding that is commenced on or after the date of the en-12
actment of this Act. 13
SEC. 7. DEFINITIONS. 14
As used in this Act, the following definitions apply: 15
(1) C
OMMISSION.—The term ‘‘Commission’’ 16
means the Federal Trade Commission. 17
(2) C
ONSUMER PRODUCT .—The term ‘‘con-18
sumer product’’ has the meaning given such term in 19
section 3(a) of the Consumer Product Safety Act 20
(15 U.S.C. 2052(a)). 21
(3) C
YBER HARASSMENT .—The term ‘‘cyber 22
harassment’’ means electronic communication that 23
harasses, torments, threatens, or terrorizes a target. 24
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(4) ONLINE MARKETPLACE .—The term ‘‘online 1
marketplace’’ means a website or web application, 2
that— 3
(A) includes features that allow for, facili-4
tate, or enable third-party sellers to engage in 5
the sale, purchase, payment, storage, shipping, 6
or delivery of a consumer product in the United 7
States; and 8
(B) hosts one or more third-party sellers. 9
(5) S
ELLER.—The term ‘‘seller’’ means a per-10
son or entity that sells, offers to sell, or contracts to 11
sell a consumer product through an online market-12
place’s platform. 13
(6) S
OCIAL MEDIA PLATFORM .—The term ‘‘so-14
cial media platform’’ means a website or mobile web 15
application that— 16
(A) permits a person to become a reg-17
istered user, establish an account, or create a 18
profile for the purpose of allowing the user to 19
create, share, and view user-generated content 20
through such an account or profile; 21
(B) enables one or more users to generate 22
content that can be viewed by other users of the 23
platform; and 24
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(C) primarily serves as a medium for users 1
to interact with content generated by other 2
users of the medium and for the platform to de-3
liver ads to users. 4
(7) U
SER.—The term ‘‘user’’ means a person 5
or entity that uses a social media platform or online 6
marketplace for any purpose, including advertisers 7
and sellers, regardless of whether that person has an 8
account or is otherwise registered with the platform. 9
Æ
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