,i #aai? ,,congress #a/ ,session ,h4 ,r4 #bhhi ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #aj1 #bjbe,ms4 ,s*ak[sky 7= h]self & ,ms4 ,ca/or ( ,florida7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to cl>ify t a violation ( c]ta9 t]ms ( s]vice & relat$ mat]ials is an unfair or deceptive act or practice & subject to en=cem5t by ! ,f$]al ,trade ,commission4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,onl9e ,consum] ,protection ,act4 #b4 ,t]ms ( s]vice requir$ = social m$ia plat=ms & onl9e m>ketplaces 7a7 ,9 g5]al ,ea* social m$ia plat=m or onl9e m>ketplace %all e/abli%1 ma9ta91 & make publicly available at all times & 9 a ma*9e-readable =mat1 t]ms ( s]vice 9 a mann] t is cle>1 easily und]/ood1 & writt5 9 pla9 & concise language4 ,! t]ms ( s]vice %all meet ! foll[+ requirem5ts3 7#a7 ,! t]ms ( s]vice %all include-- 7,a7 any t]ms or conditions ( use ( any s]vice provid$ by su* p]son to a consum]2 7,b7 any policies ( su* p]son ) reg>d to su* s]vice or use ( su* s]vice by a consum]2 & 7,c7 ! consum] protection policy consi/5t ) subsection 7b74 7#b7 ,! t]ms ( s]vice %all cov] issues relat$ to ! behavior ( a s]vice or a us] ( su* s]vice1 & %all at a m9imum include t]ms ( use relat$ to-- 7,a7 paym5t me?ods2 7,b7 cont5t own]%ip1 includ+ cont5t g5]at$ by a us]2 7,c7 policies relat$ to %>+ us] cont5t ) ?ird p>ties2 7,d7 any disclaim]s1 limitations1 notices ( nonliability1 or ! consequ5ces ( n agree+ to or comply+ ) ! t]ms ( s]vice2 & 7,e7 any o!r topic ! ,commission deems appropriate4 7b7 ,requir$ consum] protection policy 7#a7 ,= social m$ia plat=ms ,= social m$ia plat=ms1 ! consum] protection policy requir$ by subsection 7a7 %all include-- 7,a7 a description ( ! cont5t & behavior p]mitt$ or prohibit$ on its s]vice bo? by ! plat=m & by us]s2 7,b7 :e!r cont5t may be block$1 remov$1 or modifi$1 or if s]vice to us]s may be t]m9at$ & ! gr\nds ^u :i* su* actions w be tak52 7,c7 :e!r a p]son c reque/ t cont5t be block$1 remov$1 or modifi$1 or t a us]'s s]vice be t]m9at$1 & h[ to make su* a reque/2 7,d7 a description ( h[ a us] w be notifi$ ( & c respond to a reque/ t 8 or h] cont5t be block$1 remov$1 or modifi$1 or s]vice be t]m9at$1 if su* actions are tak52 7,e7 :e!r a us] :o reque/$ cont5t be block$1 remov$1 or modifi$ w be notifi$ ( :e!r action 0 tak5 z a result ( ! reque/1 ! action t 0 tak51 ! reason :y action 0 tak5 or n tak51 & h[ ! us] w be notifi$2 7,f7 h[ a p]son c appeal a decision to block1 remove1 or modify cont5t1 all[ cont5t to rema91 or t]m9ate or n t]m9ate s]vice to a us]1 if su* actions are tak52 7,g7 a description ( h[ a us] w be notifi$ ( ! result ( ! appeal2 7,h7 a description ( ! tools & support available to us]s :o h exp]i5c$ cyb] h>assm5t2 & 7,i7 any o!r topic ! ,commission deems appropriate4 7#b7 ,= onl9e m>ketplaces ,= onl9e m>ketplaces1 ! consum] protection policy requir$ by subsection 7a7 %all include-- 7,a7 a description ( ! products1 product descriptions1 & m>ket+ mat]ial1 all[$ or disall[$ on ! m>ketplace2 7,b7 :e!r a product1 product descriptions1 & m>ket+ mat]ial may be block$1 remov$1 or modifi$1 or if s]vice to a us] may be t]m9at$ & ! gr\nds ^u :i* su* actions w be tak52 7,c7 :e!r us]s w be notifi$ ( products t h be5 recall$ or are dang]\s1 & h[ !y w be notifi$2 7,d7 = us]s-- 7i7 :e!r a us] c report suspect$ fraud1 deception1 dang]\s products1 or violations ( ! onl9e m>ketplace's t]ms ( s]vice1 & h[ to make su* report2 7ii7 :e!r a us] :o submitt$ a report w be notifi$ ( :e!r action 0 tak5 z a result ( ! report1 ! action t 0 tak5 & ! reason :y action 0 tak5 or n tak51 & h[ ! us] w be notifi$2 7iii7 h[ to appeal ! result ( a report2 7iv7 :e!r a us] :o appeal$ ! result ( a report w be notifi$ ( :e!r action 0 tak5 z a result ( ! appeal1 ! action t 0 tak51 ! reason :y action 0 tak5 or n tak51 & h[ ! us] w be notifi$2 & 7v7 "u :at circum/ances a us] is entitl$ to refund1 repair1 or o!r rem$y & ! rem$y to :i* ! us] may be entitl$1 h[ ! us] w be notifi$ ( su* entitlem5t1 & h[ ! us] may claim su* rem$y2 & 7,e7 = sell]s-- 7i7 h[ sell]s are notifi$ ( a report by a us] or a violation ( ! t]ms ( s]vice or consum] protection policy2 7ii7 h[ to conte/ a report by a us]2 7iii7 h[ a sell] :o is ! subject ( a report w be notifi$ ( :at action w be or mu/ be tak5 z a result ( ! report & ! ju/ification = su* action2 7iv7 h[ to appeal a decision ( ! onl9e m>ketplace to take an action 9 response to a us] report or = a violation ( ! t]ms ( s]vice or consum] protection policy2 & 7v7 ! policy reg>d+ refunds1 repairs1 replacem5ts1 or o!r rem$ies z a result ( a us] report or a violation ( ! t]ms ( s]vice or consum] protection policy4 7c7 ,/&>d %ort-,=m /atem5ts & graphic icons = consum] protection practices 7#a7 ,/udy & report ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commission %all conduct a /udy to det]m9e ! mo/ effective me?od ( communicat+ common consum] protection practices 9 %ort-=m consum] disclosure /atem5ts or graphic icons t disclose ! consum] protection & cont5t mod]ation practices ( social m$ia plat=ms & onl9e m>ketplaces4 ,! ,commission %all submit a report to ! ,committee on ,en]gy & ,comm]ce ( ! ,h\se ( ,repres5tatives & ! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ( ! ,s5ate ) ! results ( ! /udy4 ,! report %all also be made publicly available on ! website ( ! ,commission4 7#b7 ,regulations ,except z provid$ 9 p>agraph 7#c71 aft] completion ( ! /udy & n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commission %all f9alize regulations bas$ on ! results ( su* /udy t require social m$ia plat=ms & onl9e m>ketplaces to communicate _! consum] protection & cont5t mod]ation practices1 & any o!r in=mation z ! ,commission may det]m9e1 9 a cle> & conspicu\s mann]4 7#c7 ,exception ,if ! ,commission det]m9es1 by a majority vote ( ! ,commission]s1 t %ort-=m consum] disclosure /atem5ts or graphic icons w n advance consum] und]/&+ ( consum] protection & cont5t mod]ation practices ( social m$ia plat=ms & onl9e m>ketplaces1 ! ,commission %all include its reason+ = mak+ t det]m9ation 9 ! report to ,congress requir$ by p>agraph 7#a7 & %all n f9alize ! rulemak+ until x det]m9es su* rules w\ld advance consum] und]/&+ ( consum] protection & cont5t mod]ation practices ( social m$ia plat=ms & onl9e m>ketplaces4 #c4 ,consum] protection program 7a7 ,9 g5]al ,ea* social m$ia plat=m & onl9e m>ketplace %all e/abli% & implem5t a consum] protection program t includes policies1 practices1 & proc$ures reg>d+ consum] protection & cont5t mod]ation-- 7#a7 to-- 7,a7 ensure compliance ) applicable ,f$]al1 ,/ate1 & local consum] protection laws2 7,b7 develop1 implem5t1 & ensure compliance ) ! t]ms ( s]vice requir$ by section #b2 7,c7 develop & implem5t policies reg>d+ ! cont5t & behavior p]mitt$ on its s]vice bo? by ! plat=m & us]s1 & ensure compliance ) su* policies1 practices & proc$ures2 7,d7 mitigate risks t c\ld be h>mful to consum]s' safety1 well-be+1 & reasonable expectations ( us]s ( ! social m$ia plat=m or onl9e m>ketplace1 includ+ cyb] h>assm5t2 7,e7 implem5t reasonable safegu>ds )91 & tra9+ & education ( employees & contractors (1 ! social m$ia plat=m or onl9e m>ketplace to promote compliance ) all consum] protection laws & ! consum] protection program2 & 7,f7 disclose any o!r requirem5t ! ,commission deems appropriate2 & 7#b7 tak+ into consid]ation-- 7,a7 ! size (1 & ! nature1 scope1 & complexity ( ! activities engag$ 9 by ! social m$ia plat=m & onl9e m>ketplace2 7,b7 ! activities engag$ 9 by us]s on ! social m$ia plat=m or onl9e m>ketplace2 & 7,c7 ! co/ ( implem5t+ ! program4 7b7 ,additional requirem5ts ,z "p ( ! consum] protection program1 a social m$ia plat=m or onl9e m>ketplace %all-- 7#a7 e/abli% processes to monitor1 manage1 & en=ce ! social m$ia plat=m's or onl9e m>ketplace's consum] protection program1 & demon/rate ! cov]$ entity's compliance ) ,f$]al1 ,/ate1 & local consum] protection laws2 7#b7 e/abli% processes to assess & mitigate ! risks to individuals result+ f ! social m$ia plat=m's or onl9e m>ketplace's amplification ( cont5t or products n 9 compliance ) its t]ms ( s]vice2 7#c7 e/abli% a process to p]iodically review & update ! consum] protection program2 7#d7 appo9t a consum] protection (fic]1 :o reports directly to ! *ief executive (fic]2 & 7#e7 e/abli% & implem5t controls to monitor & mitigate kn[n or reasonably =eseeable risks to consum]s result+ f ho/+ cont5t or products4 7c7 ,annual fil+s to ! ,,ftc 7#a7 ,fil+ requirem5ts ,ea* social m$ia plat=m or onl9e m>ketplace t ei!r has annual rev5ue 9 excess ( #bej1jjj 9 ! prior ye> or t has m ?an #aj1jjj mon?ly active us]s on av]age 9 ! prior ye>1 %all be requir$ to submit to ! ,commission1 on an annual basis1 a fil+ t includes-- 7,a7 a detail$ & granul> description ( ea* ( ! requirem5ts 9 section #b & ?is section2 7,b7 ! "n & contact in=mation ( ! consum] protection (fic] requir$ "u subsection 7b77#d72 & 7,c7 a description ( any mat]ial *anges 9 ! consum] protection program or ! t]ms ( s]vice s9ce ! mo/ rec5t prior disclosure to ! ,commission4 7#b7 ,(fic] c]tification ,= ea* entity t submits an annual fil+ "u p>agraph 7#a71 ! entity's pr9cipal executive (fic] & ! consum] protection (fic] requir$ "u subsection 7b77#d71 %all be requir$ to c]tify 9 ea* su* annual fil+ t-- 7,a7 ! sign+ (fic] has review$ ! fil+2 7,b7 bas$ on su* (fic]'s k1 ! fil+ does n conta9 any untrue /atem5t ( a mat]ial fact or omit to /ate a mat]ial fact necess>y to make ! /atem5ts1 9 light ( ! circum/ances "u :i* su* /atem5ts 7 made1 n mislead+2 7,c7 bas$ on su* (fic]'s k1 ! fil+ fairly pres5ts 9 all mat]ial respects ! consum] protection practices ( ! social m$ia plat=m or onl9e m>ketplace2 & 7,d7 ! sign+ consum] protection (fic]-- 7i7 is responsible = e/abli%+ & ma9ta9+ safegu>ds & controls to protect consum]s & adm9i/] ! consum] protection program2 & 7ii7 has provid$ all mat]ial conclusions ab\t ! effectiv5ess ( su* safegu>ds & controls4 7#c7 ,public availability ,! ,commission %all make publicly available on ! website ( ! ,commission ! fil+s submitt$ "u p>agraph 7#a74 ,! ,commission may )hold in=mation includ$ 9 su* a fil+ if ! ,commission det]m9es su* in=mation %\ld n be public4 ,if ! ,commission )holds any in=mation1 ! ,commission %all make publicly available on ! website ! category ( in=mation )held & ! reasons = )hold+ x4 #d4 ,en=cem5t 7a7 ,en=cem5t by ,f$]al ,trade ,commission 7#a7 ,unfair or deceptive acts or practices ,any violation ( ?is ,act %all be treat$ z a violation ( a regulation "u section #ah7;a77#a77;,b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b77 reg>d+ unfair or deceptive acts or practices4 7#b7 ,p[]s ( ,commission ,! ,commission %all en=ce ?is ,act 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]s1 & duties z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 7 incorporat$ into & made a "p ( ?is ,act4 ,any p]son :o violates ?is ,act %all be subject to ! p5alties & entitl$ to ! privileges & immunities provid$ 9 ! ,f$]al ,trade ,commission ,act4 7b7 ,regulations ,! ,commission %all promulgate regulations "u section #eec ( title #e1 ,unit$ ,/ates ,code1 to c>ry out ! purposes ( ?is ,act4 7c7 ,private "r ( action 7#a7 ,en=cem5t by individuals 7,a7 ,9 g5]al ,an individual alleg+ damages z a result ( a violation ( ?is ,act may br+ a civil action 9 any c\rt ( compet5t jurisdiction1 ,/ate or ,f$]al4 7,b7 ,relief ,9 a civil action br\ght "u subp>agraph 7,a7 9 :i* ! pla9tiff prevails1 ! c\rt may aw>d-- 7i7 damages z provid$ 9 subp>agraph 7,c72 7ii7 reasonable attorney's fees & litigation co/s2 & 7iii7 any o!r relief1 includ+ equitable or decl>atory relief1 t ! c\rt det]m9es appropriate4 7,c7 ,damages ,a prevail+ pla9tiff is entitl$ to actual damages z a result ( ! violation ( ?is ,act4 7#b7 ,invalidity ( pre-dispute arbitration agreem5ts & pre-dispute jo9t-action waiv]s 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 no pre-dispute arbitration agreem5t or pre-dispute jo9t-action waiv] %all be valid or en=ceable ) respect to a dispute aris+ "u ?is ,act4 7,b7 ,applicability ,any det]m9ation z to :e!r or h[ ?is p>agraph applies to any dispute %all be made by a c\rt1 r ?an an arbitrator1 )\t reg>d to :e!r su* agreem5t purports to delegate su* det]m9ation to an arbitrator4 7,c7 ,def9itions ,9 ?is p>agraph3 7i7 ,pre-dispute arbitration agreem5t ,! t]m pre-dispute arbitration agreem5t means any agreem5t to arbitrate a dispute t has n aris5 at ! "t ( mak+ ! agreem5t4 7ii7 ,pre-dispute jo9t-action waiv] ,! t]m pre-dispute jo9t-action waiv] means an agreem5t1 :e!r or n "p ( a pre-dispute arbitration agreem5t1 t w\ld prohibit1 or waive ! "r (1 "o ( ! p>ties to ! agreem5t to p>ticipate 9 a jo9t1 class1 or collective action 9 a judicial1 arbitral1 adm9i/ration1 or o!r =um1 conc]n+ a dispute t has n yet aris5 at ! "t ( mak+ ! agreem5t4 7iii7 ,dispute ,! t]m dispute means any claim relat$ to an alleg$ violation ( ?is ,act & betwe5 an individual & a cov]$ organization4 7d7 ,en=cem5t by ,/ate attorneys g5]al 7#a7 ,9 g5]al ,if ! *ief law en=cem5t (fic] ( a ,/ate1 or an (ficial or ag5cy designat$ by a ,/ate1 has reason to believe t any p]son has violat$ or is violat+ ?is ,act1 ! attorney g5]al1 (ficial1 or ag5cy ( ! ,/ate1 9 addition to any au?ority x may h to br+ an action 9 ,/ate c\rt "u its consum] protection law1 may br+ a civil action 9 any appropriate ,unit$ ,/ates di/rict c\rt or 9 any o!r c\rt ( compet5t jurisdiction1 includ+ a ,/ate c\rt1 to-- 7,a7 enjo9 fur!r su* violation by su* p]son2 7,b7 en=ce compliance ) ?is ,act2 7,c7 obta9 civil p5alties2 & 7,d7 obta9 damages1 re/itution1 or o!r comp5sation on behalf ( resid5ts ( ! ,/ate4 7#b7 ,notice & int]v5tion by ! ,,ftc ,! attorney g5]al ( a ,/ate %all provide prior writt5 notice ( any action "u p>agraph 7#a7 to ! ,commission & provide ! ,commission ) a copy ( ! compla9t 9 ! action1 except 9 any case 9 :i* su* prior notice is n feasible1 9 :i* case ! attorney g5]al %all s]ve su* notice imm$iately ^u in/itut+ su* action4 ,! ,commission %all h ! "r-- 7,a7 to int]v5e 9 ! action2 7,b7 ^u s int]v5+1 to be he>d on all matt]s aris+ !re92 & 7,c7 to file petitions = appeal4 7#c7 ,limitation on ,/ate action :ile ,f$]al action is p5d+ ,if ! ,commission has in/itut$ a civil action = violation ( ?is ,act1 no ,/ate attorney g5]al1 or (ficial or ag5cy ( a ,/ate1 may br+ an action "u ?is subsection dur+ ! p5d5cy ( t action aga9/ any def5dant nam$ 9 ! compla9t ( ! ,commission = any violation ( ?is ,act alleg$ 9 ! compla9t4 7#d7 ,relation%ip ) ,/ate-law claims ,if ! attorney g5]al ( a ,/ate has au?ority to br+ an action "u ,/ate law direct$ at acts or practices t also violate ?is ,act1 ! attorney g5]al may ass]t ! ,/ate-law claim & a claim "u ?is ,act 9 ! same civil action4 #e4 ,relation%ip to o!r laws 7a7 ,effect ( o!r laws ,section #bcj ( ! ,communications ,act ( #aicd 7#dg ,u4,s4,c4 #bcj7 %all n apply to any violation ( ?is ,act4 7b7 ,effect on ,/ate laws ,no?+ 9 ?is ,act or any regulation promulgat$ "u ?is ,act %all preempt or o!rwise affect any ,/ate or local law4 7c7 ,sev]ability ,if any provision ( ?is ,act1 or ! application !re( to any p]son or circum/ance1 is held invalid1 ! rema9d] ( ?is ,act & ! application ( su* provision to o!r p]sons n simil>ly situat$ or to o!r circum/ances %all n be affect$ by ! invalidation4 #f4 ,,ftc en=cem5t au?ority 7a7 ,9 g5]al ,section #bcj7;e7 ( ! ,communications ,act ( #aicd 7#dg ,u4,s4,c4 #bcj7;e77 is am5d$ by add+ at ! end ! foll[+3 7#f7 ,no effect on ,,ftc en=cem5t ,no?+ 9 ?is section %all be con/ru$ to impair ! en=cem5t by ! ,f$]al ,trade ,commission ( any provision ( law en=c$ by ! ,f$]al ,trade ,commission4 4 7b7 ,applicability ,! am5dm5t made by ?is section %all apply ) respect to any action or proce$+ t is comm5c$ on or aft] ! date ( ! enactm5t ( ?is ,act4 #g4 ,def9itions ,z us$ 9 ?is ,act1 ! foll[+ def9itions apply3 7#a7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#b7 ,consum] product ,! t]m consum] product has ! mean+ giv5 su* t]m 9 section #c7;a7 ( ! ,consum] ,product ,safety ,act 7#ae ,u4,s4,c4 #bjeb7;a774 7#c7 ,cyb] h>assm5t ,! t]m cyb] h>assm5t means electronic communication t h>asses1 torm5ts1 ?reat5s1 or t]rorizes a t>get4 7#d7 ,onl9e m>ketplace ,! t]m onl9e m>ketplace means a website or web application1 t-- 7,a7 includes features t all[ =1 facilitate1 or enable ?ird-p>ty sell]s to engage 9 ! sale1 pur*ase1 paym5t1 /orage1 %ipp+1 or deliv]y ( a consum] product 9 ! ,unit$ ,/ates2 & 7,b7 ho/s "o or m ?ird-p>ty sell]s4 7#e7 ,sell] ,! t]m sell] means a p]son or entity t sells1 (f]s to sell1 or contracts to sell a consum] product ?r\gh an onl9e m>ketplace's plat=m4 7#f7 ,social m$ia plat=m ,! t]m social m$ia plat=m means a website or mobile web application t-- 7,a7 p]mits a p]son to become a regi/]$ us]1 e/abli% an acc\nt1 or create a pr(ile = ! purpose ( all[+ ! us] to create1 %>e1 & view us]-g5]at$ cont5t ?r\gh su* an acc\nt or pr(ile2 7,b7 enables "o or m us]s to g5]ate cont5t t c be view$ by o!r us]s ( ! plat=m2 & 7,c7 prim>ily s]ves z a m$ium = us]s to int]act ) cont5t g5]at$ by o!r us]s ( ! m$ium & = ! plat=m to deliv] ads to us]s4 7#g7 ,us] ,! t]m us] means a p]son or entity t uses a social m$ia plat=m or onl9e m>ketplace = any purpose1 includ+ adv]tis]s & sell]s1 reg>dless ( :e!r t p]son has an acc\nt or is o!rwise regi/]$ ) ! plat=m4