Online Consumer Protection Act
Sponsored By: Representative Schakowsky
Introduced
Summary
This bill would give the Federal Trade Commission authority to set and enforce consumer-protection practices for social media platforms and online marketplaces and would require clear, machine-readable terms of service. It focuses on plain-language disclosure of content rules, appeal rights, product safety notices, and user remedies.
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- Consumers: Users would get plain-language policies that explain what content and behavior are permitted, how takedowns or account terminations work, how to request or appeal actions, and the tools and support available for cyber harassment.
- Platforms and sellers: Services must maintain machine-readable terms that cover payment methods, content ownership, sharing with third parties, disclaimers and limits of liability. Marketplaces must also disclose allowed product descriptions and marketing, how to report suspected fraud or dangerous products, remedies like refunds or repairs, and how sellers are notified and can contest or appeal actions.
- Rulemaking and timeline: The Federal Trade Commission would study short-form disclosures within 180 days and finalize regulations within 1 year to require clear short statements or icons. A majority vote of Commissioners can block finalization if they determine the short-form approach will not advance consumer understanding.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
New transparency rules for platforms and marketplaces
This bill would require social media platforms and online marketplaces (as defined in the bill) to post plain‑language, machine‑readable terms at all times. Terms would explain payment rules, content ownership and sharing, what content or products are allowed, and how removals, reports, refunds, and appeals work. Each service would need a consumer protection program, staff training, and a consumer protection officer who reports to the CEO. If a service made over $250,000 last year or averaged more than 10,000 monthly users, it would file a yearly report to the FTC, which the FTC would post. The FTC would study short icons within 180 days and, within 1 year, set clear short‑form disclosure rules unless a majority finds they would not help.
Stronger enforcement and your right to sue
If enacted, you could sue in state or federal court for harms from a violation, and courts could award damages and attorney fees. Pre‑dispute arbitration clauses and class‑action waivers would be invalid for these disputes, and a court would decide if the ban applies. Section 230 would not shield violations of this Act, and it would not limit the FTC’s enforcement powers, a clarification that would apply to cases filed after enactment. The FTC would enforce this Act using its existing tools and penalties. State attorneys general could also sue, with notice to the FTC, and the FTC could step in or appeal.
Sponsors & CoSponsors
Sponsor
Schakowsky
IL • D
Cosponsors
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 4/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov