HR2889-119

What This Bill Does

The Online Consumer Protection Act creates a compliance regime for social media platforms and online marketplaces. Covered platforms must publish clear, machine-readable terms of service covering use terms, policies, consumer-protection policy, payment methods, user content ownership, third-party content sharing, disclaimers, moderation rules, appeal processes, cyber-harassment tools, marketplace product and seller rules, recall and dangerous-product notice, fraud reporting, refunds, repairs, replacements, and seller contest procedures. The FTC must study short-form disclosure statements or icons within 180 days and generally finalize regulations within one year if they advance consumer understanding. Covered platforms and marketplaces must establish consumer protection programs, appoint a consumer protection officer reporting to the CEO, maintain safeguards, mitigate risks from content or products, and file annual FTC disclosures if they exceed 250,000 dollars in annual revenue or 10,000 average monthly active users. Violations are treated as FTC Act unfair or deceptive practice rule violations, with FTC enforcement, state attorney general enforcement, private civil actions for damages and fees, and invalidation of pre-dispute arbitration agreements and joint-action waivers for covered disputes.

Who Benefits and How

Online consumers benefit because platforms and marketplaces must disclose moderation, fraud, dangerous-product, refund, repair, and appeal rules in clearer terms. Users experiencing cyber harassment benefit because social media terms must describe tools and support available to them. Marketplace buyers benefit because covered marketplaces must disclose reporting, appeal, recall, dangerous-product, and remedy processes. State attorneys general benefit from explicit authority to enforce the Act and obtain injunctions, penalties, restitution, damages, or other compensation for residents.

Who Bears the Burden and How

Social media platforms must rewrite terms, build consumer protection programs, appoint officers, certify annual filings, and manage FTC and private enforcement risk. Online marketplaces must disclose product-safety, seller, fraud, refund, repair, replacement, and remedy practices and run compliance controls. The Federal Trade Commission must study disclosure methods, issue regulations, publish filings, and enforce violations. Principal executive officers and consumer protection officers must certify annual filings and responsibility for safeguards and controls.

Key Provisions

• Requires clear, plain-language, machine-readable terms of service for social media platforms and online marketplaces.
• Creates mandatory consumer protection programs with safeguards, risk mitigation, officer appointment, and annual FTC filings.
• Directs the FTC to study short-form disclosures or icons within 180 days and finalize regulations within one year when useful.
• Provides FTC enforcement, state attorney general enforcement, and private civil actions with damages, fees, and equitable relief.
• Blocks pre-dispute arbitration agreements and joint-action waivers for disputes arising under the Act.