Online Consumer Protection Act

The "Online Consumer Protection Act" aims to bolster consumer safeguards by defining violations of certain terms of service as unfair or deceptive acts, subject to Federal Trade Commission (FTC) enforcement. It mandates that social media platforms and online marketplaces establish and maintain clear, publicly available terms of service and robust consumer protection programs. This legislation seeks to ensure greater transparency and accountability from these digital entities. Platforms must provide easily understood, machine-readable terms of service covering crucial areas like payment, content ownership, and third-party data sharing, alongside specific consumer protection policies . For social media, these policies detail content moderation, user appeals, and cyber harassment support. For online marketplaces, they cover product safety, fraud reporting, and user/seller remedies. The Act requires platforms to implement comprehensive consumer protection programs for compliance, risk mitigation, and employee training. Platforms exceeding certain thresholds must annually file detailed, certified reports with the FTC, overseen by a designated consumer protection officer. The FTC will also study and potentially mandate short-form disclosures for consumer practices. Violations will be treated as unfair or deceptive practices, empowering the FTC to enforce them with existing powers. A private right of action is established for individuals to seek damages, explicitly invalidating pre-dispute arbitration agreements and joint-action waivers. State Attorneys General are also authorized to bring civil actions. Significantly, the bill clarifies that Section 230 of the Communications Act will not apply to violations of this Act, removing a potential liability shield. It also ensures the Act does not preempt existing state or local consumer protection laws, allowing for broader consumer safeguards.