H.R.2889 - Online Consumer Protection Act (119th Congress)
Summary
H.R.2889, the Online Consumer Protection Act, aims to protect consumers by clarifying that violations of terms of service by social media platforms and online marketplaces are unfair or deceptive acts subject to FTC enforcement. It mandates that these platforms create and maintain clear, accessible terms of service, including consumer protection policies covering content moderation and user rights. The bill also requires platforms to establish consumer protection programs and submit annual filings to the FTC, with certifications from their executives.
Expected Effects
The bill's enactment would lead to increased regulatory oversight of social media platforms and online marketplaces. Consumers would gain more transparency and recourse regarding platform policies and practices. This could lead to changes in how platforms moderate content, handle user complaints, and address issues like cyber harassment and fraudulent products.
Potential Benefits
- Increased transparency regarding platform policies and practices.
- Enhanced consumer protection against unfair or deceptive practices.
- Improved mechanisms for reporting and resolving disputes with platforms.
- Greater accountability for social media platforms and online marketplaces.
- Potential reduction in cyber harassment and online fraud.
Potential Disadvantages
- Increased compliance costs for social media platforms and online marketplaces, potentially leading to higher prices for consumers.
- Potential for over-regulation and stifling of innovation.
- Possible delays in content moderation and dispute resolution due to increased bureaucracy.
- Risk of frivolous lawsuits under the private right of action provision.
- Challenges in defining and enforcing the terms of service requirements.
Constitutional Alignment
The bill's focus on consumer protection aligns with the general welfare clause of the Constitution. The First Amendment implications related to content moderation policies would need careful consideration. The enforcement mechanisms through the FTC are consistent with the powers delegated to Congress to regulate commerce.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).