Full Text
Official text as published. Use Ctrl+F / Cmd+F to search within the document.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10433 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 10433
To prohibit certain online platforms from materially contributing to
fraudulent content, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 16, 2026
Mrs. Foushee (for herself and Mr. Moylan) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To prohibit certain online platforms from materially contributing to
fraudulent content, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stopping Abuse and Fraud Enabled by
Platforms Act'' or the ``SAFE Platforms Act''.
SEC. 2. PROHIBITIONS AND REQUIREMENTS FOR COVERED PLATFORMS.
(a) Prohibitions.--A covered platform may not materially contribute
to the development of fraudulent content directed at consumers.
(b) Requirements.--
(1) Report mechanism required.--Not later than 180 days
after the date of the enactment of this Act, a covered platform
shall provide an easily accessible mechanism for a user to
report suspected fraudulent content and a content creator to
submit a counter-notice that contests the removal of content
that includes the following:
(A) A clearly visible and accessible ``Report
Scam'' button or link on all content that could contain
an advertisement, commercial, or promotional material.
(B) A simplified reporting process that--
(i) does not require a user to navigate
multiple pages or provide extensive
information;
(ii) is accessible and compatible with
common assistive technologies and available in
the selected interface language of the user;
and
(iii) allows users to provide--
(I) their identity and contact
information;
(II) a sworn statement under
penalty of perjury that the report is
made in good faith; and
(III) the specific factual basis
that demonstrates the reported content
is fraudulent.
(C) Acknowledgment of receipt of a report within 30
days after submission of the report.
(D) Notice to the content creator that a report
alleging fraud has been filed against them.
(E) A counter-notice mechanism that includes--
(i) the identity and contact information of
the content creator;
(ii) a sworn statement under penalty of
perjury that the creator has a good faith
belief that the material was removed or
disabled as a result of mistake or
misidentification of the material as
fraudulent; and
(iii) specific facts supporting the
statement that the reported content is not
fraudulent.
(2) Fraud-resistant default privacy settings.--
(A) Requirements for default settings.--A covered
platform shall configure any default privacy setting to
reduce fraud vulnerability, including through the
following settings:
(i) Not displaying the existence of the
account of a user to any unconnected user
unless the user has expressly and unambiguously
chosen to make the existence of their account
public generally or for specific users.
(ii) Not displaying media created or posted
by a user on a covered platform to any
unconnected user unless the user has expressly
and unambiguously chosen to make their media
publicly available generally or for specific
users.
(iii) Not permitting direct messaging on a
covered platform between a user and any
unconnected user unless the user has expressly
and unambiguously decided to allow direct
messaging generally or for specific users.
(iv) Not displaying the location of a user
to other users, unless the user expressly and
unambiguously shares their location generally
or with specific users.
(v) Not displaying the users connected to a
user on a covered platform unless the user
expressly and unambiguously chooses to share
the information generally or for specific
users.
(vi) Disabling search engine indexing of
the account profile of a user unless the user
expressly and unambiguously opts into indexing.
(B) Prohibitions for default settings.--A covered
platform may not--
(i) provide a user with a single setting
that makes all of the default privacy settings
less protective at once; or
(ii) degrade, limit, or reduce the
functionality, performance, or quality of
services as a result of a user maintaining
higher privacy settings unless the limitation
is strictly necessary due to the technical
requirements of providing the requested service
and the platform cannot reasonably provide the
service through alternative means that would
preserve the privacy settings of the user.
(3) Evasion prevention requirements.--A covered platform
shall implement reasonable measures to detect and prevent the
creation of multiple accounts by the same individual for the
purpose of evading enforcement actions related to fraudulent
content, including the following:
(A) Accounts created shortly after suspension or
removal of an account for fraud violations.
(B) Accounts that exhibit substantially similar
patterns of fraudulent behavior to previously suspended
accounts.
(C) Coordinated networks of accounts promoting
fraudulent schemes.
(4) Platform design features.--A covered platform--
(A) may not use additional platform design features
that facilitate fraud;
(B) shall adopt reasonable measures to prevent the
creation of fraudulent profiles and pages; and
(C) shall implement systems to prevent fraudulent
reviews, likes, and other engagement metrics.
(5) Rulemaking.--Not later than 180 days after the date of
the enactment of this Act, the Commission shall promulgate
regulations to carry out the requirements of this subsection.
(c) Safe Harbor.--
(1) Requirements for safe harbor.--A covered platform shall
be deemed to meet the requirements under subsection (a) if the
platform does the following:
(A) Implements reasonable steps to address
fraudulent content.
(B) Reviews and updates such policies and
procedures not less frequently than annually.
(C) Reviews reported fraudulent content within 48
hours after receiving notice of the content.
(D) Adopts and follows reasonable policies and
procedures to detect and initiate appropriate steps
with respect to the fraudulent content within 7 days
after receiving notice of the content, unless--
(i) the platform reasonably determines
after investigation that the content is not
fraudulent; or
(ii) additional time is necessary due to
the complexity of the investigation, volume of
reports, or other reasonable factors if--
(I) the platform provides written
notice to the reporting party within 7
days after the notice was received by
the platform that explains the need for
additional time and the expected
timeline for resolution; and
(II) any extension beyond the 7-day
period described in subclause (I) may
not exceed 30 days unless the platform
obtains written approval from the
Commission for additional 30-day
extensions.
(2) Bad faith reports.--A covered platform may refuse to
process additional reports from a user that has submitted three
or more reports determined to be false or made in bad faith
within a 12-month period, if platform provided that user with
notice and opportunity to contest such determination.
(d) Accessibility and Design Requirements.--Not later than 180 days
after the date of the enactment of this Act, the Commission shall
promulgate regulations that establish accessibility requirements for
advertising content on a covered platform that includes the following:
(1) Minimum font size requirements for material terms,
conditions, and pricing information.
(2) Requirements for clear and conspicuous labeling.
(3) Contrast standards between text and background.
(4) Standards for making advertising content accessible to
users with disabilities.
(5) Additional design requirements to prevent deceptive or
misleading advertising practices.
(e) Requirements Related to Advertisers.--
(1) Verification.--Not later than 180 days after the date
of the enactment of this Act, a covered platform shall
establish and maintain reasonable procedures to verify the
identity of advertisers before allowing them to purchase
advertisements that includes, at a minimum, the following:
(A) Collection and verification of the following,
with regard to the advertiser:
(i) Legal name and physical address.
(ii) Valid contact information, including
email address and phone number.
(iii) Tax identification number or other
government-issued identifier.
(iv) For a business, proof of registration
or incorporation in the relevant jurisdiction.
(v) A declaration of industry type and
whether the advertiser engages in the sale or
promotion of high-risk categories, as applied
to products, services, or opportunities.
(B) Verification of payment methods and accounts
used by the advertiser.
(C) Reasonable steps to confirm the authenticity of
the information provided.
(2) Enhanced verification for high-risk advertisers.--For
an advertiser in a high-risk category, or that engage in the
sale or promotion of restricted or high-risk products,
services, or opportunities, a covered platform shall implement
enhanced verification that includes the following with regard
to the advertiser:
(A) Additional documentation to validate the
identity and business operations.
(B) Review of the online presence and business
history.
(C) Periodic re-verification.
(3) High-risk categories.--High-risk categories include the
following:
(A) Financial services and investment
opportunities.
(B) Health products and services.
(C) Educational credentials and certification.
(D) Housing and real estate.
(E) Gambling.
(F) Unregulated financial products, including
cryptocurrency and non-fungible tokens.
(G) Tobacco, alcohol, cannabis, and other
consumables restricted by age.
(H) Categories identified by the Commission through
regulations.
(4) Record keeping.--A covered platform shall maintain
records of advertiser verification information for a period of
at least three years after the date of the last advertisement
or commercial activity.
(5) Disclosure of advertiser information required.--A
covered platform shall provide a user with access to basic
information about any advertiser whose content they view, which
shall be accessible through direct display on the
advertisement, a clearly visible link, or button associated
with the advertisement or commercial content, or through other
reasonably accessible means, that includes the following:
(A) The legal name of the advertiser.
(B) The country or jurisdiction where the
advertiser is based.
(C) How long the advertiser has maintained an
account on the platform.
(6) Repeat offenders.--Not later than 180 days after the
date of the enactment of this Act, a covered platform shall
establish and maintain a system to do the following:
(A) Track any advertiser found to have violated
platform policies related to fraudulent content.
(B) Prevent any such advertiser from creating a new
account under a different identity.
(C) Apply enhanced scrutiny to any new account that
shares characteristics with a previously suspended
account.
SEC. 3. ENFORCEMENT.
(a) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices.--A violation of
section 2 or a regulation promulgated under such section shall
be treated as a violation of a regulation under section
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
(2) Powers of commission.--The Federal Trade Commission
shall enforce section 2 and any regulation promulgated under
such section in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) were incorporated into and made a
part of this section. Any person who violates such section or a
regulation promulgated under such section shall be subject to
the penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act.
(b) Actions by States.--
(1) In general.--In any case in which the attorney general
of a State, or an official or agency of a State, has reason to
believe that an interest of the residents of such State has
been or is threatened or adversely affected by an act or
practice in violation of section 2 or a regulation promulgated
under such section, the State, as parens patriae, may bring a
civil action on behalf of the residents of the State in an
appropriate State court or district court of the United States
to--
(A) enjoin such act or practice;
(B) enforce compliance with such subsection or such
regulation;
(C) obtain damages, restitution, or other
compensation on behalf of residents of the State; or
(D) obtain such other legal and equitable relief as
the court may consider to be appropriate.
(2) Notice.--Before filing an action under this subsection,
the attorney general, official, or agency of the State involved
shall provide to the Federal Trade Commission a written notice
of such action and a copy of the complaint for such action. If
the attorney general, official, or agency determines that it is
not feasible to provide the notice described in this paragraph
before the filing of the action, the attorney general,
official, or agency shall provide written notice of the action
and a copy of the complaint to the Federal Trade Commission
immediately upon the filing of the action.
(3) Authority of federal trade commission.--
(A) In general.--On receiving notice under
paragraph (2) of an action under this subsection, the
Federal Trade Commission shall have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on
all matters arising therein; and
(iii) to file petitions for appeal.
(B) Limitation on state action while federal action
is pending.--If the Federal Trade Commission or the
Attorney General of the United States has instituted a
civil action for violation of section 2 or a regulation
promulgated under such section (referred to in this
subparagraph as the ``Federal action''), no State
attorney general, official, or agency may bring an
action under this subsection during the pendency of the
Federal action against any defendant named in the
complaint in the Federal action for any violation of
such section or regulation alleged in such complaint.
(4) Rule of construction.--For purposes of bringing a civil
action under this subsection, nothing in this Act shall be
construed to prevent an attorney general, official, or agency
of a State from exercising the powers conferred on the attorney
general, official, or agency by the laws of such State to
conduct investigations, administer oaths and affirmations, or
compel the attendance of witnesses or the production of
documentary and other evidence.
(c) Private Right of Action.--
(1) In general.--A person injured by an act or practice in
violation of section 2 or a regulation promulgated under such
section may bring in an appropriate State court or district
court of the United States--
(A) an action to enjoin the violation;
(B) an action to recover damages for actual
monetary loss from the violation, or to receive up to
the amount specified under section 5(l) of the Federal
Trade Commission Act, as adjusted for inflation in
section 1.98 of title 16, Code of Federal Regulations,
in damages for each such violation, whichever is
greater; or
(C) both such actions.
(2) Willful or knowing violations.--If the court finds that
the defendant acted willfully or knowingly in committing a
violation described in paragraph (1), the court may, in its
discretion, increase the amount of the award to an amount equal
to not more than 3 times the amount available under paragraph
(1)(B).
(3) Costs and attorney's fees.--The court shall award to a
prevailing plaintiff in an action under this subsection the
costs of such action and reasonable attorney's fees, as
determined by the court.
(4) Limitation.--An action may be commenced under this
subsection not later than 3 years after the date on which the
person first discovered or had a reasonable opportunity to
discover the violation.
(5) Nonexclusive remedy.--The remedy provided by this
subsection shall be in addition to any other remedies available
to the person.
(d) Rulemaking Authority.--The Commission may promulgate
regulations to implement, interpret, and enforce any provisions of this
Act.
SEC. 4. LIMITATIONS AND EXCEPTIONS.
(a) Rule of Construction on Monitoring.--Nothing in sections 2 or 3
may be construed to require a covered platform to monitor all content
before the content is posted or transmitted.
(b) Rule of Construction on Section 230 Liability Protection.--
Nothing in section 230 of the Communications Act of 1934 (47 U.S.C.
230) may be construed to impair enforcement of this Act.
(c) Exceptions.--This Act does not apply to the following:
(1) Interactive computer services that function primarily
as internet service providers, email providers, or data storage
providers.
(2) Content that is transmitted through a covered platform
but not stored on the platform.
SEC. 5. DEFINITIONS.
In this Act:
(1) Advertiser.--The term ``advertiser'' means any person
or entity that pays a covered platform to display, promote, or
otherwise disseminate content that promotes a product or
service in interstate commerce to users of the platform.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Covered platform.--The term ``covered platform'' means
a provider of an interactive computer service that--
(A) makes available information provided by an
information content provider;
(B) enables users to view or interact with such
information; and
(C) has at least 100,000 monthly active users or
generates annual gross revenue in excess of
$25,000,000, adjusted annually to reflect adjustments
in the Consumer Price Index.
(4) Fraud.--The term ``fraud'' means any representation,
omission, or practice in or affecting commerce that--
(A) is likely to mislead a consumer acting
reasonably under the circumstances; and
(B) is material to consumer decision-making.
(5) Fraudulent content.--The term ``fraudulent content''
means content that constitutes fraud.
(6) Has reason to know.--The term ``has reason to know''
means circumstances that would make the fraudulent nature of
content apparent to a reasonable operator of a covered
platform.
(7) Interactive computer service.--The term ``interactive
computer service'' has the meaning given such term in section
230(f) of the Communications Act of 1934 (47 U.S.C. 230(f)).
(8) Internet service provider.--The term ``internet service
provider'' means a person--
(A) qualified to do business; and
(B) that provides individuals and entities with the
ability to connect to the internet.
(9) Information content provider.--The term ``information
content provider'' has the meaning given that term in section
230(f) of the Communications Act of 1934 (47 U.S.C. 230(f)).
(10) Materially contribute.--The term ``materially
contribute'' means conduct that goes beyond providing neutral
tools for the development or dissemination of fraudulent
content, including the following:
(A) Encouraging or inducing a third party to
develop or disseminate fraudulent content.
(B) Targeting, recommending, promoting, curating,
or prioritizing fraudulent content directed at
consumers that the covered platform knows or has reason
to know is fraudulent.
(C) Other conduct that the Commission determines to
be a material contribution through regulations
promulgated pursuant to the rulemaking authority
conferred under section 3 of this Act.
(11) Mutual connection.--The term ``mutual connection''--
(A) means a relationship in which two users on a
covered platform are each directly connected to the
same third-party user through a formal connection
mechanism such as a friend or follow; and
(B) does not include shared participation between
two users in the same group, forum, or public page.
(12) Operator of a covered platform.--The term ``operator
of a covered platform'' means a person who operates a covered
platform as defined in this Act.
(13) Reasonable steps.--The term ``reasonable steps'' means
proactive and reactive measures that can reasonably be expected
from a covered platform considering the size, resources, and
user base of the platform, and the nature of the fraudulent
content at issue and includes the following:
(A) Implementing and enforcing clear policies
against fraudulent content.
(B) Maintaining an accessible and responsive
mechanism for users to report suspected fraudulent
content.
(C) Reviewing reported content in a timely manner.
(D) Removing or limiting the distribution of
content determined to be fraudulent.
(E) Warning potentially affected users when
fraudulent content has been identified.
(F) Implementing reasonable measures to prevent
repeated or similar fraudulent content.
(14) Unconnected user.--The term ``unconnected user'' means
a user who--
(A) is not verified by the covered platform; and
(B) does not share a mutual connection with the
user whose content or account is at issue.
<all>