Terms of service required for social media platforms and online marketplaces

(a) In general Each social media platform or online marketplace shall establish, maintain, and make publicly available at all times and in a machine-readable format, terms of service in a manner that is clear, easily understood, and written in plain and concise language. The terms of service shall meet the following requirements: (1) The terms of service shall include— (A) any terms or conditions of use of any service provided by such person to a consumer; (B) any policies of such person with regard to such service or use of such service by a consumer; and (C) the consumer protection policy consistent with subsection (b). (2) The terms of service shall cover issues related to the behavior of a service or a user of such service, and shall at a minimum include terms of use related to— (A) payment methods; (B) content ownership, including content generated by a user; (C) policies related to sharing user content with third parties; (D) any disclaimers, limitations, notices of nonliability, or the consequences of not agreeing to or complying with the terms of service; and (E) any other topic the Commission deems appropriate. (b) Required consumer protection policy (1) For social media platforms For social media platforms, the consumer protection policy required by subsection (a) shall include— (A) a description of the content and behavior permitted or prohibited on its service both by the platform and by users; (B) whether content may be blocked, removed, or modified, or if service to users may be terminated and the grounds upon which such actions will be taken; (C) whether a person can request that content be blocked, removed, or modified, or that a user’s service be terminated, and how to make such a request; (D) a description of how a user will be notified of and can respond to a request that his or her content be blocked, removed, or modified, or service be terminated, if such actions are taken; (E) whether a user who requested content be blocked, removed, or modified will be notified of whether action was taken as a result of the request, the action that was taken, the reason why action was taken or not taken, and how the user will be notified; (F) how a person can appeal a decision to block, remove, or modify content, allow content to remain, or terminate or not terminate service to a user, if such actions are taken; (G) a description of how a user will be notified of the result of the appeal; (H) a description of the tools and support available to users who have experienced cyber harassment; and (I) any other topic the Commission deems appropriate. (2) For online marketplaces For online marketplaces, the consumer protection policy required by subsection (a) shall include— (A) a description of the products, product descriptions, and marketing material, allowed or disallowed on the marketplace; (B) whether a product, product descriptions, and marketing material may be blocked, removed, or modified, or if service to a user may be terminated and the grounds upon which such actions will be taken; (C) whether users will be notified of products that have been recalled or are dangerous, and how they will be notified; (D) for users— (i) whether a user can report suspected fraud, deception, dangerous products, or violations of the online marketplace’s terms of service, and how to make such report; (ii) whether a user who submitted a report will be notified of whether action was taken as a result of the report, the action that was taken and the reason why action was taken or not taken, and how the user will be notified; (iii) how to appeal the result of a report; (iv) whether a user who appealed the result of a report will be notified of whether action was taken as a result of the appeal, the action that was taken, the reason why action was taken or not taken, and how the user will be notified; and (v) under what circumstances a user is entitled to refund, repair, or other remedy and the remedy to which the user may be entitled, how the user will be notified of such entitlement, and how the user may claim such remedy; and (E) for sellers— (i) how sellers are notified of a report by a user or a violation of the terms of service or consumer protection policy; (ii) how to contest a report by a user; (iii) how a seller who is the subject of a report will be notified of what action will be or must be taken as a result of the report and the justification for such action; (iv) how to appeal a decision of the online marketplace to take an action in response to a user report or for a violation of the terms of service or consumer protection policy; and (v) the policy regarding refunds, repairs, replacements, or other remedies as a result of a user report or a violation of the terms of service or consumer protection policy. (c) Standard short-Form statements and graphic icons for consumer protection practices (1) Study and report Not later than 180 days after the date of the enactment of this Act, the Commission shall conduct a study to determine the most effective method of communicating common consumer protection practices in short-form consumer disclosure statements or graphic icons that disclose the consumer protection and content moderation practices of social media platforms and online marketplaces. The Commission shall submit a report to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate with the results of the study. The report shall also be made publicly available on the website of the Commission. (2) Regulations Except as provided in paragraph (3), after completion of the study and not later than 1 year after the date of the enactment of this Act, the Commission shall finalize regulations based on the results of such study that require social media platforms and online marketplaces to communicate their consumer protection and content moderation practices, and any other information as the Commission may determine, in a clear and conspicuous manner. (3) Exception If the Commission determines, by a majority vote of the Commissioners, that short-form consumer disclosure statements or graphic icons will not advance consumer understanding of consumer protection and content moderation practices of social media platforms and online marketplaces, the Commission shall include its reasoning for making that determination in the report to Congress required by paragraph (1) and shall not finalize the rulemaking until it determines such rules would advance consumer understanding of consumer protection and content moderation practices of social media platforms and online marketplaces.