SAFE Platforms Act

(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.