Online Consumer Protection Act
Rep. Schakowsky Introduces the Online Consumer Protection Act to Hold Tech Companies Accountable
This bill is currently in the early stages of the legislative process after being sent to the House Committee on Energy and Commerce for review. It is actively moving forward as it awaits further study by committee members. There are no upcoming votes scheduled at this time.
Legislative Progress
While consumer protection is popular, this bill faces heavy opposition from the tech industry and challenges regarding free speech and legal liability rules.
Key Points
Impact Analysis
Personal Impact
Small businesses selling on online marketplaces would face both benefits and burdens. As sellers, they would gain clearer dispute resolution processes and better protections against arbitrary platform actions. However, small businesses that operate their own online marketplaces or social media platforms meeting the thresholds (over $250,000 revenue or 10,000 users) would face significant new compliance costs, including hiring a consumer protection officer, writing detailed terms of service, and filing annual reports with the FTC.
“Each social media platform or online marketplace that either has annual revenue in excess of $250,000 in the prior year or that has more than 10,000 monthly active users on average in the prior year, shall be required to submit to the Commission, on an annual basis, a filing”
State Impacts
Milestones
Referred to the House Committee on Energy and Commerce.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesSenate panel advances kids' online safety bills
The Online Consumer Protection Act, sponsored by Reps. Jan Schakowsky and Kathy Castor, would require social media platforms and online marketplaces to establish a consumer protection program and maintain written terms of service. The bill makes clear that Section 230 does not offer protections.
Section 230’s Original Intent Offers Touchstone for Online Safety
The Online Consumer Protection Act is discussed as a legislative effort to address the shortcomings of Section 230 by holding online platforms accountable to consumers for their content moderation promises and terms of service.
Source Information
Document Type
Congressional Bill
Official Title
Online Consumer Protection Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.