Online Consumer Protection: Clear Rules and Enhanced Rights
New regulations require social media platforms and online marketplaces to provide clear, easy-to-understand terms of service. Citizens will gain greater protection against unfair practices and the ability to seek legal recourse if harmed. Companies will need to disclose their policies and procedures, increasing transparency in their operations.
Key points
Social media platforms and online marketplaces must provide clear and understandable terms of service, including rules on payments, content ownership, and data sharing.
Companies must describe what content and behavior are allowed or prohibited, and how and why content may be removed or blocked.
Citizens gain the right to report fraud, dangerous products, and violations of terms, as well as to appeal platform decisions.
A consumer protection officer must be appointed within companies, and annual reports must be submitted to the Federal Trade Commission (FTC).
Individuals harmed by violations of these rules can seek damages in court, without being forced into pre-dispute arbitration.
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