Online platforms would check advertisers and respond to scam ads

Platforms receiving payment or other compensation for ads would have to check advertisers before placing paid ads. These duties would cover public websites and apps built mainly around content posted by users. Checks would cover names, physical locations, identity documents or business records, and contact details. Platforms would also need measures to prevent people from using false, stolen, or synthetic identities.

Platforms receiving compensation for ads would have to investigate reported or detected scam ads. The duties would cover public websites and apps built mainly around user posts. Removal would be required within 24 hours after a platform decides an ad violates the rules. When applicable, platforms would have to notify the reporting person within 24 hours after finishing the investigation. The investigation deadline would run from a report or detection by the platform’s system.

The Federal Trade Commission (FTC) would enforce the rules, and state attorneys general could sue in federal court. State lawsuits would require reason to believe violations harmed or threatened residents’ interests. States could seek orders stopping violations and compensation for residents. States could not bring overlapping claims against the same defendants while an FTC lawsuit is pending.

People injured by violations could sue in federal court for losses and other relief. Courts could award up to triple actual losses for knowing or willful violations. People who win would receive reasonable lawyer fees and court costs. Section 230 protections for screening or blocking content would remain. People would have to sue within five years after first discovering the violation or having a reasonable opportunity to discover it.