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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5337 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5337

 To amend the Securities Exchange Act of 1934 to require social media 
 companies to disclose the gross revenues from transactions involving 
    individuals who are younger than 21 years of age, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2024

   Mr. Helmy introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
 To amend the Securities Exchange Act of 1934 to require social media 
 companies to disclose the gross revenues from transactions involving 
    individuals who are younger than 21 years of age, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Youth Revenue Transparency Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Securities and Exchange Commission (referred to in 
        this section as the ``Commission'') has broad authority to 
        require the disclosure of information if that information is in 
        the interest of, or is material to, investors.
            (2) As of the day before the date of enactment of this Act, 
        the Commission does not require social media companies to 
        disclose information related to the gross revenues generated 
        from transactions involving individuals who are younger than 21 
        years of age (referred to in this section as ``young 
        individuals'') or related to the amount spent on marketing 
        targeted toward young individuals.
            (3) Requiring the reporting and standardization of the 
        information described in paragraph (2) is in the interest of 
        the public, and ultimately investors, for the following 
        reasons:
                    (A) Young individuals in the United States are in 
                crisis, as evidenced by the fact that, during the 10-
                year period preceding the date of enactment of this 
                Act, cases of severe depression among young individuals 
                in the United States have nearly doubled.
                    (B) In the 2010s, suicidal behaviors among high 
                school students in the United States increased by more 
                than 40 percent.
                    (C) The products offered by social media companies 
                have altered the way that young individuals in the 
                United States see themselves and the way their brains 
                develop, and the Surgeon General has issued a historic 
                and alarming report recognizing the detrimental impacts 
                of those products on young individuals.
                    (D) Frequent users of products offered by social 
                media companies are twice as likely to experience 
                mental health challenges, including the formation of 
                suicidal thoughts.
                    (E) 95 percent of young individuals in the United 
                States report using products offered by social media 
                almost constantly.
                    (F) Investors face increasing uncertainty as the 
                impacts of products offered by social media companies 
                on young individuals become clear.
                    (G) Valuations of social media companies have not 
                faced volatility when investors and the public have 
                been made aware of the adverse impacts caused by those 
                companies, but some investors have limitations on 
                investing in companies that harm young individuals and 
                society at large.
                    (H) Disclosing the engagement that a social media 
                company has with young individuals could inform 
                investors so that investors can be more informed 
                stewards of capital for their limited partners.

SEC. 3. DISCLOSURE REQUIRED.

    Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) 
is amended by adding at the end the following:
    ``(l) Disclosure Regarding Young Individuals.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered issuer.--The term `covered issuer' 
                means an issuer--
                            ``(i) that is a social media company; and
                            ``(ii)(I) the securities of which are 
                        registered under section 12; or
                            ``(II) that is required to file annual 
                        reports under section 15(d).
                    ``(B) Financial statement.--The term `financial 
                statement', with respect to any proxy or consent 
                solicitation material for an annual meeting of 
                shareholders of a covered issuer, means a balance 
                sheet, cash flow statement, or income statement that is 
                included in that proxy or consent solicitation 
                material.
                    ``(C) Marketing.--The term `marketing' means any 
                activity carried out by a covered issuer to attract new 
                customers or to increase usage by existing customers.
                    ``(D) Social media company.--The term `social media 
                company' means an entity that operates a digital 
                platform that facilitates the sharing of content, 
                ideas, and information to promote social interaction 
                through websites, applications, and other platforms.
                    ``(E) Young individual.--The term `young 
                individual' means an individual who is younger than 21 
                years of age.
            ``(2) Requirement.--Each covered issuer shall disclose in 
        each financial statement included in any proxy or consent 
        solicitation material for an annual meeting of the shareholders 
        of the covered issuer, for the applicable period--
                    ``(A) the gross revenues generated from 
                transactions involving young individuals; and
                    ``(B) the total amount spent on marketing targeted 
                toward young individuals.''.
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