Title: PACT Act
Policy area: Commerce

Summary:
Platform Accountability and Consumer Transparency Act or the PACT Act
This bill requires providers of interactive computer services (e.g., social media platforms) to (1) publish an acceptable use policy, (2) provide a system for users to submit complaints related to the removal of content, and (3) periodically report about violations of the use policy and removal of content.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4066 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4066

To require transparency, accountability, and protections for consumers 
                                online.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2020

 Mr. Schatz (for himself and Mr. Thune) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To require transparency, accountability, and protections for consumers 
                                online.

    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 ``Platform Accountability and Consumer 
Transparency Act'' or the ``PACT Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--Except as otherwise provided, the term 
        ``Commission'' means the Federal Trade Commission.
            (2) Demonetize.--The term ``demonetize'', with respect to 
        content on an interactive computer service, means to take 
        action to prohibit the information content provider that 
        generated or disseminated the content from receiving financial 
        benefit based on the content.
            (3) Deprioritize.--The term ``deprioritize'', with respect 
        to content on an interactive computer service, means to take 
        action or use certain techniques to reduce the priority level 
        of the content in response to potentially policy-violating 
        content.
            (4) Illegal activity.--The term ``illegal activity'' means 
        activity conducted by an information content provider that has 
        been determined by a Federal or State court to violate Federal 
        criminal or civil law.
            (5) Illegal content.--The term ``illegal content'' means 
        information provided by an information content provider that 
        has been determined by a Federal or State court to violate--
                    (A) Federal criminal or civil law; or
                    (B) State defamation law.
            (6) Interactive computer service.--The term ``interactive 
        computer service'' has the meaning given the term in section 
        230 of the Communications Act of 1934 (47 U.S.C. 230).
            (7) Information content provider.--The term ``information 
        content provider'' has the meaning given the term in section 
        230 of the Communications Act of 1934 (47 U.S.C. 230).
            (8) Potentially policy-violating content.--The term 
        ``potentially policy-violating content'' means content that may 
        violate the acceptable use policy of the provider of an 
        interactive computer service.
            (9) Small business provider.--The term ``small business 
        provider'' means a provider of an interactive computer service 
        that, during the most recent 24-month period--
                    (A) received fewer than 1,000,000 monthly active 
                users or monthly visitors; and
                    (B) accrued revenue of less than $25,000,000.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) Technological advancements involving the internet and 
        interactive computer service providers have led to innovations 
        that offer substantial benefit to the people and the economy of 
        the United States.
            (2) People in the United States increasingly rely on the 
        internet and other interactive computer services to 
        communicate, gather information, and conduct transactions that 
        are central to many aspects of economic, political, social, and 
        cultural life.
            (3) The decisions made by providers of interactive computer 
        services shape the online information ecosystem available to 
        people in the United States and impact the environment for free 
        expression.
            (4) The people of the United States benefit from 
        understanding the choices that interactive computer service 
        providers make in maintaining their services, including by 
        removing, blocking, amplifying, or otherwise modifying 
        information provided by other users.
            (5) Online consumers are not adequately protected in the 
        United States because, with the exception of Federal criminal 
        statutes, providers of interactive computer services are immune 
        from the enforcement of most Federal statutes and regulations.
            (6) Federal and State court decisions and Federal statutes 
        and regulations that apply to offline commerce do not always 
        govern online commerce and communications.
            (7) The rights of consumers should extend to online 
        commerce and communications to provide a level playing field 
        for all consumers and companies, and to prevent wrongdoing and 
        victimization of people in the United States.

SEC. 4. POLICY.

    It is the policy of the United States--
            (1) to preserve the internet and other interactive computer 
        services as forums for diversity of political discourse, unique 
        opportunities for cultural development, and myriad avenues for 
        intellectual and commercial activity;
            (2) to ensure consumers have easily accessible and clear 
        information about the acceptable use policies of interactive 
        computer services to inform consumer decisions on participation 
        in, or engagement with, those services through accountability 
        and transparency measures;
            (3) to encourage the development and use of technologies 
        that minimize illegal activities and content and potentially 
        policy-violating content; and
            (4) to ensure that the consumer rights of users of 
        interactive computer services are maintained and extended to 
        activities that the users may participate in online.

SEC. 5. TRANSPARENCY AND PROCESS REQUIREMENTS.

    (a) Acceptable Use Policy.--
            (1) Publication of acceptable use policy.--A provider of an 
        interactive computer service shall publish an acceptable use 
        policy in accordance with paragraph (2) in a location that is 
        easily accessible to the user.
            (2) Contents of policy.--The acceptable use policy of a 
        provider of an interactive computer service shall--
                    (A) reasonably inform users about the types of 
                content that are allowed on the interactive computer 
                service;
                    (B) explain the steps the provider takes to ensure 
                content complies with the acceptable use policy;
                    (C) explain the means by which users can notify the 
                provider of potentially policy-violating content, 
                illegal content, or illegal activity, which shall 
                include--
                            (i) subject to subsection (e), making 
                        available a live company representative to take 
                        user complaints through a toll-free telephone 
                        number during regular business hours for not 
                        fewer than 8 hours per day and 5 days per week;
                            (ii) an email address or relevant intake 
                        mechanism to handle user complaints; and
                            (iii) a complaint system described in 
                        subsection (b); and
                    (D) include publication of a quarterly transparency 
                report outlining actions taken to enforce the policy, 
                as described in subsection (d).
    (b) Complaint System.--A provider of an interactive computer 
service shall provide a system that is easily accessible to a user 
through which the user may submit a complaint in good faith and track 
the status of the complaint, including a complaint regarding--
            (1) potentially policy-violating content, illegal content, 
        or illegal activity; or
            (2) a decision of the interactive computer service provider 
        to remove content posted by the information content provider.
    (c) Processing of Complaints.--
            (1) Complaints regarding illegal content, illegal activity, 
        or potentially policy-violating content.--
                    (A) Illegal content or illegal activity.--Subject 
                to subsection (e), if a provider of an interactive 
                computer service receives notice of illegal content or 
                illegal activity on the interactive computer service 
                that substantially complies with the requirements under 
                paragraph (3)(B)(ii) of section 230(c) of the 
                Communications Act of 1934 (47 U.S.C. 230(c)), as added 
                by section 6(a), the provider shall remove the content 
                or stop the activity within 24 hours of receiving that 
                notice, subject to reasonable exceptions based on 
                concerns about the legitimacy of the notice.
                    (B) Potentially policy-violating content.--Subject 
                to subsection (e), if a provider of an interactive 
                computer service receives notice of potentially policy-
                violating content on the interactive computer service, 
                the provider shall, not later than 14 days after 
                receiving that notice--
                            (i) review the content;
                            (ii) determine whether the content adheres 
                        to the acceptable use policy of the provider; 
                        and
                            (iii) take appropriate steps based on the 
                        determination made under clause (ii).
            (2) Process after removal of content.--
                    (A) Removal based on user complaint.--
                            (i) In general.--Subject to clause (ii), if 
                        a provider of an interactive computer service 
                        removes potentially policy-violating content 
                        based on a user complaint, the provider of the 
                        interactive computer service shall, 
                        concurrently with the removal--
                                    (I) notify the information content 
                                provider and the complainant of the 
                                removal and explain why the content was 
                                removed;
                                    (II) allow the information content 
                                provider to appeal the decision; and
                                    (III) notify the information 
                                content provider and the complainant 
                                of--
                                            (aa) the determination 
                                        regarding the appeal under 
                                        subclause (II); and
                                            (bb) in the case of a 
                                        reversal of the decision to 
                                        remove the content in question, 
                                        the reason for the reversal.
                            (ii) Exceptions.--A provider of an 
                        interactive computer service shall not be 
                        required to provide an information content 
                        provider with notice or an opportunity to 
                        appeal under clause (i)--
                                    (I) if the provider of the 
                                interactive computer service is unable 
                                to contact the information content 
                                provider after taking reasonable steps 
                                to do so; or
                                    (II) if the provider of the 
                                interactive computer service knows that 
                                the potentially policy-violating 
                                content relates to an ongoing law 
                                enforcement investigation.
                    (B) Removal based on moderation decisions of 
                interactive computer service provider.--If a provider 
                of an interactive computer service receives notice, 
                through a complaint from the information content 
                provider, that the provider of the interactive computer 
                service removed content of the information content 
                provider that the information content provider believes 
                was not potentially policy-violating content, the 
                provider of the interactive computer service shall, not 
                later than 14 days after receiving notice--
                            (i) review the content;
                            (ii) determine whether the content adheres 
                        to the acceptable use policy of the provider of 
                        the interactive computer service;
                            (iii) take appropriate steps based on the 
                        determination made under clause (ii); and
                            (iv) notify the information content 
                        provider regarding the determination made under 
                        clause (ii) and steps taken under clause (iii).
    (d) Quarterly Transparency Report.--
            (1) In general.--Subject to subsection (e), as part of the 
        acceptable use policy required under subsection (a), a provider 
        of an interactive computer service shall publish a quarterly 
        transparency report in accordance with paragraph (2) of this 
        subsection.
            (2) Requirements.--A provider of an interactive computer 
        service shall include in the report required under paragraph 
        (1), with respect to the preceding 3-month period--
                    (A) the total number of instances in which illegal 
                content, illegal activity, or potentially policy-
                violating content was flagged--
                            (i) due to a user complaint; or
                            (ii) internally, by--
                                    (I) an employee or contractor of 
                                the provider; or
                                    (II) an internal automated 
                                detection tool;
                    (B) the number of instances in which the 
                interactive computer service provider took action with 
                respect to illegal content, illegal activity, or known 
                potentially policy-violating content due to its nature 
                as illegal content, illegal activity, or known 
                potentially policy-violating content, including content 
                removal, content demonetization, content 
                deprioritization, appending content with an assessment, 
                account suspension, account removal, or any other 
                action taken in accordance with the acceptable use 
                policy of the provider, categorized by--
                            (i) the category of rule violated;
                            (ii) the source of the flag, including 
                        government, user, internal automated detection 
                        tool, coordination with other interactive 
                        computer service providers, or personnel 
                        employed or contracted for by the provider;
                            (iii) the country of the information 
                        content provider; and
                            (iv) coordinated campaign, if applicable;
                    (C)(i) the number of instances in which an 
                information content provider appealed the decision to 
                remove potentially policy-violating content; and
                    (ii) the percentage of appeals described in clause 
                (i) that resulted in the restoration of content; and
                    (D) a description of each tool, practice, action, 
                or technique used in enforcing the acceptable use 
                policy.
            (3) Format.--A provider of an interactive computer service 
        shall publish the information described in paragraph (2) with 
        an open license, in a machine-readable and open format, and in 
        a location that is easily accessible to consumers.
    (e) Small Business Provider Exemptions.--
            (1) Live company representative; transparency report.--
        Subsections (a)(2)(C)(i) and (d) shall not apply to a small 
        business provider.
            (2) Processing of complaints.--Notwithstanding the 
        deadlines under subsection (c)(1), a small business provider 
        shall take action with respect to illegal content, illegal 
        activity, or potentially policy-violating content under 
        subparagraph (A) or (B) of that subsection, as applicable, 
        within a reasonable period of time based on the size and 
        capacity of the provider.
    (f) Internet Infrastructure Service Exemption.--Subsections (a) 
through (e) shall not apply to a provider of an interactive computer 
service that is used by another interactive computer service for the 
management, control, or operation of that other interactive computer 
service, including for services such as web hosting, domain 
registration, content delivery networks, caching, back-end data 
storage, and cloud management.
    (g) Enforcement by Commission.--
            (1) Unfair or deceptive acts or practices.--
                    (A) In general.--A violation of subsection 
                (c)(1)(B), (c)(2), or (d) shall be treated as a 
                violation of a rule defining an unfair or deceptive act 
                or practice under section 18(a)(1)(B) of the Federal 
                Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
                    (B) Limitation on authority.--Nothing in 
                subparagraph (A) shall be construed to supersede 
                paragraph (1) or (2) of section 230(c) of the 
                Communications Act of 1934 (47 U.S.C. 230(c)) or to 
                otherwise authorize the Commission to review any action 
                or decision by a provider of an interactive computer 
                service related to the application of the acceptable 
                use policy of the provider.
            (2) Powers of commission.--
                    (A) In general.--Except as provided in subparagraph 
                (C), the Commission shall enforce this section in the 
                same manner, by the same means, and with the same 
                jurisdiction, powers, and duties as though all 
                applicable terms and provisions of the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                into and made a part of this Act.
                    (B) Privileges and immunities.--Except as provided 
                in subparagraph (C), any person who violates this 
                section shall be subject to the penalties and entitled 
                to the privileges and immunities provided in the 
                Federal Trade Commission Act (15 U.S.C. 41 et seq.).
                    (C) Nonprofit organizations.--Notwithstanding 
                section 4 of the Federal Trade Commission Act (15 
                U.S.C. 44) or any jurisdictional limitation of the 
                Commission, the Commission shall also enforce this 
                section, in the same manner provided in subparagraphs 
                (A) and (B) of this paragraph, with respect to 
                organizations not organized to carry on business for 
                their own profit or that of their members.
    (h) GAO Report on Whistleblower Protection and Awards.--Not later 
than 1 year after the date of enactment of this Act, the Comptroller 
General of the United States shall submit a report to Congress 
assessing the viability, including the anticipated cost and benefit to 
consumers, of establishing a whistleblower protection and award program 
for employees and contractors of interactive computer services, to be 
administered by the Commission, that would enable reporting and 
enforcement of violations of consumer protections that take place 
online.
    (i) NIST Voluntary Framework.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Director of the National Institute 
        of Standards and Technology shall develop a voluntary 
        framework, with input from relevant experts, that consists of 
        nonbinding standards, guidelines, and best practices to manage 
        risk and shared challenges related to, for the purposes of this 
        Act, good faith moderation practices by interactive computer 
        service providers.
            (2) Contents.--The framework developed under paragraph (1) 
        shall include--
                    (A) technical standards and processes for the 
                sharing of information among providers of an 
                interactive computer service;
                    (B) recommendations on automated detection tools 
                and the appropriate nature and level of human review to 
                correct for machine error in assessing nuanced or 
                context-specific issues;
                    (C) standards and processes for providing 
                researchers access to data to conduct scientific, 
                historical, statistical, and other relevant research, 
                including with respect to content that is removed, 
                demonetized, or deprioritized by the provider of an 
                interactive computer service; and
                    (D) methods to strengthen the capacity of a 
                provider of an interactive computer service to 
                authenticate documentation of a determination by a 
                court that content or an activity violates Federal law 
                or State defamation law.

SEC. 6. INTERMEDIARY LIABILITY.

    (a) Intermediary Liability Standard.--Section 230(c) of the 
Communications Act of 1934 (47 U.S.C. 230(c)) is amended by adding at 
the end the following:
            ``(3) Intermediary liability standard.--
                    ``(A) In general.--The protection under paragraph 
                (1) shall not apply to a provider of an interactive 
                computer service, with respect to illegal content 
                shared or illegal activity occurring on the interactive 
                computer service, if the provider--
                            ``(i) has knowledge of the illegal content 
                        or illegal activity; and
                            ``(ii) subject to subparagraph (C), does 
                        not remove the illegal content or stop the 
                        illegal activity within 24 hours of acquiring 
                        that knowledge, subject to reasonable 
                        exceptions based on concerns about the 
                        legitimacy of the notice.
                    ``(B) Notification of illegal content or illegal 
                activity.--
                            ``(i) In general.--A provider of an 
                        interactive computer service shall be deemed to 
                        have knowledge of illegal content or illegal 
                        activity for purposes of subparagraph (A) only 
                        if the provider receives a notification of such 
                        content or activity that substantially complies 
                        with the requirements under clause (ii) of this 
                        subparagraph.
                            ``(ii) Elements.--A notification of illegal 
                        content or illegal activity provided to a 
                        provider of an interactive computer service as 
                        described in clause (i) shall be in writing and 
                        include the following:
                                    ``(I) A copy of the order of a 
                                Federal or State court under which the 
                                content or activity was determined to 
                                violate Federal law or State defamation 
                                law, and to the extent available, any 
                                references substantiating the validity 
                                of the order, such as the web addresses 
                                of public court docket information.
                                    ``(II) Identification of the 
                                illegal content or illegal activity, 
                                and information reasonably sufficient 
                                to permit the provider to locate the 
                                content or each account involved.
                                    ``(III) Information reasonably 
                                sufficient to permit the provider to 
                                contact the complaining party, which 
                                shall include--
                                            ``(aa) if the complaining 
                                        party is a user of the 
                                        interactive computer service, 
                                        information identifying the 
                                        user account; and
                                            ``(bb) if the complaining 
                                        party is not a user of the 
                                        interactive computer service, 
                                        an email address of the 
                                        complaining party.
                                    ``(IV) A statement by the 
                                complaining party, made under penalty 
                                of perjury in accordance with section 
                                1746 of title 28, United States Code, 
                                that--
                                            ``(aa) the content in the 
                                        notification is accurate; and
                                            ``(bb) the content or 
                                        activity described in the 
                                        notification has been 
                                        determined by a Federal or 
                                        State court to be illegal.
                    ``(C) Exemptions.--
                            ``(i) Small business providers.--
                        Notwithstanding the deadline under clause (ii) 
                        of subparagraph (A), a small business provider 
                        shall take action with respect to illegal 
                        content or illegal activity under that 
                        subparagraph within a reasonable period of time 
                        based on the size and capacity of the provider.
                            ``(ii) Internet infrastructure services.--
                        Subparagraph (A) shall not apply with respect 
                        to an interactive computer service that is used 
                        by another interactive computer service for the 
                        management, control, or operation of that other 
                        interactive computer service, including for 
                        services such as web hosting, domain 
                        registration, content delivery networks, 
                        caching, back-end data storage, and cloud 
                        management.
                    ``(D) Monitoring or affirmative fact-seeking not 
                required.--Nothing in this paragraph shall be construed 
                to condition the applicability of paragraph (1) to a 
                provider of an interactive computer service on the 
                provider monitoring the interactive computer service or 
                affirmatively seeking facts indicating illegal content 
                or illegal activity in order to identify instances of 
                noticed activity or content additional to any instances 
                about which the provider has received a notification.
                    ``(E) Enforcement exemption.--Nothing in this 
                paragraph shall be construed to impair or limit the 
                application of subsection (e)(1) or (g).''.
    (b) Definitions.--Section 230(f) of the Communications Act of 1934 
(47 U.S.C. 230(f)) is amended by adding at the end the following:
            ``(5) Illegal activity.--The term `illegal activity' means 
        activity conducted by an information content provider that has 
        been determined by a Federal or State court to violate Federal 
        criminal or civil law.
            ``(6) Illegal content.--The term `illegal content' means 
        information provided by an information content provider that 
        has been determined by a Federal or State court to violate 
        Federal criminal or civil law or State defamation law.
            ``(7) Small business provider.--The term `small business 
        provider' means a provider of an interactive computer service 
        that, during the most recent 24-month period--
                    ``(A) received fewer than 1,000,000 monthly active 
                users or monthly visitors; and
                    ``(B) accrued revenue of less than $25,000,000.''.
    (c) Technical Correction.--Section 230(c)(2)(B) of the 
Communications Act of 1934 (47 U.S.C. 230(c)(2)(B)) is amended by 
striking ``paragraph (1)'' and inserting ``subparagraph (A)''.

SEC. 7. FEDERAL AND STATE ENFORCEMENT.

    (a) Federal Enforcement.--Section 230(e)(1) of the Communications 
Act of 1934 (47 U.S.C. 230(e)) is amended--
            (1) in the heading, by striking ``Criminal Law'' and 
        inserting ``Federal Criminal or Civil Law'';
            (2) by inserting ``by the Federal Government'' after 
        ``enforcement''; and
            (3) by striking ``or any other Federal criminal statute'' 
        and inserting ``any other Federal criminal or civil statute, or 
        any regulations of an Executive agency (as defined in section 
        105 of title 5, United States Code) or an establishment in the 
        legislative or judicial branch of the Federal Government''.
    (b) Enforcement of Federal Civil Laws by State Attorneys General.--
Section 230 of the Communications Act of 1934 (47 U.S.C. 230) is 
amended by adding at the end the following:
    ``(g) Enforcement of Federal Civil Laws by State Attorneys 
General.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, and in consultation with the Attorney General, 
        the attorney general of a State alleging a violation by a 
        provider of an interactive computer service of a Federal civil 
        law that affects or may affect the State or the residents of 
        the State may bring a civil action on behalf of the residents 
        of the State in any district court of the United States for the 
        district in which the provider is found or transacts business 
        if the underlying claim would constitute a violation of the 
        substantive, nonjurisdictional elements of a civil law of the 
        State.
            ``(2) Relation to other laws.--Nothing in paragraph (1) 
        shall be construed to impair or limit the authority of the 
        attorney general of a State under any other Federal law to 
        bring a civil action on behalf of the residents of the State 
        against a provider of an interactive computer service for 
        violation of a Federal civil law.''.

SEC. 8. SEVERABILITY.

    If any provision of this Act or an amendment made by this Act, or 
the application of such a provision or amendment to any person or 
circumstance, is held to be unenforceable or invalid, the remaining 
provisions of this Act and amendments made by this Act, and the 
application of the provision or amendment so held to other persons not 
similarly situated or to other circumstances, shall not be affected 
thereby.

SEC. 9. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the date that is 1 year after the date of enactment of this Act.
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