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6 Cosponsor:
7 Curtis S. Bramble
8
9 LONG TITLE
10 General Description:
11 This bill enacts provisions with respect to the regulation of social media corporations.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ requires social media corporations to, for Utah account holders, provide:
16 • clear information about the social media corporation's moderation practices;
17 • notice to the account holder or the attorney general when the social media
18 corporation uses a moderation practice with respect to a Utah account holder's
19 account; and
20 • an opportunity for a Utah account holder to appeal certain moderation practices
21 that the social media corporation employs on a Utah account holder's account or
22 post;
23 ▸ provides, if a social media corporation violates its terms of use with respect to
24 moderation practices:
25 • a mechanism for a Utah account holder to make a complaint to the Division of
26 Consumer Protection (division) and the attorney general;
27 • a mechanism for the division to investigate alleged violations; and
28 • an enforcement and penalty mechanism for the attorney general if the division
29 refers a violation to the attorney general;
30 ▸ creates a restricted account to deposit penalties and provides for the distributions
31 from the account; and
32 ▸ provides for severability if a provision is found to be invalid.
33 Money Appropriated in this Bill:
34 None
35 Other Special Clauses:
36 This bill provides a special effective date.
37 Utah Code Sections Affected:
38 AMENDS:
39 13-2-1, as last amended by Laws of Utah 2020, Chapter 118
40 ENACTS:
41 13-58-101, Utah Code Annotated 1953
42 13-58-102, Utah Code Annotated 1953
43 13-58-201, Utah Code Annotated 1953
44 13-58-202, Utah Code Annotated 1953
45 13-58-203, Utah Code Annotated 1953
46 13-58-204, Utah Code Annotated 1953
47 13-58-301, Utah Code Annotated 1953
48 13-58-302, Utah Code Annotated 1953
49 13-58-303, Utah Code Annotated 1953
50 13-58-304, Utah Code Annotated 1953
51 13-58-401, Utah Code Annotated 1953
52
53 Be it enacted by the Legislature of the state of Utah:
54 Section 1. Section 13-2-1 is amended to read:
55 13-2-1. Consumer protection division established -- Functions.
56 (1) There is established within the Department of Commerce the Division of Consumer
57 Protection.
58 (2) The division shall administer and enforce the following:
59 (a) Chapter 5, Unfair Practices Act;
60 (b) Chapter 10a, Music Licensing Practices Act;
61 (c) Chapter 11, Utah Consumer Sales Practices Act;
62 (d) Chapter 15, Business Opportunity Disclosure Act;
63 (e) Chapter 20, New Motor Vehicle Warranties Act;
64 (f) Chapter 21, Credit Services Organizations Act;
65 (g) Chapter 22, Charitable Solicitations Act;
66 (h) Chapter 23, Health Spa Services Protection Act;
67 (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
68 (j) Chapter 26, Telephone Fraud Prevention Act;
69 (k) Chapter 28, Prize Notices Regulation Act;
70 (l) Chapter 32a, Pawnshop and Secondhand Merchandise Transaction Information Act;
71 (m) Chapter 34, Utah Postsecondary Proprietary School Act;
72 (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
73 (o) Chapter 39, Child Protection Registry;
74 (p) Chapter 41, Price Controls During Emergencies Act;
75 (q) Chapter 42, Uniform Debt-Management Services Act;
76 (r) Chapter 49, Immigration Consultants Registration Act;
77 (s) Chapter 51, Transportation Network Company Registration Act;
78 (t) Chapter 52, Residential Solar Energy Disclosure Act;
79 (u) Chapter 53, Residential, Vocational and Life Skills Program Act;
80 (v) Chapter 54, Ticket Website Sales Act;
81 (w) Chapter 56, Ticket Transferability Act; [
82 (x) Chapter 57, Maintenance Funding Practices Act[
83 (y) Chapter 58, Freedom from Biased Moderation Act.
84 Section 2. Section 13-58-101 is enacted to read:
85
86
87 13-58-101. Title.
88 This chapter is known as the "Freedom from Biased Moderation Act."
89 Section 3. Section 13-58-102 is enacted to read:
90 13-58-102. Definitions.
91 In this chapter:
92 (1) "Account holder" means a Utah resident who has or opens an account to use a
93 social media corporation's platform.
94 (2) (a) "Dangerous exigent content" means content that indicates the imminent threat or
95 perpetration of a serious crime.
96 (b) "Dangerous exigent content" includes content that:
97 (i) indicates an imminent threat to a particular individual;
98 (ii) indicates an imminent terrorist threat;
99 (iii) indicates or depicts suicide or self-harm;
100 (iv) depicts the sexual exploitation of a minor; or
101 (v) indicates an imminent violation of a grievous sexual offense as that term is defined
102 in Subsection 76-1-601(8).
103 (3) "Director" means the director of the division.
104 (4) "Division" means the Division of Consumer Protection in the Department of
105 Commerce established in Section 13-2-1.
106 (5) "Flag" means the act of a social media corporation singling out a post because of
107 the post's content.
108 (6) "Inequitable moderation practice" means:
109 (a) an inconsistent application of a social media corporation's terms of use to justify a
110 moderation practice; and
111 (b) moderating content that does not violate a social media corporation's terms of use.
112 (7) (a) "Interactive computer service" means any information service, system, or access
113 software provider that:
114 (i) provides or enables computer access by multiple users to a computer server; and
115 (ii) provides access to the Internet.
116 (b) "Interactive computer service" includes:
117 (i) a web service;
118 (ii) a web system;
119 (iii) a website;
120 (iv) a web application; or
121 (v) a web portal.
122 (8) (a) "Moderation practice" means a method a social media corporation employs to
123 regulate a post.
124 (b) "Moderation practice" includes:
125 (i) flagging a post;
126 (ii) removing a post;
127 (iii) suspending an account holder's account; or
128 (iv) revoking an account holder's access to a platform.
129 (9) (a) "Platform" means an online forum that a social media corporation makes
130 available for an account holder to:
131 (i) create a profile;
132 (ii) upload posts;
133 (iii) view the posts of other account holders; and
134 (iv) interact with other account holders or users.
135 (b) "Platform" does not include:
136 (i) electronic mail; or
137 (ii) an online service, website, or application on which:
138 (A) the majority of the content that is posted or created is posted or created by the
139 provider of the online service, website, or application; and
140 (B) the ability to chat, comment, or interact with other users is directly related to the
141 provider's content.
142 (10) "Post" means content that an account holder makes available on the account
143 holder's account for other account holders or users to view.
144 (11) "Social media corporation" means any domestic corporation or foreign corporation
145 that provides a platform that has at least 20,000,000 account holders and is an interactive
146 computer service.
147 (12) "Terms of use" means the terms to which an account holder must agree before an
148 account holder can open or continue to use an account on a platform.
149 (13) (a) "User" means an individual who has access to view the post of an account
150 holder.
151 (b) "User" includes an account holder.
152 (14) (a) "Utah resident" means a person who lives or operates in Utah and:
153 (i) if the person is an individual, has a primary residence in Utah; or
154 (ii) if the person is a business, has a principal place of business in Utah.
155 (b) "Utah resident" does not include a person who has a primary residence or principal
156 place of business in another state.
157 (15) "Violation" means a social media corporation's use of a moderation practice
158 against an account holder that does not comply with the social media corporation's terms of
159 use.
160 Section 4. Section 13-58-201 is enacted to read:
161
162 13-58-201. Communication of moderation practices.
163 (1) Beginning on July 1, 2022, and once every year following July 1, 2022, a social
164 media corporation shall clearly communicate to account holders the social media corporation's
165 moderation practices before the account holder continues to engage with the social media
166 corporation's platform.
167 (2) A social media corporation shall ensure that the corporation's communication of
168 moderation practices:
169 (a) provides a complete list of potential moderation practices to all account holders;
170 (b) informs an account holder about the social media corporation's terms of use
171 regarding content that the social media corporation allows on the platform;
172 (c) explains the steps the social media corporation takes to ensure a post or account
173 complies with the social media corporation's terms of use;
174 (d) explains the methods users can use to notify the social media corporation of content
175 that may violate the terms of use; and
176 (e) includes information about the appeals process described in Section 13-58-204.
177 Section 5. Section 13-58-202 is enacted to read:
178 13-58-202. Prohibited moderation practices.
179 A social media corporation may not:
180 (1) employ inequitable moderation practices; or
181 (2) communicate the information described in Section 13-58-201 in a method that
182 includes any information not specifically related to the social media corporation's moderation
183 practices.
184 Section 6. Section 13-58-203 is enacted to read:
185 13-58-203. Notice requirement.
186 (1) Except as provided in Subsection (5), a social media corporation shall provide
187 written notice to an account holder no more than 24 hours after moderating the account holder's
188 post or account.
189 (2) The notice described in Subsection (1) shall include:
190 (a) a description of the post or account moderated;
191 (b) a description of the method the social media corporation used to moderate the post
192 or account;
193 (c) a citation to the terms of use that the moderated post or account violated;
194 (d) information about the appeal process; and
195 (e) an appeal form.
196 (3) The account holder shall have 30 days to submit an appeal form.
197 (4) The social media corporation shall make the appeal form:
198 (a) simple to submit;
199 (b) contain an option for the account holder to submit up to five examples of similar
200 content that the social media corporation has not moderated; and
201 (c) contain an option for the account holder to explain why the post or account should
202 not have been moderated.
203 (5) (a) If the post or account that the social media corporation moderates is dangerous
204 exigent content, the social media corporation shall provide written notice to the attorney
205 general as soon as practicable, but no more than 24 hours after moderating the post or account.
206 (b) The written notice to the attorney general shall include:
207 (i) a description of the post or account moderated;
208 (ii) a description of the method the social media corporation used to moderate the post
209 or account; and
210 (iii) a description of why the social media corporation determined that the moderated
211 post or account qualifies as dangerous exigent content.
212 (c) If a social media corporation provides notice to the attorney general under this
213 section, the social media corporation is not required to notify the account holder that the social
214 media corporation has moderated the post or account.
215 Section 7. Section 13-58-204 is enacted to read:
216 13-58-204. Appeal process.
217 (1) A moderator who was not involved in the original moderation decision shall review
218 each appeal form.
219 (2) The moderator shall provide to the account holder, in writing:
220 (a) an explanation of whether the post or account violates the social media
221 corporation's terms of use;
222 (b) an explanation of why the social media corporation:
223 (i) treated the examples the account holder provided on the appeal form differently
224 than the social media corporation treated the account holder's post or account; or
225 (ii) will moderate the examples the account holder provided; and
226 (c) a conclusion stating whether:
227 (i) the social media corporation engaged in an inequitable moderation practice in
228 moderating the post or account;
229 (ii) there is a possibility that the social media corporation engaged in an inequitable
230 moderation practice in moderating the post or account; or
231 (iii) the social media corporation acted properly in moderating the post or account.
232 (3) The moderator shall provide the written response no more than 30 days after the
233 day on which the social media corporation receives the appeal form.
234 (4) No more than 24 hours after the moderator concludes the social media corporation
235 engaged in an inequitable moderation practice in moderating the post or account, the social
236 media corporation shall reinstate the moderated post or account in the post or account's original
237 form.
238 Section 8. Section 13-58-301 is enacted to read:
239
240 13-58-301. Investigative powers of the division.
241 (1) The division shall establish and administer a system to receive consumer
242 complaints regarding whether a social media corporation has committed a violation.
243 (2) (a) The division may investigate a consumer complaint to determine whether the
244 social media corporation has committed a violation.
245 (b) If the results of the division's investigation give the director reasonable cause to
246 believe that substantial evidence exists that a social media corporation identified in a consumer
247 complaint has committed a violation, the director shall refer the matter to the attorney general.
248 (c) Upon request, the division shall provide consultation and assistance to the attorney
249 general in enforcing this chapter.
250 Section 9. Section 13-58-302 is enacted to read:
251 13-58-302. Enforcement powers of the attorney general.
252 (1) Except as otherwise provided in this chapter, the attorney general has the exclusive
253 authority to enforce this chapter.
254 (2) Nothing in this chapter creates a private right of action.
255 (3) Upon referral from the division, the attorney general may initiate an enforcement
256 action against a social media corporation that commits a violation.
257 (4) (a) At least 30 days before the day on which the attorney general initiates an
258 enforcement action against a social media corporation, the attorney general shall provide the
259 social media corporation:
260 (i) written notice identifying each alleged violation; and
261 (ii) an explanation of the basis for each allegation.
262 (b) The attorney general may not initiate an action if the social media corporation:
263 (i) cures the noticed violation within 30 days after the day on which the social media
264 corporation receives the written notice described in Subsection (4)(a); and
265 (ii) provides the attorney general an express written statement that:
266 (A) the social media corporation cured the violation; and
267 (B) no further violation will occur.
268 (c) The attorney general may initiate a civil action against a social media corporation
269 that:
270 (i) fails to cure a violation after receiving the notice described in Subsection (4)(a); or
271 (ii) after curing a noticed violation and providing a written statement in accordance
272 with Subsection (4)(b), commits another violation.
273 (d) In an action described in Subsection (4)(c), the attorney general may recover:
274 (i) actual damages to the consumer; and
275 (ii) for each violation, a civil penalty not to exceed $1,000 per consumer affected by
276 the violation.
277 (5) The attorney general shall bring an action under this chapter in:
278 (a) the district court located in Salt Lake City; or
279 (b) the district court for the district in which resides a consumer who is affected by the
280 violation.
281 (6) All civil penalties received from an action under this chapter shall be deposited into
282 the Protecting Internet Speech Restricted Account established in Section 13-58-303.
283 Section 10. Section 13-58-303 is enacted to read:
284 13-58-303. Protecting Internet Speech Restricted Account.
285 (1) There is created within the General Fund a restricted account known as the
286 "Protecting Internet Speech Restricted Account."
287 (2) The account shall be funded by money received through civil enforcement actions
288 under this chapter.
289 (3) Upon appropriation, the division or the attorney general may use money deposited
290 into the account for:
291 (a) investigation and administrative costs incurred by the division in investigating
292 consumer complaints alleging violations of this chapter;
293 (b) recovery of costs and attorney fees accrued by the attorney general in enforcing this
294 chapter; and
295 (c) providing consumer and business education regarding:
296 (i) consumer rights under this chapter; and
297 (ii) compliance with the provisions of this chapter for social media corporations.
298 (4) If the balance of the account exceeds $1,000,000 at the close of any fiscal year, the
299 Division of Finance shall transfer the amount that exceeds $1,000,000 into the General Fund.
300 Section 11. Section 13-58-304 is enacted to read:
301 13-58-304. Attorney general report.
302 (1) The attorney general and the division shall compile a report:
303 (a) evaluating the liability and enforcement provisions of this chapter, including:
304 (i) the effectiveness of the attorney general's and the division's efforts to enforce this
305 chapter; and
306 (ii) any recommendations for changes to this chapter; and
307 (b) summarizing the moderation practices protected and not protected by this chapter,
308 including a list of alleged violations the attorney general and the division have received.
309 (2) The attorney general and the division may update the report as new information
310 becomes available.
311 (3) The attorney general and the division shall submit the report to the Business and
312 Labor Interim Committee before July 1, 2024.
313 Section 12. Section 13-58-401 is enacted to read:
314
315 13-58-401. Severability.
316 If any provision of this chapter or the application of any provision to any person is held
317 invalid by a final decision of a court of competent jurisdiction, the remainder of this chapter
318 shall be given effect without the invalid provision or application.
319 Section 13. Effective date.
320 This bill takes effect on July 1, 2022.