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7 LONG TITLE
8 General Description:
9 This bill amends provisions with respect to the regulation of social media corporations.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ requires social media corporations to, for Utah account holders, provide:
14 • clear information about the social media corporation's moderation practices;
15 • notice when the social media corporation uses a moderation practice with
16 respect to a Utah account holder's account;
17 • an opportunity for a Utah account holder to appeal a moderation practice that
18 the social media corporation employs on a Utah account holder's account or
19 post; and
20 • an independent review board to review the social media corporation's
21 moderation practices with respect to Utah account holders;
22 ▸ provides, if a social media corporation violates its terms of use with respect to
23 moderation practices:
24 • a mechanism for a Utah account holder to make a complaint to the Division of
25 Consumer Protection (division) and the attorney general;
26 • a mechanism for the division to investigate alleged violations; and
27 • an enforcement and penalty mechanism for the attorney general if the division
28 refers a violation to the attorney general;
29 ▸ creates a restricted account to deposit penalties and provides for the distributions
30 from the account; and
31 ▸ provides for severability if a provision is found to be invalid.
32 Money Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 None
36 Utah Code Sections Affected:
37 ENACTS:
38 13-58-101, Utah Code Annotated 1953
39 13-58-102, Utah Code Annotated 1953
40 13-58-201, Utah Code Annotated 1953
41 13-58-202, Utah Code Annotated 1953
42 13-58-203, Utah Code Annotated 1953
43 13-58-204, Utah Code Annotated 1953
44 13-58-205, Utah Code Annotated 1953
45 13-58-301, Utah Code Annotated 1953
46 13-58-302, Utah Code Annotated 1953
47 13-58-303, Utah Code Annotated 1953
48 13-58-304, Utah Code Annotated 1953
49 13-58-401, Utah Code Annotated 1953
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51 Be it enacted by the Legislature of the state of Utah:
52 Section 1. Section 13-58-101 is enacted to read:
53
54
55 13-58-101. Title.
56 This chapter is known as the "Freedom from Biased Moderation Act."
57 Section 2. Section 13-58-102 is enacted to read:
58 13-58-102. Definitions.
59 In this chapter:
60 (1) "Account holder" means a Utah resident who has or opens an account to use a
61 social media corporation's platform.
62 (2) "Director" means the director of the division.
63 (3) "Division" means the Division of Consumer Protection in the Department of
64 Commerce established in Section 13-2-1.
65 (4) "Flag" means the act of a social media corporation singling out a post because of
66 the post's content.
67 (5) (a) "Inequitable moderation practice" means a moderation practice that results in a
68 social media corporation removing, suppressing, or flagging an account holder's post or
69 account because of the content of the post.
70 (b) "Inequitable moderation practice" includes:
71 (i) an inconsistent application of a social media corporation's terms of use to justify a
72 moderation practice; and
73 (ii) moderating content that does not violate a social media corporation's terms of use.
74 (6) (a) "Interactive computer service" means any information service, system, or access
75 software provider that provides or enables computer access by multiple users to a computer
76 server, including a service or system that:
77 (i) provides access to the Internet;
78 (ii) provides a platform; and
79 (iii) has at least 10,000,000 account holders or generates more than $50,000,000 in
80 total annual revenue worldwide.
81 (b) "Interactive computer service" includes:
82 (i) a web service;
83 (ii) a web system;
84 (iii) a website;
85 (iv) a web application; or
86 (v) a web portal.
87 (7) (a) "Moderation practice" means a method a social media corporation employs to
88 regulate a post.
89 (b) "Moderation practice" includes:
90 (i) flagging a post;
91 (ii) removing a post;
92 (iii) suspending an account holder's account; or
93 (iv) revoking an account holder's access to a platform.
94 (8) "Platform" means an online forum that a social media corporation makes available
95 for an account holder to:
96 (a) upload posts;
97 (b) view the posts of other account holders; or
98 (c) interact with other account holders or users.
99 (9) "Post" means content that an account holder makes available on the account
100 holder's account for other account holders or users to view.
101 (10) "Social media corporation" means any domestic corporation or foreign corporation
102 that is an interactive computer service.
103 (11) "Terms of use" means the terms to which an account holder must agree before an
104 account holder can open or continue to use an account on a platform.
105 (12) (a) "User" means an individual who has access to view the post of an account
106 holder.
107 (b) "User" includes an account holder.
108 (13) (a) "Utah resident" means a person who lives or operates in Utah and:
109 (i) if the person is an individual, has a primary residence in Utah; or
110 (ii) if the person is a business, has a principal place of business in Utah.
111 (b) "Utah resident" does not include a person who has a primary residence or principal
112 place of business in another state.
113 (14) "Violation" means a social media corporation's use of a moderation practice
114 against an account holder that does not comply with the social media corporation's terms of
115 use.
116 Section 3. Section 13-58-201 is enacted to read:
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118 13-58-201. Communication of moderation practices.
119 (1) Beginning on July 1, 2021, and once every year following July 1, 2021, a social
120 media corporation shall clearly communicate to account holders the social media corporation's
121 moderation practices before the account holder continues to engage with the social media
122 corporation's platform.
123 (2) A social media corporation shall ensure that the corporation's communication of
124 moderation practices:
125 (a) provides a complete list of potential moderation practices to all account holders;
126 (b) informs an account holder about the social media corporation's terms of use
127 regarding content that the social media corporation allows on the platform;
128 (c) explains the steps the social media corporation takes to ensure a post or account
129 complies with the social media corporation's terms of use;
130 (d) explains the methods users can use to notify the social media corporation of content
131 that may violate the terms of use; and
132 (e) includes information about the appeals process described in Section 13-58-204 and
133 the independent review board described in Section 13-58-205.
134 Section 4. Section 13-58-202 is enacted to read:
135 13-58-202. Prohibited moderation practices.
136 A social media corporation may not:
137 (1) employ inequitable moderation practices; or
138 (2) communicate the information described in Section 13-58-201 in a method that
139 includes any information not specifically related to the social media corporation's moderation
140 practices.
141 Section 5. Section 13-58-203 is enacted to read:
142 13-58-203. Notice requirement.
143 (1) A social media corporation shall provide written notice to an account holder no
144 more than 24 hours after moderating the account holder's post or account.
145 (2) The notice described in Subsection (1) shall include:
146 (a) a description of the post or account moderated;
147 (b) a description of the method the social media corporation used to moderate the post
148 or account;
149 (c) a citation to the terms of use that the moderated post or account violated;
150 (d) information about the independent review board described in Section 13-58-204;
151 (e) information about the appeal process; and
152 (f) an appeal form.
153 (3) The account holder shall have 30 days to submit an appeal form.
154 (4) The social media corporation shall make the appeal form:
155 (a) simple to submit;
156 (b) contain an option for the account holder to submit up to five examples of similar
157 content that the social media corporation has not moderated; and
158 (c) contain an option for the account holder to explain why the post or account should
159 not have been moderated.
160 Section 6. Section 13-58-204 is enacted to read:
161 13-58-204. Appeal process.
162 (1) A moderator who was not involved in the original moderation decision shall review
163 each appeal form.
164 (2) The moderator shall provide to the account holder, in writing:
165 (a) an explanation of whether the post or account violates the social media
166 corporation's terms of use;
167 (b) an explanation of why the social media corporation:
168 (i) treated the examples the account holder provided on the appeal form differently
169 than the social media corporation treated the account holder's post or account; or
170 (ii) will moderate the examples the account holder provided; and
171 (c) a conclusion stating whether:
172 (i) the social media corporation engaged in an inequitable moderation practice in
173 moderating the post or account;
174 (ii) there is a possibility that the social media corporation engaged in an inequitable
175 moderation practice in moderating the post or account; or
176 (iii) the social media corporation acted properly in moderating the post or account.
177 (3) The moderator shall provide the written response no more than 30 days after the
178 day on which the social media corporation receives the appeal form.
179 (4) No more than 24 hours after the moderator concludes the social media corporation
180 engaged in an inequitable moderation practice in moderating the post or account, the social
181 media corporation shall reinstate the moderated post or account in the post or account's original
182 form.
183 (5) If the moderator concludes that there is a possibility that the social media
184 corporation engaged in an inequitable moderation practice in moderating the post or account,
185 the moderator shall refer the instance of moderation to the independent review board described
186 in Section 13-58-205.
187 Section 7. Section 13-58-205 is enacted to read:
188 13-58-205. Independent review board.
189 (1) A social media corporation shall engage the services of an independent review
190 board to review the social media corporation's content moderation decisions.
191 (2) A moderator conducting the appeal process described in Section 13-58-204 shall
192 refer an instance of moderation to the independent review board if, during the appeal process,
193 the moderator concludes that there is a possibility that the social media corporation engaged in
194 an inequitable moderation practice in moderating the content.
195 (3) (a) The independent review board shall consist of at least 11 members who
196 represent a diverse cross-section of political, religious, racial, generational, and social
197 perspectives.
198 (b) The social media corporation shall provide on the social media corporation's
199 platform biographies of all of the members of the independent review board.
200 (4) When conducting a review of an instance of moderation, the independent review
201 board shall determine whether a social media corporation engaged in an inequitable moderation
202 practice in moderating the post or account.
203 (5) The independent review board shall notify the social media corporation of the need
204 to reverse an instance of moderation if the independent review board concludes by a simple
205 majority that it is more likely than not that the social media corporation engaged in an
206 inequitable moderation practice in moderating the post or account.
207 (6) The independent review board shall make a determination within 30 days after the
208 day on which the independent review board receives a referral to review an instance of
209 moderation.
210 (7) No more than 24 hours after the independent review board determines the social
211 media corporation engaged in an inequitable moderation practice in moderating the post or
212 account, the social media corporation shall reinstate the moderated post or account in the post
213 or account's original form.
214 Section 8. Section 13-58-301 is enacted to read:
215
216 13-58-301. Investigative powers of the division.
217 (1) The division shall establish and administer a system to receive consumer
218 complaints regarding whether a social media corporation has committed a violation.
219 (2) (a) The division may investigate a consumer complaint to determine whether the
220 social media corporation has committed a violation.
221 (b) If the results of the division's investigation give the director reasonable cause to
222 believe that substantial evidence exists that a social media corporation identified in a consumer
223 complaint has committed a violation, the director shall refer the matter to the attorney general.
224 (c) Upon request, the division shall provide consultation and assistance to the attorney
225 general in enforcing this chapter.
226 Section 9. Section 13-58-302 is enacted to read:
227 13-58-302. Enforcement powers of the attorney general.
228 (1) Except as otherwise provided in this chapter, the attorney general has the exclusive
229 authority to enforce this chapter.
230 (2) Nothing in this chapter creates a private right of action.
231 (3) Upon referral from the division, the attorney general may initiate an enforcement
232 action against a social media corporation that commits a violation.
233 (4) (a) At least 30 days before the day on which the attorney general initiates an
234 enforcement action against a social media corporation, the attorney general shall provide the
235 social media corporation:
236 (i) written notice identifying each alleged violation; and
237 (ii) an explanation of the basis for each allegation.
238 (b) The attorney general may not initiate an action if the social media corporation:
239 (i) cures the noticed violation within 30 days after the day on which the social media
240 corporation receives the written notice described in Subsection (4)(a); and
241 (ii) provides the attorney general an express written statement that:
242 (A) the social media corporation cured the violation; and
243 (B) no further violation will occur.
244 (c) The attorney general may initiate a civil action against a social media corporation
245 that:
246 (i) fails to cure a violation after receiving the notice described in Subsection (4)(a); or
247 (ii) after curing a noticed violation and providing a written statement in accordance
248 with Subsection (4)(b), commits another violation.
249 (d) In an action described in Subsection (4)(c), the attorney general may recover:
250 (i) actual damages to the consumer; and
251 (ii) for each violation, a civil penalty not to exceed $1,000 per consumer affected by
252 the violation.
253 (5) The attorney general shall bring an action under this chapter in:
254 (a) the district court located in Salt Lake City; or
255 (b) the district court for the district in which resides a consumer who is affected by the
256 violation.
257 (6) All civil penalties received from an action under this chapter shall be deposited into
258 the Protecting Internet Speech Restricted Account established in Section 13-58-303.
259 Section 10. Section 13-58-303 is enacted to read:
260 13-58-303. Protecting Internet Speech Restricted Account.
261 (1) There is created within the General Fund a restricted account known as the
262 "Protecting Internet Speech Restricted Account."
263 (2) The account shall be funded by money received through civil enforcement actions
264 under this chapter.
265 (3) Upon appropriation, the division or the attorney general may use money deposited
266 into the account for:
267 (a) investigation and administrative costs incurred by the division in investigating
268 consumer complaints alleging violations of this chapter;
269 (b) recovery of costs and attorney fees accrued by the attorney general in enforcing this
270 chapter; and
271 (c) providing consumer and business education regarding:
272 (i) consumer rights under this chapter; and
273 (ii) compliance with the provisions of this chapter for social media corporations.
274 (4) If the balance of the account exceeds $1,000,000 at the close of any fiscal year, the
275 Division of Finance shall transfer the amount that exceeds $1,000,000 into the General Fund.
276 Section 11. Section 13-58-304 is enacted to read:
277 13-58-304. Attorney general report.
278 (1) The attorney general and the division shall compile a report:
279 (a) evaluating the liability and enforcement provisions of this chapter, including:
280 (i) the effectiveness of the attorney general's and the division's efforts to enforce this
281 chapter; and
282 (ii) any recommendations for changes to this chapter; and
283 (b) summarizing the moderation practices protected and not protected by this chapter,
284 including a list of alleged violations the attorney general and the division have received.
285 (2) The attorney general and the division may update the report as new information
286 becomes available.
287 (3) The attorney general and the division shall submit the report to the Business and
288 Labor Interim Committee before July 1, 2023.
289 Section 12. Section 13-58-401 is enacted to read:
290
291 13-58-401. Severability.
292 If any provision of this chapter or the application of any provision to any person is held
293 invalid by a final decision of a court of competent jurisdiction, the remainder of this chapter
294 shall be given effect without the invalid provision or application.