PACT Act

II 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Platform Account- 4 ability and Consumer Transparency Act’’ or the ‘‘PACT 5 Act’’. 6 SEC. 2. DEFINITIONS. 7 In this Act: 8 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 2 •S 4066 IS (1) COMMISSION.—Except as otherwise pro- 1 vided, the term ‘‘Commission’’ means the Federal 2 Trade Commission. 3 (2) DEMONETIZE.—The term ‘‘demonetize’’, 4 with respect to content on an interactive computer 5 service, means to take action to prohibit the infor- 6 mation content provider that generated or dissemi- 7 nated the content from receiving financial benefit 8 based on the content. 9 (3) DEPRIORITIZE.—The term ‘‘deprioritize’’, 10 with respect to content on an interactive computer 11 service, means to take action or use certain tech- 12 niques to reduce the priority level of the content in 13 response to potentially policy-violating content. 14 (4) ILLEGAL ACTIVITY.—The term ‘‘illegal ac- 15 tivity’’ means activity conducted by an information 16 content provider that has been determined by a Fed- 17 eral or State court to violate Federal criminal or 18 civil law. 19 (5) ILLEGAL CONTENT.—The term ‘‘illegal con- 20 tent’’ means information provided by an information 21 content provider that has been determined by a Fed- 22 eral or State court to violate— 23 (A) Federal criminal or civil law; or 24 (B) State defamation law. 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 3 •S 4066 IS (6) INTERACTIVE COMPUTER SERVICE.—The 1 term ‘‘interactive computer service’’ has the meaning 2 given the term in section 230 of the Communica- 3 tions Act of 1934 (47 U.S.C. 230). 4 (7) INFORMATION CONTENT PROVIDER.—The 5 term ‘‘information content provider’’ has the mean- 6 ing given the term in section 230 of the Communica- 7 tions Act of 1934 (47 U.S.C. 230). 8 (8) POTENTIALLY POLICY-VIOLATING CON- 9 TENT.—The term ‘‘potentially policy-violating con- 10 tent’’ means content that may violate the acceptable 11 use policy of the provider of an interactive computer 12 service. 13 (9) SMALL BUSINESS PROVIDER.—The term 14 ‘‘small business provider’’ means a provider of an 15 interactive computer service that, during the most 16 recent 24-month period— 17 (A) received fewer than 1,000,000 monthly 18 active users or monthly visitors; and 19 (B) accrued revenue of less than 20 $25,000,000. 21 SEC. 3. FINDINGS. 22 Congress finds the following: 23 (1) Technological advancements involving the 24 internet and interactive computer service providers 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 4 •S 4066 IS have led to innovations that offer substantial benefit 1 to the people and the economy of the United States. 2 (2) People in the United States increasingly 3 rely on the internet and other interactive computer 4 services to communicate, gather information, and 5 conduct transactions that are central to many as- 6 pects of economic, political, social, and cultural life. 7 (3) The decisions made by providers of inter- 8 active computer services shape the online informa- 9 tion ecosystem available to people in the United 10 States and impact the environment for free expres- 11 sion. 12 (4) The people of the United States benefit 13 from understanding the choices that interactive com- 14 puter service providers make in maintaining their 15 services, including by removing, blocking, amplifying, 16 or otherwise modifying information provided by 17 other users. 18 (5) Online consumers are not adequately pro- 19 tected in the United States because, with the excep- 20 tion of Federal criminal statutes, providers of inter- 21 active computer services are immune from the en- 22 forcement of most Federal statutes and regulations. 23 (6) Federal and State court decisions and Fed- 24 eral statutes and regulations that apply to offline 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 5 •S 4066 IS commerce do not always govern online commerce 1 and communications. 2 (7) The rights of consumers should extend to 3 online commerce and communications to provide a 4 level playing field for all consumers and companies, 5 and to prevent wrongdoing and victimization of peo- 6 ple in the United States. 7 SEC. 4. POLICY. 8 It is the policy of the United States— 9 (1) to preserve the internet and other inter- 10 active computer services as forums for diversity of 11 political discourse, unique opportunities for cultural 12 development, and myriad avenues for intellectual 13 and commercial activity; 14 (2) to ensure consumers have easily accessible 15 and clear information about the acceptable use poli- 16 cies of interactive computer services to inform con- 17 sumer decisions on participation in, or engagement 18 with, those services through accountability and 19 transparency measures; 20 (3) to encourage the development and use of 21 technologies that minimize illegal activities and con- 22 tent and potentially policy-violating content; and 23 (4) to ensure that the consumer rights of users 24 of interactive computer services are maintained and 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 6 •S 4066 IS extended to activities that the users may participate 1 in online. 2 SEC. 5. TRANSPARENCY AND PROCESS REQUIREMENTS. 3 (a) ACCEPTABLE USE POLICY.— 4 (1) PUBLICATION OF ACCEPTABLE USE POL- 5 ICY.—A provider of an interactive computer service 6 shall publish an acceptable use policy in accordance 7 with paragraph (2) in a location that is easily acces- 8 sible to the user. 9 (2) CONTENTS OF POLICY.—The acceptable use 10 policy of a provider of an interactive computer serv- 11 ice shall— 12 (A) reasonably inform users about the 13 types of content that are allowed on the inter- 14 active computer service; 15 (B) explain the steps the provider takes to 16 ensure content complies with the acceptable use 17 policy; 18 (C) explain the means by which users can 19 notify the provider of potentially policy-violating 20 content, illegal content, or illegal activity, which 21 shall include— 22 (i) subject to subsection (e), making 23 available a live company representative to 24 take user complaints through a toll-free 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 7 •S 4066 IS telephone number during regular business 1 hours for not fewer than 8 hours per day 2 and 5 days per week; 3 (ii) an email address or relevant in- 4 take mechanism to handle user complaints; 5 and 6 (iii) a complaint system described in 7 subsection (b); and 8 (D) include publication of a quarterly 9 transparency report outlining actions taken to 10 enforce the policy, as described in subsection 11 (d). 12 (b) COMPLAINT SYSTEM.—A provider of an inter- 13 active computer service shall provide a system that is eas- 14 ily accessible to a user through which the user may submit 15 a complaint in good faith and track the status of the com- 16 plaint, including a complaint regarding— 17 (1) potentially policy-violating content, illegal 18 content, or illegal activity; or 19 (2) a decision of the interactive computer serv- 20 ice provider to remove content posted by the infor- 21 mation content provider. 22 (c) PROCESSING OF COMPLAINTS.— 23 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 8 •S 4066 IS (1) COMPLAINTS REGARDING ILLEGAL CON- 1 TENT, ILLEGAL ACTIVITY, OR POTENTIALLY POLICY- 2 VIOLATING CONTENT.— 3 (A) ILLEGAL CONTENT OR ILLEGAL ACTIV- 4 ITY.—Subject to subsection (e), if a provider of 5 an interactive computer service receives notice 6 of illegal content or illegal activity on the inter- 7 active computer service that substantially com- 8 plies with the requirements under paragraph 9 (3)(B)(ii) of section 230(c) of the Communica- 10 tions Act of 1934 (47 U.S.C. 230(c)), as added 11 by section 6(a), the provider shall remove the 12 content or stop the activity within 24 hours of 13 receiving that notice, subject to reasonable ex- 14 ceptions based on concerns about the legitimacy 15 of the notice. 16 (B) POTENTIALLY POLICY-VIOLATING CON- 17 TENT.—Subject to subsection (e), if a provider 18 of an interactive computer service receives no- 19 tice of potentially policy-violating content on the 20 interactive computer service, the provider shall, 21 not later than 14 days after receiving that no- 22 tice— 23 (i) review the content; 24 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 9 •S 4066 IS (ii) determine whether the content ad- 1 heres to the acceptable use policy of the 2 provider; and 3 (iii) take appropriate steps based on 4 the determination made under clause (ii). 5 (2) PROCESS AFTER REMOVAL OF CONTENT.— 6 (A) REMOVAL BASED ON USER COM- 7 PLAINT.— 8 (i) IN GENERAL.—Subject to clause 9 (ii), if a provider of an interactive com- 10 puter service removes potentially policy-vio- 11 lating content based on a user complaint, 12 the provider of the interactive computer 13 service shall, concurrently with the re- 14 moval— 15 (I) notify the information content 16 provider and the complainant of the 17 removal and explain why the content 18 was removed; 19 (II) allow the information content 20 provider to appeal the decision; and 21 (III) notify the information con- 22 tent provider and the complainant 23 of— 24 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 10 •S 4066 IS (aa) the determination re- 1 garding the appeal under sub- 2 clause (II); and 3 (bb) in the case of a reversal 4 of the decision to remove the con- 5 tent in question, the reason for 6 the reversal. 7 (ii) EXCEPTIONS.—A provider of an 8 interactive computer service shall not be 9 required to provide an information content 10 provider with notice or an opportunity to 11 appeal under clause (i)— 12 (I) if the provider of the inter- 13 active computer service is unable to 14 contact the information content pro- 15 vider after taking reasonable steps to 16 do so; or 17 (II) if the provider of the inter- 18 active computer service knows that 19 the potentially policy-violating content 20 relates to an ongoing law enforcement 21 investigation. 22 (B) REMOVAL BASED ON MODERATION DE- 23 CISIONS OF INTERACTIVE COMPUTER SERVICE 24 PROVIDER.—If a provider of an interactive com- 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 11 •S 4066 IS puter service receives notice, through a com- 1 plaint from the information content provider, 2 that the provider of the interactive computer 3 service removed content of the information con- 4 tent provider that the information content pro- 5 vider believes was not potentially policy-vio- 6 lating content, the provider of the interactive 7 computer service shall, not later than 14 days 8 after receiving notice— 9 (i) review the content; 10 (ii) determine whether the content ad- 11 heres to the acceptable use policy of the 12 provider of the interactive computer serv- 13 ice; 14 (iii) take appropriate steps based on 15 the determination made under clause (ii); 16 and 17 (iv) notify the information content 18 provider regarding the determination made 19 under clause (ii) and steps taken under 20 clause (iii). 21 (d) QUARTERLY TRANSPARENCY REPORT.— 22 (1) IN GENERAL.—Subject to subsection (e), as 23 part of the acceptable use policy required under sub- 24 section (a), a provider of an interactive computer 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 12 •S 4066 IS service shall publish a quarterly transparency report 1 in accordance with paragraph (2) of this subsection. 2 (2) REQUIREMENTS.—A provider of an inter- 3 active computer service shall include in the report 4 required under paragraph (1), with respect to the 5 preceding 3-month period— 6 (A) the total number of instances in which 7 illegal content, illegal activity, or potentially 8 policy-violating content was flagged— 9 (i) due to a user complaint; or 10 (ii) internally, by— 11 (I) an employee or contractor of 12 the provider; or 13 (II) an internal automated detec- 14 tion tool; 15 (B) the number of instances in which the 16 interactive computer service provider took ac- 17 tion with respect to illegal content, illegal activ- 18 ity, or known potentially policy-violating content 19 due to its nature as illegal content, illegal activ- 20 ity, or known potentially policy-violating con- 21 tent, including content removal, content demon- 22 etization, content deprioritization, appending 23 content with an assessment, account suspen- 24 sion, account removal, or any other action 25 VerDate Sep 11 2014 06:09 Jul 08, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066 kjohnson on DSK79L0C42PROD with BILLS 13 •S 4066 IS taken in accordance with the acceptable use pol- 1 icy of the provider, categorized by— 2 (i) the category of rule violated; 3 (ii) the source of the flag, including 4 government, user, internal automated de- 5 tection tool, coordination with other inter- 6 active computer service providers, or per- 7 sonnel employed or contracted for by the 8 provider; 9 (iii) the country of the information 10 content provider; and 11 (iv) coordinated campaign, if applica- 12 ble; 13 (C)(i) the number of instances in which an 14 information content provider appealed the deci- 15 sion to remove pote [Text truncated for display. 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