Transparency in Paid Social Media Posts Act

Liberty
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Proposed Legislation: Transparency in Paid Social Media Posts Act

Purpose: To enhance transparency and combat misinformation on social media platforms by requiring clear disclosure of paid content sponsored by political parties, candidates, or other organizations, thereby fostering public trust and informed discourse.

Section 1: Definitions

• Paid Post: Any social media content, including text, images, videos, or other media, for which an individual or organization receives financial or material compensation to create, share, or promote.

• Sponsor: Any political party, candidate, political action committee (PAC), corporation, nonprofit, or other entity providing compensation for a paid post.

• Social Media Platform: Any online platform enabling users to create and share content or engage in social networking, including but not limited to X, Facebook, Instagram, TikTok, and YouTube.

Section 2: Disclosure Requirements

  1. Mandatory Disclosure: Any individual or organization posting content on a social media platform, who has received compensation from a sponsor, must prominently disclose within the post that it is a “Paid Post” and identify the sponsor.

• The disclosure must appear in a clear, conspicuous manner (e.g., text within the post, a visible hashtag such as #PaidPost, or a platform-specific label).

• The disclosure must include the name of the sponsoring entity (e.g., “Paid for by [Political Party/Organization Name]”).

  1. Platform Responsibility: Social media platforms must implement mechanisms to enforce disclosure requirements, including automated detection systems and user reporting tools, to identify and flag non-compliant posts.

  2. Exemptions: Personal opinions or unpaid endorsements not involving compensation are exempt from this requirement.

Section 3: Enforcement

  1. Penalties: Failure to disclose a paid post shall result in fines of up to $5,000 per violation for individuals and $50,000 per violation for organizations, with penalties escalating for repeat offenses.

  2. Regulatory Oversight: The Federal Election Commission (FEC) and Federal Trade Commission (FTC) shall jointly oversee enforcement, with authority to investigate complaints and impose penalties.

  3. Reporting: Social media platforms must submit annual reports to the FEC and FTC detailing compliance efforts and instances of non-disclosure.

Section 4: Effective Date This Act shall take effect 180 days after passage to allow platforms and users time to implement compliance measures.

Rationale and Supporting Evidence

  1. Alignment with Existing Laws: This proposal builds on established regulations, such as the FEC’s requirements for political advertisements to disclose sponsorship (52 U.S.C. § 30120). For example, TV and radio ads must include “Paid for by” disclaimers. Extending this principle to social media ensures consistency across media types, addressing a gap in current law where online posts often lack transparency.
  2. Prevalence of Paid Content: Studies reveal the significant influence of paid social media content. A 2020 report by the Pew Research Center found that 64% of Americans believe social media platforms are a major source of false information, often amplified by paid campaigns. Undisclosed paid posts can mislead users, as they may appear as organic opinions rather than sponsored content.
  3. Public Trust and Misinformation: Transparency in paid posts is critical to combating misinformation. The 2016 and 2020 U.S. elections highlighted the role of undisclosed paid content, including foreign-sponsored campaigns, in spreading divisive narratives. A 2019 Senate Intelligence Committee report confirmed that foreign actors used paid social media posts to influence U.S. voters, often without disclosure.
  4. Consumer Protection: The FTC already requires influencers to disclose material connections (e.g., payments or free products) under its Endorsement Guides (16 CFR Part 255). This bill extends similar protections to political and organizational content, ensuring users can distinguish between genuine and compensated speech.
  5. Global Precedents: Countries like Canada and the European Union have implemented strict disclosure rules for online political advertising. Canada’s Elections Modernization Act (2018) mandates clear labeling of paid political content, providing a model for effective regulation. These frameworks demonstrate that transparency laws are feasible and effective.
  6. Public Support: A 2021 survey by the Knight Foundation found that 78% of Americans support stronger regulations on social media transparency, particularly for paid political content. This indicates broad public backing for the proposed measure.