Nebraska LB 838

Nebraska LB 838

Social Media Platforms as a Deceptive Trade Practice

Status: Passed State: Nebraska Tags: Scams, Social Media

About the Legislation:

This measure classifies that it will be considered a deceptive trade practice when a social media platform which accepts payment, or any other form of compensation, for advertising, to fail to establish and implement (1) identity verification for advertisers, (2) an unlawful impersonation detection and mitigation program, (3) automated and manual fraud detection systems, (4) measures to prevent repeated offenses by the same advertiser, (5) a clear and conspicuous tool for users to report suspected fraud, and (6) a process for law enforcement to report suspected fraudulent advertisements. The measure also provides penalties for when a social media platform fails to investigate, remove from the platform, and/or notify the reporter of the suspected fraud. It is not to be considered a violation of any provision of 9 antitrust laws for two or more entities to exchange or provide information on suspected fraudulent activity or suspicious transactions for purposes of identifying and enforcing against fraudulent advertisers or advertisements. "Social media platform" means an electronic medium, including a browser-based or application-based interactive computer service, Internet website, telephone network, or data network, that allows an account holder to create, share, and view user-generated content for a substantial purpose of social interaction, sharing user-generated content, or personal networking. "Fraudulent advertisement" means an ad or content that misrepresents material facts or unlawfully impersonates another to induce a transaction or extract a benefit, and a social media platform accepts payment, or any other form of compensation or thing of value, to advertise, promote, or otherwise increase impressions of the ad or content on its platform.

Read the Legislation

Any updates or new legislation should be sent to fraud@aba.com. Any updates or new legislation should be sent to fraud@aba.com.

About the Legislation:

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