S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    895
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   disclosure of certain social media terms of service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 42 to read as follows:
                                ARTICLE 42
                       SOCIAL MEDIA TERMS OF SERVICE
 SECTION 1100. DEFINITIONS.
         1101. REQUIRED DISCLOSURE OF TERMS OF SERVICE.
         1102. TERMS OF SERVICE REPORT.
         1103. VIOLATIONS AND REMEDIES.
         1104. APPLICATION.
   § 1100. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
 NITIONS APPLY:
   1. "ACTIONED" MEANS A SOCIAL MEDIA COMPANY, THAT DUE TO A SUSPECTED OR
 CONFIRMED VIOLATION OF THE TERMS OF SERVICE,  HAS  TAKEN  SOME  FORM  OF
 ACTION, INCLUDING, BUT NOT LIMITED TO, REMOVAL, DEMONETIZATION, DEPRIOR-
 ITIZATION,  OR  BANNING,  AGAINST  THE RELEVANT USER OR RELEVANT ITEM OF
 CONTENT.
   2. "CONTENT" MEANS STATEMENTS OR COMMENTS MADE BY USERS AND MEDIA THAT
 ARE CREATED, POSTED, SHARED, OR OTHERWISE INTERACTED WITH BY USERS ON AN
 INTERNET-BASED SERVICE OR APPLICATION. "CONTENT" DOES NOT INCLUDE  MEDIA
 PUT  ON  A  SERVICE  OR APPLICATION EXCLUSIVELY FOR THE PURPOSE OF CLOUD
 STORAGE, TRANSMITTING FILES, OR FILE COLLABORATION.
   3.  "PUBLIC  OR  SEMIPUBLIC  INTERNET-BASED  SERVICE  OR  APPLICATION"
 EXCLUDES A SERVICE OR APPLICATION USED TO FACILITATE COMMUNICATION WITH-
 IN  A  BUSINESS OR ENTERPRISE AMONG EMPLOYEES OR AFFILIATES OF THE BUSI-
 NESS OR ENTERPRISE, PROVIDED THAT ACCESS TO THE SERVICE  OR  APPLICATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03659-01-3
              

 S. 895                              2
 
 IS  RESTRICTED  TO EMPLOYEES OR AFFILIATES OF THE BUSINESS OR ENTERPRISE
 USING THE SERVICE OR APPLICATION.
   4.  "SOCIAL MEDIA COMPANY" MEANS A PERSON OR ENTITY THAT OWNS OR OPER-
 ATES ONE OR MORE SOCIAL MEDIA PLATFORMS.
   5. "SOCIAL MEDIA PLATFORM" MEANS A PUBLIC OR SEMIPUBLIC INTERNET-BASED
 SERVICE OR APPLICATION THAT HAS USERS IN NEW YORK AND THAT MEETS BOTH OF
 THE FOLLOWING CRITERIA:
   (A) A SUBSTANTIAL FUNCTION OF THE SERVICE OR APPLICATION IS TO CONNECT
 USERS IN ORDER TO ALLOW USERS TO INTERACT SOCIALLY WITH EACH OTHER WITH-
 IN THE SERVICE OR APPLICATION. A SERVICE OR  APPLICATION  THAT  PROVIDES
 EMAIL  OR DIRECT MESSAGING SERVICES SHALL NOT BE CONSIDERED TO MEET THIS
 CRITERION ON THE BASIS OF THAT FUNCTION ALONE.
   (B) THE SERVICE OR APPLICATION ALLOWS USERS TO DO ALL OF  THE  FOLLOW-
 ING:
   (I)  CONSTRUCT  A PUBLIC OR SEMIPUBLIC PROFILE FOR PURPOSES OF SIGNING
 INTO AND USING THE SERVICE OR APPLICATION;
   (II) POPULATE A LIST OF OTHER USERS WITH WHOM AN INDIVIDUAL  SHARES  A
 SOCIAL CONNECTION WITHIN THE SYSTEM; AND
   (III)  CREATE  OR POST CONTENT VIEWABLE BY OTHER USERS, INCLUDING, BUT
 NOT LIMITED TO, ON MESSAGE BOARDS, IN CHAT ROOMS, OR THROUGH  A  LANDING
 PAGE OR MAIN FEED THAT PRESENTS THE USER WITH CONTENT GENERATED BY OTHER
 USERS.
   6.  "TERMS  OF SERVICE" MEANS A POLICY OR SET OF POLICIES ADOPTED BY A
 SOCIAL MEDIA COMPANY THAT SPECIFIES, AT LEAST,  THE  USER  BEHAVIOR  AND
 ACTIVITIES  THAT  ARE  PERMITTED  ON THE INTERNET-BASED SERVICE OWNED OR
 OPERATED BY THE SOCIAL MEDIA COMPANY, AND THE USER BEHAVIOR  AND  ACTIV-
 ITIES THAT MAY SUBJECT THE USER OR AN ITEM OF CONTENT TO BEING ACTIONED.
   § 1101. REQUIRED  DISCLOSURE  OF  TERMS  OF SERVICE. 1. A SOCIAL MEDIA
 COMPANY SHALL POST TERMS OF SERVICE FOR EACH SOCIAL MEDIA PLATFORM OWNED
 OR OPERATED BY THE COMPANY IN A MANNER REASONABLY DESIGNED TO INFORM ALL
 USERS OF THE SOCIAL MEDIA PLATFORM OF THE EXISTENCE AND CONTENTS OF  THE
 TERMS OF SERVICE.
   2.  THE  TERMS  OF  SERVICE POSTED PURSUANT TO SUBDIVISION ONE OF THIS
 SECTION SHALL INCLUDE ALL OF THE FOLLOWING:
   (A) CONTACT INFORMATION FOR THE PURPOSE OF ALLOWING USERS TO  ASK  THE
 SOCIAL MEDIA COMPANY QUESTIONS ABOUT THE TERMS OF SERVICE;
   (B)  A  DESCRIPTION  OF  THE  PROCESS  THAT  USERS MUST FOLLOW TO FLAG
 CONTENT, GROUPS, OR OTHER USERS THAT THEY BELIEVE VIOLATE THE  TERMS  OF
 SERVICE,  AND  THE  SOCIAL  MEDIA  COMPANY'S COMMITMENTS ON RESPONSE AND
 RESOLUTION TIME; AND
   (C) A LIST OF POTENTIAL ACTIONS THE  SOCIAL  MEDIA  COMPANY  MAY  TAKE
 AGAINST  AN  ITEM  OF  CONTENT OR A USER, INCLUDING, BUT NOT LIMITED TO,
 REMOVAL, DEMONETIZATION, DEPRIORITIZATION, OR BANNING.
   3. THE TERMS OF SERVICE POSTED PURSUANT TO  SUBDIVISION  ONE  OF  THIS
 SECTION  SHALL  BE  AVAILABLE  IN  THE  TWELVE  MOST  COMMON NON-ENGLISH
 LANGUAGES SPOKEN BY LIMITED-ENGLISH PROFICIENT INDIVIDUALS IN THE STATE,
 AS OUTLINED IN SECTION TWO HUNDRED TWO-A OF THE EXECUTIVE LAW, IN  WHICH
 THE  SOCIAL  MEDIA  PLATFORM OFFERS PRODUCT FEATURES, INCLUDING, BUT NOT
 LIMITED TO, MENUS AND PROMPTS.
   § 1102. TERMS OF SERVICE REPORT. 1. ON A SEMIANNUAL BASIS  IN  ACCORD-
 ANCE  WITH SUBDIVISION TWO OF THIS SECTION, A SOCIAL MEDIA COMPANY SHALL
 SUBMIT TO THE ATTORNEY GENERAL A TERMS OF SERVICE REPORT. THE  TERMS  OF
 SERVICE  REPORT  SHALL  INCLUDE, FOR EACH SOCIAL MEDIA PLATFORM OWNED OR
 OPERATED BY THE COMPANY, ALL OF THE FOLLOWING:
   (A) THE CURRENT VERSION OF THE TERMS OF SERVICE OF  THE  SOCIAL  MEDIA
 PLATFORM.
 S. 895                              3
 
   (B)  IF  A SOCIAL MEDIA COMPANY HAS FILED ITS FIRST REPORT, A COMPLETE
 AND DETAILED DESCRIPTION OF ANY CHANGES TO THE TERMS  OF  SERVICE  SINCE
 THE PREVIOUS REPORT.
   (C) A STATEMENT OF WHETHER THE CURRENT VERSION OF THE TERMS OF SERVICE
 DEFINES  EACH  OF  THE  FOLLOWING CATEGORIES OF CONTENT, AND, IF SO, THE
 DEFINITIONS OF THOSE CATEGORIES, INCLUDING ANY SUBCATEGORIES:
   (I) HATE SPEECH OR RACISM;
   (II) EXTREMISM OR RADICALIZATION;
   (III) DISINFORMATION OR MISINFORMATION;
   (IV) HARASSMENT; AND/OR
   (V) FOREIGN POLITICAL INTERFERENCE.
   (D) A DETAILED DESCRIPTION OF CONTENT MODERATION PRACTICES USED BY THE
 SOCIAL MEDIA COMPANY FOR THAT PLATFORM, INCLUDING, BUT NOT  LIMITED  TO,
 ALL OF THE FOLLOWING:
   (I)  ANY  EXISTING  POLICIES  INTENDED  TO  ADDRESS  THE CATEGORIES OF
 CONTENT DESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION;
   (II) HOW AUTOMATED CONTENT MODERATION SYSTEMS ENFORCE TERMS OF SERVICE
 OF THE SOCIAL MEDIA  PLATFORM  AND  WHEN  THESE  SYSTEMS  INVOLVE  HUMAN
 REVIEW;
   (III)  HOW  THE  SOCIAL  MEDIA  COMPANY  RESPONDS  TO  USER REPORTS OF
 VIOLATIONS OF THE TERMS OF SERVICE;
   (IV) HOW THE SOCIAL MEDIA COMPANY WOULD REMOVE  INDIVIDUAL  PIECES  OF
 CONTENT,  USERS,  OR  GROUPS  THAT VIOLATE THE TERMS OF SERVICE, OR TAKE
 BROADER ACTION AGAINST INDIVIDUAL USERS OR AGAINST GROUPS OF USERS  THAT
 VIOLATE THE TERMS OF SERVICE; AND
   (V)  THE  LANGUAGES  IN  WHICH THE SOCIAL MEDIA PLATFORM DOES NOT MAKE
 TERMS OF SERVICE AVAILABLE, BUT DOES OFFER PRODUCT FEATURES,  INCLUDING,
 BUT NOT LIMITED TO, MENUS AND PROMPTS.
   (E)  (I)  INFORMATION  ON CONTENT THAT WAS FLAGGED BY THE SOCIAL MEDIA
 COMPANY AS CONTENT BELONGING TO ANY OF THE CATEGORIES DESCRIBED IN PARA-
 GRAPH (C) OF THIS SUBDIVISION, INCLUDING ALL OF THE FOLLOWING:
   (A) THE TOTAL NUMBER OF FLAGGED ITEMS OF CONTENT;
   (B) THE TOTAL NUMBER OF ACTIONED ITEMS OF CONTENT;
   (C) THE TOTAL NUMBER OF ACTIONED ITEMS OF  CONTENT  THAT  RESULTED  IN
 ACTION  TAKEN  BY  THE SOCIAL MEDIA COMPANY AGAINST THE USER OR GROUP OF
 USERS RESPONSIBLE FOR THE CONTENT;
   (D) THE TOTAL NUMBER OF ACTIONED ITEMS OF CONTENT THAT  WERE  REMOVED,
 DEMONETIZED, OR DEPRIORITIZED BY THE SOCIAL MEDIA COMPANY;
   (E)  THE  NUMBER  OF  TIMES  ACTIONED  ITEMS OF CONTENT WERE VIEWED BY
 USERS;
   (F) THE NUMBER OF TIMES ACTIONED ITEMS OF CONTENT WERE SHARED, AND THE
 NUMBER OF USERS THAT VIEWED THE CONTENT BEFORE IT WAS ACTIONED; AND
   (G) THE NUMBER OF TIMES USERS APPEALED SOCIAL  MEDIA  COMPANY  ACTIONS
 TAKEN  ON  THAT  PLATFORM  AND  THE  NUMBER OF REVERSALS OF SOCIAL MEDIA
 COMPANY ACTIONS ON APPEAL DISAGGREGATED BY EACH TYPE OF ACTION.
   (II) ALL INFORMATION REQUIRED BY SUBPARAGRAPH (I)  OF  THIS  PARAGRAPH
 SHALL BE DISAGGREGATED INTO THE FOLLOWING CATEGORIES:
   (A)  THE  CATEGORY  OF  CONTENT,  INCLUDING  ANY  RELEVANT  CATEGORIES
 DESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION;
   (B) THE TYPE  OF  CONTENT,  INCLUDING,  BUT  NOT  LIMITED  TO,  POSTS,
 COMMENTS, MESSAGES, PROFILES OF USERS, OR GROUPS OF USERS;
   (C)  THE  TYPE OF MEDIA OF THE CONTENT, INCLUDING, BUT NOT LIMITED TO,
 TEXT, IMAGES, AND VIDEOS;
   (D) HOW THE CONTENT  WAS  FLAGGED,  INCLUDING,  BUT  NOT  LIMITED  TO,
 FLAGGED  BY  COMPANY  EMPLOYEES  OR  CONTRACTORS,  FLAGGED BY ARTIFICIAL
 S. 895                              4
 
 INTELLIGENCE SOFTWARE, FLAGGED BY COMMUNITY MODERATORS, FLAGGED BY CIVIL
 SOCIETY PARTNERS, AND FLAGGED BY USERS; AND
   (E)  HOW  THE  CONTENT  WAS  ACTIONED,  INCLUDING, BUT NOT LIMITED TO,
 ACTIONED BY COMPANY EMPLOYEES OR  CONTRACTORS,  ACTIONED  BY  ARTIFICIAL
 INTELLIGENCE  SOFTWARE,  ACTIONED  BY  COMMUNITY MODERATORS, ACTIONED BY
 CIVIL SOCIETY PARTNERS, AND ACTIONED BY USERS.
   2. (A) A SOCIAL MEDIA COMPANY SHALL ELECTRONICALLY SUBMIT A SEMIANNUAL
 TERMS OF SERVICE REPORT PURSUANT TO SUBDIVISION  ONE  OF  THIS  SECTION,
 COVERING  ACTIVITY WITHIN THE THIRD AND FOURTH QUARTERS OF THE PRECEDING
 CALENDAR YEAR, TO THE ATTORNEY GENERAL NO LATER THAN APRIL FIRST OF EACH
 YEAR, AND SHALL ELECTRONICALLY SUBMIT  A  SEMIANNUAL  TERMS  OF  SERVICE
 REPORT  PURSUANT  TO  SUBDIVISION ONE OF THIS SECTION, COVERING ACTIVITY
 WITHIN THE FIRST AND SECOND QUARTERS OF THE CURRENT  CALENDAR  YEAR,  TO
 THE ATTORNEY GENERAL NO LATER THAN OCTOBER FIRST OF EACH YEAR.
   (B)  NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A SOCIAL MEDIA
 COMPANY SHALL ELECTRONICALLY SUBMIT ITS FIRST TERMS  OF  SERVICE  REPORT
 PURSUANT  TO  SUBDIVISION  ONE OF THIS SECTION, COVERING ACTIVITY WITHIN
 THE THIRD QUARTER OF TWO THOUSAND TWENTY-FOUR, TO THE  ATTORNEY  GENERAL
 NO  LATER  THAN JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND SHALL ELEC-
 TRONICALLY SUBMIT ITS SECOND TERMS OF SERVICE REPORT PURSUANT TO  SUBDI-
 VISION  ONE OF THIS SECTION, COVERING ACTIVITY WITHIN THE FOURTH QUARTER
 OF TWO THOUSAND TWENTY-FOUR, TO THE ATTORNEY GENERAL NO LATER THAN APRIL
 FIRST, TWO THOUSAND TWENTY-FIVE. A SOCIAL MEDIA  PLATFORM  SHALL  SUBMIT
 ITS  THIRD REPORT NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-FIVE,
 IN ACCORDANCE WITH PARAGRAPH (A) OF THIS SUBDIVISION.
   3. THE ATTORNEY GENERAL  SHALL  MAKE  ALL  TERMS  OF  SERVICE  REPORTS
 SUBMITTED PURSUANT TO THIS SECTION AVAILABLE TO THE PUBLIC IN A SEARCHA-
 BLE REPOSITORY ON ITS OFFICIAL INTERNET WEBSITE.
   § 1103. VIOLATIONS  AND  REMEDIES.  1. (A) A SOCIAL MEDIA COMPANY THAT
 VIOLATES THE PROVISIONS OF THIS ARTICLE SHALL  BE  LIABLE  FOR  A  CIVIL
 PENALTY  NOT  TO  EXCEED FIFTEEN THOUSAND DOLLARS PER VIOLATION PER DAY,
 AND MAY BE ENJOINED IN ANY COURT OF COMPETENT JURISDICTION.
   (B) A SOCIAL MEDIA COMPANY SHALL BE CONSIDERED  IN  VIOLATION  OF  THE
 PROVISIONS  OF  THIS  ARTICLE FOR EACH DAY THE SOCIAL MEDIA COMPANY DOES
 ANY OF THE FOLLOWING:
   (I) FAILS TO POST TERMS OF SERVICE IN ACCORDANCE WITH  SECTION  ELEVEN
 HUNDRED TWO OF THIS ARTICLE;
   (II)  FAILS TO TIMELY SUBMIT TO THE ATTORNEY GENERAL A REPORT REQUIRED
 PURSUANT TO SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE; OR
   (III) MATERIALLY OMITS OR  MISREPRESENTS  REQUIRED  INFORMATION  IN  A
 REPORT SUBMITTED PURSUANT TO SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE.
   (C)  IN  ASSESSING THE AMOUNT OF A CIVIL PENALTY PURSUANT TO PARAGRAPH
 (A) OF THIS SUBDIVISION, THE COURT SHALL  CONSIDER  WHETHER  THE  SOCIAL
 MEDIA  COMPANY  HAS MADE A REASONABLE, GOOD FAITH ATTEMPT TO COMPLY WITH
 THE PROVISIONS OF THIS ARTICLE.
   2. ACTIONS FOR RELIEF PURSUANT TO THIS  ARTICLE  SHALL  BE  PROSECUTED
 EXCLUSIVELY IN A COURT OF COMPETENT JURISDICTION BY THE ATTORNEY GENERAL
 IN  THE  NAME  OF  THE PEOPLE OF THE STATE OF NEW YORK, OR A CITY CORPO-
 RATION COUNSEL ON BEHALF OF A LOCALITY UPON THEIR OWN COMPLAINT OR  UPON
 THE COMPLAINT OF A BOARD, OFFICER, PERSON, CORPORATION, OR ASSOCIATION.
   3.  IF  AN  ACTION PURSUANT TO THIS SECTION IS BROUGHT BY THE ATTORNEY
 GENERAL, ONE-HALF OF THE PENALTY COLLECTED SHALL BE PAID TO THE TREASUR-
 ER OF THE COUNTY IN WHICH THE JUDGMENT WAS ENTERED, AND ONE-HALF OF  THE
 PENALTY  COLLECTED  SHALL  BE  PAID  TO  THE GENERAL FUND ESTABLISHED BY
 SECTION SEVENTY-TWO OF THE STATE FINANCE LAW. IF THE ACTION  IS  BROUGHT
 S. 895                              5
 
 BY  A  CITY  CORPORATION COUNSEL, THE PENALTY COLLECTED SHALL BE PAID TO
 THE CITY IN WHICH THE JUDGMENT WAS ENTERED.
   § 1104. APPLICATION.  THIS  ARTICLE  SHALL NOT APPLY TO A SOCIAL MEDIA
 COMPANY THAT GENERATED LESS THAN ONE HUNDRED MILLION  DOLLARS  IN  GROSS
 REVENUE  DURING  THE  PRECEDING  CALENDAR  YEAR  OR TO AN INTERNET-BASED
 SERVICE OR APPLICATION FOR WHICH INTERACTIONS BETWEEN USERS ARE  LIMITED
 TO   DIRECT  MESSAGES,  COMMERCIAL  TRANSACTIONS,  CONSUMER  REVIEWS  OF
 PRODUCTS, SELLERS, SERVICES, EVENTS, OR PLACES, OR ANY COMBINATION THER-
 EOF.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.