NY State Senate Bill 2025-S8605

Current Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 05, 2025	referred to rules

2025-S8605 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: General Business Law
Laws Affected:: Add Art 33-C §§699-a - 699-d, Gen Bus L

2025-S8605 (ACTIVE) - Summary

Requires social-media platforms to prevent, detect, and remove fraudulent advertisements and to establish advertiser-vetting obligations; further requires reporting to the attorney general.

2025-S8605 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8605

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
social-media platforms to prevent, detect, and remove fraudulent adver-
tisements

 
PURPOSE:

To protect New York consumers from fraudulent, deceptive, and harmful
advertisements on social-media platforms by requiring those platforms to
verify advertisers, review ads prior to publication, remove fraudulent
content, maintain vetting records, and report fraud-prevention activ-
ities to the state.

 
SUMMARY OF PROVISIONS:

Section 1 Declares that fraudulent advertisements on social-media plat-
forms have proliferated, causing monetary losses and harm to vulnerable
consumers. Current law does not adequately require digital platforms to

screen ads or verify advertiser legitimacy. To prevent foreseeable harm
and ensure responsible advertising practices, the act establishes clear
duties for social-media platforms.

Section 2 adds a new Article 33-C to the General Business Law, the
"Fraudulent Social-Media Advertising Prevention Act" in sections 699-a
through 699-d. Defines key terms in § 699-a - Definitions including
"platform," "advertisement," "advertiser," "fraudulent advertisement,"
and "vetting process." Also requires platforms in § 699-b to verify
advertiser identity before publishing ads, including legal name, phys-
ical address, government-issued identification for individuals, and
business or tax documentation; Maintain a reasonable good-faith vetting
process, including screening ad content, reviewing landing pages,
comparing advertising statements against actual offerings, and using
automated or manual systems to detect fraud; Provide mechanisms for
users and the Attorney General to report suspected fraudulent ads;
Remove or disable ads reasonably suspected of fraud, and promptly remove
ads upon credible notice; and maintain records for at least five years
of all verification materials, ad approvals or removals, consumer
reports, and actions taken.

Adds reporting requirements § 699-c. Requires each platform to file
quarterly reports with the Attorney General detailing: Total advertise-
ments reviewed; Number rejected, suspended, or removed due to fraud;
Number of advertisers suspended; Number of user fraud complaints; System
improvements made; and the Office of the Attorney General must publish
an annual public summary of platform compliance.

Adds § 699-d for enforcement, penalties, and private right of action.
Violations constitute deceptive acts under GBL § 349. The New York State
Office of the Attorney General may seek injunctions, restitution, and
civil penalties; Penalties up to $5,000 per fraudulent ad, or $10,000
for willful, repeated, or reckless violations; Creates a private right
of action for individuals harmed by a platform's knowing or negligent
failure to comply, allowing recovery of actual damages, statutory
damages, injunctive relief, and attorney's fees; Provides a limited

defense for platforms that demonstrate a reasonable vetting process and
prompt removal efforts (not applicable to restitution).

Section 3 Invalidation of any part does not affect the remainder.

Section 4 establishes the effective date of 180 days after becoming a
law.

 
JUSTIFICATION:

Fraudulent digital advertising has become one of the fastest-growing
consumer threats, with bad actors exploiting social-media platforms to
target vulnerable individuals with scams, counterfeit products, fake
investment schemes, illegitimate health claims, and deceptive commercial
offers. Seniors, minors, individuals with limited technological litera-
cy, and financially vulnerable New Yorkers are disproportionately
harmed.

Although New York's General Business Law § 349 prohibits deceptive acts
and practices, it does not impose affirmative duties on digital plat-
forms to verify advertisers or screen advertisements before publication.
Social-media companies, which profit heavily from paid advertising,
function as major conduits for fraudulent content yet lack standardized
or transparent fraud-prevention systems.

This legislation establishes clear, reasonable obligations tailored to
the modern digital advertising ecosystem. By requiring advertiser iden-
tity verification, pre-publication vetting, rapid removal of fraudulent
ads, record-keeping, and state reporting, the bill creates guardrails
that significantly reduce consumer exposure to fraud while holding plat-
forms accountable for foreseeable harms.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

Minimal direct fiscal impact to the state. Platforms bear compliance
costs. Some resource needs may arise within the Office of the Attorney
General to process quarterly reports, publish annual summaries, and
enforce violations.

 
EFFECTIVE DATE:
This act takes effect 180 days after becoming law.

2025-S8605 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8605
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             December 5, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   social-media  platforms  to  prevent,  detect,  and  remove fraudulent
   advertisements

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings  and purpose. The legislature finds
 that fraudulent advertisements  for  products,  services,  applications,
 investments,  health claims, and other commercial offerings have prolif-
 erated on social-media platforms accessible to New York residents.
   Consumers including seniors, minors, persons with  limited  technolog-
 ical  literacy,  and  financially  vulnerable  individuals have suffered
 substantial monetary loss and  harms  due  to  deceptive  or  fraudulent
 advertisements  that  were  not adequately screened by advertising plat-
 forms.
   While existing law, including section 349 of the general business law,
 prohibits deceptive acts and practices, such provisions do not expressly
 require digital platforms to  vet  advertisers,  verify  legitimacy,  or
 maintain  reasonable  fraud-prevention  systems before publishing adver-
 tisements.
   Social-media platforms  operate  as  major  advertising  channels  and
 derive  substantial  revenue from paid commercial content. As such, they
 play a material role in the dissemination of  fraudulent  ads  and  must
 bear responsibility for preventing foreseeable consumer harm.
   It  is the public policy of the state of New York to ensure social-me-
 dia platforms (a) verify advertiser identities;  (b)  review  advertise-
 ments  prior to publication; (c) remove or disable fraudulent advertise-
 ments; (d) maintain records of vetting activities; and (e)  report  such
 activities to the state.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14178-01-5
 S. 8605                             2

 
   Accordingly, this act establishes clear and enforceable obligations to
 protect New York consumers from fraudulent ads.
   §  2. The general business law is amended by adding a new article 33-C
 to read as follows:
 
                               ARTICLE 33-C
            FRAUDULENT SOCIAL-MEDIA ADVERTISING PREVENTION ACT
 
 SECTION 699-A. DEFINITIONS.
         699-B. PLATFORM OBLIGATIONS.
         699-C. REPORTING REQUIREMENTS.
         699-D. ENFORCEMENT; PENALTIES; PRIVATE RIGHT OF ACTION.
   § 699-A. DEFINITIONS. AS USED IN THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "PLATFORM"  MEANS ANY ONLINE WEBSITE, SOCIAL-MEDIA SERVICE, MOBILE
 APPLICATION, OR DIGITAL ADVERTISING NETWORK  THAT  DISPLAYS  THIRD-PARTY
 PAID  ADVERTISEMENTS  TO  USERS  LOCATED  IN NEW YORK, REGARDLESS OF THE
 PLATFORM'S PRINCIPAL PLACE OF BUSINESS.
   2. "ADVERTISEMENT" OR "AD" MEANS ANY PAID MESSAGE, SPONSORED  CONTENT,
 PROMOTIONAL POST, OR COMMERCIAL COMMUNICATION DISSEMINATED ON A PLATFORM
 FOR  THE  PURPOSE  OF  MARKETING,  SELLING,  PROMOTING,  OR INDUCING THE
 PURCHASE OR DOWNLOAD OF ANY PRODUCT, SERVICE, APPLICATION, OR COMMERCIAL
 OPPORTUNITY.
   3. "ADVERTISER" MEANS ANY PERSON, BUSINESS, OR ENTITY THAT PAYS FOR OR
 CAUSES AN ADVERTISEMENT TO BE DISPLAYED ON A PLATFORM.
   4. "FRAUDULENT ADVERTISEMENT" MEANS ANY ADVERTISEMENT THAT:
   (A) MATERIALLY MISREPRESENTS, OR IS LIKELY  TO  MISLEAD  A  REASONABLE
 CONSUMER AS TO, THE NATURE, QUALITY, PRICE, TERMS, OR CHARACTERISTICS OF
 THE PROMOTED GOOD, SERVICE, OR OPPORTUNITY;
   (B) PROMOTES COUNTERFEIT, NON-EXISTENT, OR ILLICIT GOODS OR SERVICES;
   (C) MAKES FALSE OR UNSUBSTANTIATED CLAIMS; OR
   (D)  LINKS  TO,  OR DIRECTS CONSUMERS TO, FRAUDULENT, PHISHING, DECEP-
 TIVE,  OR  MATERIALLY  MISREPRESENTATIVE  APPLICATIONS,   WEBSITES,   OR
 SERVICES.
   5.  "VETTING PROCESS" MEANS WRITTEN, REASONABLE, GOOD-FAITH PROCEDURES
 A PLATFORM USES TO  REVIEW  ADVERTISERS  AND  ADVERTISEMENTS,  INCLUDING
 IDENTITY  VERIFICATION,  CONTENT SCREENING, RISK-FLAGGING SYSTEMS, LAND-
 ING-PAGE INSPECTION, AND COMPLAINT MONITORING.
   § 699-B. PLATFORM OBLIGATIONS. 1. PLATFORMS  SHALL  VERIFY  ADVERTISER
 IDENTITY  PRIOR  TO  PUBLISHING  ANY  ADVERTISEMENT.  VERIFICATION SHALL
 INCLUDE, BUT NOT BE LIMITED TO:
   (A) LEGAL NAME;
   (B) VALID PHYSICAL OR BUSINESS ADDRESS;
   (C) GOVERNMENT-ISSUED IDENTIFICATION FOR INDIVIDUALS; AND
   (D) BUSINESS REGISTRATION, TAX IDENTIFICATION, OR EQUIVALENT  DOCUMEN-
 TATION FOR ENTITIES.
   2.  PLATFORMS  SHALL  MAINTAIN  A REASONABLE VETTING PROCESS TO REVIEW
 EACH ADVERTISEMENT BEFORE PUBLICATION, INCLUDING, BUT NOT BE LIMITED TO:
   (A) SCREENING AD CONTENT  FOR  FRAUDULENT,  MISLEADING,  OR  HIGH-RISK
 CLAIMS;
   (B)  REVIEWING  THE  LANDING  PAGE,  APP  STORE  LISTING,  WEBSITE, OR
 EXTERNAL CONTENT LINKED IN THE ADVERTISEMENT;
   (C) COMPARING ADVERTISER STATEMENTS TO THE ACTUAL PRODUCT  OR  SERVICE
 TO ENSURE CONSISTENCY; AND
   (D)  USING  AUTOMATED  AND/OR MANUAL REVIEW SYSTEMS DESIGNED TO DETECT
 FRAUDULENT BEHAVIOR PATTERNS.
 S. 8605                             3
 
   3. (A) PLATFORMS SHALL MAINTAIN MECHANISMS  TO  ALLOW  USERS  AND  THE
 ATTORNEY GENERAL TO REPORT SUSPECTED FRAUDULENT ADVERTISEMENTS.
   (B)  PLATFORMS  SHALL  REMOVE  OR  DISABLE  ANY  ADVERTISEMENT THAT IS
 REASONABLY SUSPECTED TO BE FRAUDULENT.
   (C) PLATFORMS SHALL PROMPTLY  REMOVE  FRAUDULENT  ADVERTISEMENTS  UPON
 RECEIVING CREDIBLE NOTICE OR EVIDENCE OF FRAUD.
   4. PLATFORMS SHALL MAINTAIN, FOR NOT LESS THAN FIVE YEARS:
   (A) ALL VERIFICATION INFORMATION COLLECTED FROM ADVERTISERS;
   (B)  ALL  ADVERTISEMENTS REVIEWED, INCLUDING LOGS INDICATING APPROVAL,
 REJECTION, OR REMOVAL;
   (C) CONSUMER OR LAW-ENFORCEMENT REPORTS REGARDING FRAUDULENT ADS; AND
   (D) ACTIONS TAKEN IN RESPONSE TO SUCH REPORTS.
   § 699-C. REPORTING REQUIREMENTS. 1. EACH PLATFORM SHALL FILE  A  QUAR-
 TERLY REPORT WITH THE ATTORNEY GENERAL CONTAINING:
   (A) THE TOTAL NUMBER OF ADVERTISEMENTS SUBMITTED FOR REVIEW;
   (B)  THE  NUMBER OF REJECTED, SUSPENDED, OR REMOVED ADVERTISEMENTS DUE
 TO FRAUD OR SUSPECTED FRAUD;
   (C) THE NUMBER OF ADVERTISER ACCOUNTS SUSPENDED OR BANNED DUE TO FRAU-
 DULENT CONDUCT;
   (D) THE NUMBER OF USER COMPLAINTS OR FRAUD REPORTS RECEIVED; AND
   (E) SUMMARY DESCRIPTIONS OF IMPROVEMENTS TO FRAUD-PREVENTION SYSTEMS.
   2. THE ATTORNEY GENERAL SHALL PUBLISH  AN  ANNUAL  PUBLIC  SUMMARY  OF
 PLATFORM COMPLIANCE AND ENFORCEMENT ACTIONS UNDER THIS ARTICLE.
   §  699-D.  ENFORCEMENT;  PENALTIES;  PRIVATE  RIGHT  OF  ACTION.  1. A
 VIOLATION OF THIS ARTICLE CONSTITUTES A DECEPTIVE ACT OR PRACTICE  UNDER
 SECTION THREE HUNDRED FORTY-NINE OF THIS CHAPTER.
   2.  THE  ATTORNEY  GENERAL  MAY  BRING AN ACTION TO ENJOIN VIOLATIONS,
 OBTAIN RESTITUTION, AND SEEK CIVIL PENALTIES.
   3. CIVIL PENALTIES FOR VIOLATIONS OF THIS  ARTICLE  SHALL  NOT  EXCEED
 FIVE  THOUSAND  DOLLARS  PER  FRAUDULENT  ADVERTISEMENT, OR TEN THOUSAND
 DOLLARS PER ADVERTISEMENT FOR WILLFUL, REPEATED, OR RECKLESS VIOLATIONS.
   4. ANY PERSON INJURED BY A PLATFORM'S KNOWING OR NEGLIGENT FAILURE  TO
 COMPLY  WITH THIS ARTICLE MAY BRING AN ACTION FOR ACTUAL DAMAGES, STATU-
 TORY DAMAGES, INJUNCTIVE RELIEF, AND REASONABLE ATTORNEY'S FEES.
   5. A PLATFORM THAT DEMONSTRATES IT MAINTAINED AND ENFORCED  A  REASON-
 ABLE  VETTING PROCESS AND ACTED PROMPTLY TO REMOVE FRAUDULENT ADVERTISE-
 MENTS UPON DISCOVERY MAY USE SUCH EFFORT AS A DEFENSE  TO  CIVIL  PENAL-
 TIES, BUT NOT TO RESTITUTION OWED TO CONSUMERS.
   §  3. Severability. If any provision of this act or its application is
 adjudged to be invalid, such judgment shall not impair or invalidate the
 remaining provisions, which shall remain in full force and effect.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S8605

Sponsored By

Current Bill Status - In Senate Committee Rules Committee

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2025-S8605 (ACTIVE) - Details

2025-S8605 (ACTIVE) - Summary

2025-S8605 (ACTIVE) - Sponsor Memo

2025-S8605 (ACTIVE) - Bill Text download pdf

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Rules Committee

Actions

2025-S8605 (ACTIVE) - Details

2025-S8605 (ACTIVE) - Summary

2025-S8605 (ACTIVE) - Sponsor Memo

2025-S8605 (ACTIVE) - Bill Text download pdf

Comments