The SAFE Platforms Act would require online platforms to verify advertisers, strengthen privacy settings and make suspected scams easier to report.
The bill would let consumers sue over violations and give federal and state officials enforcement authority.
Introduced by Democrat Valerie Foushee and Republican James Moylan, the proposal remains in a House committee and has not received a floor vote.
The number of scams on social media grows day by day, costing Americans billions of dollars.
Online platforms would face new responsibilities for preventing fraud under legislation introduced by Rep. Valerie Foushee, D-N.C., and Guam Republican Delegate James Moylan.
The Stopping Abuse and Fraud Enabled by Platforms Act, or SAFE Platforms Act, would require companies to build fraud prevention into their services and face potential liability when they help facilitate scams. Foushee’s office says the legislation aims to protect consumers, particularly seniors and other vulnerable groups.
What consumers would see
The legislation would require covered platforms to verify advertisers and disclose their legal names, where they are based and how long they have maintained an account. Advertisers promoting higher-risk products and services — including investments, health products, housing, gambling and cryptocurrency — would face additional verification.
Platforms would also have to provide a visible “Report Scam” button on advertising or promotional content, adopt stronger default privacy settings, and take steps to prevent fraudulent profiles and repeat offenders from returning under new accounts.
Advertising would face clearer labeling and accessibility requirements, including minimum font sizes for important information. A single setting that weakens all default privacy protections at once would be prohibited.
The bill generally covers services hosting third-party information that have at least 100,000 monthly active users or annual gross revenue exceeding $25 million. Services primarily providing internet access, email or data storage would be exempt.
Its liability provisions target conduct beyond offering neutral tools, including promoting content a platform knows or has reason to know is fraudulent. It would not require screening every post before publication.
Enforcement and consumer lawsuits
The Federal Trade Commission would enforce the requirements. State attorneys general could seek compensation for residents, and injured consumers could sue for damages. Courts could increase awards for knowing or willful violations.
Section 230 protections would not block enforcement. However, a safe harbor would protect platforms from the bill’s material-contribution prohibition if they meet specified standards, including reviewing reported content within 48 hours and initiating appropriate steps within seven days, subject to exceptions.
Where the bill stands
H.R. 10433 was introduced September 16, 2026, and referred to the House Energy and Commerce Committee. As of October 29, the available legislative record lists no subsequent action or floor vote. It has not become law.
With scams victimizing so many Americans, you might think the bill would have dozens of sponsors from both parties. It doesn’t. Its bipartisan backing currently consists of Foushee as sponsor and Moylan as the sole listed cosponsor. That establishes support across party lines, but does not demonstrate broad congressional backing or enough votes for passage.
Outside Congress, supporters include the Consumer Federation of America, Hispanic Federation, Oregon Consumer Justice and Public Citizen. Those endorsements provide advocacy support, but the legislation still must advance through Congress and receive presidential approval before its protections take effect.