US SB3774

Online platforms that accept payment for advertisements must verify advertiser identity (legal name, physical location, government ID) and implement automated/manual systems to detect fraudulent or deceptive ads before displaying them

Platforms must investigate reported scam advertisements within 72 hours and remove confirmed violations within 24 hours; users must have access to a clear reporting tool for suspected fraudulent ads

Section 230(c)(1) immunity from the Communications Act does not apply to violations of this Act, meaning platforms can be held liable for paid fraudulent advertisements they display

FTC enforces violations as unfair or deceptive practices; state attorneys general may bring civil actions on behalf of residents; private citizens may sue for actual damages (up to 3x for willful violations) plus attorney's fees

FTC must issue implementing regulations within 1 year and submit a report to Congress within 9 months assessing regulatory gaps in preventing online scams involving financial transactions