TEXAS – The SCOPE Act, which stands for the Securing Children Online Through Parental Empowerment Act, is a piece of U.S. legislation introduced to enhance consumer protections against harmful online practices. The act is primarily focused on regulating online platforms and marketplaces to prevent deceptive or dangerous product listings.
Key Points of the SCOPE Act:
Prohibition of harmful listings: The act aims to prevent online platforms from listing products that are fraudulent, dangerous, or have been recalled.
Increased accountability for online marketplaces: It imposes stricter responsibilities on online marketplaces to monitor and remove listings that pose risks to consumers.
Transparency requirements: The act may include provisions that require platforms to be more transparent about the sellers and the origins of products listed on their sites.
Enforcement and penalties: Platforms that fail to comply with the SCOPE Act could face significant penalties, potentially including fines or other legal actions.
The SCOPE Act reflects growing concerns over the safety and reliability of products sold through online platforms, especially third-party sellers. The legislation is part of broader efforts to enhance consumer protection in the digital marketplace.
A new state law created to protect children from harmful and obscene material online is now being challenged just days before it is expected to go into effect.
The SCOPE Act takes effect this Sunday, Sept. 1, and will require everyone to verify their age for social media. However, the non-profit, Foundation for Individual Rights and Expression (FIRE) filed a motion hoping a judge would block it.
According to the Texas Office of the Attorney General, this new law will primarily “apply to digital services that provide an online platform for social interaction between users that: (1) allow users to create a public or semi-public profile to use the service, and (2) allow users to create or post content that can be viewed by other users of the service. This includes digital services such as message boards, chat rooms, video channels, or a main feed that presents users content created and posted by other users.”
As of now, the law will be put in place again unless a judge agrees with the non-profit.
Exemptions
According to the AG, the SCOPE Act contains numerous exemptions including the following:
- State agencies;
- Small businesses as defined by the Small Business Administration (SBA);
- Financial institutions or data subject to Title V, the Gramm-Leach-Bliley Act; covered entities or business associates governed by federal laws like HIPAA and the HITECH Act; and institutions of higher education;
- Digital service providers who process user data for express purposes of employment or education services;
- A digital service provider’s facilitation of e-mail or direct messaging services as long as the digital service only provides those services; or
- A digital service provider’s facilitation of access to news, sports, commerce, or content primarily generated or selected by the digital service provider; and allows chat, comment, or other interactive functionality that is incidental to the digital service.
- Internet service providers, search engines, or cloud service providers can be exempt unless they are responsible for the creation of harmful material or other content described by Section 509.053(a) of the Act. For example, when an internet service provider, search engine, or cloud service provider solely supplies the internet access or connection, allows for downloads, access to software, or other services to a website, they are generally not considered actionable since they often do not have control over the harmful content in question.
Enforcement
A violation of the SCOPE Act is a deceptive trade practice enforceable only by the Consumer Protection Division of the Office of the Attorney General of Texas. If someone were to violate the act, the AG’s office may seek injunctive relief, civil penalties of up to $10,000 per violation, and attorneys’ fees. The Act does not confer a private right of action but allows parents and guardians of known minors to file suit to obtain a declaratory judgment against a digital service provider. A court may not certify a case brought under the Act as a class action.