Sammy’s Law

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Bill ID: 119/hr/2657
Last Updated: June 30, 2026

Sponsored by

Rep. Wasserman Schultz, Debbie [D-FL-25]

ID: W000797

Follow the money

The bill

Sammy’s Law

HR. 2657, 119th Congress — read as touching Big Tech Platforms.

The sponsor

Rep. Wasserman Schultz, Debbie [D-FL-25]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$85,400 raised

30 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

71% match to Project 2025

This bill's text tracks the "Introduction" section, p. 908-910 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Forwarded by Subcommittee to Full Committee by Voice Vote.

December 10, 2025

Introduced

Committee Review

📍 Current Status

Next: The bill moves to the floor for full chamber debate and voting.

🗳️

Floor Action

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another "feel-good" bill from our esteemed lawmakers, designed to make them look like they're doing something about the "evils" of social media while actually serving the interests of their corporate donors.

**Main Purpose & Objectives:** The main purpose of HR 2657, aka "Sammy's Law," is to require large social media platforms (think Facebook, Instagram, Twitter) to create and maintain real-time application programming interfaces (APIs) that allow third-party safety software providers to manage online interactions, content, and account settings for children under the age of 17. The bill's sponsors claim this will help protect kids from cyberbullying, human trafficking, and other online harms.

**Key Provisions & Changes to Existing Law:** The bill defines a "large social media platform" as one with over 100 million monthly active users or $1 billion in annual revenue. It requires these platforms to create APIs that allow third-party safety software providers to access user data (with parental consent, of course). The bill also establishes the Federal Trade Commission (FTC) as the primary regulator.

**Affected Parties & Stakeholders:** The usual suspects are affected here:

* Large social media platforms (Facebook, Instagram, Twitter, etc.) * Third-party safety software providers (who will likely be funded by these same social media companies) * Parents and guardians of children under 17 * The FTC, which gets to expand its regulatory powers

**Potential Impact & Implications:** Let's get real here. This bill is a Trojan horse for increased corporate control over online interactions. By requiring social media platforms to create APIs for third-party safety software providers, the bill creates a new revenue stream for these companies and their lobbyists.

The "safety" provisions are just a smokescreen. The real goal is to give corporations more power to collect and monetize user data under the guise of protecting children. And who benefits from this? The same social media companies that have been exploiting user data for years, along with their lobbyist friends and the politicians they've bought off.

The FTC gets to expand its powers, but we all know how effective they are at regulating corporate America (cough, cough).

In short, HR 2657 is just another example of our lawmakers serving the interests of their corporate donors while pretending to care about the well-being of children. How touching.

**Diagnosis:** This bill suffers from a bad case of "Corporate Capture-itis," where politicians prioritize the interests of their donors over those of their constituents. The symptoms include:

* Overly broad definitions that benefit large corporations * Vague language that allows for exploitation and abuse * Increased regulatory powers for the FTC, which will likely be used to further entrench corporate control

**Treatment:** A healthy dose of skepticism and critical thinking is needed here. We must recognize this bill for what it is: a thinly veiled attempt to increase corporate power and profits at the expense of our online freedoms

Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Wasserman Schultz, Debbie [D-FL-25]

Congress 119 • 2024 Election Cycle

Total Contributions
$85,400
24 donors
PACs
$2,500
Organizations
$16,900
Committees
$0
Individuals
$66,000
1
HONEYWELL INTERNATIONAL POLITICAL ACTION COMMITTEE
1 transaction
$2,500
1
SEMINOLE TRIBE OF FLORIDA
2 transactions
$6,600
2
FEDERATED INDIANS OF GRATON RANCHERIA
1 transaction
$3,300
3
BARONA BAND OF MISSION INDIANS -- GOVERNMENTAL GEN
2 transactions
$3,000
4
POARCH BAND OF CREEK INDIANS
2 transactions
$2,000
5
MICCOSUKEE TRIBE
1 transaction
$1,000
6
MORONGO BAND OF MISSION INDIANS
1 transaction
$1,000

No committee contributions found

1
BERK, MICHAEL
2 transactions
$6,600
2
HARRIS, JOSH
2 transactions
$6,600
3
KAPLOW, LOUIS
2 transactions
$6,600
4
BURGESS, TREVOR
1 transaction
$3,300
5
DAVIDSON, JODI
1 transaction
$3,300
6
LEVAN, ALAN B.
1 transaction
$3,300
7
REID, BENJAMINE J.
1 transaction
$3,300
8
RUBIN, WILLIAM
1 transaction
$3,300
9
BRUNCKHORST, FRANK
1 transaction
$3,300
10
BULKELEY, RAMSAY
1 transaction
$3,300
11
FORCHHEIMER, JODY
1 transaction
$3,300
12
GINDI, ALAN
1 transaction
$3,300
13
GLAZIER, LOUIS
1 transaction
$3,300
14
GORTENBURG, MICHAEL
1 transaction
$3,300
15
GREENBERG, LAWRENCE D
1 transaction
$3,300
16
HACKMAN, MICHAEL
1 transaction
$3,300
17
KROUSE, RODGER
1 transaction
$3,300

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Rep. Carter, Earl L. "Buddy" [R-GA-1]

ID: C001103

Top Contributors

10

1
SAVANNAH TOYOTA
OrganizationSAVANNAH, GA
$1,000
Oct 26, 2024
2
SAVANNAH TOYOTA
OrganizationSAVANNAH, GA
$1,000
Sep 26, 2024
3
TYBEE MARKET
OrganizationTYBEE ISLAND, GA
$500
Mar 6, 2024
4
SMITH, BYRON L.
IndividualRICHMOND HILL, GA
$5,000
Nov 5, 2024
5
MUNOZ, DONALD
NUCANACFO
IndividualWESTON, MA
$4,665
May 31, 2024
6
RICKS, DAVID A.
ELI LILLY AND COMPANYCEO
IndividualINDIANAPOLIS, IN
$3,300
Sep 30, 2023
7
SADOWSKI, GARY T.
SADOWSKI COCPA
IndividualSAVANNAH, GA
$3,300
Aug 25, 2023
8
STEERE, WILLIAM C. JR.
NONERETIRED
IndividualBONITA SPRINGS, FL
$3,300
Aug 3, 2023
9
HENNESSY, MARK W.
HENNESSY AUTOMOBILE COMPANIESPRESIDENT
IndividualATLANTA, GA
$3,300
Nov 4, 2024
10
KIMBELL, JEFFREY
SELF-EMPLOYEDHEALTH CARE CONSULTANT
IndividualPARK CITY, UT
$3,300
Oct 30, 2024

Rep. Schrier, Kim [D-WA-8]

ID: S001216

Top Contributors

10

1
CHICKASAW NATION
PACADA, OK
$1,000
Sep 23, 2024
2
SNOQUALMIE TRIBE
OrganizationSNOQUALMIE, WA
$3,300
Nov 3, 2023
3
THE CONFEDERATED TRIBES OF THE COLVILLE RESERVATION
OrganizationNESPELEM, WA
$3,300
Nov 3, 2023
4
JAMESTOWN S'KLALLAM TRIBE
OrganizationSEQUIM, WA
$3,300
Jun 30, 2023
5
JAMESTOWN S'KLALLAM TRIBE
OrganizationSEQUIM, WA
$3,300
Jun 30, 2023
6
MUCKLESHOOT INDIAN TRIBE
OrganizationAUBURN, WA
$3,300
May 10, 2023
7
NISQUALLY INDIAN TRIBE
OrganizationOLYMPIA, WA
$3,300
Jun 29, 2023
8
THE TULALIP TRIBES OF WASHINGTON
OrganizationTULALIP, WA
$3,300
May 2, 2023
9
MUCKLESHOOT INDIAN TRIBE
OrganizationAUBURN, WA
$3,300
Jun 28, 2024
10
PUYALLUP TRIBE OF INDIANS
OrganizationTACOMA, WA
$3,300
Jun 30, 2024

Rep. Miller-Meeks, Mariannette [R-IA-1]

ID: M001215

Top Contributors

10

1
SAC & FOX TRIBE OF THE MISSISSIPPI IN IOWA
COMTAMA, IA
$1,000
Aug 11, 2023
2
RENEWABLE ENERGY, CITIZENS FOR
COMMADISON, WI
$500
Aug 20, 2024
3
POLITICAL COMMITTEE, NWF ACTION FUND
PACWASHINGTON, DC
$500
Sep 18, 2024
4
US MARSHALS SERVICES
OrganizationNEW YORK, NY
$2,900
Apr 20, 2023
5
HUNTON ANDREWS KURTH LLP
OrganizationRICHMOND, VA
$1,000
Mar 22, 2023
6
HOGAN, PATRICK F
RETIREDRETIRED
IndividualDALLAS, TX
$13,200
Mar 15, 2023
7
HOLDEN, RONALD
RETIREDRETIRED
IndividualWILLIAMSBURG, IA
$13,200
Jun 20, 2023
8
VANDEWALLE, LOLA L
SELF-EMPLOYEDENTREPRENEUR
IndividualBLUE GRASS, IA
$13,200
Oct 16, 2023
9
GLEESON, JOHN W
KLINGER COMPANIES, LLCCEO
IndividualSIOUX CITY, IA
$11,600
Feb 15, 2023
10
SMITH, DYAN
HOMEMAKERHOMEMAKER
IndividualNAPLES, FL
$10,000
May 13, 2024

Rep. Suozzi, Thomas R. [D-NY-3]

ID: S001201

Top Contributors

10

1
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Aug 3, 2024
2
SCOTTO LLC
OrganizationWOODBURY, NY
$1,650
Aug 30, 2024
3
PATROON OPERATING CO. LLC
OrganizationNEW YORK, NY
$1,000
May 13, 2024
4
THE KLAR ORGANIZATION
OrganizationEAST MEADOW, NY
$1,000
Aug 8, 2024
5
TERIAN, OLIVIA
IndividualNEW YORK, NY
$9,400
May 2, 2024
6
TERIAN, OLIVIA
OLIVIA TERIAN ART & DESIGNBUSINESS OWNER
IndividualNEW YORK, NY
$6,600
Mar 8, 2024
7
MORAN, MARY
NOT EMPLOYEDRETIRED
IndividualGREENWICH, CT
$6,600
Mar 28, 2024
8
MORAN, MARY
IndividualGREENWICH, CT
$6,600
May 2, 2024
9
FAIVUS, HARRY E.
MOUNT SINAIPHYSICIAN
IndividualNEW YORK, NY
$5,000
Oct 31, 2024
10
SOSNICK, AARON
IndividualRENO, NV
$3,392
Jun 25, 2024

Rep. Fitzpatrick, Brian K. [R-PA-1]

ID: F000466

Top Contributors

10

1
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,500
Dec 31, 2024
2
STATA FAMILY OFFICE
Organization
$500
Apr 26, 2024
3
ASHER, ROBERT B.
IndividualGWYNEDD VALLEY, PA
$10,000
Oct 9, 2024
4
ASHER, ROBERT B.
ASHER CHOCOLATESCHAIRMAN
IndividualGWYNEDD VALLEY, PA
$10,000
Sep 30, 2024
5
LEVY, EDWARD JR
EDW C LEVY COCHAIRMAN
IndividualBIRMINGHAM, MI
$6,600
Feb 26, 2024
6
CROTTY, THOMAS
RETIREDRETIRED
IndividualSCOTTSDALE, AZ
$6,600
Feb 27, 2024
7
EVANS, ROGER
GREYLOCK PARTNERSPARTNER EMERITUS
IndividualSAN FRANCISCO, CA
$6,600
Feb 27, 2024
8
LEACH, RONALD
NPX ONECHAIRMAN & CEO
IndividualGENEVA, IL
$6,600
Feb 28, 2024
9
MCCLAIN, MARK
SAILPOINTCEO
IndividualAUSTIN, TX
$6,600
Mar 2, 2024
10
CROTTY, THOMAS
IndividualSCOTTSDALE, AZ
$6,600
Mar 8, 2024

Rep. Gottheimer, Josh [D-NJ-5]

ID: G000583

Top Contributors

10

1
AMERICAN EXPRESS
OrganizationNEWARK, NJ
$22,941
Apr 12, 2024
2
AMERICAN EXPRESS
OrganizationNEWARK, NJ
$10,621
May 10, 2024
3
PAYROLL DATA PROCESSING
OrganizationTAMPA, FL
$6,337
May 15, 2024
4
PAYROLL DATA PROCESSING
OrganizationTAMPA, FL
$6,337
Apr 15, 2024
5
PAYROLL DATA PROCESSING
OrganizationTAMPA, FL
$6,337
Apr 30, 2024
6
PAYROLL DATA PROCESSING
OrganizationTAMPA, FL
$5,751
Apr 1, 2024
7
EASTERN BAND OF CHEROKEE INDIANS
OrganizationCHEROKEE, NC
$3,300
Oct 22, 2024
8
SEKAS LAW GROUP LLC
OrganizationENGLEWOOD CLIFFS, NJ
$1,500
Apr 12, 2024
9
SANDOR F. GENET & ASSOCIATES, P.A.
OrganizationNORTH MIAMI BEACH, FL
$250
Apr 12, 2024
10
FIRESTONE MILKEN, SARAH
NOT EMPLOYEDNOT EMPLOYED
IndividualPACIFIC PALISADES, CA
$13,200
Jul 2, 2024

Rep. Wittman, Robert J. [R-VA-1]

ID: W000804

Top Contributors

10

1
THE CHICKASAW NATION
PACADA, OK
$3,300
Jun 17, 2024
2
THE CHICKASAW NATION
PACADA, OK
$3,300
Sep 30, 2024
3
CHOCTAW NATION OF OKLAHOMA
OrganizationDURANT, OK
$3,300
Dec 14, 2023
4
AGUA CALIENTE BAND OF CAHUILLA INDIANS
OrganizationPALM SPRINGS, CA
$3,300
Feb 8, 2024
5
KEHOE, MICHAEL PATRICK
IndividualRICHMOND, VA
$13,200
Jun 2, 2023
6
GIFFORD, BILLY
ALTRIA GROUP INC.CEO
IndividualMIDLOTHIAN, VA
$6,600
Sep 26, 2023
7
PAYNE, DANIEL E.
PAYNE INCCEO
IndividualFREDERICKSBURG, VA
$6,600
Nov 29, 2023
8
CASEY, ARTHUR S.
CASEY AUTO GROUPPRESIDENT
IndividualNEWPORT NEWS, VA
$6,600
Mar 29, 2023
9
PAYNE, DANIEL E.
PAYNE INCCEO
IndividualFREDERICKSBURG, VA
$6,600
Nov 29, 2023
10
KANTNER, CHRIS
UKROP'S FOOD GROUPPRESIDENT
IndividualRICHMOND, VA
$6,600
Jan 12, 2024

Rep. Moskowitz, Jared [D-FL-23]

ID: M001217

Top Contributors

10

1
SEMINOLE TRIBE OF FLORIDA
OrganizationHOLLYWOOD, FL
$3,300
Aug 28, 2023
2
SEMINOLE TRIBE OF FLORIDA
OrganizationHOLLYWOOD, FL
$3,300
Aug 20, 2024
3
ANDREWS LAW FIRM
OrganizationTALLAHASSEE, FL
$1,000
Mar 5, 2024
4
ANDREWS LAW FIRM
OrganizationTALLAHASSEE, FL
$1,000
Mar 5, 2024
5
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$1,000
Jun 17, 2024
6
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$1,000
Sep 25, 2023
7
ZAFFIRINI, CARLOS
AHCVCEO
IndividualAUSTIN, TX
$6,600
Feb 2, 2024
8
ZAFFIRINI, CARLOS
IndividualAUSTIN, TX
$6,600
Feb 12, 2024
9
BOGDAN, MICHAEL
TESTING MATTERS INCSELF
IndividualDEERFIELD BEACH, FL
$3,300
Dec 26, 2023
10
BOGDAN, MICHAEL
TESTING MATTERS INCSELF
IndividualDEERFIELD BEACH, FL
$3,300
Dec 26, 2023

Rep. Houchin, Erin [R-IN-9]

ID: H001093

Top Contributors

10

1
HABEMATOLEL POMO OF UPPER LAKE TRIBE OF CALIFORNIA
OrganizationUPPER LAKE, CA
$3,300
Aug 3, 2023
2
OTOE MISSOURIA TRIBE OF OKLAHOMA
OrganizationRED ROCK, OK
$3,300
Aug 3, 2023
3
TURTLE MOUNTAIN BAND OF CHIPPEWA OF NORTH DAKOTA
OrganizationBELCOURT, ND
$3,300
Aug 3, 2023
4
CHEROKEE NATION
OrganizationTAHLEQUAH, OK
$2,500
Dec 19, 2023
5
BANKE, BARBARA
JACKSON FAMILY FOUNDATIONEXECUTIVE
IndividualGEYSERVILLE, CA
$6,600
Dec 7, 2023
6
SCHWARZMAN, CHRISTINE
RETIREDRETIRED
IndividualNEW YORK, NY
$6,600
Mar 6, 2024
7
GRIFFIN, KENNETH
CITADEL LLCFOUNDER CEO
IndividualMIAMI BEACH, FL
$6,600
Apr 10, 2023
8
ROWAN, CAROLYN
CAROLYN ROWAN COLLECTION LLCEXECUTIVE
IndividualGREENWICH, CT
$6,600
Jun 28, 2023
9
ROWAN, MARC
APOLLO MANAGEMENT HOLDINGSEXECUTIVE
IndividualGREENWICH, CT
$6,600
Jun 28, 2023
10
KIESLER, DOUGLAS M MR.
KIESLER POLICE SUPPLY, INC.CEO
IndividualGREENVILLE, IN
$6,600
Feb 22, 2023

Rep. Ruiz, Raul [D-CA-25]

ID: R000599

Top Contributors

10

1
TUNICA-BILOXI TRIBE OF LA
OrganizationMARKSVILLE, LA
$10,000
Oct 12, 2023
2
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$10,000
Feb 1, 2024
3
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$5,000
Jun 11, 2024
4
TUNICA-BILOXI TRIBE OF LA
OrganizationMARKSVILLE, LA
$3,300
Nov 5, 2024
5
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
May 11, 2023
6
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$3,300
Apr 10, 2023
7
AGUA CALIENTE BAND OF CAHUILLA INDIANS
OrganizationPALM SPRINGS, CA
$3,300
Apr 17, 2023
8
SAN MANUEL BAND OF MISSION INDIANS
OrganizationHIGHLAND, CA
$3,300
Jun 27, 2023
9
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$3,300
Aug 31, 2023
10
HABEMATOLEL POMO OF UPPER LAKE
OrganizationUPPER LAKE, CA
$3,300
Aug 25, 2023

Donor Network - Rep. Wasserman Schultz, Debbie [D-FL-25]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

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Showing 82 nodes and 45 connections (76 secondary connections hidden)

Total contributions: $115,450

Top Donors - Rep. Wasserman Schultz, Debbie [D-FL-25]

Showing top 24 donors by contribution amount

1 PAC6 Orgs17 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 harmed.

  • Big Tech Platformsconfidence 0.90

    Section 4(a)(1) requires large social media platform providers to create, maintain, and make available real-time APIs to third-party safety software providers, imposing operational and compliance costs on platforms like Meta, Google, etc.

  • Telecommunicationsconfidence 0.70

    Section 4(a)(1) applies to large social media platforms provided via internet website or mobile application, which relies on telecommunications infrastructure; compliance may impose indirect costs on ISPs and carriers.

  • Third-party safety software providers may rely on cloud infrastructure for data processing and storage; Section 4(b)(1)(A)(v) requires data to be processed on U.S.-based hardware, potentially increasing cloud compliance costs.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Rep. Wasserman Schultz, Debbie [D-FL-25])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HARMS

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.

Introduction

High71.1%
Pages: 908-910

— 875 — Federal Trade Commission Protecting Children Online. The FTC has long protected children in a variety of different contexts. Internet platforms profit from obtaining information from children without parents’ knowledge or consent—and social media’s effect on the well-being of American children is well-documented. Around 2012, American teens experienced a dramatic decline in wellness. Depression, self-harm, suicide attempts, and suicide all increased sharply among U.S. adolescents between 2011 and 2019,16 with similar trends worldwide.17 The increase occurred at the same time that social media use moved from rare to ubiquitous among teens,18 making social media a prime suspect for the sudden rise in mental health issues among teens. In addition, excessive social media use is strongly linked to mental health issues among individuals. Several studies strongly support the notion that social media use is a cause, not just a correlation, of subjective well-being and poor mental health.19 Social media and other large platforms form millions of contracts every year with American children. And even though a minor can void most contracts into which he or she enters, most jurisdictions have laws that hold minors accountable for the benefits received under the contract. Thus, children can make enforceable contracts for which parents could end up bearing responsibility. Targeting chil- dren to create potentially harmful contracts or making parents responsible for such contractual relationships is an unfair trade practice. The FTC, therefore, has the authority, interest, and duty to protect children online from such contractual relationships. l The FTC should examine platforms’ advertising and contract- making with children as a deceptive or unfair trade practice, perhaps requiring written parental consent. Currently, the Child Online Privacy Protection Act (COPPA)20 regulates the information internet firms can obtain from children. COPPA fails because it (1) only protects children under the age of 13, leaving older teenagers completely unprotected and (2) only prohibits platforms from collecting information from a child using “actual knowledge” rather than abiding by the “constructive knowledge” standard, which prohibits collecting information from a user reasonably assumed to be underage. The FTC has rulemaking authority under this statute but has done little with this authority, nor can it—given the statutory constraints. However, l The FTC can and should institute unfair trade practices proceedings against entities that enter into contracts with children without parental consent. Personal parental responsibility is, of course, key, but the law must respect, not undermine, lawful parental authority. — 876 — Mandate for Leadership: The Conservative Promise Other conservatives are more skeptical concerning the effect of online expe- rience on the young, comparing the concern about social media to concern about video games, television, and bicycle safety. They point out, as does Cato fellow Jeffrey A. Singer, that the psychiatric profession has yet to designate “internet addiction” or “social media addiction” as a mental disorder in the authoritative Diagnostic and Statistical Manual of Mental Disorders (DSM-5-TR).21 These con- servatives also maintain that calling for regulation undermines conservatives’ calls for parental empowerment on education or vaccines as well as personal parenting responsibility. In addition, some of the methods used to regulate children’s internet access pose the risk of unintended harms. For instance, age verification regulations would inevitably increase the amount of data collection involved, increasing privacy con- cerns. Users would have to submit to platforms proof of their age, which raises the risks of data breach or illegitimate data usage by the platforms or bad actors. Limited-government conservatives would prefer the FTC play an educational role instead. That might include best practices or educational programs to empower parents online. Antitrust Enforcement. As is evidenced by a relentless focus on bringing Big Tech lawsuits, state attorneys general (AGs) are far more responsive to their con- stituents than is the FTC. Such a “boots on the ground” approach would benefit the FTC enormously. Practically, this would mean establishing a distinct role in the FTC Chairman’s office focused on state AG cooperation and inviting state AGs to Washington, D.C., to discuss enforcement policy in key sectors under the FTC’s jurisdiction: Big Tech, hospital mergers, supermarket mergers, and so forth. FTC regional offices are substantially more in touch with local issues. Over the past few decades, the reach and influence of regional offices has shrunk dramati- cally. The FTC should consider returning authority to these offices. Some conservatives however are less supportive of this idea. Conservative enthusiasm for the idea of adding regional FTC offices to the states is a break from the majority conservative position. Endorsing the federal government as a pre- mier job creator runs counter to decades of conservative opinion that holds that New Deal agencies and subsequent government bodies should never have been created in the first place, and that their red tape and interference is a dominant cause of economic inefficiency. Republicans used to seethe when Democrats tried to move federal offices into the states. In the early 1990s, House Minority Whip Newt Gingrich fumed about Senator Robert Byrd’s campaign to transfer certain national intelligence facilities to West Virginia, calling it a “pure abuse of power.” Some contributors to this chapter would remind conservatives that the unseen mechanics of redistribution—by which taxpayer money paid to state employees is taken from taxpayers nationwide—is a drag on the economy of the entire country. Many conservatives fear that it would be impossible to uproot or even prune back

Introduction

High71.1%
Pages: 908-910

— 875 — Federal Trade Commission Protecting Children Online. The FTC has long protected children in a variety of different contexts. Internet platforms profit from obtaining information from children without parents’ knowledge or consent—and social media’s effect on the well-being of American children is well-documented. Around 2012, American teens experienced a dramatic decline in wellness. Depression, self-harm, suicide attempts, and suicide all increased sharply among U.S. adolescents between 2011 and 2019,16 with similar trends worldwide.17 The increase occurred at the same time that social media use moved from rare to ubiquitous among teens,18 making social media a prime suspect for the sudden rise in mental health issues among teens. In addition, excessive social media use is strongly linked to mental health issues among individuals. Several studies strongly support the notion that social media use is a cause, not just a correlation, of subjective well-being and poor mental health.19 Social media and other large platforms form millions of contracts every year with American children. And even though a minor can void most contracts into which he or she enters, most jurisdictions have laws that hold minors accountable for the benefits received under the contract. Thus, children can make enforceable contracts for which parents could end up bearing responsibility. Targeting chil- dren to create potentially harmful contracts or making parents responsible for such contractual relationships is an unfair trade practice. The FTC, therefore, has the authority, interest, and duty to protect children online from such contractual relationships. l The FTC should examine platforms’ advertising and contract- making with children as a deceptive or unfair trade practice, perhaps requiring written parental consent. Currently, the Child Online Privacy Protection Act (COPPA)20 regulates the information internet firms can obtain from children. COPPA fails because it (1) only protects children under the age of 13, leaving older teenagers completely unprotected and (2) only prohibits platforms from collecting information from a child using “actual knowledge” rather than abiding by the “constructive knowledge” standard, which prohibits collecting information from a user reasonably assumed to be underage. The FTC has rulemaking authority under this statute but has done little with this authority, nor can it—given the statutory constraints. However, l The FTC can and should institute unfair trade practices proceedings against entities that enter into contracts with children without parental consent. Personal parental responsibility is, of course, key, but the law must respect, not undermine, lawful parental authority.

Introduction

Moderate65.7%
Pages: 908-910

— 876 — Mandate for Leadership: The Conservative Promise Other conservatives are more skeptical concerning the effect of online expe- rience on the young, comparing the concern about social media to concern about video games, television, and bicycle safety. They point out, as does Cato fellow Jeffrey A. Singer, that the psychiatric profession has yet to designate “internet addiction” or “social media addiction” as a mental disorder in the authoritative Diagnostic and Statistical Manual of Mental Disorders (DSM-5-TR).21 These con- servatives also maintain that calling for regulation undermines conservatives’ calls for parental empowerment on education or vaccines as well as personal parenting responsibility. In addition, some of the methods used to regulate children’s internet access pose the risk of unintended harms. For instance, age verification regulations would inevitably increase the amount of data collection involved, increasing privacy con- cerns. Users would have to submit to platforms proof of their age, which raises the risks of data breach or illegitimate data usage by the platforms or bad actors. Limited-government conservatives would prefer the FTC play an educational role instead. That might include best practices or educational programs to empower parents online. Antitrust Enforcement. As is evidenced by a relentless focus on bringing Big Tech lawsuits, state attorneys general (AGs) are far more responsive to their con- stituents than is the FTC. Such a “boots on the ground” approach would benefit the FTC enormously. Practically, this would mean establishing a distinct role in the FTC Chairman’s office focused on state AG cooperation and inviting state AGs to Washington, D.C., to discuss enforcement policy in key sectors under the FTC’s jurisdiction: Big Tech, hospital mergers, supermarket mergers, and so forth. FTC regional offices are substantially more in touch with local issues. Over the past few decades, the reach and influence of regional offices has shrunk dramati- cally. The FTC should consider returning authority to these offices. Some conservatives however are less supportive of this idea. Conservative enthusiasm for the idea of adding regional FTC offices to the states is a break from the majority conservative position. Endorsing the federal government as a pre- mier job creator runs counter to decades of conservative opinion that holds that New Deal agencies and subsequent government bodies should never have been created in the first place, and that their red tape and interference is a dominant cause of economic inefficiency. Republicans used to seethe when Democrats tried to move federal offices into the states. In the early 1990s, House Minority Whip Newt Gingrich fumed about Senator Robert Byrd’s campaign to transfer certain national intelligence facilities to West Virginia, calling it a “pure abuse of power.” Some contributors to this chapter would remind conservatives that the unseen mechanics of redistribution—by which taxpayer money paid to state employees is taken from taxpayers nationwide—is a drag on the economy of the entire country. Many conservatives fear that it would be impossible to uproot or even prune back — 877 — Federal Trade Commission a bureaucracy the seeds of which have been planted in every state. State legislators would struggle to slash funding from agencies that employ and generously pay thousands of their constituents. FTC outposts would tie middle America inex- tricably to big progressive government, remaking the heartland in Washington’s image. It would be anything but decentralization; Americans need policy makers to discipline the arrogance that prevails inside the Beltway, not spread it. It would be “Swamp 2.0”: just as deep and many times as wide. Big Tech and Antitrust. The large internet platforms have transformed the U.S. economy, streamlining consumer purchases, networking billions of people, and altering long-established business practices. Despite their enormous size, they have avoided significant antitrust liability or prosecution. The reasons for this are not entirely clear. It may be because these platforms have been incredibly innovative and have generated tremendous efficiencies for our society, with little to no evidence of traditional consumer harm in the form of higher prices, reduced output, or a lack of innovation. Also, Americans report a high level of satisfaction in and trust regard- ing these companies. The less friendly regulatory environment in the European Union would make a good case study in expansive antitrust law. The continent boasts not one of the top 10 global tech companies, while the U.S. can claim eight.22 Some claim that the recent drop in value of former leader and current antitrust target Meta, along with the rise of new competitors such as Zoom and Chinese-dominated TikTok, indicates that competitive forces are healthy and at work benefiting consumers in the tech space. On the other hand, the platforms challenge traditional economic thinking because arguably the firm structure they employ is radically different, and they create different competition dynamics. First, there is some evidence that the major internet platforms have market power, resulting in increased prices for advertis- ers, costs that very well could be passed onto consumers. For instance, numerous government studies have found evidence of market power.23 And while some data show declining advertising costs, they also show increasing prices in this decade.24 Second, while consumers may report that they like social media, hedonics tells a different story, suggesting that social media and other online activities diminish human happiness. This evidence, while mixed at first,25 appears to have become quite solid: Social media makes Americans less happy.26 Third, internet platforms have not created consumer price increases, but of course they provide free services—and this creates a challenge for antitrust regu- lation. For decades, antitrust economics has been focused on a paradigm in which firm and consumer behavior are modeled as functions of price and output as the primary variables. It may very well be that these models do not fully capture the effect of technologies that enable increasing returns to scale based on data, such

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