A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING article 9 to chapter 5, title 39 SO AS TO PROVIDE DEFINITIONS; TO PROVIDE THAT A SOCIAL MEDIA COMPANY MAY NOT PERMIT CERTAIN MINORS TO BE ACCOUNT HOLDERS; TO PROVIDE REQUIREMENTS FOR SOCIAL MEDIA COMPANIES; TO PROVIDE THAT A SOCIAL MEDIA COMPANY SHALL PROVIDE CERTAIN PARENTS OR GUARDIANS WITH CERTAIN INFORMATION; TO PROVIDE THAT A SOCIAL MEDIA COMPANY SHALL RESTRICT SOCIAL MEDIA ACCESS TO MINORS DURING CERTAIN HOURS; TO PROVIDE FOR CONSUMER COMPLAINTS; TO PROVIDE THAT THE CONSUMER SERVICES DIVISION HAS AUTHORITY TO ADMINISTER AND ENFORCE CERTAIN REQUIREMENTS; TO PROVIDE FOR AN ANNUAL REPORT; TO PROVIDE FOR A CAUSE OF ACTION; and TO PROVIDE THAT CERTAIN WAIVERS AND LIMITATIONS ARE VOID.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Chapter 5, Title 39 of the S.C. Code is amended by adding:

 

    Article 9

 

    South Carolina Social Media Regulation

 

    Section 39-5-810.  As used in this article:

       (1) "Account holder" means a person who has, or opens, an account or profile to use a social media company's platform.

       (2) "Director" means the director of the Consumer Services Division under the Department of Consumer Affairs.

       (3) "Division" means the Consumer Services Division.

       (4) "Educational entity" means a public school, an LEA, a charter school, the South Carolina School for the Deaf and the Blind, a private school, a denominational school, a parochial school, a community college, a state college, a state university, or a nonprofit private postsecondary educational institution.

       (5)(a) "Interactive computer service" means an information service, information system, or information access software provider that:

           (i) provides or enables computer access by multiple users to a computer server; and

           (ii) provides access to the Internet.

       (b) "Interactive computer service" includes:

           (i) a web service;

           (ii) a web system;

           (iii) a website;

           (iv) a web application; or

           (v) a web portal.

       (6) "Minor" means an individual who is under the age of eighteen and has not been:

           (a) emancipated as decreed by the family court; or

           (b) married.

       (7) "Post" means content that an account holder makes available on a social media platform for other account holders or users to view.

       (8) "Social media company" means a person or entity that:

           (a) provides a social media platform that has at least five million account holders worldwide; and

           (b) is an interactive computer service.

       (9)(a) "Social media platform" means an online forum that a social media company makes available for an account holder to:

               (i) create a profile;

               (ii) upload posts;

               (iii) view the posts of other account holders; and

               (iv) interact with other account holders or users.

            (b) "Social media platform" does not include an online service, website, or application:

               (i) where the predominant or exclusive function is:

                  (A) electronic mail;

                  (B) direct messaging consisting of text, photos, or videos that are sent between devices by electronic means, where messages are:

                      (I) shared between the sender and the recipient;

                      (II) only visible to the sender and the recipient; and

                      (III) are not posted publicly;

                  (C) a streaming service that:

                      (I) provides only licensed media in a continuous flow from the service, website, or application to the end user; and

                      (II) does not obtain a license to the media from a user or account holder by agreement to its terms of service;

                  (D) news, sports, entertainment, or other content that is preselected by the provider and not user generated, and any chat, comment, or interactive functionality that is provided incidental to, directly related to, or dependent upon provision of the content;

                  (E) online shopping or e-commerce, if the interaction with other users or account holders is generally limited to:

                      (I) the ability to upload a post and comment on reviews;

                      (II) the ability to display lists or collections of goods for sale or wish lists; and

                      (III) other functions that are focused on online shopping or e-commerce rather than interaction between users or account holders;

                  (F) interactive gaming, virtual gaming, or an online service, that allows the creation and uploading of content for the purpose of interactive gaming, entertainment, or associated entertainment, and the communication related to that content;

                  (G) photo editing that has an associated photo hosting service, if the interaction with other users or account holders is generally limited to liking or commenting;

                  (H) a professional creative network for showcasing and discovering artistic content, if the content is required to be nonpornographic;

                  (I) single-purpose community groups for public safety if:

                      (I) the interaction with other users or account holders is generally limited to that single purpose; and

                      (II) the community group has guidelines or policies against illegal content;

                  (J) providing career development opportunities, including professional networking, job skills, learning certifications, and job posting and application services;

                  (K) business-to-business software;

                  (L) a teleconferencing or videoconferencing service that allows reception and transmission of audio and video signals for real-time communication;

                  (M) cloud storage;

                  (N) shared document collaboration;

                  (O) cloud computing services, which may include cloud storage and shared document collaboration;

                  (P) providing access to or interacting with data visualization platforms, libraries, or hubs;

                  (Q) to permit comments on a digital news website, if the news content is posted only by the provider of the digital news website;

                  (R) providing or obtaining technical support for a platform, product, or service;

                  (S) academic or scholarly research; or

                  (T) genealogical research;

               (ii) where:

                  (A) the majority of the content that is posted or created is posted or created by the provider of the online service, website, or application; and

                  (B) the ability to chat, comment, or interact with other users is directly related to the provider's content;

               (iii) that is a classified ad service that only permits the sale of goods and prohibits the solicitation of personal services; or

               (iv) that is used by and under the direction of an educational entity, including:

                  (A) a learning management system;

                  (B) a student engagement program; and

                  (C) a subject or skill-specific program.

       (10)(a) "South Carolina account holder" means a person who is a South Carolina resident and an account holder.

           (b) "South Carolina account holder" includes a South Carolina minor account holder.

       (11) "South Carolina minor account holder" means a South Carolina account holder who is a minor.

       (12) "South Carolina resident" means an individual who currently resides in South Carolina.

        (13) "User" means a person who has access to view all, or some of, the posts on a social media platform, but is not an account holder.

 

    Section 39-5-820.  (A) Beginning March 1, 2025, a social media company may not permit a South Carolina resident who is a minor to be an account holder on the social media company's social media platform unless the South Carolina resident has the express consent of a parent or guardian.

    (B) Notwithstanding any other provisions of this article, a social media company may not permit a South Carolina resident who is a minor to hold or open an account on a social media platform if the minor is ineligible to hold or open an account under any other provision of state or federal law.

    (C)(1) Beginning March 1, 2025, a social media company shall verify the age of an existing or new South Carolina account holder and, if the existing or new account holder is a minor, confirm that a minor has consent as required under subsection (A):

           (a) for a new account, at the time the South Carolina resident opens the account; or

           (b) for a South Carolina account holder who has not provided age verification as required under this section, within fourteen calendar days of the South Carolina account holder's attempt to access the account.

       (2) If a South Carolina account holder fails to meet the verification requirements of this section within the required time period, the social media company shall deny access to the account:

           (a) upon the expiration of the time period; and

           (b) until all verification requirements are met.

    (D) The division, with consideration of stakeholder input, shall promulgate regulations to:

       (1) establish processes or means by which a social media company may meet the age verification requirements of this article;

       (2) establish acceptable forms or methods of identification, which may not be limited to a valid identification card issued by a government entity;

       (3) establish requirements for providing confirmation of the receipt of any information provided by a person seeking to verify age pursuant to this article;

       (4) establish processes or means to confirm that a parent or guardian has provided consent for the minor to open or use an account as required pursuant to this section;

       (5) establish requirements for retaining, protecting, and securely disposing of any information obtained by a social media company or its agent as a result of compliance with the requirements of this article;

       (6) require that information obtained by a social media company or its agent in order to comply with the requirements of this article are only retained for the purpose of compliance and may not be used for any other purpose;

       (7) if the division permits an agent to process verification requirements required by this section, require that the agent have its principal place of business in the United States of America;

       (8) require other applicable state agencies to comply with any regulations promulgated pursuant to this section; and

       (9) ensure that the rules are consistent with state and federal law.

 

    Section 39-5-830.  Beginning March 1, 2025, a social media company, for a social media platform account held by a South Carolina minor account holder:

       (1) shall prohibit direct messaging between the account and any other user that is not linked to the account through friending;

       (2) may not show the account in search results for any user that is not linked to the account through friending;

       (3) shall prohibit the display of any advertising in the account;

       (4) may not collect or use any personal information from the posts, content, messages, text, or usage activities of the account other than information that is necessary to comply with, and to verify compliance with, state or federal law, which information includes a parent or guardian's name, a birth date, and any other information required to be submitted pursuant to this section; and

       (5) shall prohibit the use of targeted or suggested groups, services, products, posts, accounts, or users in the account.

 

    Section 39-5-840.  Beginning March 1, 2025, a social media company shall provide a parent or guardian who has given parental consent for a South Carolina minor account holder pursuant to Section 39-5-820 with a password or other means for the parent or guardian to access the account, which must allow the parent or guardian to view:

       (1) all posts the South Carolina minor account holder makes under the social media platform account; and

       (2) all responses and messages sent to or by the South Carolina minor account holder in the social media platform account.

 

    Section 39-5-850.  (A) Beginning March 1, 2025, a social media company shall prohibit a South Carolina minor account holder from having access to the South Carolina minor account holder's account during the hours of 10:30 p.m. to 6:30 a.m., unless the access is modified according to another requirement of this section.

    (B) Time of day pursuant to this section must be calculated based on the Internet protocol address being used by the South Carolina minor account holder at the time of attempting access.

    (C) A social media company shall provide options for a parent or guardian with access to an account pursuant to Section 39-5-840 to:

       (1) change or eliminate the time-of-day restriction described in subsection (A); and

       (2) set a limit on the number of hours each day that a South Carolina minor account holder may use the account.

    (D) A social media company may not permit a South Carolina minor account holder to change or bypass restrictions on access as required by this section.

    (E) Notwithstanding any other provisions of this section, a social media company shall permit a parent or guardian with access to an account pursuant to Section 39-5-840 to access the account without time restrictions.

 

    Section 39-5-860.  (A) The division shall receive consumer complaints alleging a violation of this article.

    (B) A person may file a consumer complaint that alleges a violation pursuant to this article with the division.

    (C) The division shall investigate a consumer complaint to determine whether a violation occurred.

 

    Section 39-5-870.  (A) Except for a private right of action pursuant to Section 39-5-890, the division has the exclusive authority to administer and enforce the requirements of this article.

    (B) The Attorney General, upon request, shall give legal advice to, and act as counsel for, the division in the exercise of the division's responsibilities pursuant to this article.

    (C)(1) Subject to the ability to cure an alleged violation under subsection (D):

           (a) the division director may impose an administrative fine of up to two thousand five hundred dollars for each violation; and

           (b) the division may bring an action in a court of competent jurisdiction to enforce a provision of this article.

       (2) In a court action by the division to enforce a provision of this article, the court may:

           (a) declare that the act or practice violates a provision of this article;

           (b) issue an injunction;

           (c) order disgorgement of any money received in violation of this article;

           (d) order payment of disgorged money to an injured purchaser or consumer;

           (e) impose a civil penalty of up to two thousand five hundred dollars for each violation of this article;

           (f) award actual damages to an injured purchaser or consumer; and

           (g) award any other relief that the court considers to be reasonable and necessary.

    (D)(1) At least thirty days before the day on which the division initiates an enforcement action against a person that is subject to the requirements of this article, the division shall provide the person with:

           (a) written notice that identifies each alleged violation; and

           (b) an explanation of the basis for each allegation.

       (2) Except as provided under item (3), the division may not initiate an action if the person:

           (a) cures the noticed violation within thirty days after the day on which the person receives the notice described in item (1); and

           (b) provides the division with a written statement that:

               (i) the person has cured the violation; and

               (ii) no further violation will occur.

       (3) The division may initiate a civil action against a person that:

           (a) fails to cure a violation after receiving the notice described in item (1); or

           (b) after curing a noticed violation and providing a written statement in accordance with item (2), commits another violation of the same provision.

    (E) If a court of competent jurisdiction grants judgment or injunctive relief to the division, the court shall award the division:

       (1) reasonable attorneys' fees;

       (2) court costs; and

       (3) investigative fees.

    (F)(1) A person who violates an administrative or court order issued for a violation of this article, is subject to a civil penalty of no more than five thousand dollars for each violation.

       (2) A civil penalty authorized pursuant to this section may be imposed in any civil action brought by the division, or by the Attorney General on behalf of the division.

 

    Section 39-5-880.  (A) The division shall compile an annual report:

       (1) evaluating the liability and enforcement provisions of this article, including:

           (a) the effectiveness of the division's efforts to enforce this article; and

           (b) any recommendations for changes to this article;

       (2) summarizing the consumer interactions that are protected and not protected by this article, including a list of alleged violations the division has received; and

       (3) an accounting of:

           (a) all administrative fines and civil penalties assessed during the year;

           (b) all administrative fines and civil penalties collected during the year; and

           (c) the use of department funds.

    (B) The division may update or correct the report as new information becomes available.

    (C) The division shall submit the report to the Speaker of the House of Representatives, the President of the Senate, and the Governor before July first of each year.

 

    Section 39-5-890.  (A) Beginning March 1, 2025, a person may bring an action against a person that does not comply with a requirement of this article.

    (B) A suit filed pursuant to the authority of this section must be filed in the district court for the district in which a person bringing the action resides.

    (C) If a court finds that a person has violated a provision of this article, the person who brings an action pursuant to this section is entitled to:

       (1) an award of reasonable attorneys' fees and court costs; and

       (2) an amount equal to the greater of:

           (a) two thousand five hundred dollars for each incident of violation; or

           (b) actual damages for financial, physical, and emotional harm incurred by the person bringing the action, if the court determines that the harm is a direct consequence of the violation.

 

    Section 39-5-900.  A waiver or limitation, or a purported waiver or limitation, of any of the following is void as unlawful, is against public policy, and a court or arbitrator may not enforce or give effect to the waiver, notwithstanding any contract or choice-of-law provision in a contract:

       (1) a protection or requirement provided pursuant to this article;

       (2) the right to cooperate with the division or to file a complaint with the division; or

       (3) the right to a private right of action as provided pursuant to this article.

 

SECTION 2.  If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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