New York A 11066: Enacts the "fraudulent social media advertising prevention act"

Bill Text

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A11066 Summary:

BILL NOA11066 

&nbsp

SAME ASSAME AS S08605

&nbsp

SPONSORVanel

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add Art 33-C §§699-a - 699-d, Gen Bus L

&nbsp

Requires social-media platforms to prevent, detect, and remove fraudulent advertisements and to establish advertiser-vetting obligations; requires reporting to the attorney general.

Go to top A11066 Actions:

BILL NOA11066 

&nbsp

04/24/2026referred to consumer affairs and protection

Go to topA11066 Committee&nbspVotes:

Go to topA11066 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA11066 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 11066

 IN ASSEMBLY

 April 24, 2026
 ___________

 Introduced by M. of A. VANEL -- read once and referred to the Committee
 on Consumer Affairs and Protection

 AN ACT to amend the general business law, in relation to requiring
 social-media platforms to prevent, detect, and remove fraudulent
 advertisements

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Legislative findings and purpose. The legislature finds
 2 that fraudulent advertisements for products, services, applications,
 3 investments, health claims, and other commercial offerings have prolif-
 4 erated on social-media platforms accessible to New York residents.
 5 Consumers including seniors, minors, persons with limited technolog-
 6 ical literacy, and financially vulnerable individuals have suffered
 7 substantial monetary loss and harms due to deceptive or fraudulent
 8 advertisements that were not adequately screened by advertising plat-
 9 forms.
 10 While existing law, including section 349 of the general business law,
 11 prohibits deceptive acts and practices, such provisions do not expressly
 12 require digital platforms to vet advertisers, verify legitimacy, or
 13 maintain reasonable fraud-prevention systems before publishing adver-
 14 tisements.
 15 Social-media platforms operate as major advertising channels and
 16 derive substantial revenue from paid commercial content. As such, they
 17 play a material role in the dissemination of fraudulent ads and must
 18 bear responsibility for preventing foreseeable consumer harm.
 19 It is the public policy of the state of New York to ensure social-me-
 20 dia platforms (a) verify advertiser identities; (b) review advertise-
 21 ments prior to publication; (c) remove or disable fraudulent advertise-
 22 ments; (d) maintain records of vetting activities; and (e) report such
 23 activities to the state.
 24 Accordingly, this act establishes clear and enforceable obligations to
 25 protect New York consumers from fraudulent ads.
 26 § 2. The general business law is amended by adding a new article 33-C
 27 to read as follows:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14178-01-5

 A. 11066 2

 1 ARTICLE 33-C
 2 FRAUDULENT SOCIAL-MEDIA ADVERTISING PREVENTION ACT

 3 Section 699-a. Definitions.
 4 699-b. Platform obligations.
 5 699-c. Reporting requirements.
 6 699-d. Enforcement; penalties; private right of action.
 7 § 699-a. Definitions. As used in this article, the following terms
 8 shall have the following meanings:
 9 1. "Platform" means any online website, social-media service, mobile
 10 application, or digital advertising network that displays third-party
 11 paid advertisements to users located in New York, regardless of the
 12 platform's principal place of business.
 13 2. "Advertisement" or "ad" means any paid message, sponsored content,
 14 promotional post, or commercial communication disseminated on a platform
 15 for the purpose of marketing, selling, promoting, or inducing the
 16 purchase or download of any product, service, application, or commercial
 17 opportunity.
 18 3. "Advertiser" means any person, business, or entity that pays for or
 19 causes an advertisement to be displayed on a platform.
 20 4. "Fraudulent advertisement" means any advertisement that:
 21 (a) materially misrepresents, or is likely to mislead a reasonable
 22 consumer as to, the nature, quality, price, terms, or characteristics of
 23 the promoted good, service, or opportunity;
 24 (b) promotes counterfeit, non-e