The proposed bill, titled the "Online Media Transparency Act," aims to enhance transparency in online media by requiring content creators to disclose any sponsorships within their media content. It defines key terms such as "content creator," "foreign country," "foreign principal," "material connection," and "sponsorship." The bill mandates that content creators clearly and conspicuously disclose any material connections in accordance with Federal Trade Commission guidelines, including identifying sponsorships and using clear language. Failure to comply with these disclosure requirements is classified as an unfair or deceptive act.

Additionally, the bill imposes specific obligations on content creators who receive sponsorship from foreign principals. These creators must file a public disclosure with the Department of State, detailing the foreign principal's name, their own addresses, a description of their business, the total amount received from foreign sponsorships, and a statement of payments made by the foreign principal in connection with their activities. The Department of State is authorized to adopt necessary rules to implement these provisions, and the act is set to take effect on July 1, 2026.