The Social Media and Telecommunications Fraud Accountability Act aims to enhance accountability and transparency for social media platforms regarding fraudulent advertisements. The bill mandates that platforms accepting payment for advertising must implement identity verification for advertisers, establish programs for detecting impersonation and fraud, and provide users with tools to report suspected fraudulent content. If a fraudulent advertisement is reported, platforms are required to investigate within 72 hours and notify the user of the outcome within 24 hours. Additionally, platforms must produce quarterly public reports detailing the number of reported fraudulent advertisements, takedown statistics, and other relevant data.

The act also prohibits individuals or businesses from using misleading caller identification and from using the names or trademarks of banks or credit unions in advertisements without consent. Violations of the act are classified as unconscionable acts under the Kansas Consumer Protection Act, allowing for civil or criminal actions by the attorney general and enabling individuals to seek damages in court. Each violation carries a minimum penalty of $10,000, and platforms that maintain a certified fraud prevention program are presumed compliant with the act.