The Social Media Fairness and Transparency Act establishes specific requirements for social media companies regarding their content moderation practices and creates a cause of action for users who believe these practices have been violated. The bill mandates that social media companies operating in New Jersey must publish their standards for censoring, selectively suspending, or implementing anonymous user bans, and apply these standards consistently across their user base. Additionally, the bill prohibits social media companies from censoring or suspending users without prior notification, except in cases where the content is deemed obscene. It also ensures that journalistic enterprises are protected from censorship based on their published content.

Furthermore, the bill allows users to take legal action against social media companies for violations of the specified content moderation practices, with potential damages including statutory and actual damages, punitive damages, and attorney fees. The legislation clarifies that it does not require the disclosure of trade secrets or interfere with existing federal laws and regulations governing social media companies. Overall, the act aims to enhance transparency and fairness in how social media platforms manage user content and interactions.