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 companies have violated these practices. 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. Additionally, companies are prohibited from censoring or suspending users without notification, except in cases of obscene content. The bill also protects journalistic enterprises from being censored based on their content and prohibits companies from requiring users to engage with political advertisements to access their accounts.

Furthermore, the bill allows users to bring private legal actions against social media companies for specific violations, with potential damages including statutory, actual, and punitive damages. The legislation ensures that trade secrets are not disclosed and does not interfere with existing federal laws or obligations of social media companies. Overall, the act aims to enhance transparency and fairness in social media content moderation while providing users with legal recourse against unfair practices.