The Social Media Fairness and Transparency Act establishes specific requirements for social media companies regarding their content moderation practices and creates a legal framework for users to take action against these companies for violations. The bill mandates that social media companies publish their standards for censoring, selectively suspending, or implementing anonymous user bans, and apply these standards consistently across their platforms. Additionally, companies are prohibited from censoring or suspending users without prior notification, unless the content is deemed obscene. The bill also includes provisions to protect 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 pursue private legal action against social media companies for specific violations, with potential damages including statutory, actual, and punitive damages. The Office of the Attorney General is granted the authority to investigate and subpoena relevant algorithms and documentation related to content moderation practices. Importantly, the bill 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 legislation aims to enhance transparency and fairness in social media content moderation while providing users with legal recourse.