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 against these companies for violations of 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 across their user base. Additionally, the bill prohibits social media companies from censoring or suspending journalistic enterprises based on their content and requires notification to users when their content is censored, except in cases of obscene material.

Furthermore, the bill allows users to bring private legal actions against social media companies for certain violations, with potential damages including statutory and actual damages, punitive damages, and attorney fees. It also includes provisions to protect trade secrets and ensures that the bill does not conflict with federal laws or existing duties of social media companies. Overall, the legislation aims to enhance transparency and fairness in the content moderation practices of social media platforms.