as introduced - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 06/27/2021 10:46am
A bill for an act
relating to commerce; regulating certain activities by social media platforms;
providing antitrust protections; prohibiting certain unfair and deceptive practices;
providing penalties; proposing coding for new law in Minnesota Statutes, chapters
211B; 325D; 325E.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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The legislature of the state of Minnesota finds:
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(1) social media platforms represent an extraordinary advance in communication
technology for Minnesota citizens;
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(2) users should be afforded control over personal information related to social media
platforms;
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(3) Minnesota citizens increasingly rely on social media platforms to express political
and other opinions;
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(4) social media platforms have transformed into the new public town square;
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(5) social media platforms have become as important for conveying public opinion as
public utilities are for supporting modern society;
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(6) social media platforms hold a unique place in preserving first amendment protections
for all Minnesota citizens and should be treated similarly to common carriers;
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(7) social media platforms that unfairly censor, shadow ban, deplatform, or apply
post-prioritization algorithms to Minnesota political candidates, Minnesota users, or
Minnesota citizens are not acting in good faith;
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(8) social media platforms should not take any action in bad faith to restrict access or
availability to Minnesota citizens;
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(9) social media platforms have unfairly censored, shadow banned, deplatformed, and
applied post-prioritization algorithms to Minnesota citizens;
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(10) Minnesota has a substantial interest in protecting residents from inconsistent and
unfair actions by social media; and
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(11) Minnesota must vigorously enforce state law to protect Minnesota citizens.
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Deplatform" has the meaning given in section 325E.80, subdivision 1, paragraph
(d).
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(c) "Social media platform" has the meaning given in section 325E.80, subdivision 1,
paragraph (h).
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(d) "User" has the meaning given in section 325E.80, subdivision 1, paragraph (i).
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A social media platform is
prohibited from willfully deplatforming a candidate for office who is known by the social
media platform to be a candidate. The prohibition under this subdivision begins on the date
of qualification and ends on the date of the election or the date the candidate ceases to be
a candidate. A social media platform must provide each user a method by which the user
may be identified as a qualified candidate and which provides sufficient information to
allow the social media platform to confirm the user's qualification by reviewing the secretary
of state's website or the website of the local supervisor of elections.
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If the secretary of state determines a social media platform has violated
subdivision 2, in addition to the remedies provided in sections 10A.34 and 211B.19, the
social media platform may be fined $250,000 per day for a candidate for statewide office
and $25,000 per day for a candidate for other offices.
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A social media platform that willfully provides free advertising
for a candidate must inform the candidate of the in-kind contribution. Posts, content, material,
and comments by candidates which are shown on the platform in the same or similar way
as other users' posts, content, material, and comments are not considered free advertising.
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Notwithstanding any law to the contrary, this section may only
be enforced to the extent not inconsistent with federal law and United States Code, title 47,
section 230(e)(3).
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Affiliate" means: (1) a predecessor or successor of a person convicted of or held
civilly liable for an antitrust violation; or (2) an entity under the control of any natural person
who is active in the management of the entity that has been convicted of or held civilly
liable for an antitrust violation. Affiliate includes the officers, directors, executives, partners,
shareholders, employees, members, and agents who are active in the management of an
affiliate. The ownership by one person of shares constituting a controlling interest in another
person, or a pooling of equipment or income among persons when not for fair market value
under an arm's length agreement, is a prima facie case that one person controls another
person. Affiliate also includes a person who knowingly enters into a joint venture with a
person who has violated an antitrust law during the preceding 36 months.
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(c) "Antitrust violation" means any failure to comply with a state or federal antitrust law
as determined in a civil or criminal proceeding brought by the attorney general, a state
attorney, a similar body or agency of another state, the Federal Trade Commission, or the
United States Department of Justice.
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(d) "Antitrust violator vendor list" means the list required under subdivision 3, paragraph
(b).
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(e) "Economic incentives" means state grants, cash grants, tax exemptions, tax refunds,
tax credits, state funds, and other state incentives under chapter 116J or administered under
chapter 116O by Enterprise Minnesota, Inc.
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(f) "Person" means a natural person or an entity organized under the laws of any state
or of the United States which operates as a social media platform, as defined in section
325E.80, subdivision 1, paragraph (h), with the legal power to enter into a binding contract
and which bids or applies to bid on contracts let by a public entity, or which otherwise
transacts or applies to transact business with a public entity. Person includes the officers,
directors, executives, partners, shareholders, employees, members, and agents who are
active in the management of an entity.
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(g) "Public entity" means the state of Minnesota and any of the state's departments or
agencies.
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(a) A person or an affiliate who has been placed on the antitrust
violator vendor list following a conviction or being held civilly liable for an antitrust violation
is prohibited from: (1) submitting a bid, proposal, or reply for any new contract to provide
any goods or services to a public entity; (2) submitting a bid, proposal, or reply for a new
contract with a public entity for the construction or repair of a public building or public
work; (3) submitting a bid, proposal, or reply on new leases of real property to a public
entity; (4) being awarded or performing work as a contractor, supplier, subcontractor, or
consultant under a new contract with a public entity; and (5) transacting new business with
a public entity.
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(b) A public entity is prohibited from accepting a bid, proposal, or reply from, awarding
a new contract to, or transacting new business with a person or affiliate on the antitrust
violator vendor list unless the person or affiliate has been removed from the list pursuant
to subdivision 3, paragraph (e).
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(c) This subdivision does not apply to contracts that were awarded or business transactions
that began before a person or an affiliate was placed on the antitrust violator vendor list or
before July 1, 2021, whichever date occurs later.
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(a) Beginning July 1, 2021, all formal solicitations,
informal solicitations, requests for bid, and requests for proposals, as defined under section
16C.02, and any contract, as defined under section 16C.02, subdivision 6, must contain a
statement informing persons of the requirements under subdivision 2, paragraph (a).
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(b) The department shall maintain an antitrust violator vendor list of the names and
addresses of the persons or affiliates who have been disqualified from the public contracting
and purchasing process under this section. The department shall electronically publish the
initial antitrust violator vendor list on January 1, 2022, and shall update and electronically
publish the list quarterly thereafter. Notwithstanding this paragraph, a person or an affiliate
disqualified from the public contracting and purchasing process pursuant to this section is
disqualified as of the date the department enters the final order.
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(c)(1) After receiving notice of a judgment, sentence, or order from any source that a
person was convicted or held civilly liable for an antitrust violation and after the department
has investigated the information and verified both the judgment, sentence, or order and the
identity of the person named in the documentation, the department must immediately notify
the person or affiliate in writing of its intent to place the name of that person or affiliate on
the antitrust violator vendor list and of the person's or affiliate's right to a hearing, the
procedure that must be followed, and the applicable time requirements. If the person or
affiliate does not request a hearing, the department shall enter a final order placing the name
of the person or affiliate on the antitrust violator vendor list. A person or affiliate may be
placed on the antitrust violator vendor list only after the department has provided the person
or affiliate with a notice of intent.
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(2) Within 21 days after receipt of the notice of intent, the person or affiliate may file a
petition for a formal hearing under section 14.57 to determine whether good cause has been
shown by the department and whether it is in the public interest for the person or affiliate
to be placed on the antitrust violator vendor list. A person or an affiliate is prohibited from
filing a petition for an informal hearing under section 14.59. The procedures of chapter 14
apply to any formal hearing under this paragraph, except that within 30 days after the formal
hearing or receipt of the hearing transcript, whichever is later, the administrative law judge
shall enter a final order that consists of findings of fact, conclusions of law, interpretation
of agency rules, and any other information required by law or rule to be contained in the
final order. The final order shall direct the department to place or not place the person or
affiliate on the antitrust violator vendor list. The final order of the administrative law judge
is final agency action for purposes of sections 14.63 to 14.69.
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(3) When determining whether it is in the public interest to place a person or an affiliate
on the antitrust violator vendor list under this paragraph, the administrative law judge shall
consider the following factors:
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(i) whether the person or affiliate was convicted or held civilly liable for an antitrust
violation;
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(ii) the nature and details of the antitrust violation;
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(iii) the degree of culpability of the person or affiliate proposed to be placed on the
antitrust violator vendor list;
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(iv) reinstatement or clemency in any jurisdiction in relation to the antitrust violation at
issue in the proceeding;
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(v) the needs of public entities for additional competition in the procurement of goods
and services in their respective markets; and
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(vi) the effect of the antitrust violations on Minnesota citizens.
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(4) After the person or affiliate requests a formal hearing, the burden shifts to the
department to prove that it is in the public interest for the person or affiliate to whom it has
given notice under this paragraph to be placed on the antitrust violator vendor list. Proof
that a person was convicted or was held civilly liable or that an entity is an affiliate of the
person constitutes a prima facie case that it is in the public interest for the person or affiliate
to whom the department has given notice to be put on the antitrust violator vendor list.
Status as an affiliate must be proven by clear and convincing evidence. Unless the
administrative law judge determines that the person was convicted or that the person was
civilly liable or is an affiliate of the person, that person or affiliate may not be placed on
the antitrust violator vendor list.
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(5) Any person or affiliate who has been notified by the department of the department's
intent to place the person's name on the antitrust violator vendor list may offer evidence on
any relevant issue. An affidavit alone does not constitute competent substantial evidence
that the person has not been convicted or is not an affiliate of a person convicted or held
civilly liable. Upon establishment of a prima facie case that it is in the public interest for
the person or affiliate to whom the department has given notice to be put on the antitrust
violator vendor list, the person or affiliate may prove by a preponderance of the evidence
that it would not be in the public interest to put him or her on the antitrust violator vendor
list based upon evidence addressing the factors under clause (3).
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(d)(1) Upon receipt of information or an indictment from any source that a person has
been charged with or accused of violating any state or federal antitrust law in a civil or
criminal proceeding, including a civil investigative demand, brought by the attorney general,
a state attorney, the Federal Trade Commission, or the United States Department of Justice
on or after July 1, 2021, the attorney general must determine whether there is probable cause
that a person has likely violated the underlying antitrust laws, which justifies temporary
placement of such person on the antitrust violator vendor list until such proceeding has
concluded.
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(2) If the attorney general determines probable cause exists, the attorney general shall
notify the person in writing of the attorney general's intent to temporarily place the person's
name on the antitrust violator vendor list and of the person's right to a hearing, the procedure
that must be followed, and the applicable time requirements. If the person does not request
a hearing, the attorney general shall enter a final order temporarily placing the name of the
person on the antitrust violator vendor list. A person may be placed on the antitrust violator
vendor list only after being provided with a notice of intent from the attorney general.
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(3) Within 21 days after receipt of the notice of intent, the person may file a petition for
a formal hearing under sections 14.57 to 14.62 to determine whether it is in the public
interest for the person to be temporarily placed on the antitrust violator vendor list. The
procedures under chapter 14 apply to any formal hearing under this paragraph.
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(4) When determining whether it is in the public interest to place a person on the antitrust
violator vendor list under this paragraph, the administrative law judge shall consider the
following factors:
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(i) the likelihood the person will be convicted or held civilly liable for the antitrust
violation;
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(ii) the nature and details of the antitrust violation;
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(iii) the degree of culpability of the person proposed to be placed on the antitrust violator
vendor list;
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(iv) the needs of public entities for additional competition in the procurement of goods
and services in their respective markets; and
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(v) the effect of the antitrust violations on Minnesota citizens.
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(5) The attorney general has the burden to prove that it is in the public interest for the
person to whom it has given notice under this paragraph to be temporarily placed on the
antitrust violator vendor list. Unless the administrative law judge determines that it is in the
public interest to temporarily place a person on the antitrust violator vendor list, that person
shall not be placed on the antitrust violator vendor list.
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(6) This paragraph does not apply to affiliates.
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(e)(1) A person or an affiliate may be removed from the antitrust violator vendor list
subject to terms and conditions prescribed by the administrative law judge upon a
determination that removal is in the public interest. In determining whether removal is in
the public interest, the administrative law judge must consider any relevant factors, including
but not limited to the factors identified in paragraph (c), clause (3). Upon proof that a person
was found not guilty or not civilly liable, the antitrust violation case was dismissed, the
court entered a finding in the person's favor, the person's conviction or determination of
liability has been reversed on appeal, or the person has been pardoned, the administrative
law judge shall determine that removal of the person or an affiliate of that person from the
antitrust violator vendor list is in the public interest. A person or an affiliate on the antitrust
violator vendor list may petition for removal from the list no sooner than six months after
the date a final order is entered pursuant to this section but may petition for removal at any
time if the petition is based upon a reversal of the conviction or liability on appellate review
or pardon. The petition must be filed with the department, and the proceeding must be
conducted pursuant to the procedures and requirements of this subdivision.
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(2) If the petition for removal is denied, the person or affiliate may not petition for
another hearing on removal for a period of nine months after the date of denial unless the
petition is based upon a reversal of the conviction on appellate review or a pardon. The
department may petition for removal before the expiration of the period if, in the department's
discretion, the department determines that removal is in the public interest.
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The conviction of a person or a person being held civilly
liable for an antitrust violation, or placement on the antitrust violator vendor list, does not
affect any rights or obligations under any contract, franchise, or other binding agreement
that predates such conviction, finding of civil liability, or placement on the antitrust violator
vendor list.
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A person who has been placed on the antitrust
violator vendor list is not a qualified applicant for economic incentives under chapter 116J
and the person is not qualified to receive such economic incentives. This subdivision does
not apply to economic incentives that are awarded before a person is placed on the antitrust
violator vendor list or before July 1, 2021.
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This section does not apply to:
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(1) any activity regulated by the Public Utilities Commission;
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(2) the purchase of goods or services made by any public entity from the Department
of Corrections; or
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(3) any contract with a public entity to provide any goods or services for emergency
response efforts related to a state of emergency declaration issued by the governor.
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This section may only be enforced to the extent not inconsistent
with federal law and notwithstanding any other provision of state law.
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(a) For purposes of this section, the following terms have
the meaning given.
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(b) "Algorithm" means a mathematical set of rules that specifies how a group of data
behaves and that assists in ranking search results and maintaining order or that is used in
sorting or ranking content or material based on relevancy or other factors instead of using
published time or chronological order of such content or material.
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(c) "Censor" means any action taken by a social media platform to delete, regulate,
restrict, edit, alter, inhibit the publication or republication of, suspend a right to post, remove,
or post an addendum to any content or material posted by a user. Censor also means actions
to inhibit the ability of a user to be viewable by or to interact with another user of the social
media platform.
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(d) "Deplatform" means the action or practice by a social media platform to permanently
delete or ban a user or to temporarily delete or ban a user from the social media platform
for more than 14 days.
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(e) "Journalistic enterprise" means an entity doing business in Minnesota that:
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(1) publishes in excess of 100,000 words available online with at least 50,000 paid
subscribers or 100,000 monthly active users;
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(2) publishes 100 hours of audio or video available online with at least 100,000,000
viewers annually;
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(3) operates a cable channel that provides more than 40 hours of content per week to
more than 100,000 cable television subscribers; or
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(4) operates under a broadcast license issued by the Federal Communications
Commission.
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(f) "Post-prioritization" means action by a social media platform to place, feature, or
prioritize certain content or material ahead of, below, or in a more or less prominent position
than others in a newsfeed, a feed, a view, or in search results. Post-prioritization does not
include post-prioritization of content and material of a third party, including other users,
based on payments by that third party, to the social media platform.
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(g) "Shadow ban" means action by a social media platform, through any means, whether
the action is determined by a natural person or an algorithm, to limit or eliminate the exposure
of a user or content or material posted by a user to other users of the social media platform.
Shadow ban includes acts of shadow banning by a social media platform which are not
readily apparent to a user.
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(h) "Social media platform" means any information service, system, Internet search
engine, or access software provider that:
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(1) provides or enables computer access by multiple users to a computer server, including
an Internet platform or a social media site;
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(2) operates as a sole proprietorship, partnership, limited liability company, corporation,
association, or other legal entity;
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(3) does business in the state; and
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(4) satisfies at least one of the following thresholds:
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(i) has annual gross revenues in excess of $100,000,000, as adjusted in January of each
odd-numbered year to reflect any increase in the Consumer Price Index; or
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(ii) has at least 100,000,000 monthly individual platform participants globally.
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(i) "User" means a person who resides or is domiciled in Minnesota and who has an
account on a social media platform, regardless of whether the person posts or has posted
content or material to the social media platform.
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(a) A social media platform that fails to comply
with this subdivision commits an unfair or deceptive act or practice.
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(b) A social media platform must publish the standards, including detailed definitions,
it uses or has used to determine how to censor, deplatform, and shadow ban.
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(c) A social media platform must apply censorship, deplatforming, and shadow banning
standards in a consistent manner among the social media platform's users on the platform.
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(d) A social media platform must inform each user about any changes to the social media
platform's user rules, terms, and agreements before implementing the changes. A social
media platform is prohibited from making changes to the social media platform's rules,
terms, and agreements more than once every 30 days.
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(e) A social media platform is prohibited from censoring or shadow banning a user's
content or material, or from deplatforming a user from the social media platform:
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(1) without notifying the user who posted or attempted to post the content or material;
or
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(2) in any manner that violates this section.
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(f) A social media platform must:
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(1) provide a mechanism that allows a user to request the number of other individual
platform participants who were provided or shown the user's content or posts; and
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(2) provide, upon request, a user with the number of other individual platform participants
who were provided or shown content or posts.
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(g) A social media platform must:
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(1) categorize algorithms used for post-prioritization and shadow banning; and
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(2) allow a user to opt out of post-prioritization and shadow banning algorithm categories
to allow sequential or chronological posts and content.
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(h) A social media platform must provide users with an annual notice on the use of
algorithms for post-prioritization and shadow banning, and must annually reoffer the opt-out
opportunity in paragraph (g), clause (2).
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(i) A social media platform may not apply or use post-prioritization or shadow banning
algorithms for content and material posted by or about a user who is known by the social
media platform to be a candidate, as defined in section 211B.01, subdivision 3, beginning
on the date of qualification and ending on the date of the election or the date the candidate
ceases to be a candidate. Post-prioritization of certain content or material from or about a
candidate for office based on payments to the social media platform by such candidate for
office or a third party is not a violation of this paragraph. A social media platform must
provide each user a method by which the user may be identified as a qualified candidate
and which provides sufficient information to allow the social media platform to confirm
the user's qualification by reviewing the secretary of state's website or the website of the
local supervisor of elections.
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(j) A social media platform must allow a user who has been deplatformed to access or
retrieve all of the user's information, content, material, and data for at least 60 days after
the user receives the notice required under paragraph (e), clause (1).
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(k) A social media platform is prohibited from taking any action to censor, deplatform,
or shadow ban a journalistic enterprise based on the content of the journalistic enterprise's
publication or broadcast. Post-prioritization of certain journalistic enterprise content based
on payments to the social media platform by the journalistic enterprise is not a violation of
this paragraph. This paragraph does not apply if the content or material is obscene, as defined
under section 617.241, subdivision 1, paragraph (a).
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For purposes of subdivision 2, paragraph (e),
clause (1), a notification must:
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(1) be in writing;
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(2) be delivered via electronic mail or direct electronic notification to the user within
seven days after the date of the censoring action;
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(3) include a thorough rationale explaining the reason why the social media platform
censored the user; and
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(4) include a precise and thorough explanation of how the social media platform became
aware of the censored content or material, including a thorough explanation of the algorithms
used, if any, to identify or flag the user's content or material as objectionable.
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Notwithstanding subdivision 2, paragraph (e), clause
(1), and subdivision 3, a social media platform is not required to notify a user if the censored
content or material is obscene, as defined in section 617.241, subdivision 1, paragraph (a).
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If the department, by a department inquiry or as a result of a
complaint, suspects that a violation of this section is imminent, occurring, or has occurred,
the department may investigate the suspected violation as provided by and consistent with
this section. Based on the investigation, the department may bring a civil or administrative
action under this section. For the purpose of bringing an action pursuant to this section,
sections 325D.45 and 325D.46 do not apply.
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A user may bring a private cause of action only for
violations of subdivision 2, paragraph (c) or (e), clause (1). In a private cause of action
brought under subdivision 2, paragraph (c) or (e), clause (1), the court may award the
following remedies to the user:
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(1) up to $100,000 in statutory damages per proven claim;
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(2) actual damages;
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(3) if aggravating factors are present, punitive damages;
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(4) other forms of equitable relief, including injunctive relief; and
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(5) if the user was deplatformed in violation of subdivision 2, paragraph (c), costs and
reasonable attorney fees.
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For purposes of bringing an action under subdivisions
5 and 6, each failure to comply with the individual provisions of subdivision 2 shall be
treated as a separate violation, act, or practice. For purposes of bringing an action under
subdivisions 5 and 6, a social media platform that censors, shadow bans, deplatforms, or
applies post-prioritization algorithms to candidates and users in Minnesota is conclusively
presumed to be both engaged in substantial and not isolated activities within Minnesota and
operating, conducting, engaging in, or carrying on a business, and doing business in
Minnesota, and is therefore subject to the jurisdiction of the courts of Minnesota.
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In an investigation by the department into alleged
violations of this section, the department's investigative powers include but are not limited
to the ability to subpoena any algorithm used by a social media platform related to any
alleged violation.
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Notwithstanding any other law to the contrary, this section may
be enforced only to the extent not inconsistent with federal law and United States Code,
title 47, section 230(e)(3).
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If any provision of this act or the application thereof to any person or circumstance is
held invalid, the invalidity does not affect other provisions or applications of the act which
can be given effect without the invalid provision or application. Minnesota Statutes, sections
211B.40, 325D.75, and 325E.80, are severable.
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