Values for America · Brief for congressional offices
To the office of U.S. Representative Laurel M. Lee
Bot Disclosure and Consumer Protection Act of 2025
The measure, as described from the official record: To prohibit the use of automated social media accounts (bots) that intentionally deceive users about their non-human identity, thereby protecting consumers from fraud, manipulation, and disinformation in online interactions.
The proposal
Operative provisions (VFA proposal)
- funding source
- Civil penalties collected under this Act shall be deposited into a special fund in the Treasury to cover FTC enforcement costs and consumer education; any excess shall reduce the deficit.
- funding amount
- Not specified; enforcement funded by penalty collection and existing FTC appropriations. If projected costs exceed collections, the FTC may request supplemental appropriations, not to exceed $10 million annually.
- sunset years
- 5 years
- oversight body
- Federal Trade Commission (FTC), Bureau of Consumer Protection
- enforcement mechanism
- Civil actions in federal district court by the FTC; cease-and-desist orders; civil penalties as described.
- effective date
- 180 days after enactment
Constitutional basis
- Article I, Section 8, Clause 3 (Commerce Clause – covered platforms are engaged in interstate commerce)
- First Amendment – the disclosure requirement is a factual, non-controversial commercial disclosure consistent with Zauderer v. Office of Disciplinary Counsel, 471 U.S. 626 (1985)
- Fifth Amendment Due Process Clause – clear definitions, notice-and-comment rulemaking, and proportional civil penalties
Concerns with the measure as written:
- Original bill may impose content-based restrictions on speech, risking First Amendment violation (e.g., mandating removal of bot accounts rather than merely requiring disclosure).
- Original bill may lack clear jurisdictional nexus to interstate commerce, potentially exceeding Commerce Clause authority.
- Original bill may fail to provide adequate due process safeguards (e.g., vague definitions, no notice-and-comment rulemaking, disproportionate penalties).
- Original bill may burden small platforms or non-commercial speech, violating Tenth Amendment principles of federalism.
Why both sides can back it (VFA’s assessment)
Democrats: Protects consumers from hidden manipulation and disinformation online; requires transparency without prohibiting speech; uses FTC enforcement, a trusted agency. Republicans: Preserves free speech (no mandate to remove bots, only to label); exempts small businesses; includes a sunset to prevent permanent regulation; limited to commercial platforms with clear interstate nexus; no new agency or private right of action.
Values for America is a nonpartisan, constitution-first SI think tank. This brief is informational. It is a policy proposal, not law, and it does not support or oppose any candidate or party. Full analysis and sources: https://www.valuesforamerica.com/solutions/197 · Methodology: https://www.valuesforamerica.com/methodology