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Sponsor Promote and Compensation Act

12/7/2023, 5:05 PM

Summary of Bill S 1901

Bill 118 s 1901, also known as the Sponsor Promote and Compensation Act, was introduced in the US Congress with the aim of addressing issues related to sponsorship and compensation for individuals promoting products or services on social media platforms. The bill seeks to establish guidelines and regulations for influencers and other individuals who are paid to promote products or services on social media.

Under the provisions of the bill, influencers and other individuals who receive compensation for promoting products or services on social media would be required to disclose their sponsorship in a clear and transparent manner. This disclosure would need to be prominently displayed on any posts or content that promotes a product or service, ensuring that consumers are aware of any potential bias or financial incentives behind the promotion.

Additionally, the bill would also establish guidelines for the compensation of influencers and other individuals who promote products or services on social media. These guidelines would aim to ensure that influencers are fairly compensated for their work, while also protecting consumers from deceptive or misleading advertising practices. Overall, the Sponsor Promote and Compensation Act seeks to promote transparency and accountability in the world of social media advertising, ensuring that consumers are able to make informed decisions about the products and services they choose to purchase. The bill is currently under review in Congress, with bipartisan support for its goals of promoting ethical advertising practices on social media platforms.

Congressional Summary of S 1901

Sponsor Promote and Compensation Act

This bill establishes additional disclosure requirements for a blank check company (e.g., a special purpose acquisition company) during an initial public offering or prior to a merger. A blank check company is a development stage company that issues a penny stock and (1) has no specific business plan or purpose, or (2) has indicated that its business plan is to merge with a company or companies.

Specifically, the bill requires such a company to disclose

  • the amount of cash per share expected to be held by the blank check company immediately prior to the merger under various redemption scenarios;
  • side payments or agreements to pay sponsors, blank check company investors, or private investors in public equity for their participation in the merger; and
  • fees or other payments to the sponsor, underwriter, and any other party.

Current Status of Bill S 1901

Bill S 1901 is currently in the status of Bill Introduced since June 8, 2023. Bill S 1901 was introduced during Congress 118 and was introduced to the Senate on June 8, 2023.  Bill S 1901's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of June 8, 2023

Bipartisan Support of Bill S 1901

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 1901

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill S 1901

Sponsor Promote and Compensation Act
Sponsor Promote and Compensation Act
A bill to require the Securities and Exchange Commission to issue rules requiring enhanced disclosures for blank check companies during initial public offering and pre-merger stages, and for other purposes.

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