Social Media

Texas’ social media age-restriction law likely violates the First Amendment, a federal judge ruled Friday, partially blocking the measure and marking a victory for the tech industry (see 2408230014). The Computer & Communications Industry Association and NetChoice sued to block HB-18, which was set to take effect Sunday. The trade associations, which requested a preliminary injunction, met their burden in showing HB-18’s speech restrictions “fail strict scrutiny, are unconstitutionally vague, and are preempted by Section 230,” wrote Judge Robert Pitman, on behalf of the U.S. District Court for the Western District of Texas (docket 1:24-cv-00849). The decision enjoins HB-18’s monitoring and filtering provisions, but Pitman found the law’s remaining provisions can take effect because they don’t “unconstitutionally regulate a meaningful amount of constitutionally protected speech.” The court “recognized that this Texas law restricts protected speech in a way that likely violates the First Amendment and that it deserves the most stringent constitutional scrutiny,” said CCIA Chief of Staff Stephanie Joyce. “This ruling will ensure that internet users can continue accessing information and content online while we further prove that this law is unlawful and unconstitutional.”

Expect the U.S. Supreme Court to issue a major interpretation on Section 230 as lower courts continue to make conflicting rulings about social media platforms’ free speech rights, legal experts told us in interviews.

California lawmakers supported stopping kids from accessing social media through smartphones at school before the 2024 legislative session wrapped up last week. On Friday, the Assembly voted 51-0 for SB-1283, which would require that schools to adopt limits or bans on student use of smartphones. The legislature passed a similar bill (AB-3216) earlier last week (see 2408280033). Amendments to SB-1283 ensure the bill won’t expand surveillance of children but simply keeps them off social media at school, said Assemblymember Rebecca Bauer-Kahan (D) on the floor. Also Friday, the legislature passed a bill to require social media platforms to have a staffed hotline for responding to law enforcement information requests, and to comply within 72 hours to search warrants. No senator opposed concurring with Assembly changes to SB-918. Voting continued after our deadline. On Thursday, state lawmakers passed video franchise and privacy bills. The Assembly voted 50-16 Thursday to concur with Senate changes to AB-1826 to update the state’s 2006 video franchise law, the Digital Infrastructure and Video Competition Act. If signed by Gov. Gavin Newsom (D), the bill will increase DIVCA fines for service-quality problems and seeks increased participation from the public and its advocates in the franchise renewal process. The Assembly also concurred with the Senate on AB-1949, which would set stricter limits on sharing children’s personal data under the California Consumer Privacy Act. Also on Thursday, the Assembly voted 71-0 to pass SB-1504, which would tighten a cyberbullying law that requires social platforms to have reporting mechanisms. It still needed another vote in the Senate. The same day, the Senate voted 30-2 to pass AB-2481, which would create a mechanism for people who report threatening content on social media platforms. That bill still needed another vote in the Assembly. The legislature earlier passed bills on AI, privacy, social media and network resiliency (see 2408290005 and 2408280033).

Canada’s digital services tax (DST) appears to violate the country’s trade commitments with the U.S., the Office of the U.S. Trade Representative said Friday, requesting a review under the United States-Mexico-Canada Agreement. The DST, reflected in a budget passed in June, seems discriminatory toward U.S. companies and is inconsistent with chapters 14 and 15 of the USMCA, the USTR said. The DST imposes a 3% tax on “the sum of revenues deemed connected to Canada from online marketplaces, online targeted advertising, social media platforms, and user data,” according to the filing. It applies to companies with global revenue of €750 million or more and Canadian digital services revenue of more than CAD20 million. The measure violates Canada’s commitments to the USMCA, which requires equal treatment for U.S. and Canadian services, service suppliers and investors, said USTR. The Computer & Communications Industry Association welcomed the filing, citing Canadian Parliamentary Budget Office figures showing American companies will be responsible for the “vast bulk” of the $3 billion estimated for the first payment in June. “We expect that under USMCA, the facts and the law will demonstrate that Canada should remove this measure expeditiously. And, absent compliance, we look to USTR to follow through on its pledge to use all tools available to remedy this trade-distortive measure,” said CCIA Vice President-Digital Trade Jonathan McHale. CCIA, CTA and TechNet joined more than 10 associations in writing a letter to USTR in June opposing the DST.

The California legislature will send state bills on smartphones in schools, privacy and social media to Gov. Gavin Newsom (D). On Wednesday, the Assembly concurred with Senate changes to AB-3216, which would require schools adopt limits or bans on student use of smartphones; AB-3048, which would require web browsers to opt-out from the sale of and sharing data on all websites; AB-1824, which would require a business acquiring another company to follow an acquired customer’s privacy directions under the California Consumer Privacy Act; and AB-1282, which orders a study on mental health risks of social media for children. The Senate approved the bills Tuesday (see 2408280033). In addition, the Assembly voted 48-16 for a measure (SB-1047) allowing the attorney general to pursue civil penalties against large AI developers if they cause “severe harm” to residents. On Thursday, the Senate voted 29-9 to concur with the Assembly and send the AI bill to the governor. SpaceX and Tesla founder Elon Musk said California should “probably pass” the bill that Sen. Scott Wiener (D) proposed (see 2408270047). Meanwhile on Wednesday, the Senate voted 25-10 to pass AB-1826, which would update California's 2006 video franchise law, known as the Digital Infrastructure and Video Competition Act (DIVCA). The bill would increase fines for service-quality problems and seeks increased participation from the public and its advocates in the franchise renewal process. And senators voted 33-0 to pass AB-1949, which would set stricter limits on sharing children’s personal data under the CCPA. The Senate-passed bills will go back to the Assembly to concur with Senate amendments. On Thursday, California Privacy Protection Agency Executive Director Ashkan Soltani applauded passage of the bill requiring opt-out preference signals, which, he said, will make it "significantly easier for Californians to exercise their opt–out rights online." The Computer & Communications Industry Association opposed the AI bill in a statement Thursday. The measure's goals "appear well-intentioned, but poorly informed and ill-executed," said CCIA State Policy Director Khara Boender. "It would disrupt the development of the U.S. AI ecosystem by imposing untenable liability as U.S. companies compete with foreign companies."

California state senators passed bills on telecom, privacy and social media Wednesday. The state Senate voted 38-0 for AB-2765, which would require that the California Public Utilities Commission report on inspections that ensure companies comply with resiliency plans. The Assembly then concurred with Senate changes, allowing the bill to go to Gov. Gavin Newsom (D). Also, the Senate voted 38-1 to approve a bill (AB-3216) requiring that schools adopt limits or bans on student use of smartphones. On privacy, the Senate voted 31-7 for AB-3048, which would require web browsers to opt-out from the sale of and sharing data on all websites. Senators voted 39-0 for AB-1824, which would require a business acquiring another company to follow an acquired customer’s privacy directions under the California Consumer Privacy Act. In addition, they voted 40-0 for a bill (AB-1282) that would require a study on mental health risks of social media for children. The Assembly previously passed AB-1282, AB-1824, AB-3216 and AB-3048 but must vote again to concur with Senate changes. Also Tuesday, Newsom received AB-2905, which the legislature passed last week. It would expand the state’s autodialer definition to include calls made with an AI voice. The California legislature wraps up its session Saturday.

A state court allowed an Iowa lawsuit against TikTok that claims the social media company duped parents about children’s access to inappropriate content. The Iowa District Court for Polk County in Des Moines denied TikTok’s motion to dismiss the state’s Jan. 17 petition in a ruling this week. While the court also denied Iowa’s motion for preliminary injunction, Iowa Attorney General Brenna Bird (R) said in a Wednesday statement that the decision is “a big victory in our ongoing battle to defend Iowa’s children and parents against the Chinese Communist Party running TikTok. Parents deserve to know the truth about the severity and frequency of dangerous videos TikTok recommends to kids on the app.” Bird claimed TikTok violated the Iowa Consumer Fraud Act through misrepresentations, deceptions, false promises and unfair practices, which allowed it to get a 12+ rating on the Apple App Store despite containing content inappropriate for kids aged 13-17. “Considering the petition as a whole, the State has submitted a cognizable claim under the CFA,” wrote Judge Jeffrey Farrell. TikTok doesn’t get immunity from Section 230 of the Communications Decency Act because the state’s petition “addresses only the age ratings, not the content created by third parties,” the judge added. However, Farrell declined to preliminarily enjoin TikTok since the state hasn’t “produced any evidence to show an Iowan has been viewed and harmed” by videos with offensive language or topics. The judge said, “The State presented no evidence of any form to show irreparable harm.” TikTok didn’t comment Wednesday.

The Schools, Health & Libraries Broadband Coalition, joined by public interest groups, and T-Mobile opposed a petition at the FCC seeking reconsideration of last month’s 3-2 order allowing schools and libraries to use E-rate support for off-premises Wi-Fi hot spots and wireless internet services (see 2407180024). They were the only filers in docket 21-31 as of Wednesday. Tuesday was the deadline for oppositions. Maurine and Matthew Molak, who sued the agency over its decision that authorized funding Wi-Fi on school buses, are seeking reconsideration (see 2408020035). The FCC should dismiss the Molak petition “as it relies on arguments that have been fully considered and rejected by the Commission within the same proceeding,” said SHLB. The Open Technology Institute at New America and the Benton Institute for Broadband & Society joined SHLB. “Petitioners fail to identify any material error, omission, or reason warranting reconsideration of their arguments alleging the Commission’s lack of statutory authority,” the groups said. The petition “merely asserts its claims and does not raise any additional argument purporting that the Commission had either erred in its reasoning that the above-mentioned statutory provisions grant[ ] it legal authority, or that the Commission omitted or failed to consider certain facts or reasoning when making its determination.” Even before the COVID-19 pandemic, “a majority of students required the Internet to complete their homework every single day,” T-Mobile said. “Progress made in addressing the Homework Gap during the pandemic by local school districts that provided students with Wi-Fi hotspots is now in jeopardy, and so the Wi-Fi lending program contained in the Order is crucial to sustaining pandemic-era connectivity gains and connecting students.” The FCC order contains appropriate safeguards, T-Mobile said: “It requires applicants to maintain acceptable use policies that clearly state that off-premises use must be primarily for an educational purpose.” The Molaks, whose 16-year-old son died by suicide after he was cyberbullied, argued that the school bus ruling would give children and teenagers unsupervised social media access.

AT&T suffered a wireless outage Tuesday night that apparently started in the Southeast and spread throughout the U.S., based on social media and other reports. A software issue caused the outage, which was resolved, AT&T said Wednesday. The FCC is investigating, a spokesperson emailed.

NAB will provide broadcasters with digital resources, virtual education and a summit at NAB New York as part of an “election preparedness initiative” aimed at delivering “accurate and reliable” coverage of the 2024 election, the trade group said in a release Tuesday. “As bad actors increasingly use advanced technologies to create and spread disinformation, the role of local broadcasters as custodians of the truth has never been more important,” NAB President Curtis LeGeyt said in the release. The initiative includes an election toolkit with resources on trust-building and broadcast best practices, and targeted resources “aimed at increasing voter participation and engagement within the Hispanic community.” On Sept. 9, NAB and the Radio Television Digital News Association will hold a free online virtual learning session on “building trust with their audiences and combating disinformation during the 2024 election season.” On Oct. 10, NAB will host an in-person summit at the NAB Show New York on improving trust in political coverage, “ensuring verified news in the age of AI and social media,” and combating misinformation and deep fakes. “The Election Coverage Summit is an essential forum for those committed to delivering trusted news during this critical time,” the release said.