Vermont’s lawsuit alleging Meta designed Instagram with the intention of addicting young users can proceed, a superior court judge ruled last week (docket 23-CV-4453). Superior Court Judge Helen Toor denied Meta’s motion to dismiss, saying the company’s First Amendment and Communications Decency Act Section 230 arguments didn't persuade her. Vermont alleges Meta violated the Vermont Consumer Protection Act by intentionally seeking to addict young users through methods it knows are harmful to mental and physical health. The company misrepresented its intentions and the harm it’s “knowingly causing,” the state argued. Vermont is seeking injunctive relief and civil damages. In Meta's request for dismissal, it argued the state lacks jurisdiction, the First Amendment and Section 230 bar the claims, and state enforcers failed to offer a valid claim under state law. The court heard oral argument July 3. The state noted more than 40,000 Vermont teens use Instagram and about 30,000 do so daily. The company uses targeted advertising and other features to maximize the amount of time teens spend on the app. Toor said the First Amendment protects companies' speech, but it doesn’t protect against allegations that a company is manipulating younger users. She noted Section 230 protects a company against liability for hosting third-party content, but it doesn’t shield from liability when a company engages in illegal conduct. Vermont isn’t seeking to hold Meta liable for content it hosts, she said: “Instead, it seeks to hold the company liable for intentionally leading Young Users to spend too much time on-line. Whether they are watching porn or puppies, the claim is that they are harmed by the time spent, not by what they are seeing.” Attorney General Charity Clark filed the lawsuit in October.
FCC Commissioner Brendan Carr’s Project 2025 ties likely won’t damage his chances of becoming the agency's chair if Donald Trump is elected president in November, even though the Trump campaign has distanced itself from the project (see 2407110054). Commissioner Nathan Simington is listed as a project adviser but didn’t write a chapter, as Carr did, or play a more public role.
A bipartisan group of senators on Wednesday formally filed legislation that would establish liability for sharing AI-driven content without the original creator’s consent. Sens. Chris Coons, D-Del.; Marsha Blackburn, R-Tenn.; Amy Klobuchar, D-Minn.; and Thom Tillis, R-N.C., introduced the Nurture Originals, Foster Art and Keep Entertainment Safe (No Fakes) Act (see 2310120036). The measure would hold individuals, companies and platforms liable for creating and hosting such content. “Generative AI can be used as a tool to foster creativity, but that can’t come at the expense of the unauthorized exploitation of anyone’s voice or likeness,” Coons said in a statement. The Computer & Communications Industry Association said the bill is “well-intentioned,” but as written it would “undermine Section 230, place limits on freedom of expression, and shrink fair use.” In addition, it lacks provisions protecting fair use and free expression, said Brian McMillan, vice president-federal affairs: “We understand the risks of false information that appears real, as our members deploy many algorithmic tools to identify and respond to deepfakes. This legislation emphasizes liability over support for these efforts.”
The Senate voted 86-1 Thursday to advance two kids’ safety bills, with Sen. Rand Paul, R-Ky., casting the lone no vote (see 2407240057).
A district court dismissed one count of NetChoice’s 11-count complaint that argued Section 230 of the Communications Decency Act preempts Utah’s Minor Protection in Social Media Act. Utah Attorney General Sean Reyes (R) had sought dismissal of the count (see 2406030026), arguing that nothing in the state law is inconsistent with Section 230. “The court concludes the challenged provisions impose liability for conduct that falls beyond the protections Section 230 affords NetChoice members,” Judge Robert Shelby of the U.S. District Court of Utah ruled (case 2:23-cv-00911-RJS-CMR). “The Act’s prohibitions on the use of autoplay, seamless pagination, and push notifications are not inconsistent with Section 230.” The question is whether those bans “treat NetChoice members as the publisher or speaker of the third-party content they disseminate,” wrote Shelby in NetChoice v. Reyes. They don’t, he said. “The Act’s prohibitions focus solely on the conduct of the covered website -- the website’s use of certain design features on minors’ accounts -- and impose liability irrespective of the content those design features may be used to disseminate.” The judge added, “NetChoice’s interpretation of Section 230 as broadly immunizing websites from any liability for design decisions related to how a site ‘disseminate[s] and display[s] third-party speech’ is unmoored from the plain text of Section 230 and unsupported by the caselaw NetChoice cites.” In a statement Tuesday, NetChoice stressed that the court dismissed only one claim and that its First Amendment and other federal preemption claims remain in play. “We look forward to seeing Utah in court in August,” said Chris Marchese, NetChoice Litigation Center director.
Stop Project 2025 Task Force founder Rep. Jared Huffman of California and 15 additional House Democrats asked FCC Inspector General Fara Damelin and other federal watchdogs Wednesday to investigate “potential ethics violations” by Republican FCC Commissioner Brendan Carr related to his writing the telecom chapter of the Heritage Foundation’s Project 2025 manifesto. Carr, seen as the front-runner to lead the FCC if former President Donald Trump wins a second term (see 2407120002), urged in the Project 2025 chapter to roll back Communications Decency Act Section 230 protections for tech companies, deregulate broadband infrastructure and restrict Chinese companies. Trump has disavowed Project 2025 and its proposals.
Sens. Ron Wyden, D-Ore., and Rand Paul, R-Ky., remain opposed to the Kids Online Safety Act, which is preventing Senate Majority Leader Chuck Schumer, D-N.Y., from moving the bill by unanimous consent (see 2406200053).
The U.S. Supreme Court has opened the door for lower courts to clarify when the government can regulate the tech industry’s content moderation practices, legal experts said Friday.
Republican FCC Commissioner Nathan Simington appears likely to win renomination regardless of which party takes the White House in November, lawmakers and lobbyists said in interviews. Some observers believe it's unlikely Democrats will use Simington's 2025 confirmation process to strike back against any FCC structural changes Republican Commissioner Brendan Carr may propose if former President Donald Trump wins and nominates him as chairman, as expected (see 2407120002). Carr’s reconfirmation last year (see 2310020043) means his term doesn’t expire until 2028, so he wouldn't face a new round of Senate scrutiny.
Expect a Donald Trump White House and FCC to focus on deregulation and undoing the agency's net neutrality and digital discrimination rules, telecom policy experts and FCC watchers tell us. Brendan Carr, one of the two GOP minority commissioners, remains the seeming front-runner to head the agency if Trump wins the White House in November (see 2407120002). Despite repeated comments from Trump as a candidate and president calling for FCC action against companies such as CNN and MSNBC over their news content, many FCC watchers on both sides of the aisle told us they don’t expect the agency to actually act against cable networks or broadcast licenses under a second Trump administration.