Due to limited progress at the federal level, states have taken matters into their own hands, but their legislative efforts have faced stiff opposition
Governor passes law that aims to better protect children online: In September 2022, California approved two new pieces of digital regulation. Most recently, Governor Gavin Newsom signed into law a bipartisan bill – known as AB 2273 – designed to protect the “wellbeing, data and privacy of children” when using online platforms. The move establishes the California Age-Appropriate Design Code Act, which (from July 2024) will require tech firms to consider the interests of child users and to default to privacy and safety settings that protect children's mental and physical health. The act prohibits providers of online services, products or features from: using a child’s personal information; collecting, selling or retaining a child’s geolocation; profiling a child by default; and leading or encouraging children to provide personal information. It also requires that privacy information, terms of service, policies and community standards be easily accessible and upheld.
Social networks to report on content moderation systems: In addition, Newsom has given his signature to a law intended to improve social media transparency. A bill, AB 587, was introduced in the wake of the US Capitol riot in January 2021 and will soon require tech companies – such as Facebook and YouTube – to file semiannual reports with the state’s attorney general that publicly disclose their content moderation policies regarding hate speech, disinformation and extremism. Specifically, these reports should provide details about how many pieces of content tech firms’ systems flag and how much is then removed or deprioritised, as well as the extent to which policing of content online relies on artificial intelligence. California’s social media transparency law reflects the increasing role US states are looking to play in regulating the tech industry in the absence of action by Congress.
California might inspire other states but cannot rule out legal challenges: Approval of AB 2273 makes California the first state to require tech companies to implement safeguards on their apps and websites for users under 18. Proponents consider that the act (which is modelled on the UK’s Children’s Code) is a “game changer” and it could inspire other states to follow suit. However, there are concerns about the potential compliance burden, while Netchoice – a tech sector association – has called the act “well-meaning but rife with unintended consequences”. California’s social media law is also considered controversial and has faced opposition. Its authors maintain that the law’s targeted focus on transparency makes it less contentious than similar bills proposed in Florida and Texas, which have seen fierce legal battles (for example, over restrictions of free speech). While transparency appears an appropriate first step in increasing platform oversight, court challenges to AB 587 on censorship grounds are still possible, as is the chance the law gets struck down.
Source: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2273
