California Legislature sends bill raising social media penalties to Gavin Newsom

A California bill that would increase penalties for social media companies that are found to have injured children is heading to Gov. Gavin Newsom after passing the Legislature Friday.

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Assembly Bill 2 received widespread bipartisan support among legislators, reflecting the concern that many parents have about what young people are exposed to online and frustration with what they see as a lack of action by Congress to regulate tech companies. The social media platforms have been the subject of landmark legal cases in recent years that have led to significant losses in court.

Under the measure, a social media platform could face up to $1 million in penalties per child, or three times the amount of a young person’s damages in court, whichever is larger. It now goes before Gov. Gavin Newsom who has a month to decide its fate.

The bill’s author, Assemblymember Josh Lowenthal, D-Long Beach, said the goal of the legislation is not to lead to more lawsuits or make attorneys rich, but to incentivize social media giants to make their platforms safer.

“This ensures that payouts for injuries and death can no longer be chalked up to the price of doing business,” he said. “Real accountability is achieved when prevention is cheaper than penalties.”

The measure does have limits: It would only remain in effect until the start of 2035 and apply to cases pending after Jan. 1 of next year.

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The measure’s passage came two days after Meta, the parent company of Instagram and Facebook, announced a $17 billion proposed settlement with California Attorney General Rob Bonta and other state leaders across the country. The deal was heralded by advocates and legislators but also only seen as one victory in a much larger fight.

“The Meta settlement is proof that the prospect of paying real money works,” said Jim Steyer, CEO of Common Sense Media, which was a key supporter of the measure and has backed other bills attempting to regulate social media companies. “But Meta is one company in an industry that has harmed kids for over a decade, and that will keep doing it until hurting a child costs more than protecting one. Josh Lowenthal wrote a bill that sets a single standard for every large platform, permanently, and that does not depend on a company agreeing to be bound.”

Lowenthal also has a bill pending that would require companies to offer platforms to children under 16 years old that do not use personalized feeds, autoplay or other features designed keep people locked onto the applications. The deadline to pass that measure is Aug. 31.

Trade groups TechNet and NetChoice, which represent social media companies including Meta, YouTube and TikTok, declined to comment on AB 2’s passage.

The Governor’s Office also declined to comment on Newsom’s position on the measure, but he has supported efforts to regulate social media use for children in the past. Lowenthal said he is optimistic the governor will sign the measure.

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