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NetChoice Wins Injunction Against California’s Child Privacy Law

CALIFONIA: A federal judge has ruled that California cannot enforce a law designed to shield children from potentially harmful online content.

On Thursday, U.S. District Judge Beth Labson Freeman granted a preliminary injunction to trade group NetChoice, stating that the California Age-Appropriate Design Code Act likely violates its members’ First Amendment rights.

Legal Battle Over Online Censorship

NetChoice, which represents Amazon, Google, Meta (Facebook and Instagram), Netflix, and X (formerly Twitter), argued that the law would effectively turn tech companies into state-mandated censors, restricting internet content under the guise of privacy protections.

California Attorney General Rob Bonta expressed disappointment in the ruling but reaffirmed his commitment to defending the state’s regulations. His office intends to challenge the decision in court.

Controversial Law and Its Provisions

Signed by Governor Gavin Newsom in September 2022, the law required online platforms to:

  • Assess potential risks to children before launch.
  • Estimate users’ ages and apply protective privacy settings.
  • Provide strict privacy settings for all users if age verification is not possible.

Businesses found negligent could face civil fines of up to $2,500 per affected child, while intentional violations could result in fines of $7,500 per child.

Judge’s Ruling

In her 56-page ruling, Judge Freeman concluded that the law imposed significant burdens on businesses and was not narrowly tailored to its intended goal of protecting children.

“A regulation that focuses on the emotive impact of speech on its audience is content-based, and therefore must be drawn as narrowly as possible,” she wrote, adding that the state had failed to demonstrate the law met this standard.

Freeman had previously blocked the law in September 2023, but a federal appeals court later ordered a reassessment. The law, initially set to take effect in July 2023, remains on hold following this latest decision.

The case is NetChoice LLC et al v. Bonta, U.S. District Court, Northern District of California, No. 22-08861.

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