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A US Bill Would Ban Kids Under 13 From Joining Social Media

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A new bipartisan federal proposal introduced in the US Senate today would set a national age limit for using social media, effectively banning anyone 12 and under from using the apps many children currently spend hours a day on.

There are countless efforts floating around Capitol Hill aimed at safeguarding the nation’s children from the dangers of social media, but this new measure, known as the Protecting Kids on Social Media Act, takes aim at the algorithms Silicon Valley employs to keep kids on their sites. Specifically, it bars children under 13 from creating accounts on social media apps, while also greatly curtailing the algorithms tech companies could deploy on people between 13 and 17 years old. (Users under 13 would still be able to view online content, provided they aren’t logged into an account.) The bill would also require parental consent before anyone under 18 could create a profile.

To ensure pre-teens and children don’t create social media profiles, the bill would also create a government-run age-verification program, overseen by the Department of Commerce. The system would require children and their parents to upload identification to prove their age. While the legislation doesn’t mandate that companies use the government system, it would nevertheless represent a significant expansion of the government’s role in the online ecosystem.

As such, the bill could upend the internet as we know it by adding substantial government oversight over social media platforms. The bipartisan legislation’s being met with bipartisan skepticism.

“We kind of went through this when Tipper Gore was trying to ban music for some people,” Senator Tina Smith, a Minnesota Democrat, says upon first hearing of the concept.

The legislation’s sponsors are offended by the comparison. In fact, they say their proposal purposely avoids content altogether.

“Let’s be clear, this bill is completely content neutral,” says senator Chris Murphy, a Connecticut Democrat. “All it says is that you cannot build a purposefully addictive program that leads especially vulnerable children down deep, deep dark rabbit holes.”

The broadly bipartisan effort also showcases the pressure ratcheting up on party leaders by rank and file lawmakers on both sides of the aisle who are demanding Congress act to protect children, after years of watching similar efforts dither.

Freshman Senator Katie Britt, an Alabama Republican, ran as “a momma on a mission” and says this is a personal issue to her and the others. “Bringing the issues that we talk about as parents in the home, with our friends, we watch unfold before us in our schools and our communities, that’s what we’re here to do, is to bring that voice, the voice of parents,” Britt says.

As to whether their measure could stifle the next generation of tech entrepreneurs, Britt says the opposite is the case. “That’s what we’re fighting for,” Britt says. “You want our kids to be healthy and prepared to achieve their American dream.”

Arkansas Senator Tom Cotton is the other Republican author. On the Democratic side, senator Murphy of Connecticut is joined by Brian Schatz of Hawaii as a lead sponsor. All four are young, in Senate terms at least, and all have young children.

While all the major Silicon Valley social media firms—from Instagram to TikTok—say they block children from using their apps, these senators say those efforts have failed.

“It’s not working,” Schatz says.“There’s no free speech right to be jammed with an algorithm that makes you upset, and these algorithms are making us increasingly polarized and disparaging and depressed and angry at each other. And it’s bad enough that it’s happening to all of us adults, the least we can do is protect our kids.”

While the measure’s sponsored by progressive Democrats and one of the most ardent conservatives in the Senate, lawmakers from across the ideological spectrum are equally skeptical of the proposal, showing the difficult road ahead for passing any new media measure, including those aimed at children. Many lawmakers are torn between protecting kids online and preserving the robust internet as we know it. Naturally, most senators are looking at their own families for guidance.

“My grandkids have flip phones. They don’t have smartphones until they get older,” senator Mitt Romney, a Utah Republican, says. Romney—who’s open to the idea, if initially dubious—says there’s not even uniformity in his own family on these issues.

“I have five sons, so there are five different families and they do have different approaches,” Romney says. “And the youngest son is the one that’s most strict, and the oldest son didn’t really think of it as being such a big deal.”

For Smith, the Minnesota senator worried about her party coming across as Big Sister, there wasn’t even uniformity in her own household when her boys were fighting over the family’s first desktop computer ages ago. And her kids also proved to be (mini)hackers.

“We were trying to figure out how to monitor their interactions with the computer, and we quickly figured out that, at least for them, it was hard to put hard and fast rules, because kids find a way,” Smith says. “And different parents have different rules for what they think is the right thing for their kids.”

While Smith is open to the new measure, she’s wary. “I tend to be, I guess, a little bit suspicious of hard and fast rules, because I’m not sure that they work and because I sort of think that parents and kids should have the freedom to decide what’s right for their family,” Smith says.

While Smith is a progressive Democrat, on this new measure, she’s currently aligned with senator Rand Paul, a Libertarian-leaning Kentucky Republican. “Parents exercise some oversight of what their kids view on the internet, what they view on television, all these things are important. I’m not sure I want the federal government [involved],” Paul says.

The new measure also has competition. Just last week senators Richard Blumenthal, a Connecticut Democrat, and South Carolina’s Lindsey Graham, the top Republican on the Senate Judiciary Committee, reintroduced their EARN IT Act—the Eliminating Abusive and Rampant Neglect of Interactive Technologies Act. That measure would strip away the current Section 230 protections for any sites that publish online child sexual exploitation content. Section 230 remains a highly controversial law because it protects online businesses from liability for much of what its users post on their platforms.

Schatz, the Hawaii Democrat who helped negotiate this new effort, is an original co-sponsor of that EARN IT Act. He says all these efforts coming from different angles show that Congress is finally serious about the impact the internet has on children. “The more the merrier. There’s plenty of momentum. All of these efforts ought to be complimentary,” Schatz says.

There’s also the Kids’ Online Safety Act, or KOSA, which is sponsored by senators Marsha Blackburn, a Tennessee Republican, and Blumenthal. The bill is intended to update current statutes meant to protect children’s online activities. It picked up steam at the end of the last Congress—unanimously passing out of committee—before party leaders ultimately buried it. But this is a new Congress, and its sponsors continue to push it. Sponsors of this new measure say they’re not trying to replace it.

“We believe it’s compatible with this legislation,” Schatz says.

Earlier this year, heads turned when senator Josh Hawley, a Missouri Republican and former state attorney general, introduced a measure setting 16 as the age limit for using social media. Hawley’s MATURE ACT—or, Making Age-Verification Technology Uniform, Robust, and Effective Act—would create a so-called private right of action, so tech companies could more easily be sued if they’re found offering social media accounts to children 15 and under.

“I thought that that’s an age at which kids are starting to have a little more independence,” Hawley says of why he chose that age.

As for the new measure? “Good. See, I started a trend. That’s good,” Hawley says. “I haven’t seen the details of it, but I think that the more we can get momentum here on actually doing something that protects kids, I’m all for it.”

 

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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Tech News in Canada

Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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