Media
US Senators unveil bipartisan legislation to ban kids under 13 from joining social media platforms
A new federal bill unveiled Wednesday would establish a national minimum age for social media use and require tech companies to get parents’ consent before creating accounts for teens, reflecting a growing trend at all levels of government to restrict how Facebook, Instagram, TikTok and other platforms engage with young users.
The proposed legislation by a bipartisan group of US senators aims to address what policymakers, mental health advocates and critics of tech platforms say is a mental health crisis fueled by social media.
Under the bill, known as the Protecting Kids on Social Media Act, social media platforms would be barred from letting kids below the age of 13 create accounts or interact with other users, though children would still be permitted to view content without logging into an account, according to draft text of the legislation.
Tech platforms covered by the legislation would also have to obtain a parent or guardian’s consent before creating new accounts for users under the age of 18. The companies would be banned from using teens’ personal information to target them with content or advertising, though they could still provide limited targeted recommendations to teens by relying on other contextual cues.
It’s the latest step by lawmakers to develop age limitations for tech platforms after similar bills became law this year in states such as Arkansas and Utah. But the legislation could also trigger a broader debate, and possible future court challenges, raising questions about the privacy and constitutional rights of young Americans.
Speaking to reporters Wednesday, Hawaii Democratic Sen. Brian Schatz, an architect of the federal bill, said Congress urgently needs to protect kids from social media harms.
“Social media companies have stumbled onto a stubborn, devastating fact,” Schatz said. “The way to get kids to linger on the platforms and to maximize profit is to upset them — to make them outraged, to make them agitated, to make them scared, to make them vulnerable, to make them feel helpless, anxious [and] despondent.”
Most major social media companies already bar kids younger than 13 from their platforms, the result of a federal children’s privacy law known as COPPA. But enforcing the restriction has been a challenge.
Arkansas Sen. Tom Cotton, a leading Republican co-sponsor, said existing ways of ensuring kids are not underage online are too easily circumvented. The two senators were joined by Connecticut Democratic Sen. Chris Murphy and Alabama Republican Sen. Katie Britt.
In what could be one of the most far-reaching changes to the technology landscape, the bill seeks to create a government-run age verification program that can certify users’ ages or parental status based on identification they upload to the government system or to a third-party verifier.
Under the bill, that program would be a pilot project administered by the Department of Commerce, and participation and use of the federally managed age verifier would be voluntary. But it would represent a potentially vast expansion of the government’s role in regulating websites where age verification is a requirement.
Tech companies could still develop their own in-house age verification technology or hire third party companies to perform the verification, lawmakers said.
Violations of the proposed law could mean millions of dollars in Federal Trade Commission fines for social media companies. But it would not apply to a long list of tech products including email services, teleconferencing providers, payments companies, video game storefronts, digital newsletter platforms, cloud storage services, travel websites and online reference guides such as Wikipedia or user review sites such as Yelp.
Wednesday’s legislation could be viewed as competing with another, separate bill being developed by Connecticut Democratic Sen. Richard Blumenthal and Tennessee Republican Sen. Marsha Blackburn. That legislation, known as the Kids’ Online Safety Act, will be reintroduced in the Senate “very shortly,” Blumenthal said, expressing concerns about the Schatz-Cotton bill.
“I welcome additional ideas,” Blumenthal said. But, he added, “I have some concerns about an age identification system that would create a national database with personal information about kids in the hands of Big Tech, potentially leading to misuse or exploitation. I have other concerns about a bill that would put accountability on parents rather than on Big Tech, as our legislation does.”
A new set of concerns
In response to the bill, Design it For Us, a youth coalition pushing for changes to social media in the face of mental health concerns, said lawmakers should focus on shaping the basic product design of social media platforms, rather than imposing after-the-fact usage limitations.
“We believe that any legislation addressing harm on social media should put the onus on companies to make their platforms safer, instead of preventing kids and teens from being on platforms at all,” said Zamaan Qureshi, a co-chair of the group.
Opponents of the type of proposals outlined Wednesday have also said restrictions on teens threaten their constitutional rights. For example, the tech industry and digital rights advocates have said Utah’s legislation requiring age verification and parental consent would infringe on the First Amendment rights of young Americans to access information and chill the speech rights of all Americans.
“Requiring that all users in Utah tie their accounts to their age, and ultimately, their identity, will lead to fewer people expressing themselves, or seeking information online,” wrote the Electronic Frontier Foundation, a digital rights organization, last month. “In addition, there are tens of millions of U.S. residents without a form of government-issued identification. Those in Utah would likely be age-gated offline.”
The Computer and Communications Industry Association, which represents companies including Google and Facebook-parent Meta, has said age verification rules will require consumers to expose even more of their personal information to tech companies or third parties.
“That data collection creates extra privacy and security risks for everyone,” CCIA wrote in a letter to Utah Gov. Spencer Cox last month. “This mandated data collection would include collecting highly sensitive personal information about children, including collecting and storing their geolocation to ensure they do not reside outside of the state when confirming that they are of age to be using these services.”
On Wednesday, however, Cotton dismissed the privacy concerns, calling it not a “serious argument” when identity or age verification is used by government agencies and online gambling sites. He also said the bill will actually reduce the amount of personal information tech platforms effectively can collect by blocking the ability of kids under 13 to access their sites.
“If a child is, say, too young to sign a contract or too young to open a bank account in the real world, they’re too young to sign terms of service agreements and use social media in the digital world,” Cotton told reporters.
Schatz added that the bill has not been presented to social media platforms for feedback, but predicted that in short order the industry will be deploying “an army of lobbyists” to fight it.
“The tech industry is going to come at this bill, and every other kids’ online safety bill, with everything it’s got,” Schatz said. “But the burden of proof is on those who want to protect the status quo, because the status quo is making a whole generation of users mentally ill.”
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.
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.
Media
Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition
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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