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Social media companies should face new legal duty to 'act responsibly,' expert panel finds – The Tri-City News

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4 years ago

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Social media companies can’t be trusted to moderate themselves, so it falls to the government to enforce new restrictions to protect Canadians from harmful content online, according to a report currently under review by the federal heritage minister.

The Canadian Commission on Democratic Expression, an expert panel of seven members, including former chief justice Beverley McLachlin, said it had become difficult to ignore the fact too many real-world manifestations of online interactions are turning violent, destructive or hateful, despite social media’s parallel role in empowering positive social movements.

The panellists were particularly struck by the role they saw social media play last fall in “sowing distrust” in the aftermath of the U.S. presidential election, culminating in the lethal invasion of the U.S. Capitol. And they found, with the Quebec mosque shooting, the Toronto van attack and the armed invasion of Rideau Hall, that “Canada is not immune.”

“We recognize the charter, we recognize the ability of people to express themselves freely,” said Jean La Rose, former chief executive officer of the Aboriginal Peoples Television Network (APTN) and one of the seven commissioners, in an interview.

“But there must be limits at one point. There has to be limits as to where free speech becomes a racist discourse, or a hurtful discourse, or a hateful discourse.”

‘We have been at the receiving end of racist threats’

These limits would come in the form of a new law passed by Parliament, the commission recommended, that would force social media platforms like Twitter and Facebook, search engines like Google and its video-sharing site YouTube and others to adhere to a new “duty to act responsibly.”

The panel purposefully did not spell out what responsible behaviour should look like. Instead, it said this determination should be left to the government — as well as a new regulator that would oversee a code of conduct for the industry and a new “social media council” that would bring together the platforms with civil society and other groups.

La Rose said his experience in the journalism world demonstrated how there needed to be reasonable limits on what people can freely express so they are not permitted to call for the killings of Muslims, for example, or encourage violence against an individual by posting their home address or other personal details online.

“Having worked in media, having worked at APTN, for example, we have been at the receiving end of racist threats, of severe injury to our people, our reporters and others because of the view we present of the situation of the Indigenous community in Canada,” he said.

“Literally, we’ve had some reporters run off the road when they were covering a story because people were trying to block the telling of that story. So as a news entity, we have seen how far sometimes misinformation, hate and hurtful comments can go.”

Rules must reflect issue’s ‘inherent complexity’: Google

Canadian Heritage Minister Steven Guilbeault has himself recently indicated that legislation to address “online hate” will be introduced “very soon.”

The minister has pointed to the popularity of such a move: a recent survey by the Canadian Race Relations Foundation (CRRF), for example, found that fully four-fifths of Canadians are on board with forcing social media companies to rapidly take down hateful content.

“Canadians are now asking their government to hold social media companies accountable for the content that appears on their platforms,” Guilbeault said after the CRRF survey was published.

“This is exactly what we intend to do, by introducing new regulations that will require online platforms to remove illegal and hateful content before they cause more harm and damage.”

Guilbeault has met with the commission to discuss their recommendations and is currently reviewing their report, press secretary Camille Gagné-Raynauld confirmed.

Representatives from Facebook Canada and Twitter Canada were among several people who provided witness testimony and participated in commission deliberations, the report said. Twitter declined comment to Canada’s National Observer.

“We haven’t reviewed the full report yet, so we can’t comment on the specific recommendations,” said Kevin Chan, global director and head of public policy for Facebook Canada. “We have community standards that govern what is and isn’t allowed on our platform, and in most cases those standards go well beyond what’s required by law.”

Chan also said Facebook agreed regulators should make “clear rules for the internet” so private companies aren’t left to make decisions themselves.

Google spokesperson Lauren Skelly said the company shares Canadians’ concerns about harmful content online and said YouTube takes its responsibility to remove content that violates its policies “extremely seriously.” She said the company has significantly ramped up daily removals of hate speech and removed millions of videos last quarter for violations.

“Any regulation needs to reflect the inherent complexity of the issue and the scale at which online platforms operate,” said Skelly. “We look forward to continuing our work with the government and local partners on addressing the spread of online hate to ensure a safer and open internet that works for all Canadians.”

Incentives ‘not aligned with the public interest’: Jaffer

The nine-month study by the commission, an initiative led by the Public Policy Forum, found that with everything from disinformation campaigns to conspiracy theories, hate speech and people targeted for harm, toxic content was being “amplified” by the actions of social media companies.

The study rejected the notion that social media platforms are “neutral disseminators of information,” finding instead that they curate content to serve their own commercial interests.

“The business model of some of the major social media companies involves keeping people engaged with their platforms as much as possible. And it turns out that keeping people engaged means feeding them sensational content because that’s what keeps people clicking,” said Jameel Jaffer, executive director of the Knight First Amendment Institute at Columbia University and another commissioner.

“The incentives for social media companies are not aligned with the public interest. These are private companies whose obligation is to make money for their shareholders.”

The commission also proposed a tribunal to deal with dispute resolutions quickly, as well as a “transparency regime” that would require social media companies to make certain information available to the regulator, including the “algorithmic architecture used to identify problematic content.”

Jaffer wrote a “concurring statement” in the report, where he confessed it was difficult to endorse the commission’s proposed “duty to act responsibly” without going further to define how that duty will work in reality. He said defining it will require “difficult tradeoffs” between free speech, privacy and other issues.

Carl Meyer / Local Journalism Initiative / Canada’s National Observer

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

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3 weeks ago

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August 23, 2024

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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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3 weeks ago

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August 23, 2024

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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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August 20, 2024

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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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