Appeals Court Partially Blocks California Law Protecting Children Online

A U.S. appeals court upheld an injunction on a California law designed to protect children from harmful online content, citing potential First Amendment violations. The law required businesses to conduct 'Data Protection Impact Assessments' and configure privacy settings for child users. The case, featuring trade group NetChoice, highlights ongoing debates over online safety and free speech.

A U.S. appeals court in San Francisco has upheld a critical part of an injunction against a California law aimed at protecting children from harmful online content, both mentally and physically. The 9th U.S. Circuit Court of Appeals indicated that NetChoice, a trade group for online businesses, would likely prove the law infringes on free speech rights under the First Amendment.

The California Age-Appropriate Design Code Act mandated businesses to create 'Data Protection Impact Assessment' reports to identify potential harms to child users, like videos promoting self-harm, and to take preventive actions before launching platforms. Additionally, companies were required to estimate the ages of child users and adjust privacy settings accordingly, or provide high privacy settings for all users.

Violations of the law could result in civil fines of up to $7,500 per child for intentional breaches. NetChoice argued the law would turn its member companies into unwarranted censors. Circuit Judge Milan Smith highlighted that California had less restrictive means to protect children, such as improving online safety education and providing companies with incentives to filter harmful content.

The court also set aside other parts of the preliminary injunction, noting that the lower court had not adequately assessed whether the law could stand without the unconstitutional provisions. Governor Gavin Newsom, who signed the law in 2022, expressed partial satisfaction with the ruling and urged NetChoice to support child safety measures. NetChoice hailed the decision as a victory for free expression and online security.

(With inputs from agencies.)