X Corp, led by Elon Musk, has filed a lawsuit against New York State Attorney General Letitia James over a law requiring social media firms to disclose their monitoring practices on hate speech. The complaint argues that the law coercively requires companies to reveal speech that is protected under the First Amendment. Passed in December 2024, the law mandates companies to explain their terms of service and report on their efforts to remove hate speech. Civil fines for non-compliance could amount to $15,000 per violation daily, prompting concerns about government overreach into content moderation.
The law requires social media companies to disclose highly sensitive and controversial speech protected under the First Amendment, which X argues the government should not regulate.
X Corp claims the New York law demands transparency on speech that may be disfavored by the state, infringing upon the constitutional rights enshrined in the First Amendment.
The Stop Hiding Hate Act, impacting social media operations, could impose civil fines of up to $15,000 per violation per day for non-compliance.
Governor Hochul stated this accountability strengthens protections and gives consumers the transparency they deserve, while X contends it's an overreach into their content moderation practices.
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