CA bill would fine social media sites that allow algorithmic spread of hate speech

A bill making its way through the California Legislature could lead to seven-figure fines for social media platforms if they’re unable to keep a proliferation of hate speech under control. Senate Bill 771, authored by State Sen. Henry Stern, D-Los Angeles, has already passed the California Senate and is now being reviewed in the State Assembly.

The bill targets the use of algorithms by social media companies that amplify harmful content, particularly hate speech.

“This is simply to say that just because it’s an algorithm, doesn’t mean that it’s not some kind of expression from that platform,” Stern said while introducing the bill to the Assembly Privacy and Consumer Protection Committee on June 24. “And so, when your algorithm facilitates the distribution, say, of criminal content or makes crimes worse or adds to abuses or things that result in, say, hate crimes, that they’ll be held to the same standards as an average citizen would if they were facilitating the same kind of crime.”

Fines for spreading ‘hate speech’

If SB771 becomes law, social media platforms that allow hate speech to spread could face a $500,000 civil penalty. If a platform knowingly violates the law, the fine could increase to $1 million. A violation of this law, where the plaintiff in the civil lawsuit is a minor, allows the court to double the penalty.

Lawmakers backing the bill cited a rise in hate crimes and disinformation, much of which they say is being spread online. The bill specifically references content targeting LGBTQ+ individuals, Jewish communities, immigrants and other marginalized groups.

Legislators cite surge in harmful rhetoric, antisemitism

The Human Rights Campaign and the Center for Countering Digital Hate reported a 400% increase in anti-LBGTQ+ and harmful rhetoric on major platforms. The bill also cited the Anti-Defamation League’s 2024 audit of antisemitic incidents, which found a “dramatic and sustained surge” — the highest ever recorded since the ADL began tracking such incidents 46 years ago.

According to the ADL, antisemitic incidents have increased by 893% over the past 10 years. The organization defines antisemitism as “the belief or behavior hostile toward Jews just because they are Jewish. It may take the form of religious teachings that proclaim the inferiority of Jews, for instance, or political efforts to isolate, oppress or otherwise injure them. It may also include prejudiced or stereotyped views about Jews.”

Concerns over free speech and Section 230

Critics argue that SB771 could conflict with First Amendment protections depending on how the law is interpreted and enforced. Opponents warn that companies might over-censor content to avoid fines, even if the content is legal.

The Computer & Communications Industry Association, which represents tech and communications firms, opposes the bill, stating it “raises serious constitutional concerns by infringing on the editorial discretion of platforms, First Amendment rights that have long been protected for publishers, broadcasters and digital services alike.”

The CCIA also contends that the bill conflicts with Section 230 of the Communications Decency Act, which was passed in 1996. Section 230 generally shields online platforms from liability for user-generated content.

Stern said the bill’s goal is not to regulate speech. According to the bill’s language, it is “to clarify that social media platforms, like all other businesses, may not knowingly use their systems to promote, facilitate or contribute to conduct that violates state civil rights laws.”