What You Need to Know

Key Takeaway #1 California’s new AI chatbot law — “Adam’s Law” (SB 1119) — requires companion chatbot operators to conduct mandatory independent child safety audits and annual risk assessments, implement crisis protocols for queries involving self-harm, and notify parents when children disable safety settings. Non-compliance exposes businesses to significant civil liability.

Key Takeaway #2 Assembly Bill 1709 prohibits social media platforms from offering addictive features to users under 16, such as infinite scroll, autoplay, and algorithmically personalized feeds. Social media companies found to have negligently harmed children through their platforms face civil penalties of up to $1 million per child under Assembly Bill 2.

Key Takeaway #3 SB 867 prohibits companies for four years from selling or manufacturing toys for children under 16 that include chatbots, further restricting the deployment of AI companionship features in consumer products directed at minors.

Continue Reading California Signs Nation-Leading AI Chatbot and Social Media Laws: What Businesses Need to Know

On Tuesday, March 24, 2026, a New Mexico jury found Meta liable for failing to protect kids from child exploitation on its platforms and ordered the company to pay $375 million in damages for consumer-protection violations. The next day, a California jury found Meta and YouTube liable for platform features that cause children to become…

In the recent article, “Facebook and Google settled biometrics lawsuits. Look for more.” featured in Crain’s Chicago Business, Partner Jason Stiehl analyzes wider repercussions of Snapchat’s recent settlement after accusations that it used facial recognition technology that collected and stored users’ biometric information without consent. Stiehl explains that he expects more litigation due to Illinois’…

The news of Elon Musk’s $42-44 billion offer to purchase Twitter, and his apparent cold feet, have spread far and wide. Speculation has swirled that his offer was a politically-motivated stunt and that he never intended to actually follow-through with the deal. More recently, however, Musk has publicly demanded more information from Twitter regarding its so-called “bots” and he has publicly suggested that up to 20% of Twitter’s active user base is comprised of fake accounts, in contrast to the 5% that Twitter itself has claimed in its latest annual report. So, is Musk’s stated concern real or a coverup for cold feet?

While some have derided Musk’s demands as pretextual, he has a valid point that the number of real, daily active users on the Twitter platform – actual human eyeballs – is critical to the value of Twitter. A difference of 15% in estimates of bots is likely to be material. Twitter itself has said so.

Continue Reading Does Elon Musk Have a Point? The Impact of Bots on Twitter Revenue.

The FTC has placed Twitter in the hot seat again for privacy related practices that it alleges impacted over 140 million users. The Commission has also resolved actions pertaining to alleged magazine subscription scams and credit card laundering. In addition, the FTC is turning to the public to gather information regarding the recent infant formula shortage. These stories and more after the jump. 

Continue Reading FTC Updates (May 23–27, 2022)

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In today’s social media and internet focused world, tracking online reviews and commentary from consumers is essential for product manufacturers and retailers. Savvy online participation can provide companies with important quality feedback and bolster customer relations when consumer concerns are handled quickly and sensitively. But even companies are not…