Key facts
- California bill AB 2 proposes fines of up to $1 million per child harmed by negligent product design.
- Penalties could increase to triple damages if a court finds significant harm.
- The bill is technology-neutral and could affect social media, AI chatbots, and other platforms.
- Tech companies argue the legislation infringes on free speech and increases liability.
- The bill will not apply to cases pending before January 2027 and its fine rules sunset in 2035.
California lawmakers are considering a bill that would significantly increase penalties for technology companies found responsible for harming children through negligent product design. Authored by Assemblymember Josh Lowenthal, the proposed legislation, AB 2, could impose fines of up to $1 million per child affected, with the possibility of triple damages in cases of substantial harm.
The bill is designed to be technology-neutral, meaning it could apply to a wide range of platforms, including social media, AI chatbots, and other digital services. This measure comes as major tech giants like Meta (Facebook, Instagram), Google (YouTube), TikTok, and Snapchat are already facing numerous lawsuits alleging that their platforms are designed to be addictive and harmful to young users.
Recent legal decisions highlight the potential financial risks for these companies. In March, a Los Angeles jury ordered Google and Meta to pay $6 million in a youth addiction case. More recently, a federal judge in New Mexico mandated that Meta pay nearly $1 billion in damages and implement new youth safety features as part of a separate child-harm lawsuit.
The tech industry is strongly opposing AB 2, arguing that it infringes on free speech rights and exposes companies to excessive liability. Meta has a history of lobbying against similar legislation, and industry groups have indicated they may challenge the bill on First Amendment grounds if it becomes law.
However, the bill includes certain limitations. Amendments have clarified that it will not apply to cases already pending before January 2027, and the provisions for determining fines are set to expire in 2035. Governor Gavin Newsom has until September 30 to sign or veto the measure, with both he and First Partner Jennifer Siebel Newsom having emphasized the importance of children's online safety.