Kids Online Safety Act may harm minors, civil society groups warn lawmakers

Published

3 years ago

November 28, 2022

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Dozens of civil society groups urged lawmakers in a letter Monday against passing a bill that aims to protect children from online harm, warning the bill itself could actually pose further danger to kids and teens.

The American Civil Liberties Union, Electronic Frontier Foundation, Fight for the Future, GLAAD and Wikimedia Foundation were among the more than 90 groups that wrote to Senate Majority Leader Chuck Schumer, D-N.Y., Senate Commerce Committee Chair Maria Cantwell, D-Wash., and Ranking Member Roger Wicker, R-Miss., opposing the Kids Online Safety Act.

The bipartisan bill, led by Sens. Richard Blumenthal, D-Conn., and Marsha Blackburn, R-Tenn., would establish responsibilities for sites that are likely to be accessed by kids to act in the best interest of users who are 16 or younger. That means the platforms would be responsible for mitigating the risk of physical or emotional harm to young users, including through the promotion of self-harm or suicide, encouragement of addictive behavior, enabling of online bullying or predatory marketing.

The bill would require sites to default to more private settings for users 16 and younger and limit the contacts that could connect with them. It would also require tools for parents to track the time their kids are spending on certain sites and give them access to some information about the kids’ use of the platform so that parents can address potential harm. Sites would have to let their young users know when parental tools are in effect.

The civil society groups that signed Monday’s letter, which includes several groups that advocate for the rights of the LGBTQ community, warned that the tools the bill creates to protect children could actually backfire.

“KOSA would require online services to ‘prevent’ a set of harms to minors, which is effectively an instruction to employ broad content filtering to limit minors’ access to certain online content,” the groups wrote, adding that content filters used by schools in response to earlier legislation have limited resources for sex education and for LGBTQ youth.

“Online services would face substantial pressure to over-moderate, including from state Attorneys General seeking to make political points about what kind of information is appropriate for young people,” they added. “At a time when books with LGBTQ+ themes are being banned from school libraries and people providing healthcare to trans children are being falsely accused of ‘grooming,’ KOSA would cut off another vital avenue of access to information for vulnerable youth.”

The bill has gained momentum at a time when debates over parental control of what’s taught in school, specifically as it relates to gender identity and sexual orientation, have come to the forefront due to controversial state measures such as Florida’s Parental Rights in Education Act, also referred to by opponents as the “Don’t Say Gay” law.

The KOSA opponents warned that prescriptive parental controls could be harmful to kids in abusive situations.

“KOSA risks subjecting teens who are experiencing domestic violence and parental abuse to additional forms of digital surveillance and control that could prevent these vulnerable youth from reaching out for help or support,” the groups wrote. “And by creating strong incentives to filter and enable parental control over the content minors can access, KOSA could also jeopardize young people’s access to end-to-end encrypted technologies, which they depend on to access resources related to mental health and to keep their data safe from bad actors.”

The groups also fear that the bill would incentivize sites to collect even more information about children to verify their ages and place further restrictions on minors’ accounts.

“Age verification may require users to provide platforms with personally identifiable information such as date of birth and government-issued identification documents, which can threaten users’ privacy, including through the risk of data breaches, and chill their willingness to access sensitive information online because they cannot do so anonymously,” they wrote. “Rather than age-gating privacy settings and safety tools to apply only to minors, Congress should focus on ensuring that all users, regardless of age, benefit from strong privacy protections by passing comprehensive privacy legislation.”

The groups called the goals of the legislation “laudable,” but said KOSA would ultimately fall flat in its aims to protect children.

“We urge members of Congress not to move KOSA forward this session, either as a standalone bill or attached to other urgent legislation, and encourage members to work toward solutions that protect young people’s rights to privacy and access to information and their ability to seek safe and trusted spaces to communicate online,” they wrote.

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OpenAI says it will use Google’s cloud for ChatGPT

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4 hours ago

July 16, 2025

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OpenAI says it will use Google's cloud for ChatGPT

OpenAI CEO Sam Altman speaks to members of the media as he arrives at a lodge for the Allen & Co. Sun Valley Conference on July 8, 2025 in Sun Valley, Idaho.

Kevin Dietsch | Getty Images News | Getty Images

OpenAI said Wednesday that it expects to use Google’s cloud infrastructure for its popular ChatGPT artificial intelligence assistant.

The reach for additional capacity aligns with OpenAI’s desire for more computing power to meet heavy demand after initially relying exclusively on Microsoft for cloud capacity. The two companies’ relations have evolved since then, with Microsoft naming OpenAI as a competitor last year.

Both companies sell AI tools for developers and offer subscriptions to companies.

OpenAI has added Google to a list of suppliers, specifying that ChatGPT and its application programming interface will use the Google Cloud Platform, as well as Microsoft, CoreWeave and Oracle.

The announcement amounts to a win for Google, whose cloud unit is younger and smaller than Amazon‘s and Microsoft‘s. Google also has cloud business with Anthropic, which was established by former OpenAI executives.

The Google infrastructure will run in the U.S., Japan, the Netherlands, Norway and the United Kingdom.

Tesla’s change in bylaws to limit shareholder lawsuits slammed by New York state officials

Published

5 hours ago

July 16, 2025

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Tesla's change in bylaws to limit shareholder lawsuits slammed by New York state officials

Elon Musk interviews on CNBC from the Tesla Headquarters in Texas.

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In May, Tesla changed its corporate bylaws in a way that would require investors to own 3% of the stock, today worth about $30 billion, in order to file a derivative lawsuit against the company for breach of fiduciary duties. Authorities in New York State are now asking Tesla to delete the bylaw entirely.

Overseers of the New York State Common Retirement Fund, which owns about 0.1% of Tesla’s shares, submitted a formal proxy proposal and letter to the company on July 11, and shared it with CNBC on Wednesday. They say that Elon Musk’s automaker engaged in a “bait-and-switch” to convince shareholders to approve an incorporation move from Delaware to Texas in June 2024.

Musk made the move after a judge in Delaware voided the $56 billion pay package that the CEO, also the world’s richest person, was granted by Tesla in 2018, the largest compensation plan in public company history. In getting shareholders to approve the change in its state of incorporation, Tesla said that stakeholders’ rights “are substantially equivalent” under the laws of Delaware and Texas.

On May 14, almost a year after Tesla’s move, Texas changed its law to allow corporations in the state to require 3% ownership before being able to carry forth a shareholder derivative suit.

“The very next day, Tesla’s board amended the Company’s bylaws to the maximum allowable 3% ownership threshold, effectively insulating the Company’s directors and officers from accountability to shareholders,” the New York letter says. The letter was signed by Gianna McCarthy, a director of corporate governance with the retirement fund, on behalf of the fund and New York State Comptroller Thomas DiNapoli.

Only three institutions currently own at least 3% of Tesla’s outstanding shares.

Tesla didn’t immediately respond to a request for comment.

The New York fund overseers wrote that derivative actions are “the last resort for shareholders to enforce their rights” when company directors or officers violate their fiduciary obligations, and called Tesla’s decision on the matter “egregious.”

In an email to CNBC, DiNapoli said Tesla “deceived shareholders” in assuring them that their rights would remain the same in Texas.

“These actions violate basic tenets of good corporate governance and must be reversed,” he wrote.

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Peter Thiel just bought a big stake in Tom Lee’s ether company and the shares are surging

Published

10 hours ago

July 16, 2025

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Peter Thiel just bought a big stake in Tom Lee's ether company and the shares are surging

Peter Thiel, president and founder of Clarium Capital Management LLC, holds hundred dollars bills as he speaks during the Bitcoin 2022 conference in Miami, Florida, U.S., on Thursday, April 7, 2022.

Eva Marie Uzcategui | Bloomberg | Getty Images

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Bitmine (BMNR) 1-month

The current wave of interest in Ethereum and related assets follows an announcement by Robinhood that it will enable trading of tokenized U.S. stocks and ETFs across Europe, and a groundswell of interest in stablecoins throughout June following Circle’s wildly successful IPO and ongoing progress in Congress on the Senate’s proposed stablecoin bill, the GENIUS Act.

The price of ether itself also continued its rally, up more than 4% Wednesday. The coin has doubled in price in the past three months.

Thiel is a venture capitalist and hedge fund manager best known as a cofounder of both PayPal and Palantir and an early investor in Facebook. Founders Fund was an investor in Tagomi, the crypto brokerage acquired by Coinbase in 2020, and Polymarket, the prediction market built on Ethereum.