Social media has profoundly shaped global events, public discourse, and the very fabric of our societies since the early 21st century. As platforms like Facebook, Twitter (now X), and Instagram became integral to daily life, they also introduced new regulatory challenges. From disinformation to privacy violations and incitements to violence, social media’s vast influence has prompted significant legal scrutiny and regulatory responses — which is why it’s important to stay informed on social media laws and how they impact your marketing.
These evolving regulations and landmark court cases have not only impacted how platforms operate but also reshaped the strategies of brands and marketers navigating this complex landscape.
Social media law at the federal level
The foundation of online content regulation started in 1996
The regulation of online content began in earnest with the Communications Decency Act of 1996, a landmark federal law that included Section 230. This provision established that online platforms (and later social media companies) would not be classified as publishers, which gave them immunity from liability for user-generated content.
While this allowed early internet companies to grow without fear of litigation, critics of Section 230 argue that it allows platforms to avoid accountability for harmful content. Calls for reform are intensifying, but any changes to Section 230 would require a delicate balance between fostering innovation and protecting the public from online harms.
The role of the FCC and FTC is limited
While the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) have some authority over social media, their roles are limited. The FCC primarily focuses on telecommunications, and the FTC’s oversight is mostly confined to ensuring truthful advertising and protecting consumer privacy. This leaves a significant gap in the direct regulation of social media content, which has led to calls for more robust federal oversight as the influence of these platforms continues to grow.
Supreme Court guidance is pivotal but unsettled
The U.S. Supreme Court’s 2024 decision to decline ruling on the constitutionality of state laws restricting social media content moderation has left the issue in legal limbo. However, the Court’s strong suggestion that social media platforms’ editorial decisions are protected by the First Amendment indicates that any future federal regulation may face significant constitutional challenges. This decision underscores the complex interplay between free speech and content moderation, a dynamic that will likely shape the future of social media regulation.
Social media laws at the state level
As federal social media regulation lags, states have taken matters into their own hands, crafting diverse and sometimes conflicting legislation that reflects their unique political landscapes.
Virginia & California lead the charge on data privacy
Virginia and California have taken the lead in data privacy with laws that grant residents significant control over their personal information. Virginia’s Consumer Data Protection Act (CDPA) and California’s Consumer Privacy Rights Act (CPRA) both empower users to opt out of data collection and sale, but California’s law goes further by establishing the California Privacy Protection Agency (CPPA) to enforce these rights. These state-level privacy laws are setting new standards for how social media companies handle user data, with implications that reach far beyond their borders.
Maryland creates the digital ad tax
Maryland’s digital ad tax, passed in 2021, represents a novel approach to regulating social media giants by imposing a tiered tax on their ad revenue. This social media law targets companies with over $100 million in global revenue and continues to face First Amendment challenges. However, the U.S. District Court for the District of Maryland upheld the social media law in early 2024, marking a significant precedent in the regulation of digital advertising. This tax could serve as a model for other states looking to regulate the financial aspects of social media companies, which could in turn have significant impacts on how marketers advertise on social media.
Ohio, Louisiana, Utah, & New York tackle social media laws protecting minors
In response to growing concerns about the impact of social media on children and adolescents, individual states are increasingly passing laws to regulate how minors can use social media and how their data can be handled. Since 2023, Ohio, Louisiana, Utah, and New York have enacted legislation aimed at protecting minors’ privacy and safety online.
These social media laws typically include provisions that limit data collection, require parental consent for social media use, and impose stricter controls on the types of content accessible to minors. As these states take the lead (and contend with the ensuing legal challenges from social media companies), the patchwork of regulations highlights the ongoing debate over the balance between safeguarding young users and preserving the open nature of the internet.
Florida & Texas challenge content moderation
Texas and Florida have become pivotal battlegrounds in social media regulation. A Texas social media law restricts platforms with over 50 million U.S. users from censoring content based on viewpoint, sparking legal challenges over First Amendment rights. The Florida social media law goes further, classifying large platforms as “common carriers,” requiring consistent moderation practices, and prohibiting censorship of political figures. Both laws remain under legal scrutiny as of 2024, with potential implications for how social media platforms manage content, particularly around political discourse.
Impact of litigation on brands
State-level social media regulations have intensified the challenges around content moderation, directly impacting brands that rely on these platforms for marketing. The consequences of these legal battles are tangible, affecting how brands operate and manage their public image.
After Elon Musk acquired Twitter (now X) in 2022, his push for less restrictive moderation led to a rise in hate speech and misinformation. This sparked an advertiser exodus, as companies feared the impact on their reputation, significantly affecting X’s revenue. In response, X filed a federal lawsuit in 2024 against the Global Alliance for Responsible Media (GARM), accusing the non-profit organization of orchestrating an anticompetitive boycott.
This case underscores the blurred lines between business, politics, and law about social media. Brands distancing themselves from platforms like X for ethical reasons may face legal risks, including being implicated in high-stakes lawsuits. Moreover, public perception can shift based on how these legal disputes are portrayed, complicating brand strategies.
As social media increasingly becomes a battleground for political and cultural conflicts, brands must carefully navigate content moderation policies, platform ethics, and potential litigation. Staying informed and adapting strategies is crucial as the regulatory environment evolves. Brands must be strategic, proactive, and vigilant to protect their interests and align with both legal and ethical standards.
The path forward for social media marketing
The evolving legal landscape surrounding social media regulation is complex and fraught with challenges. As seen in the ongoing legal battles in Texas and Florida and the recent litigation involving X, the tension between content moderation and free speech rights will continue to shape the industry. For brands and marketers, staying ahead of these developments is crucial. Understanding the implications of state and federal regulations will be key to navigating this ever-changing terrain.
As social media continues to evolve, so too will the regulations that govern it. While the future remains uncertain, one thing is clear: the intersection of law, technology, and marketing will be a dynamic and pivotal space for years to come. Brands that can adapt to these changes while maintaining their commitment to ethical marketing practices will be best positioned to thrive in this new regulatory environment.
Ask the Content Strategist: FAQs about social media laws
How might these legal battles affect users’ experience on social media?
Users could see changes in how content is moderated, with platforms potentially becoming either more restrictive or more lenient, depending on how laws and court rulings evolve, which could affect the type and tone of content available.
How do international regulations like the GDPR influence U.S. social media laws?
The EU’s General Data Protection Regulation (GDPR) has set a high standard for data privacy, which has inspired similar legislation in the U.S., influencing how states and potentially federal agencies approach the regulation of user data and privacy on social media.
How might evolving regulations impact social media influencers and content creators who frequently partner with marketers?
Influencers and content creators may face stricter rules about what they can post, especially if platforms tighten their moderation policies to comply with new social media laws, potentially leading to reduced visibility for certain types of content.
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