Business
Opinion: How the Supreme Court should rule on Texas and Florida laws against social media moderation
The Supreme Court heard oral arguments Monday in two cases that could have a profound effect on the future of the internet and social media.
The cases — NetChoice vs. Paxton and Moody vs. NetChoice — involve laws in Texas and Florida that prohibit social media companies from removing content from their platforms, clearly violating the 1st Amendment rights of private companies. If these laws are upheld, they will make the internet and social media enormously worse.
The Texas law bars social media platforms with at least 50 million active users — such as Facebook, X (formerly Twitter) and YouTube — from removing content based on the views expressed. The Florida law prohibits them from removing speech by political candidates and “journalistic enterprises”; it also requires them to notify users of any content moderation decisions and provide an explanation.
Texas and Florida adopted these laws based on a widely promoted but unfounded perception that social media platforms are more likely to remove conservative expression. Researchers have found no evidence to support this belief.
But even if there were a basis for concern, social media platforms — like all other media — have a 1st Amendment right to decide what speech to convey.
Half a century ago, in Miami Herald Publishing Co. vs. Tornillo, the Supreme Court unanimously invalidated a Florida law that required newspapers to provide space to political candidates who had been attacked in print. The court emphasized that freedom of the press allows a newspaper to decide what to include and exclude.
The government can’t regulate speech on privately owned social media platforms any more than it can edit a newspaper. Several justices, including conservatives Amy Coney Barrett and Brett M. Kavanaugh, made similar points during the oral arguments.
The U.S. 11th Circuit Court of Appeals declared the Florida law unconstitutional on this basis. It also found that requiring a justification to be provided for every decision to remove material would make content moderation impossible. In considering the Texas law, however, the 5th Circuit Court of Appeals ruled that social media companies are, like phone companies, “common carriers” and can therefore be prevented from removing content.
The problem with this argument is that social media platforms are not and never have been common carriers that simply transmit everything that is posted. Nor would anyone want them to be.
Social media platforms constantly remove awful content. Facebook removes 3 million pieces of hate speech a month, an average of more than 4,000 per hour. And yet no reasonable person would accuse Facebook of being too effective at removing such speech.
Fortunately, social media companies remove a wide array of awful expression, including violent and sexually explicit content, much of it protected by the 1st Amendment.
Underlying the two cases heard Monday by the Supreme Court is the broader question of whether state governments should regulate the content of social media and other online platforms. Many states, including California, have in recent years adopted a plethora of laws trying to control these media. But the platforms are national and indeed international, making it undesirable to subject them to countless regulations by individual states.
The internet and social media have changed the very nature of speech by making it possible for anyone to speak immediately to a mass audience. The downside is that their speech can be hateful, harassing, false and harmful in other ways. One approach to this problem is extensive government regulation of what appears on social media. That would clearly violate the 1st Amendment, however, and we all should be concerned about giving government such power to regulate what we see and hear.
An alternative is to prohibit content moderation, requiring social media platforms to carry everything unless it falls into narrow categories of speech that is not protected by the Constitution. That is what Texas and to a lesser extent Florida are trying to do. But these laws also restrict the speech rights of private companies and promote even more hatred and violence on social media.
The best option is to leave content moderation to social media companies and encourage them to do a better job of it. This avoids the 1st Amendment problems of government regulation and the nightmare of unregulated social media. And that is the path the Supreme Court should take in the NetChoice cases by finding the laws in question unconstitutional.
Erwin Chemerinsky is a contributing writer to Opinion and the dean of the UC Berkeley School of Law. His latest book is “Worse Than Nothing: The Dangerous Fallacy of Originalism.”
Business
How the FIFA World Cup is providing a boost for L.A. businesses
Johnny Beig may have played in a semi professional cricket league in Australia, but this summer he’s a big fan of soccer in the United States.
It’s not just because he’s rooting for the World Cup team, though.
FIFA emblems are featured on jerseys that were created by the Dioz Group and distributed for all employees at the 16 FIFA World Cup venues this summer.
(Genaro Molina / Los Angeles Times)
Last year, Beig’s Beverly Hills-based company, Dioz Group, won a $2.5 million contract with On Location, FIFA’s hospitality partner, to design, manufacture and distribute uniforms for all employees working at FIFA World Cup venues this summer.
These include the people welcoming attendees into stadiums, VIP lounge chefs, waiters and the flagbearers during the opening ceremony.
After a multi-step application process, including presentations of its planning and strategy, Dioz says it produced more than 50,000 clothing garments including suits, jackets, shirts and hats and delivered them to the 16 World Cup venues around the U.S., Canada and Mexico in June.
Thanks in part to the World Cup contract, the company’s revenue has reached $15 million so far this year, compared with $20 million last year, Beig said. He declined to disclose the company’s net income but said the business was profitable.
“We are working with larger names that we would have never imagined we would,” he said. “The FIFA World Cup is the pinnacle. Working with the largest sporting event in the world is what we’re very proud of. I don’t think it gets any bigger than that.”
Volunteers line up to prepare to display the Canadian flag before a World Cup round of 32 knock-out match between Canada and South Africa at SoFi Stadium on Sunday.
(Kelvin Kuo / Los Angeles Times)
Dioz is among the many small businesses across Los Angeles that are getting a boost from the global sporting event, said Kevin Klowden, a senior fellow at the Milken Institute.
The influx of hundreds of thousands of fans into the city has been a boon to hotels, transportation services and restaurants, in addition to those in the special events and logistics economy, Klowden said, calling the event the “equivalent of multiple Super Bowls.”
“The number of contracts that are there, it’s a big deal,” he said. “Given the fact that L.A.’s filming is only slowly recovering, having something like the World Cup is definitely a boost.”
Dioz was co-founded by Johnny, 44, and his brother Tony in 2006. The brothers were born in India and raised in Australia, where Johnny enjoyed a brief career as a semi professional cricket player.
He realized his future wasn’t as a professional athlete, but he wanted to stay connected to the sports world, so he began making uniforms for his cricket team in 2006.
He then got a referral to make uniforms for multiple teams in the area before starting an apparel company.
“I wanted to stick with something I was passionate about, which is sports,” he said.
Volunteers unravel the center field display before a World Cup round of 32 knock-out match between Canada and South Africa at SoFi Stadium on Sunday.
(Ronaldo Bolanos / Los Angeles Times)
In 2012, Beig moved to Los Angeles and established Dioz‘s Los Angeles headquarters to tap into the U.S. market. During the pandemic, the company started supplying medical apparel to hospitals and schools, and the business took off, with revenue doubling in 2020, Beig said.
Dioz now has over 150 employees, including 15 in L.A., and manufactures its apparel at factories in China, India, Bangladesh, Turkey and the Philippines. Tony runs an office in Dubai.
Before the World Cup, Dioz provided employee uniforms for events including Super Bowl LIX and Copa America, which may have given it a leg up on the FIFA contact.
Now, with a World Cup contract on their resume, Beig said he’s setting his sights on even bigger events.
“This gives us an edge over the next FIFA events worldwide as well, where we can showcase our skills and we can handle it,” Beig said. “So it gives us a good opportunity to work with sporting events like the UEFA Championship and Premier League.”
As companies get new business from the World Cup, Klowden said it’s important that they leverage their new position to continue that growth.
Companies that benefited from the World Cup might be in a position to bid on even bigger contracts, especially with the Olympics coming up in 2028, Klowden said.
“The really important part in any of these deals is that if a company ran something like this, then they are able to build off of that success,” Klowden said. “Let’s say you’re a company that did a big uniform order or a big food order, and the World Cup goes, and you invested in new manufacturing capacity, or you invested in new clothing machines, or whatever you do; suddenly you don’t have that market anymore, then you’ve just wasted all that money ramping up.”
Business
Home insurer surcharges for wildfires is legal, judge rules
Surcharges that California homeowners have been hit with statewide by insurers defraying the costs of Los Angeles County’s wildfires were ruled legal in a decision released late Tuesday.
L.A. County Superior Court Judge Tiana Murillo turned down a petition by advocacy group Consumer Watchdog to halt the charges, which insurers began levying last year after the state’s insurer of last resort couldn’t pay all its January 2025 fire claims.
The California FAIR Plan, financially backed and operated by the state’s licensed home insurers, needed a $1-billion bailout from the insurers after it was hit with some $4 billion in claims.
Under a deal Insurance Commissioner Ricardo Lara worked out with the FAIR Plan in 2024, the insurers could seek state approval to surcharge their residential policyholders for up to half of any assessment totaling $1 billion in case the plan needed a bailout in an “extreme worst case scenario” — as it turned out it did.
A total of 105 insurers, including State Farm General — California’s largest home insurer — Farmers and Mercury sought and received approval for the surcharges.
Because the FAIR Plan assessed its member insurers based on their share of the state’s home insurance market, the policyholder surcharges were in the same ballpark. The median fee for homeowners was $28, according to the department of insurance.
The fee can be more or less according to the size of a homeowner’s premium and is split into monthly payments that insurers can spread over one or two years. Condo owners and renters on average were surcharged less.
In a court filing, Consumer Watchdog said $420 million in surcharges were approved.
In its April 2025 lawsuit filed against Lara, the Los Angeles group made a series of arguments in seeking to overturn the residential surcharges, which it deemed an industry bailout. It did not sue over related commercial surcharges.
Consumer Watchdog contended in its lawsuit that the surcharges violated Proposition 103 — the 1988 measure that governs insurer rate hikes — because the proposition does not allow for them.
It also claimed Lara did not follow regulatory protocol in promulgating the new policy.
The group further alleged that the FAIR Plan’s governing statutes do not give Lara the authority to permit the surcharges — and that the statutes require insurers to share in the plan’s profits and losses, and not shift losses to policyholders.
Murillo, and another judge who previously heard the case, turned down all of the consumer group’s arguments in separate rulings, the last of which Murillo issued Tuesday night.
Lara celebrated his legal victory over Consumer Watchdog, which has accused Lara of having close ties to insurers and sought to oust him from office. His terms ends in January.
“This victory sends a loud and clear message: The era of allowing special interests to derail consumer choice is over. We have the momentum, we have the authority, and we will continue to fight until every Californian has access to the coverage they deserve,” Lara said in a statement.
Attorney Will Pletcher, litigation director of Consumer Watchdog, said the group disagreed with the decision and would “consider all options to move this forward.”
“It’s important to try to protect California consumers from these surcharges that we think are in pretty clear conflict with both Proposition 103 and the FAIR Plan,” he said.
Hilary McLean, a spokesperson for the plan, said in a statement it did not have any position on the ruling, given the plan “does not have a role in determining how insurers manage costs associated with assessment.”
Denni Ritter, vice president of state government relations for the American Property Casualty Insurance Assn., a major industry trade group, said the decision rejected “the reckless lawsuit brought by the self-interested group Consumer Watchdog…”
“This ruling preserves a vital tool to protect the stability of the California insurance market. Blocking cost recovery would have undermined the state’s last-resort coverage option,” she said in a statement.
The 2024 policy was issued in response to the rapid growth of the plan due to a series of wildfires over the last decade that prompted multiple insurers to retreat from the state’s home insurance market.
The plan had 264,000 homeowners on its rolls in September 2022, a figure that rose to 452,0000 in the months before the fires — and its residential policyholders have since increased to 663,000 as of March.
The FAIR Plan offers policies that typically cost more than those issued by regular insurers while offering less coverage.
A Times analysis last year found that in the Palisades and Eaton fire zones, the plan’s rolls nearly doubled to 28,440 from 2020 to 2024.
That concentration of policyholders led to the plan’s large losses during the Jan. 7 wildfires, which damaged or destroyed more than 18,000 structures, killing at least 31 people.
It’s been estimated that the insured losses for the wildfires could ultimately total as much as $40 billion, exceeding any past wildfires worldwide. Ritter said that so far insurers have paid $23.7 billion in claims.
The 2025 wildfires were not the only time the FAIR Plan has needed a bailout, though it is the first time its member insurers surcharged policyholders.
In 1993, it assessed carriers after fires in Altadena and Malibu, and in 1994 it did so after the Northridge earthquake. The assessments totaled $260 million.
The plan received approval this year from the insurance department for a 29% rate increase for its homeowner dwelling policy that will take effect in October.
Business
First recorded Tesla Semi crash kills two people in Nevada
An electric Tesla Semi truck crashed into two vehicles in Dayton, Nev., over the weekend, killing two people and raising questions about the truck’s safety features.
The Lyon County Sheriff’s Office responded to a major collision around 7 a.m. on Sunday at the intersection of Highway 50 and Traditions Parkway about 40 miles east of Reno, the office said.
The office confirmed a semi-truck was involved in the accident, and footage of the scene shows it was a Tesla Semi.
It is the first known crash involving a Tesla Semi, an electric Class 8 truck that Tesla is building in Nevada and plans to ramp up production of. As interest in Tesla’s electric passenger vehicles wanes, the company is betting on the truck to give it a needed boost.
The trucks do not have the Full Self-Driving mode available in Tesla cars, but Tesla’s website says they come standard “with active safety features that pair with advanced motor and brake controls to deliver traction and stability in all conditions.”
According to the Lyon County Sheriff’s Office, preliminary statements obtained at the scene suggest the truck driver may have fallen asleep behind the wheel.
The crash is under investigation by the Nevada State Police Highway Patrol, which said additional information may be released next week.
The Record-Courier identified the victims as Sergio and Jennifer Villanueva, a couple who got married in 2022.
Tesla has not clarified if its semitruck has an automatic emergency braking system. Federal regulators are currently weighing a mandate for emergency braking systems in vehicles more than 10,000 pounds.
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