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Ynon Kreiz: The CEO Mattel (and Hollywood) needed in the darkest hour

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Ynon Kreiz: The CEO Mattel (and Hollywood) needed in the darkest hour

The day “Barbie” hit theaters in July, Mattel Chief Executive Ynon Kreiz was in New York City visiting his oldest daughter and the pair decided to walk to a nearby theater for some real-time market research. Kreiz, who had been the driving force behind the decision to bring Mattel’s iconic doll to life on the big screen, loved the film, but with its fate now in the hands of the ticket-buying public, his opinion didn’t much matter. He wanted to see how people were reacting.

His answer came quickly. As he and his daughter approached, they found themselves walking among droves of people dressed in Barbie’s signature pink. And when they poked their heads into each of the five packed theaters showing the movie, they were met with roars of laughter. Some viewers were crying.

Discover the changemakers who are shaping every cultural corner of Los Angeles. This week we bring you The Disruptors. They include Mattel’s miracle maker, a modern Babe Ruth, a vendor avenger and more. All are agitators looking to rewrite the rules of influence and governance. Come back each Sunday for another installment.

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“Feeling that reaction — that audience reaction — was very telling,” he said, “and very exciting.”

What happened after opening night is now the stuff of Hollywood legend. The Greta Gerwig-directed film became an instant hit at the box office, raking in more than $1.4 billion, and kicked off a cultural phenomenon. Less well known, though, is the role the film has played in the story of Mattel’s revival. It’s a story that was written in large part by Kreiz, 59, who took the reins when the El Segundo-based company was struggling and who over his roughly six years at the helm has orchestrated a remarkable turnaround, making Mattel into one of the biggest corporate success stories of recent years.

At the heart of his plan was a move that seemed obvious to him, but which previous leaders failed to execute: Mattel needed to make a splash in the film business. To Kreiz, Mattel’s intellectual property was a gold mine. The company had a roster of instantly recognizable characters beloved by children and adults alike that he was confident could become enormously lucrative if they were exploited wisely.

For skeptics, that remains a big if. Mattel, in need of a big win in a dark hour, understandably chose to come out of the gate with its most reliable brand. The question now is whether Barbie’s success earned the toy maker’s film division enough industry respect, and breathing room, for the studio to re-create last summer’s magic with other, less potent brands, such as Hot Wheels, Polly Pocket and the card game Uno. Complicating the already uncertain road ahead, earlier this year an activist investor began agitating for the company to jettison some of its key brands to boost its middling stock price.

“This is not a novel concept where you take a strong brand in one vertical and import it to others,” Kreiz said at a conference last fall. “At Mattel, we haven’t done it. … You have ‘Fast and Furious,’ 10, and Hot Wheels, zero.” He believes with certainty that there’s an audience for such a film. After all, Mattel already sells nearly 800 million of the die-cast cars a year.

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Mattel’s consumers, Ynon Kreiz said, are more than just consumers — they are fans.

Kreiz, who gets up around 4:30 or 5 a.m. to kiteboard or get some other workout in before work, brings a similar intensity to the office. He stays impressively on message when talking about Mattel, with seemingly effortless sound bites ready at hand, barely breaking eye contact. Watch clips of his public speaking appearances and it becomes clear he repeats talking points, often word for word, his calm, personable demeanor disguising the discipline with which he approaches the CEO role.

When asked about the key to Mattel’s transformation under his leadership, Kreiz, unhurried and with animated hands, launched into a theory that he has often recounted in interviews. Mattel’s consumers, he said, are more than just consumers — they are fans.

“And when you have a lot of fans, you have an audience,” he said.

Kreiz became Mattel’s fourth chief executive in four years when he took charge, inheriting a company that needed a lifeline. He brought with him extensive experience in the entertainment industry, having made career stops at Fox Kids Europe, Endemol Group — the production company known for its unscripted programs, including “Deal or No Deal” and “Big Brother” — and Maker Studios, a short-form video studio that Disney acquired in 2014.

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The once dominant toy maker had lost its way: Some of Mattel’s biggest brands were struggling, and toy sales had been steadily declining since 2013. Its market cap had dipped more than $5 billion below that of rival Hasbro. Its second-largest customer, Toys R Us, filed for bankruptcy protection in 2017. That same year, Mattel reported a fourth-quarter loss of $281.3 million.

Kreiz needed to stop the bleeding. He restructured the company’s supply chain, reduced the number of items it produces by 35%, and cut five factories from its manufacturing lineup. The company slashed more than 2,200 jobs, 22% of its global nonmanufacturing workforce. Mattel was starting to move away from manufacturing and focus on developing its intellectual property, Kreiz told reporters. Between 2018 and 2021, Mattel said it achieved cost savings of more than a billion dollars.

Ynon Kreiz

The Mattel of today looks much different from the company five years ago. The toy maker is now outpacing Hasbro and dominating in fast-growing toy categories, such as fashion dolls, which are more popular than action figures at the moment, said Linda Bolton Weiser, a managing director and senior research analyst at D.A. Davidson who tracks consumer goods.

Kreiz’s work at Mattel hasn’t gone unnoticed. With Barbie’s wild success, he and the turnaround he’d orchestrated became the talk of corporate Hollywood. Matt Belloni, an industry prognosticator, recently anointed Kreiz “the Hollywood hero of the year” and said he was an obvious choice to replace Bob Iger at Disney.

When the first draft of the “Barbie” script landed in Kreiz’s inbox, he read it twice back to back. The text felt unconventional and special, and he loved it right away. Kreiz isn’t shy with his praise of Gerwig, often calling her a “creative genius.”

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Robbie Brenner, the head of Mattel Films, felt the same.

Kreiz ‘is going to be able to go out there and get the best partners in Hollywood to do these future projects.’

— Linda Bolton Weiser, a managing director and senior research analyst at D.A. Davidson

Brenner, a producer who was nominated for an Academy Award for “Dallas Buyers Club,” was one of Kreiz’s first hires after starting as CEO. The two met at the Polo Lounge at the Beverly Hills Hotel after an agent suggested they connect.

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“I mean, we hired Greta Gerwig for a reason, and you don’t hire Greta Gerwig and then try to cut her legs off,” Brenner added. “I think that we wanted her to fly and to tell an authentic, amazing personal story that was unique and different and bold, and surprise people.”

The film was a hit beyond expectations, both financially and in the cultural consciousness. The “Barbenheimer” opening weekend brought crowds of people back into movie theaters in numbers unheard of since the pandemic. More than a dozen fashion brands launched “Barbie” collaborations, including Zara and Vans. Burger King in Brazil sold a hamburger doused in pink sauce and French fries called “Ken’s potatoes.” “Barbiecore” was everywhere.

The movie became the highest-grossing film of 2023, surpassing $1 billion at the global box office just 17 days after its release. At a conference in September, Anthony DiSilvestro, Mattel’s chief financial officer, said that the company expected $125 million in revenue related to the “Barbie” movie — including toy sales — with a profit margin of about 60%.

Mattel declined to comment on how much its cut of the box office revenue is, but industry analysts have said the company’s take-home pay from ticket sales is in the tens of millions. In addition, insiders with knowledge of the financial arrangement said that Mattel also will receive payments for owning the rights to Barbie’s intellectual property in addition to profits as a producer of the movie, the New York Times reported.

The toy aisle also felt the effects of “Barbie” mania. Mattel’s third-quarter performance beat estimates, with sales of Barbie dolls jumping 16%. The doll category as a whole was up 27% from the previous year.

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The longer-term dividends the film will pay are harder to quantify but crucial to Mattel’s future.

“Barbie” has laid the groundwork for the future of Mattel’s entertainment sector, Bolton Weiser said. “[Kreiz] is going to be able to go out there and get the best partners in Hollywood to do these future projects. And it’s all good, you know? Very low risk for Mattel. They don’t take any big capital risks doing these entertainment events. So it all makes sense.”

Mattel Films now has 16 projects in development: A J.J. Abrams-produced Hot Wheels movie, Lily Collins and Lena Dunham signed on for Polly Pocket, and Vin Diesel as a partner for Rock ’Em Sock ’Em Robots, among others.

As the scale of “Barbie’s” success became clear, a question began to circulate: Can Mattel repeat this success story? Hollywood is a fickle beast, and the company’s use of its most resonant brand for its first act was a gamble.

“It’s difficult to imagine any other movie based on a toy ever reaching ‘Barbie’s’ heights,” Eliana Dockterman, who reviews TV and films for Time magazine, wrote in August. “Barbie is an icon. She has name recognition across the world equal to Mickey Mouse and Coca-Cola. And, sure, Hot Wheels may be popular, but won’t a Hot Wheels movie just be a racing movie, even if J.J. Abrams is at the helm as executive producer?”

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Still, Dockterman admitted that she’s curious about Mattel’s next entertainment ventures, namely “Daniel Kaluuya’s involvement with what sounds like a very meta Barney movie (as in, yes, the big purple dinosaur); whether Lena Dunham can find a quirky take on Polly Pocket; and if a Magic 8 Ball horror movie can actually prove to be scary.”

Kreiz quickly brushed off concerns of “Barbie” as a one-hit wonder. “We’re not saying that every movie will be as successful as ‘Barbie,’” he said, “but we absolutely look to have the same approach in terms of attracting and collaborating with the talent, supporting and backing the talent,” and enticing Mattel’s built-in fan base to the theater.

“The idea is to create something unique in every movie,” he added. “Every project has a unique purpose, and will have a unique voice.”

While “Barbie” captured fans’ collective imagination last year, Mattel’s future is not tied exclusively to films. Company execs like to joke that the nearly 800 million Hot Wheels sold annually make Mattel the biggest auto manufacturer in the world.

In September, the company unveiled a two-story L.A. flagship store for American Girl at the Westfield Century City Mall. On opening day, a line of toddlers to tweens, with dolls clutched to their chests and their parents in tow, lined up in front of the store’s doors. Inside, the cafe serves doll-sized pancakes on tiered serving trays alongside plates of human-sized ones. A hair and nail salon styles dolls and their humans.

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But Kreiz’s big bet on entertainment is never far off. Mattel announced in December plans to give the American Girl brand its own Hollywood treatment with a live-action movie directed by Lindsey Anderson Beer. Some of the American Girls have already starred in movies, mostly direct-to-DVD and made-for-TV films, but the company is aiming to go bigger.

Nostalgia, tapped effectively, can be a powerful force at the box office. There is a reason why studios keep reaching for reboots and reimaginings of beloved franchises — fans want to reconnect with characters with whom they have a history. But it can be a tricky business trying to nail the sweet spot of familiarity and freshness.

Kreiz thinks the company is up to the task.

“Play is our language,” he said. “This is how we start the journey. This is how we speak to our fans.”

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Apple announces deal with OpenAI. Will it be a game-changer?

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Apple announces deal with OpenAI. Will it be a game-changer?

Apple is finally taking the plunge on AI.

The company on Monday unveiled a suite of new artificial intelligence capabilities that will be available in its newest operating system, including connecting its interactive voice feature Siri with OpenAI’s ChatGPT in a major deal that could supercharge adoption of the fast-developing technology.

Siri, for example, will be able to surface answers from ChatGPT for Apple devices and provide relevant contextual information across several apps, the Cupertino, Calif., tech giant said at its highly anticipated developer conference. The iPhone, Mac and iPad maker’s newest operating system update will also feature AI-augmented improvements in its photo editing and image search capabilities, among other things.

Apple Chief Executive Tim Cook described Apple’s new AI-based functions, dubbed Apple Intelligence, as the next big step for the company, which has been slow to adopt emerging technology that has the potential to change the way people live and work.

“Recent developments in generative intelligence and large language models offer powerful capabilities that provide the opportunity to take the experience of using Apple products to new heights,” Cook said in a keynote address during Apple’s Worldwide Developers Conference, where the company previewed the iOS 18 system and other software updates for products including the Mac and iPad.

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The move signals Apple’s wider ambitions in the expanding AI landscape, as technology has progressed dramatically. Tools made by San Francisco-based OpenAI have been used to create music videos, read bedtime stories to children and help brainstorm ideas for writers. Companies including Microsoft and Google have aggressively incorporated AI into their products and services.

Apple has often not been the first to market with new technological advances, choosing instead to enter new product categories — including smartphones and tablets — once they’ve been established, leading to broader consumer adoption. For example, Apple only began selling its own virtual and augmented reality headset (known as Vision Pro) early this year.

Apple said its AI capabilities were created with privacy protections in mind. Apple Intelligence uses on-device processing. For requests that require use of the cloud, iPhone, iPad and Mac “do not talk to a server unless its software has been publicly logged for inspection” and the data are not retained or exposed, the company said.

Apple presented several uses for Apple’s new AI features. For example, if an iPhone user gets a notification that a work meeting has been moved to a later time, she can ask Siri how much time it would take for her to get from where the meeting is located to her kid’s play that night. In another hypothetical instance, an iPad user could share a photo of an empty patio and ask Siri what plants should be added.

The company also said customers can use Apple Intelligence to make suggestions for their writing, using it to analyze the tone of an email with options to make it more friendly or professional.

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The announcement of the OpenAI deal “kicks off a new frontier for Apple,” said Daniel Ives, a managing director at Wedbush Securities who follows Apple.

“This was a historical day for Apple and Cook & Co. did not disappoint in our view,” Ives, who has an “outperform,” or “buy,” rating on the company’s stock, said in a note to clients. “Apple is taking the right path to implement AI across its ecosystem while laying out the foundation for the company’s multi-year AI strategy across the strongest installed base of 2.2 billion iOS devices over the coming years.”

Investors were less impressed, sending Apple’s stock down 1.9% to $193.12 a share.

Apple hopes adding new AI tools to its products and services will make them more useful to customers and thus more attractive. The company has faced a number of challenges, including slowing device sales in China. Ives said that AI technology introduced to Apple’s ecosystem will bring more opportunities for Apple to generate revenue.

Through its deal with OpenAI, Apple’s digital assistant Siri can ask Apple users if Siri can relay a question to ChatGPT for further information. This allows Apple to harness ChatGPT’s platform and in return, Apple users also become familiar with ChatGPT and what it can do. Every day, Apple said, Siri gets 1.5 billion voice requests.

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ChatGPT will be available for free to Apple users on its newest operating systems for iPhones, iPads and Macs later this year. Apple said its users won’t need an account with ChatGPT to use it on Apple devices. OpenAI won’t store requests and IP addresses will be obscured, the company said.

“Together with Apple, we’re making it easier for people to benefit from what AI can offer,” OpenAI CEO Sam Altman said in a statement.

Some tech companies, including Apple, didn’t anticipate the breakthroughs in AI over the last year, said Rob Enderle, principal analyst with advisory services firm Enderle Group. The partnership with OpenAI is one way for Apple to catch up. One of OpenAI’s major backers is Microsoft, an Apple competitor.

“Apple’s been significantly behind on AI,” Enderle said. “This is a method to allow Apple to make up for the fact that they haven’t been focused on AI like they should have done over the last decade or so.”

Apple Intelligence was one of many announcements and updates from Apple on Monday, including a feature that lets AirPods Pro users nod yes or shake their heads no to Siri’s questions when they are in crowded spaces. Additionally, the company announced that the Vision Pro headset will also be available in additional countries starting later this month, including mainland China, Hong Kong, Japan and Singapore.

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The company also unveiled a new feature called InSight for its tvOS18 that is similar to Amazon’s X-Ray and shows the names of actors or a song playing on an Apple TV+ program.

OpenAI has become the best-known player in the artificial intelligence space, thanks to its tools including ChatGPT and Sora, its text-to-video tool. But the company has faced its fair share of controversies and challenges.

OpenAI last month received backlash from actor Scarlett Johansson, who said she was approached by the startup’s CEO to record her voice for a Siri-like voice assistant version of ChatGPT. After she declined the opportunity, Johansson said, she was upset when she heard what sounded like her voice in a ChatGPT demo.

Altman is known to be a fan of the 2013 movie “Her,” in which Johansson plays “Samantha,” the disembodied voice of a computer who provides friendship and, eventually, love to a lonely man played by Joaquin Phoenix.

OpenAI said that the AI voice, called “Sky,” was not Johansson’s and was recorded by an unnamed voice actor. Nonetheless, the company paused the use of the Sky voice.

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OpenAI recently caught flak for disbanding a team that was tasked with coming up with systems to prevent the rise of artificial intelligence from leading to disaster for humanity. After the firestorm, OpenAI created a new safety committee led by board members, including Altman.

Last week in an open letter, former and current OpenAI employees also raised concerns. The group said that “AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this.”

OpenAI said in a statement said that it believes “rigorous debate is crucial” and it will continue to engage with communities, governments and civil society. The company said it has an anonymous hotline and a safety and security committee.

“We’re proud of our track record providing the most capable and safest AI systems and believe in our scientific approach to addressing risk,” the company said.

Large tech companies are also facing their own challenges, with the U.S. government raising antitrust concerns.

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In March, the Department of Justice sued Apple, accusing the tech giant of stifling competition and leveraging its clout and ownership of the popular App Store to increase prices for customers. Apple said the lawsuit threatens “who we are.”

“If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect,” Apple said in a statement.

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Scams tied to Ozempic and other new weight-loss drugs are surging. How to protect yourself

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Scams tied to Ozempic and other new weight-loss drugs are surging. How to protect yourself

Ozempic, Wegovy and other new weight-loss drugs have proved so good at helping users shed pounds, they’ve quickly become a multibillion-dollar industry.

The prescription-only medications have also been in consistently short supply, which is why they’ve grown increasingly popular — with scammers.

Online con artists are luring victims with discount offers of Ozempic and similar drugs with no prescription required. After they take the money, however, they deliver something their clients didn’t order — fake drugs, perhaps, or just the disappointment that comes when people realize they’ve been taken.

A new report by threat researchers at McAfee found 176,871 phishing emails and 449 malicious websites tied to offers of Ozempic, Wegovy and semaglutide, the generic name for these drugs, from January to April 2024. Phishing attempts were almost 200% higher during the period than they were from October to December, the internet security company reported.

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In addition, the researchers found that scammers were creating fake profiles on Facebook so they could run weight-loss-drug swindles there. Others took hundreds of fake offers to Craigslist — including 207 of them in a single day in April.

Novo Nordisk originally developed the semaglutide it dubbed Ozempic as a treatment for Type 2 diabetes, but clinicians found that semaglutide could help people lose significant amounts of weight by suppressing appetite. The Food and Drug Administration approved Novo Nordisk’s Wegovy as a weight-loss drug in 2021; since then, it has approved an alternative drug, Eli Lilly’s Zepbound, which is based on its diabetes treatment Mounjaro.

Although Ozempic costs nearly $1,000 a month without insurance, the demand for these drugs has grown rapidly. Sales of Ozempic alone are projected to reach $11 billion this year, according to one analysis.

The combination of high prices and insufficient supply has proved irresistible to scammers.

Abhishek Karnik, head of threat research at McAfee, said the fraudsters typically have two types of victims: people who can’t get a prescription for Ozempic, and people who have a prescription but can’t find it at their local pharmacies.

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The scams can be personalized and targeted at people who’ve shown some interest in weight-loss drugs, using information collected about them and their browsing habits, said Iskander Sanchez-Rola, director of privacy innovation for the internet security company Norton. The pitches may come through email or ads placed on search engines or websites, he said, including sites that are well-established and trustworthy.

“Anywhere a human can have their eyes on, they will be there,” Sanchez-Rola said of the scammers. Just because a website is legitimate, he added, that’s no guarantee that the ads there will be.

To pull off the scam, Karnik said, the fraudsters will often interact with the prospective buyer through a social media network or platform such as Telegram to win their trust. That could include offering over-the-top testimonials to their legitimacy and to the quality of the products. “You’ll have people claiming they had huge success with these drugs,” he said, “but none of it is true.”

Scam sellers may also pose as doctors or pharmacists, often from foreign countries, and claim they can sell Ozempic without having to examine you or see a prescription. That may seem sketchy, but many Americans have imported real medications such as insulin illicitly from Canada and Mexico for years because the prices are so much lower outside the U.S.

“One example on Facebook Marketplace included a ‘Doctor Melissa’ based in Canada who could provide Mounjaro and Ozempic without a prescription, with payment available through bitcoin, Zelle, Venmo and Cash App — all of which are nonstandard payment methods for prescription drugs and should be red flags for consumers,” McAfee said.

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According to McAfee, some scammers just take your money and disappear, possibly after getting you to share sensitive personal information (unwittingly, in many cases). Others will deliver an injection pen — the typical format for these weight-loss drugs — filled with something other than the advertised medication; they may be insulin injectors, EpiPens or even injectors loaded with salt water, McAfee said.

That sort of counterfeit shipment poses a significant health risk. For example, McAfee said, one person who used Ozempic to help manage her diabetes bought some injectors online after local pharmacies ran out, only to discover that the pens she received were filled with insulin. Had she not been tipped off by the flimsy packaging and different appearance, McAfee said, she could have injected herself with a fatal dose.

Another type of con, Sanchez-Rola said, is when the scammer will deliver a bottle of aspirin or some other drug you didn’t order, then make it so burdensome for you to obtain a refund that you give up.

How to detect Ozempic scams

The first rule, McAfee said, is never to buy one of these drugs without a prescription. After all, doing so is illegal in the United States.

Sticking to licensed pharmacies is wise too. You can check whether a California pharmacy is licensed at the State Board of Pharmacy website; for other states, consult the FDA’s website.

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But scammers also target people who have prescriptions they can’t fill locally, as well as offering medications they tout as nonprescription alternatives that are just as good as Ozempic. And to make their products more attractive, they may use AI tools to produce eye-popping before-and-after images that are persuasively realistic.

Here are more red flags to look for before buying a weight-loss drug online:

Strikingly deep discounts. Fraud experts say that if a price looks too good to be true, it almost certainly is. Another thing to bear in mind, Sanchez-Rola said: “You didn’t find the best deal, the best deal found you, which is already a big red flag.”

Misleading claims. McAfee warns that overly rosy promises of results are a sign of a scam. Be especially wary if the site offers none of the usual disclaimers about side effects, possible negative reactions or details about how the product should be used.

Payment methods other than credit cards. Scammers prefer systems that act more like cash, such as Zelle, Cash App or gift cards, or are untraceable, such as cryptocurrency. Sanchez-Rola said sometimes scammers will also offer a credit card option that looks real, but it’s designed to display an error message when you try to use it so you’ll be forced to use a different, sketchier payment method.

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A mix of 5-star and 1-star reviews. Sanchez-Rola said that fraudsters’ websites often try to bury the actual reviews posted by unhappy customers under a slew of bot-generated praise. If you see a lot of 5-star reviews that were posted within a short period of time, that’s a huge red flag, he said, especially if the reviews have no comments attached.

Deep discounts that expire soon. Con artists will try to override your reservations about a transaction by giving it a false sense of urgency.

Boilerplate company information. Scammers’ websites often provide phone numbers, addresses, contact information and descriptions that they copy from legitimate sites, Sanchez-Rola said. You should paste the phone number and other information into a Google search to see if they’re used by other, unrelated businesses — for example, he said, one scam site copied its physical address from an ice cream parlor, assuming that its customers wouldn’t bother to check.

Use security software that helps detect scams. McAfee and Norton, among other companies, offer programs that can alert you when you’re about to navigate to a suspicious website.

What to do if you’ve fallen for an Ozempic scam

If you’re fortunate enough to have used a credit card, you can dispute the charge and eventually obtain a refund. You can get similar results if you make your purchase using PayPal or Venmo with the buyer protection feature enabled.

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If not — for example, if you used Zelle or paid with gift cards — you can at least report the fraud to try to protect other potential victims. The federal government has an online tool to help you find the right law enforcement agency to file your report with. You can also file a complaint with the FTC’s site and the FBI’s Internet Crime Complaint Center.

Beyond that, Sanchez-Rola said, if you were conned on a social network, you should report the fraudster’s profile to the network’s administrators. For example, Facebook explains how to report fraudulent Marketplace sellers in its help section, and TikTok walks through how to report a problematic account in its support section.

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Supreme Court puts off ruling on whether state social media laws violate the 1st Amendment

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Supreme Court puts off ruling on whether state social media laws violate the 1st Amendment

The Supreme Court on Monday said it is putting off a ruling for now on whether social media laws adopted by Florida and Texas violate the 1st Amendment.

Instead, the justices sent those cases back to lower courts to consider how those laws would apply in specific situations.

Speaking for the unanimous court, Justice Elena Kagan said the lawyers for NetChoice, the group that sued the states, and the lower court judges who ruled so far made a mistake by focusing broadly on free-speech principles without considering how the laws would apply in different circumstances.

“In sum, there is much work to do below on both these cases, given the facial nature of NetChoice’s challenges. But that work must be done consistent with the 1st Amendment, which does not go on leave when social media are involved,” she said.

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All nine justices agreed with the outcome.

Monday’s decision leaves unresolved whether states may play a role in deciding what appears on popular platforms that are seen by tens of millions of viewers.

The two largest red states had passed laws to fine and punish platforms like Facebook, YouTube, Twitter (now X) and Instagram for what they said was “censoring” posts that appeal to conservatives.

The Florida and Texas laws under review arose from complaints three years ago that President Trump had been discriminated against or unfairly blocked by social media sites, including Twitter.

In 2021, Florida Gov. Ron DeSantis signed his state’s first-in-the-nation law and said it targeted the “Big Tech censors” who “discriminate in favor of the dominant Silicon Valley ideology.”

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The measure, adopted before billionaire Elon Musk purchased Twitter and changed its name to X, applies to social media sites with more than $100 million in annual revenue or more than 100 million users.

It authorizes lawsuits for damages for “unfair censorship” and large fines if a social media site “deplatforms” a candidate for office.

Texas Gov. Greg Abbott signed a somewhat broader bill a few months later, saying “conservative speech” was being threatened. It says a social media platform with more than 50 million users in the United States “may not censor … or otherwise discriminate against expression” of users based on their viewpoint.

NetChoice and the Computer & Communications Industry Assn. sued to challenge both laws on free-speech grounds, and both laws were put on hold, including by a 5-4 order from the Supreme Court.

The drive to restrict social media is heating up in many states.

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Last week, the court in a 6-3 vote threw out a lawsuit brought by Republican state attorneys that accused the Biden administration of censoring social media.

The administration said it had merely alerted sites about dangerous disinformation about vaccines and COVID-19. Justice Amy Coney Barrett said the state attorneys did not show that Facebook and other social media platforms removed postings because they were pressured to do so by the government.

Last year, the California Legislature adopted a measure to prohibit online companies from collecting and selling data on children and teenagers, but it was blocked on 1st Amendment grounds by a federal judge in San Jose.

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