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New York Takes Aim at Social Media with Algorithm Restrictions for Teens

New York is set to implement stricter regulations on social media platforms, specifically targeting the algorithms that curate content for teenage users. According to a Wall Street Journal report on Monday, June 3rd, 2024, state lawmakers have reached a tentative agreement on a bill that would require parental consent for social media companies to use algorithms to control content displayed to minors.


New York Social Media Regulation Teenagers Mental Health Parental Consent Social Media Algorithms
New York is poised to become the latest state to restrict social media algorithms for teenagers. This legislation aims to curb the negative impact of social media on youth mental health by requiring parental consent for algorithm-driven content and limiting nighttime notifications.

Addressing Concerns Over Social Media's Impact

This legislation comes amidst growing concerns about the influence of social media on young people's mental health.Social media platforms have faced increasing scrutiny in recent years for their addictive nature and potential to exacerbate mental health issues in teens.


Echoing New York City's Concerns

In February 2024, New York City Mayor Eric Adams filed a lawsuit against prominent social media companies, including Meta Platforms (owner of Facebook and Instagram), citing their role in fueling the mental health crisis among teenagers.


Proposed Regulatory Measures

The proposed New York legislation aims to address these concerns through several key measures:

  • Limiting Algorithmic Control: Parental consent would be mandatory before social media platforms can utilize algorithms to curate content displayed to teenage users.

  • Restricting Nighttime Notifications: Social media platforms would be prohibited from sending notifications to minors during designated nighttime hours without parental consent.


Following in the Footsteps of Other States

This move by New York aligns with a growing trend of states enacting stricter social media regulations for minors.Florida became the first state to adopt such laws in March 2023, followed by Utah, Arkansas, Louisiana, Ohio, and Texas.



Potential Market Impact

The news of this potential legislation caused a slight dip in the extended trading hours for social media giants Meta Platforms (META.O) and Snap Inc. (SNAP.N), with their shares dropping by about 1%.


A Look Ahead

The New York bill is still undergoing finalization but is expected to be voted on this week. Its passage would mark a significant step towards regulating social media's influence on teenagers and their mental health.



Source: Reuters

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