New legislation could fine major platforms up to $1 million for algorithmic delivery of “hate speech.”
By Staff Writer | Libertary News | July 25, 2025
California lawmakers are pushing forward a controversial bill that critics say could severely undermine free speech online. Senate Bill 771 (S.B. 771), currently under review by the state Assembly after passing the Senate in May, proposes harsh financial penalties on large social media platforms if their algorithms are found to “relay content” that violates California’s civil rights statutes — including what the bill refers to as “hate speech.”
The legislation would impose fines of up to $1 million for platforms that knowingly allow such content to circulate via algorithmic feeds, and up to $500,000 for so-called reckless violations.
Supporters argue the bill is a necessary response to the reported increase in hate crimes and disinformation. Cited sources include a Human Rights Campaign report noting a 400% spike in anti-LGBTQ+ rhetoric after Florida’s 2022 “Don’t Say Gay” law, a Los Angeles County report showing a 31% rise in anti-immigrant hate crimes in fiscal year 2024, and the Anti-Defamation League’s audit showing an 893% increase in antisemitic incidents over the past decade.
A 2023 study by Global Witness is also referenced, highlighting that social platforms accepted and distributed paid advertisements promoting violence against women.
Despite its stated intent “not to regulate speech or viewpoint,” critics argue that S.B. 771 could do exactly that by holding platforms legally accountable for speech shared by users — speech often protected by the First Amendment.
Shoshana Weissmann, digital media director at the R Street Institute, warns that the bill’s vague language could criminalize even basic content-sorting algorithms. “Even showing posts from people you follow, without algorithmic customization, could make a platform liable,” she told Reason magazine. “This bill essentially says any form of showing content makes you responsible for it — which makes no sense.”
The bill also appears to assume that platforms can “knowingly” promote hate speech simply by using automated systems — a standard that legal experts say is deeply flawed.
Notably, the law only applies to companies making over $100 million annually, potentially leaving smaller platforms like 4chan, known for hosting more extreme content, untouched. This raises questions about both fairness and efficacy.
Furthermore, enforcement of S.B. 771 could collide with Section 230 of the Communications
