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This Week's Updates:
TTP Report: J.D. Vance’s Plan to Weaken Big Tech Has a Notable Loophole
On Wednesday, CfA’s Tech Transparency Project (TTP) released a report detailing how Sen. J.D. Vance’s proposal to reform Section 230 of the Communications Decency Act would conveniently shield Rumble – an “alt-tech” platform that Vance is heavily invested in through a venture capital firm that he co-founded.
Vance is far from the first lawmaker to propose reforming Section 230, but his approach would exempt smaller “new entrants” by allowing them to keep the legal shield currently enjoyed by all online platforms. Section 230 provides critical protection for Rumble, which hosts content promoting QAnon conspiracies, rampant anti-vaccine content, and Holocaust denial. Without the liability shield, companies like Rumble could be exposed to costly lawsuits, a risk that Rumble itself has acknowledged to investors.
FTC Uses Penalty Offense Authority to Investigate Misleading Wellness Marketing
Yesterday, the FTC announced that it would be using its Penalty Offense Authority to issue notices to almost 700 companies that market over-the-counter drugs, supplements, homeopathic products, or “functional foods.” Each company must be prepared to back up claims made about their products in marketing materials – if they can’t, they’ll face a large fine.
Here’s a case study: in 2013, the FTC found that POM Wonderful LLC had mislead consumers with advertisements claiming that pomegranate juice could treat or prevent serious health conditions, including cancer. POM fought the decision, but it could not produce a single randomized, controlled human trial to prove its claims. Ultimately, POM received a cease-and-desist order and was forced to abandon its advertising campaign. This latest round of companies will be held to the same standard, and could be subject to large civil penalties if they can’t meet the FTC’s standard of proof.
Abortion Pill Fight Linked to Leonard Leo
Yesterday, the Justice Department announced that it would be seeking emergency relief from the Supreme Court to override an appeals court ruling that would sharply restrict access to mifepristone, an abortion medication. The initial ruling, which completely banned mifepristone, was made by U.S. District Judge Matthew Kacsmaryk, a Trump appointee to the Northern District of Texas. In March, Jezebel reported that Kacsmaryk had ties to conservative powerbroker Leonard Leo through both the Federalist Society and a firm called First Liberty Institute, which made large payments to a business owned by Leo. That same business – CRC Advisors – was one of two companies that received millions of dollars from various non-profits linked to Leo.
Two weeks ago, CfA called for an investigation into those non-profits after Leo began spending a large amount of money commensurate with the transfers. CfA’s complaint detailed how Leo’s company—which, when asked by the media—declined to say what services it provided to these nonprofits in exchange for such exorbitant fees.
