Big Tech Front Groups, a Tennessee Civil Complaint, and New Reporting on Leonard Leo
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** CfA's May 5, 2023 Newsletter
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With your support, Campaign for Accountability is working to expose corruption and hold the powerful accountable.
** This Week's Updates:
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TTP Report: Big Tech’s Scramble to Stop Child Safety Laws
On Wednesday, CfA’s Tech Transparency Project (TTP) released a new report ([link removed]) exposing the tech industry’s attempts to block children’s online safety bills in state legislatures across the country. Some proposals, largely based on California’s Age-Appropriate Design Code Act, would mandate design and privacy standards for platforms that are “likely to be accessed by children.” To comply with these regulations, platforms must either reasonably estimate the age of users who require extra protections or apply the protections to all users, regardless of age. Other proposals, based legislation first introduced in Utah, would mandate age verification and parental consent agreements for minors using social media platforms. In response to these proposals, the tech industry has mobilized a network of allies to fight on its behalf in state legislatures and courtrooms.
TTP’s analysis sheds light on the tactics used by tech-funded groups like NetChoice, the Chamber of Progress, and TechNet to change the narrative surrounding children’s safety and shift the blame away from platforms that have failed to protect young users. Representatives from these organizations claim that child safety laws would hurt small business, and point to “education of safe internet practices ([link removed]) ” as the best way to protect children online. Meanwhile, NetChoice is leading a lawsuit ([link removed]) against the state of California to block its children’s safety act, which has already been signed into law. By having trade groups do their dirty work, tech companies are fighting to maintain a status quo that allows them to avoid all responsibility for any harm caused by their products. TTP’s report was covered by The Washington Post
([link removed]) and Politico Influence ([link removed] ) .
Tennessee Dems File Civil Complaint with AG Over Speaker Sexton Residency
Last week, CfA called for an investigation ([link removed]) to determine whether Tennessee House Speaker Cameron Sexton knowingly and wrongfully accepted more than $79,000 to cover unneeded travel expenses to Nashville – a city he was secretly living in, after purchasing a home in 2021. Now, the Cumberland County Democratic Party has followed up with a civil complaint to Tennessee Attorney General Jonathan Skrmetti, alleging that Sexton violated the state’s False Claims Act on 150 occasions, which could result in a fine of $375,000 to $1.5 million. The new complaint acknowledges CfA’s request for a criminal investigation, stating that “if Speaker Sexton is being investigated by criminal authorities for potential violations of the law, we believe a parallel civil investigation is required in order to protect the interests of Tennessee taxpayers.”
The Tennesee Lookout ([link removed]) covered the story, as well as CfA’s initial complaint. ([link removed])
New Reporting on Leonard Leo’s Fundraising Network
On Tuesday, Politico’s Heidi Przybyla published a new piece ([link removed]) on Leonard Leo’s political activity and his evolving relationship with the Federalist Society, where he currently serves as a co-chair. According to sources familiar with the Federalist Society’s internal workings, Leo’s heighted public image and aggressive fundraising has caused tensions to emerge between him and other members of senior leadership, who allegedly fear that a rift could disconnect the organization from its donors. Leo had already attracted media attention for his role in shaping President Trump’s judiciary – including the Supreme Court – but a $1.6 billion dollar donation from billionaire industrialist Barre Seid sharply increased his influence.
According to CfA’s analysis, seven tax-exempt organizations with ties to Leo appear to have paid his for-profit entities – directly or indirectly – $73 million over a six-year period from 2016 to 2021. This influx of money prompted CfA to file a complaint ([link removed]) alleging that Leo may have used his non-profit businesses for explicit and coordinated self-enrichment. On Thursday evening, the Washington Post reported ([link removed]) that Leo used yet another non-profit to transfer “another 25K” to the wife of Supreme Court Justice Clarence Thomas. This transaction was facilitated by Kellyanne Conway, who was the subject of separate CfA complaint
([link removed]) regarding a pay-to-play scheme surrounding the selection of Supreme Court nominees that also involved Leo.
** What We're Reading:
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Pregnant CBP employees involuntarily placed on ‘light duty,’ allege systematic discrimination ([link removed])
U.S. bankers urge SEC to probe short sales, reduce 'abusive' trading ([link removed])
Clarence Thomas Had a Child in Private School. Harlan Crow Paid the Tuition ([link removed])
** Follow Our Work:
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We thank you for your continued support. Without people like you, our work would not be possible.
Here is how you can stay involved and help us accomplish our mission:
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5. Make a tax-deductible donation ([link removed]) .
Be on the lookout for more updates about our work in the upcoming weeks. Thanks again for signing up to be a part of CfA!
Sincerely,
Michelle Kuppersmith
Executive Director, Campaign for Accountability
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