US hate speech laws online platforms

New York's Disclosure Law Survives Because It Compels Facts, Not Moderation Decisions — a Line Legislators Should Respect

A federal judge upheld New York's Stop Hiding Hate Act against X Corp. The ruling shows where the First Amendment line sits, and where it still bites.

New York's Stop Hiding Hate Act People of Internet Research · US $15,000/day Max penalty per violation For missing or misleading reports,… $100M+ Covered platform revenue threshold Only large platforms must file rep… 3 Certified questions answered NY Court of Appeals read the Hatef… peopleofinternet.com
New York's Stop Hiding Hate Act People of Internet Research · US $15,000/day Max penalty per violation $100M+ Covered platform revenue threshold 3 Certified questions answer… peopleofinternet.com

Key Takeaways

In late August 2026, US District Judge John Cronan dismissed X Corp.'s First Amendment challenge to New York's Stop Hiding Hate Act, holding that "the First Amendment poses no obstacle" to requiring large platforms to disclose how they moderate hate speech, extremism and disinformation (Insurance Journal/Reuters). The case is X Corp. v. James, No. 25-cv-05068 (S.D.N.Y.). Press reports describe the dismissal as with prejudice. The ruling matters beyond Musk's company, because it marks a boundary between regulation that speech advocates can live with and regulation they should keep fighting.

The strongest case for the law

Supporters have a serious argument. Platforms make consequential, largely invisible decisions about what hundreds of millions of people see. Users, researchers and advertisers cannot compare services if each describes its rules in vague terms. A disclosure mandate does not remove a single post. It asks companies to say truthfully what they already claim to do. Judge Cronan adopted this reasoning. He said the law requires companies only "to speak truthfully about their offerings," which serves the free-speech goal of "the discovery of truth" (Insurance Journal/Reuters).

According to press accounts, the law applies to platforms with more than $100 million in annual revenue. They must file reports on how their terms define and enforce categories such as hate speech, extremism, disinformation, harassment and foreign political interference. Penalties reach $15,000 per violation per day for missing, incomplete or misleading reports, with a 30-day cure period (Reclaim The Net).

Why this differs from California's failed law

The result is not a blank check for states. In X Corp. v. Bonta (September 4, 2024), the Ninth Circuit held that California's AB 587 was likely unconstitutional. The statute required platforms to report how, if at all, they moderate contested categories of speech. The court treated those reports as compelled non-commercial speech that was content-based and not narrowly tailored (Ninth Circuit opinion). The Southern District of New York reached the opposite result on a similar subject matter. Cronan reasoned that the reporting obligation concerns "purely factual and uncontroversial information" about a company's own terms of service, which is compatible with the First Amendment.

This is a real split in reasoning, not a quirk. Two courts in two circuits are treating similar disclosure statutes differently. The outcome turns on whether the compelled content is framed as facts about the product or as a state-prompted statement about contested categories. The Second Circuit will likely get to say which framing is right, if X appeals. Companies and legislators should treat the question as unsettled.

The companion ruling that shows how courts police drafting

The disclosure ruling follows a June 23, 2026 decision of the New York Court of Appeals in Volokh v. James, which concerned a different statute, the Hateful Conduct Law (General Business Law § 394-ccc). That law requires platforms to maintain a mechanism for users to report hateful conduct. Answering three questions certified by the Second Circuit, the court held that a platform can comply without explicitly referencing the statutory definition of hateful conduct, and that the statute does not require a platform to respond to a user's report (NY Court of Appeals, Volokh v. James). Commentators read this narrow construction as likely to help the law survive First Amendment review (Simpson Thacher).

The pattern is consistent. New York's statutes are surviving where they are read, or drafted, to compel mechanisms and factual disclosures. They are not surviving, or have not been tested, where they would pressure platforms to adjudicate what counts as hateful.

What this means for a pro-speech, pro-innovation policy

Three implications follow.

A fair reading of the ruling is therefore neither a defeat for free speech nor a victory for it. It confirms that courts will tolerate factual transparency about private moderation, and it signals that the next fight will be over enforcement, not text. Platforms that dislike the law have an obvious, speech-protective response: publish clear rules, follow them, and report accurately. Legislators who want to build on it should resist adding definitions of hate speech or duties to act on reports. Those additions would convert a transparency law into a speech regulation, and courts such as the Ninth Circuit have shown they will notice.

Sources & Citations

  1. Simpson Thacher (NYLJ), Volokh v. James Court of Appeals analysis
  2. Ninth Circuit, X Corp. v. Bonta (2024)
  3. Insurance Journal (Reuters): Judge dismisses X suit
  4. Reclaim The Net: NY law survives X lawsuit
  5. Simpson Thacher: Volokh v. James roundup