Federal Court Upholds New York's Social Media Disclosure Law
A federal judge upheld New York's 'Stop Hiding Hate' Act requiring social media transparency.
Why it matters: This ruling mandates online platforms to disclose content moderation details, affecting legal compliance for digital content providers amid increased regulatory scrutiny.
- On August 26, 2026, Judge John Cronan dismissed X Corp.'s lawsuit challenging New York's law.
- The 'Stop Hiding Hate' Act requires platforms with $100M+ annual revenue to disclose hate speech moderation policies.
- Noncompliance can lead to civil penalties up to $15,000 per violation per day, enforced by the NY Attorney General.
- Judge ruled disclosures are factual, uncontroversial, and align with New York's interest in consumer information.
On August 26, 2026, U.S. District Judge John Cronan dismissed a lawsuit filed by X Corp. that challenged New York's 'Stop Hiding Hate' Act, affirming the law's transparency mandates for social media platforms. The ruling confirms the state's authority to require platforms to disclose how they manage hate speech, extremism, harassment, foreign political interference, and disinformation.
The Stop Hiding Hate Act, signed by Governor Kathy Hochul in December 2024, applies to social media companies with annual revenues of at least $100 million. It obligates them to be transparent about their content moderation policies and enforcement practices.
X Corp. filed its suit on June 17, 2025, alleging that these disclosure requirements violated the First Amendment by compelling speech. However, Judge Cronan found that the law requires "purely factual and uncontroversial information," which is reasonably related to New York's interest in informing consumers.
As Judge Cronan noted, "Businesses always exercise their discretion, judgment, and opinions when deciding what goods or services to offer."
Enforcement of the Act includes civil penalties of up to $15,000 per violation per day, administered by the New York Attorney General, underscoring the significant compliance risks for platforms that fail to adhere.
This decision signals increased judicial support for state transparency laws governing platform content moderation and highlights the growing challenges digital content providers face in navigating these regulatory requirements.
By the numbers:
- $100 million — revenue threshold for social media platforms covered by the law
- $15,000 — maximum daily civil penalty per violation for noncompliance
- December 2024 — date the 'Stop Hiding Hate' Act was signed into law
- August 26, 2026 — date the court dismissed X Corp.'s lawsuit