Social Media Safeguards for Kids, FTC on AI Misuse, and CFPB’s Lawsuit Against Walmart

Introduction:

Welcome to Fair Monday! We know Mondays can be a bit rough, so we created Fair Monday to bring you weekly insights and resources on dark patterns and digital fairness. Each Monday, we share updates on the latest developments, helping you stay informed and empowered to create a fairer, more transparent digital space.

This Week's Highlights:

1. California’s New Law to Combat Social Media Addiction in Kids
   Effective January 1, 2025, California’s Protecting Our Kids from Social Media Addiction Act (SB 976) introduces groundbreaking measures to shield minors from addictive social media features. Key provisions include:
   ➡ Parental controls and age verification mechanisms.
   ➡ Annual transparency reporting by social media platforms.
   ➡ Restrictions on algorithmic feeds and persistent notifications (partially blocked by courts over free speech concerns).
   
   California Attorney General Rob Bonta emphasized the toll social media addiction takes on children’s mental health, underscoring the need for proactive measures to safeguard young users.‍
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2. FTC Cracks Down on AI Misuse to Protect Privacy and Trust
   The FTC continues to highlight the risks associated with AI systems, from security vulnerabilities to unethical targeted ads. Key enforcement actions include:
   ➡ Ensuring compliance with consumer protection laws for AI tools like chatbots and automated decision systems.
   ➡ Prohibiting dark patterns that mislead consumers, such as unauthorized data collection by companies like Vizio.
   ➡ Advocating for transparent interfaces, explicit user consent, and strong data protection measures.
   
   “Consumers encounter AI systems daily. There is no AI exemption from the laws on the books,” the FTC stated, emphasizing strict enforcement against deceptive practices.‍
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3. CFPB Lawsuit Against Walmart and Branch Messenger for Exploiting Drivers
   Since December 2024, the CFPB has pursued legal action against Walmart and Branch Messenger for using dark patterns to exploit delivery drivers. Allegations include:
   ➡ Forcing drivers to use Branch accounts to receive payments, with no consent.
   ➡ Misleading statements about Branch services, making fund transfers difficult and costly.
   ➡ Violating the Consumer Financial Protection Act of 2010.
   
   CFPB Director Rohit Chopra stated, “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers.”

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Conclusion:

This week’s updates, from California’s groundbreaking social media law to the FTC’s AI oversight and CFPB’s actions against exploitative practices, reflect growing global efforts to enforce fairness and protect consumers. At Fairpatterns, we remain dedicated to driving accountability and transparency across industries.

Let’s work together to build a safer, fairer digital world. Have a fantastic week with Fair Monday!