By Cindy Harper – Reclaim The Net
Social media companies operating in New York are now under fresh legal obligations as the state enforces the so-called “Stop Hiding Hate Act,” a new compelled speech law that forces platforms with annual revenues exceeding $100 million to hand over detailed reports on how they handle various forms of speech, including speech that is legally protected under the First Amendment.
The legislation went into effect on October 1 and has already triggered a constitutional showdown in court.
The law, officially Senate Bill S895B, demands biannual disclosures to the state Attorney General’s office.
These reports must outline how platforms define terms such as “hate speech,” “misinformation,” “harassment,” “disinformation,” and “extremism.”
Companies are also required to explain what moderation practices they apply to those categories and to provide specifics about actions taken against users and content.
Platforms that fail to comply face penalties of up to $15,000 per violation, per day. Injunctive action can also be taken against non-compliant entities.
Attorney General Letitia James declared that the law is about transparency and oversight.
“With violence and polarization on the rise, social media companies must ensure that their platforms don’t fuel hateful rhetoric and disinformation,” she said in a public statement, reinforcing her view that private companies should be accountable to the state for how they manage user expression.
“The Stop Hiding Hate Act requires social media companies to share their content moderation policies publicly and with my office to ensure that these companies are more transparent about how they are addressing harmful content on their platforms.”
Governor Kathy Hochul voiced similar sentiments, saying the legislation “builds on our efforts to improve safety online and marks an important step to increase transparency and accountability.”
The reporting rules, however, do not simply demand that companies disclose general moderation policies. They compel platforms to state clearly how they define some of the most politically charged and subjective categories of online content. These include terms that do not have universally accepted definitions and that often serve as the basis for viewpoint discrimination.
This government demand for compelled speech is at the heart of a legal battle now playing out in federal court.
In June 2025, X Corp., the company behind the X platform, filed a lawsuit challenging the constitutionality of the law.
The company’s complaint argues that Senate Bill S895B is a direct assault on editorial discretion and a violation of free speech rights enshrined in both the US and New York Constitutions.
According to the complaint, the law imposes “an impermissible attempt by the State to inject itself into the content-moderation editorial process.” X warns that the statute operates as a tool to pressure platforms into adopting government-favored positions on disputed topics.
Key to X’s legal objection is what it refers to as the “Content Category Report Provisions.” These provisions, the company argues, effectively force platforms to accept the state’s framing of controversial topics, including “foreign political interference” and “hate speech,” regardless of how a private entity might choose to treat or define such categories independently.
The lawsuit also highlights the heavy financial threat tied to non-compliance, noting that fines can reach $15,000 per day for every violation. In addition, platforms could face legal action from the Attorney General’s office.
In defending its position, X Corp. references a victory it recently secured in a separate First Amendment case involving a similar law in California. There, the Ninth Circuit ruled that forced reporting of this nature likely constitutes compelled non-commercial speech and does not hold up under strict scrutiny.
The court concluded that forcing platforms to adopt state-defined language “amounts to compelled speech,” a stance X Corp. is urging the Southern District of New York to follow.
The company’s lawsuit goes a step further, pointing to legislative bias as motivation for the law’s passage.
According to the complaint, New York lawmakers refused to engage with X’s representatives in the wake of the California ruling, explicitly citing their disapproval of Elon Musk’s public statements and use of the platform.
In correspondence included in the court filing, lawmakers dismissed the company’s concerns because, in their words, Musk had used X to promote content that “threatens the foundations of our democracy.”
That remark, X argues, reveals a plainly unconstitutional motive rooted in viewpoint discrimination. “The government cannot do indirectly what [it] is barred from doing directly,” the complaint states, referencing controlling Supreme Court precedent.
Despite the ongoing litigation, New York officials are moving forward with the law’s enforcement.
Senator Brad Hoylman-Sigal, one of the bill’s sponsors, defended the policy as a necessary countermeasure to what he described as real and potential violence driven by online speech. “The Stop Hiding Hate Act will ensure that New Yorkers are able to know what social media companies are doing (or not doing) to stop the spread of hatred and misinformation on their platforms,” he said.
The outcome of the lawsuit could have wide-reaching implications not only for companies operating in New York but also for how much power states can exert over online speech. For now, platforms face a stark choice: speak as the state demands or risk steep penalties for silence.