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The U.S. Supreme Court issued a landmark decision today in TikTok Inc. v. Garland, affirming the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act (“the Act”). The ruling, delivered per curiam, has significant implications for social media platforms and national security law, particularly concerning foreign-controlled entities operating in the United States. Case Summary The Act prohibits the operation of foreign adversary-controlled applications in the U.S. without a qualified divestiture. TikTok, owned by China-based ByteDance Ltd., challenged the Act, arguing that it violated the First Amendment rights of the company and its users. Petitioners also contested the Act’s data-collection rationale and divestiture requirements. Supreme Court Ruling The Court held that the Act, as applied to TikTok, does not violate the First Amendment. Key findings include: Intermediate Scrutiny Applied: The Court found that the Act's provisions are content-neutral, aimed at preventing the exploitation of U.S. user data by a foreign adversary, and tailored to address national security concerns. Compelling Government Interest: The Court upheld Congress’s determination that TikTok’s scale and data collection practices pose a significant risk, especially given ByteDance's obligations under Chinese law to cooperate with government intelligence operations. Tailoring of the Law: The Act does not outright…

In a critical decision underscoring the protections of the First Amendment, the United States District Court for the Western District of Tennessee granted a preliminary injunction against Tennessee's Protect Tennessee Minors Act (PTMA), set to become effective on January 1, 2025. The ruling, in Free Speech Coalition, Inc. v. Skrmetti, declared that the PTMA likely violates the First Amendment by imposing content-based restrictions on constitutionally protected speech. View the Order Granting Plaintiffs' Motion for Preliminary Injunction here. Key Points of the PTMA The PTMA imposes strict criminal and civil liability on entities operating websites containing at least one-third of content deemed "harmful to minors." The law mandates intrusive age-verification requirements, such as uploading government-issued identification or using facial recognition, for website access. Violations could result in severe penalties, including felony charges and civil damages. The Court's Findings Broad and Overbroad: The Court emphasized that the PTMA is not narrowly tailored. It captures constitutionally protected speech aimed at adults, unnecessarily burdening their First Amendment rights while pursuing the state's objective of shielding minors from harmful content. Chilling Effect on Speech: The PTMA was found to objectively chill protected speech by forcing websites to incur substantial compliance costs or risk criminal prosecution…

Dear Valued Clients, On October 16, 2024, the Federal Trade Commission (FTC) announced the finalization of the "Click-to-Cancel" Rule, an amendment to the Negative Option Rule designed to make it easier for consumers to cancel recurring subscriptions and memberships. Most provisions of the final rule will go into effect 180 days after its publication in the Federal Register. As your trusted legal advisors, Silverstein Legal is committed to keeping you informed about regulatory changes that may impact your operations. This new rule has significant implications for businesses offering subscription services, including those in the adult entertainment industry. Key Provisions of the Final "Click-to-Cancel" Rule 1. Simplified Cancellation Process: Easy Cancellation Mechanism: Businesses must provide a cancellation method that is as easy to use as the method consumers used to sign up. If customers enrolled online, they must be able to cancel online without unnecessary steps or obstacles. No Unnecessary Barriers: Sellers cannot require consumers to interact with a customer service representative or go through lengthy procedures to cancel their subscriptions if they did not do so to sign up. 2. Clear and Conspicuous Disclosures Material Terms Disclosure: Before obtaining a consumer's billing information, you must clearly and conspicuously disclose all…