ByteDance, bitten. By CFIUS.

We open this episode with David Kris’s thoughts on the two-years-late CFIUS investigation of TikTok, of its Chinese owner, ByteDance, and of ByteDance’s US acquisition of the lip-syncing company Musical.ly. Our best guess is that this unprecedented reach-back investigation will end in a more or less precedented mitigation agreement.

WhatsApp is suing NSO Group over the use of spyware on WhatsApp’s network. I predict that this is going to be a highwire act for WhatsApp, given the precedents on when breaching terms of service violates the Computer Fraud and Abuse Act. I also muse on the possibility that NSO will find ways to make this a much less comfortable lawsuit for WhatsApp to pursue.

The ACLU takes this week’s prize for making a PR and fundraising mountain out of a molehill of a lawsuit. Matthew Heiman and I try to decide which took less effort – cutting and pasting the ACLU’s generic FOIA complaint or cutting and pasting the ACLU’s generic “Oh my God, it’s a surveillance dystopia” press release.

I comment on a heart-warming story about a geek in Normal, Illinois, who runs the most successful ransomware-rescue site in the world – and is going broke doing it. Advice to DHS’s CISA: Isn’t it time to sponsor prizes for people who post ransomware decryptors with real impact?

Mark MacCarthy discusses the guidance provided by the Defense Innovation Board on building ethical AI. I complain that political correctness seems to have outweighed considerations like, you know, winning wars.

Matthew tells us that Israel is creating its own CFIUS-like panel, and we note the longstanding tension between the US and Israel over Chinese access to Israeli technology.

David spots more decoupling: The Interior Department has grounded its entire drone fleet, citing the risk from Chinese manufacturers.

Mark and I find common ground in thinking that Facebook got the political ad censorship question more right than wrong. Twitter, not so much. We offer Strange New Respect for Herbert Hoover and the legislators who struggled with the last industry to seize control of what Americans could know—broadcasting.

Matthew fills us in on a story suggesting that North Korea breached an Indian nuclear plant’s network. He and I also briefly note that Georgia was the victim of a massive case of cyber vandalism.

In updates of past stories, I cover Coalfire’s persuasive critique of the sheriff who arrested the company’s pentesters in an Iowa courthouse. In another even longer-running story, the latest and perhaps the last word on the LabMD-Tiversa-FTC imbroglio can be found in an excellent New Yorker story that leaves LabMD looking good, the FTC looking bad, and Tiversa looking like a candidate for criminal prosecution. Finally, David updates the story of the 2016 Uber hack that cost the company’s chief security officer his job. Now it’s also going to cost the hackers their freedom, as they plead guilty to CFAA violations.

Download the 285th Episode (mp3).

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed!

As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of the firm.

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Fox News Poll Has Hillary Clinton Beating Trump In Hypothetical Matchup

Fox News Poll Has Hillary Clinton Beating Trump In Hypothetical Matchup

After a disastrous 2016 polling season in which virtually every major survey had Hillary Clinton beating President Trump by a landslid, a Fox News poll released Sunday has every single top-tier Democratic candidate is ahead of President Trump, along with Hillary Clinton, who isn’t even running.

The poll, conducted Oct. 27-30, shows former Vice President Joe Biden beating Trump 51% to 39%, Sen. Elizabeth Warren at 46% to 41%, and Sen. Bernie Sanders at 49% to 41%. Clinton comes in at 43% to 41%.

The ‘amazing’ results come as NBC News offers suggestions for how people should analyze political polls.

Meanwhile, more and more people are turning to alternative prediction mediums such as online betting site PredictIt – which currently has Sen. Elizabeth Warren in the lead, followed by a distant Joe Biden, Pete Buttigieg and Bernie Sanders.

National polling suggests a Biden primary win, while PredictIt (taken on a different day from above) has him going down in flames vs. Warren.


Tyler Durden

Mon, 11/04/2019 – 17:10

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Fed’s “Insurance” Rate Cuts Don’t Eliminate Risks, They Create New Ones

Fed’s “Insurance” Rate Cuts Don’t Eliminate Risks, They Create New Ones

Submitted by Joseph Carson, Former Director of Global Economic Research, Alliance Bernstein.

Preemptive policy moves have been a defining feature of monetary policy. In the past policymakers have made preemptive rate adjustments in response to potential inflation pressures, financial market turmoil, and now perceived risks from trade disputes. The paradox in this approach is that taking out “insurance” against a perceived risk shifts monetary policy in a new direction creating the potential for other risks to develop. In the end, it’s hard to prove that the economic outcomes are any different following a series of preemptive policy moves, but what are different are the timing and the imbalances that eventually ends the business cycle.

Fed’s Insurance Cuts of 2019 & 1998

Although there is more than 20 years that separate the “insurance” cuts of 2019 and 1998 there are a lot of similarities.

For example, in 1998 policymakers was facing an economy that was not in any apparent need of monetary stimulus. The US economy was on a solid growth path, marked with the jobless rate of mid-4% at its the lowest since the late 1960s, core consumer price inflation in the mid-2% range and all of the broad equity markets at or near record highs. Based on domestic factors a number of policymakers thought official rates should be raised over the course of 1998.

Nonetheless, the double whammy of the Russian debt default and the follow-on default of a major hedge fund created the potential for major turmoil in the domestic and global financial markets. Even though the Fed thought there was a low-probability of these events derailing the US economy—and there was zero evidence of any impact in the hard data—policymakers cut official rates three times over the short span of six weeks from late September to mid-November.

It is hard to say what would have happened to the economy had policymakers had not decided to lower official rates, but given the economy’s strong performance—expanding nearly 6% annualized in the second half of 1998 – suggests strongly that the economy would have been fine without any policy adjustment. Nonetheless, most financial market participants are in agreement that adding monetary stimulus and not removing it until a year later helped fuel speculation in the financial markets, lifting the market valuation of domestic companies relative to nominal GDP to record levels only to end with a crash in equity prices and the economy in 2000 when profits failed to meet lofty expectations.

In 2019, policymakers started the year with the expectation that official rates should be raised. Yet the double whammy of a sharp sell-off in the financial markets and the potential hit to the economy from the trade dispute between China and US forced policymakers to hit the “pause” button on rate decisions.

Since mid-year, even though many viewed it to be a low-probability that the trade dispute would derail the US economy policymakers cut official rates three times. It’s worth noting that today’s economic and financial backdrop—the jobless rate of mid-3% at its lowest rate since the late 1960s, core consumer price inflation in the mid-2% range and all of the broad equity markets at or near all time highs—is very similar to that of 1998.

Policymakers are well aware of the fact that no level of official rates can help businesses overcome the uncertainty and the potential lost of markets from trade disputes. Yet, by easing policymakers are hoping other parts of the economy that are sensitive to interest rates—like segments of consumer spending and housing – can be stimulated enough to offset the drag from business spending. This policy decision comes with the “big” risk, as its adding monetary stimulus to a domestic economy that is not in apparent need of any, possibly fueling more speculation to already “hot” asset markets.

Is 2019 another 1998? There is one more similarity that should not be overlooked—the trend in company profits. Operating profits peaked in 1997 and continued to move lower over the course of the next three years, even though the economy and the equity markets did not peak until 2000. Operating profits peaked 5 years ago and despite the weakness in company profitability equity markets have continued to move higher, hitting new record highs in the process.

Will history repeat itself?

By lowering official rates policymakers have extended the lifespan of the business cycle, similar to that of 1998’s decision, but in doing so they probably also wrote the script for its ending. Once again, equity market gains—which have lifted the market valuation of domestic companies relative to nominal GDP to levels last seen in 1999/2000 – are linked to easy money and not stronger corporate profits.

History sometimes repeats itself in the world of finance and in the economy – and odds are high it will again.


Tyler Durden

Mon, 11/04/2019 – 16:50

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Beijing Reportedly Planning To Ambush US With Last-Minute Demand To Drop Tariffs

Beijing Reportedly Planning To Ambush US With Last-Minute Demand To Drop Tariffs

Just minutes after the Dow closed at a fresh ATH (Trump tweet incoming), a headline that appears to cast doubt on the viability of the “Phase 1” deal after senior government officials and media in both China and the US spent the whole day talking it up.

On the surface, it doesn’t look like much: As the two sides continue tying up loose ends, Beijing is looking for the removal of the 15% tariffs imposed in September.

While algos apparently didn’t make the connection (there was only a modest reaction in Dow futures), anybody who has been closely following the talks should know that Washington has only promised to consider removing the upcoming December round as part of the deal: Earlier tariffs haven’t been discussed. And there’s probably a good reason for that: Washington has so far been extremely reluctant to offer any tariff relief (part of Trump’s insistence that the Chinese must prove adherence to the deal before the trade barriers come down).

Dow futures were knocked down a peg:

But if the market’s recent performance is any guide, there will be more losses to come as the week wears on.

To sum up, it looks like the Chinese are returning to their old ways of making big demands at the last minute – demands that ultimately scupper any kind of deal (the US has repeatedly accused Beijing of negotiating in bad faith). Which means that the White House could probably back away now and save the West Wing staff the trouble of planning another high-profile meeting.


Tyler Durden

Mon, 11/04/2019 – 16:35

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Judge to PragerU: You Do Not Have a Free Speech Claim Against YouTube

Prager University has suffered a setback in its suit against Google.

The conservative outfit took the company to court earlier this year, arguing YouTube—a Google subsidiary—violated PragerU’s free speech rights by putting approximately 20 percent of its videos on “restricted” mode and limiting its advertising. But in a tentative ruling submitted before last Friday’s oral arguments, Santa Clara Superior Court Judge Brian C. Walsh rejected this claim. If those arguments didn’t sway him, this ruling will stand.

“Prager contends that ‘YouTube is the cyber equivalent of a town square where citizens exchange ideas on matters of public interest’ and that defendants have opened their platform to the public by advertising its use for this purpose,” Walsh writes. “However, Prager does not allege that it has been denied access to the core YouTube service.”

Indeed, Prager University, headed by conservative radio host Dennis Prager, has amassed more than 2.36 million followers on YouTube and has produced more than 803 videos, which are hosted on the platform free of charge.

PragerU likely had a better shot of success in California than it would have had elsewhere in the country. The state expanded the scope of free speech rights in Robins v. Pruneyard Shopping Center (1979), which treated a privately held shopping center as a public forum. But even that doesn’t apply here, concludes Walsh, since the restricted service filters out mature content for the 1.5 percent of users who specifically choose not to see such material. “Limiting content is the very purpose of this service, and defendants do not give content creators unrestricted access to it or suggest that they will do so,” writes Walsh. “The service exists to permit users to avoid the more open experience of the core YouTube service.”

YouTube’s advertising service, he continues, is similarly “restricted to meet the preferences of advertisers.”

Prager’s First Amendment claims come amid the nonprofit’s repeated assertion that Google is biased against conservative groups. But as Robert Winterton of the trade association NetChoice points out, the tech giant restricts videos by left-leaning organizations too—and often more than Prager’s 20 percent. Fifty-four percent of The Daily Show‘s videos are hidden, as is 71 percent of content from The Young Turks.

Even the History Channel clocks in higher at 24 percent.

It’s certainly within the realm of possibility that Google’s content moderators are biased to a degree. But even then, is that a reason to bring in the government?

“Prager frivolously argues that the Constitution guarantees his right to post videos on YouTube without restrictions based on the company’s (admittedly vague) notions of propriety,” writes Reason‘s Jacob Sullum. “Where does that leave him when people with different priorities frivolously argue that the Constitution guarantees, say, a right to taxpayer-subsidized abortions?”

PragerU also argued that YouTube’s actions violate Section 230 of the Communications Decency Act, which protects platforms from facing certain liabilities for posts by third-party users. Much confusion continues to proliferate around the law, as high-profile political figures imply that tech companies cannot claim Section 230’s protections if they remove any legal content. But that is patently false: In order to make the internet a more palatable environment, the law specifically allows platforms to scrub content that they deem unsuitable.

“Here, defendants’ creation of a ‘Restricted Mode’ to allow sensitive users to voluntarily choose a more limited experience of the YouTube service is exactly the type of self-regulation that Congress sought to encourage in enacting section 230,” says Walsh.

PragerU has filed a separate suit in federal court. It still awaits a decision from the 9th U.S. Circuit Court of Appeals, and it too rests on free speech claims—ones that are even more likely to lose under federal law.

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Our Currency, Your Problem

“Major movers” such as China, Russia and the European Union have a strong “motivation to de-dollarize,” said Korin, co-director at the energy and security think tank, on Wednesday.

“We don’t know what’s going to come next, but what we do know is that the current situation is unsustainable.”

–  Anne Korin, Institute for the Analysis of Global Security.

Irrespective of where you reside in the world, chances are you feel some sense of unease, a nagging concern for the future and a deep instinctual understanding that an era you knew and navigated your entire life is slipping away and won’t be coming back.

We’ve been witnessing widespread protest and unrest across countries with distinct political and economic systems, such as Hong Kong, France, Chile, Spain, Ecuador, Lebanon and Venezuela just to name a few. Those with vested interests and an ideological solution to sell insist it’s all because of socialism, capitalism or some other ism, but the truth is this goes far deeper than that. What’s actually happening is the geopolitical and economic paradigm that’s dominated the planet for decades is failing, and rather than address the failure in any real sense, elites globally are have decided to loot everything they possibly can until the house of cards comes crashing down.

continue reading

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Uber Plunges After Another Huge Loss As Gross Booking Miss, $2.85BN EBITDA Burn Forecast

Uber Plunges After Another Huge Loss As Gross Booking Miss, $2.85BN EBITDA Burn Forecast

One quarter after Uber tumbled following its first report as a public company, Uber is plunging again, down 5%, after reporting a bigger than expected net loss.

For the third quarter, despite net revenue rising 23% Q/Q to $3.53 billion, and better than the estimated $3.39 billion, Uber reported a 3Q loss per share of 68c, bigger than the estimated loss of 63c, translating to a net loss of $1.162BN, 18% worse than the $986MM a year ago, if modestly better than the $1.45 billion expected.

Looking at the breakdown of the topline, Uber reported the following Q3 numbers:

  • Gross Bookings $16.47 billion, up 29% Y/Y, and missing estimates of $16.70 billion. This is said to be the main reason why the stock is hurting after hours.
  • Uber Eats bookings $3.66 billion, +8% Q/Q, up 73% Y/Y, and also below the estimate of $3.89 billion; in the aftermath of the recent disastrous earnings from GrubHub, investors will be especially worried about this business line.
  • Ridesharing bookings $12.55 billion, +3% Q/Q, up 20% Y/Y, and slightly above the estimate of $12.51 billion

Looking ahead, Uber provided a glimmer of hope that the cash burn may moderate and the company “improved” its full year Adjusted EBITDA guidance by $250 million to a loss of $2.8-2.9 billion, from $2.9-$3.0 billion previously.

However, the biggest concern is that despite the sizable improvement in revenue, the company’s adjusted Ebitda loss of $585 million was still staggering, and while it was a modest 11% improvement quarterly, and better than the estimated EBITDA loss of $805.1 million, it was still 28% greater compared to a year ago, as the business refuses to scale.

As Bloomberg summarizes, “Eats bookings, gross bookings and total active users were all below estimates” and while financial discipline is beginning to assert itself, “investors want those forward-looking estimates to keep going strong.” Alas, so far they are not. And as a result, the stock tumbled as much as 7.5% after hours before recovering some losses.

Which brings us to the right question as the stock tumbles just shy of its post-IPO low: when will the analysts covering the company shift from Buy to, well, reality.


Tyler Durden

Mon, 11/04/2019 – 16:24

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Judge to PragerU: You Do Not Have a Free Speech Claim Against YouTube

Prager University has suffered a setback in its suit against Google.

The conservative outfit took the company to court earlier this year, arguing YouTube—a Google subsidiary—violated PragerU’s free speech rights by putting approximately 20 percent of its videos on “restricted” mode and limiting its advertising. But in a tentative ruling submitted before last Friday’s oral arguments, Santa Clara Superior Court Judge Brian C. Walsh rejected this claim. If those arguments didn’t sway him, this ruling will stand.

“Prager contends that ‘YouTube is the cyber equivalent of a town square where citizens exchange ideas on matters of public interest’ and that defendants have opened their platform to the public by advertising its use for this purpose,” Walsh writes. “However, Prager does not allege that it has been denied access to the core YouTube service.”

Indeed, Prager University, headed by conservative radio host Dennis Prager, has amassed more than 2.36 million followers on YouTube and has produced more than 803 videos, which are hosted on the platform free of charge.

PragerU likely had a better shot of success in California than it would have had elsewhere in the country. The state expanded the scope of free speech rights in Robins v. Pruneyard Shopping Center (1979), which treated a privately held shopping center as a public forum. But even that doesn’t apply here, concludes Walsh, since the restricted service filters out mature content for the 1.5 percent of users who specifically choose not to see such material. “Limiting content is the very purpose of this service, and defendants do not give content creators unrestricted access to it or suggest that they will do so,” writes Walsh. “The service exists to permit users to avoid the more open experience of the core YouTube service.”

YouTube’s advertising service, he continues, is similarly “restricted to meet the preferences of advertisers.”

Prager’s First Amendment claims come amid the nonprofit’s repeated assertion that Google is biased against conservative groups. But as Robert Winterton of the trade association NetChoice points out, the tech giant restricts videos by left-leaning organizations too—and often more than Prager’s 20 percent. Fifty-four percent of The Daily Show‘s videos are hidden, as is 71 percent of content from The Young Turks.

Even the History Channel clocks in higher at 24 percent.

It’s certainly within the realm of possibility that Google’s content moderators are biased to a degree. But even then, is that a reason to bring in the government?

“Prager frivolously argues that the Constitution guarantees his right to post videos on YouTube without restrictions based on the company’s (admittedly vague) notions of propriety,” writes Reason‘s Jacob Sullum. “Where does that leave him when people with different priorities frivolously argue that the Constitution guarantees, say, a right to taxpayer-subsidized abortions?”

PragerU also argued that YouTube’s actions violate Section 230 of the Communications Decency Act, which protects platforms from facing certain liabilities for posts by third-party users. Much confusion continues to proliferate around the law, as high-profile political figures imply that tech companies cannot claim Section 230’s protections if they remove any legal content. But that is patently false: In order to make the internet a more palatable environment, the law specifically allows platforms to scrub content that they deem unsuitable.

“Here, defendants’ creation of a ‘Restricted Mode’ to allow sensitive users to voluntarily choose a more limited experience of the YouTube service is exactly the type of self-regulation that Congress sought to encourage in enacting section 230,” says Walsh.

PragerU has filed a separate suit in federal court. It still awaits a decision from the 9th U.S. Circuit Court of Appeals, and it too rests on free speech claims—ones that are even more likely to lose under federal law.

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In Debate Over Political Speech Online, Facebook Has the Constitution on Its Side

As surely as winter follows fall, Republican election victories are followed by unconstitutional attempts to restrict political speech.

The Nixon presidency brought the Federal Election Campaign Act of 1971, which the Supreme Court partially struck down in Buckley v. Valeo. The George W. Bush presidency brought the Bipartisan Campaign Reform Act of 2002, also known as McCain-Feingold, after the senators who sponsored it. The Supreme Court partially struck down McCain-Feingold in a series of decisions, including McConnnell v. FEC, FEC v. Wisconsin Right to Life, and Citizens United.

And the Trump presidency seems to be on the verge of bringing us some kind of federal government crackdown on political speech on social media.

As usual in Washington, there is plenty of blame to go around.

Some of the blame belongs to the Republicans. They vote for these bills and sign them into law even after swearing or affirming to preserve, protect, and defend a Constitution that includes the First Amendment freedoms of speech, press, and petition.

And some of the blame belongs to the Democrats. They have such a constricted view of the boundaries of reasonable discourse and are so confident in the popularity of their own views that whenever their side loses an election, they immediately conclude that the rules need to be changed to prevent whatever vote-buying or disinformation must have caused the otherwise inexplicable outcome.

This, then, is the context in which to view the attempt by members of Congress, Democratic presidential candidates, and even the screenwriter Aaron Sorkin to portray advertising on Facebook as an unprecedented threat to American democracy, and to saddle the Facebook CEO, Mark Zuckerberg, with the responsibility of making sure that no American is swayed by a false political advertisement.

The hypocrisy is overwhelming. Between May 2018 and November 1, 2019, Senator Elizabeth Warren’s presidential campaign has spent $4,862,939 on Facebook ads, according to Facebook. This, while Warren complains publicly that “Facebook’s own employees know just how dangerous their policy allowing politicians to lie in political ads will be for our democracy.” If Facebook had followed Twitter’s example and banned political ads, Warren would have had to find some other way to get her message out.

More broadly, the way to deal with misleading political speech is not with prior restraint but by answering it with more accurate speech. That approach respects voters as smart enough to sort these things out, rather than infantilizing them as easily deceived.

In The New York Times over the weekend, a professor at the University of Virginia, Siva Vaidyanathan, called on Congress to outlaw the delivery of targeted advertising. “If the same political ads were to reach everyone in a state, district or even country, they would not just appeal to marginal constituencies, might not tend toward extremism, and could not get away with lies quite so easily,” the professor imagines.

But politicians have been advertising with tailored messages to “marginal constituencies” since long before Facebook. They use robo-calls to reach identified union members. They use direct mail to reach public-school parents, or Democratic women within a certain age range, or senior citizens. The Bill Clinton presidential campaign aired radio ads on Christian radio stations in 1996 touting that Clinton had signed the Defense of Marriage Act, which defined marriage as between a man and a woman. Our two-party system and winner-take-all electoral process already serve to erode, rather than magnify, the power of “marginal constituencies.” And anyway, sometimes something that starts as a “marginal constituency” or seems extreme—abolition, women’s suffrage, Zionism, fill in your own favorite idea here—becomes a mainstream cause. The First Amendment guarantee of political speech is supposed to apply equally, regardless of whether some professor deems your cause marginal or extreme.

One of the landmark press freedom cases of the 20th century, New York Times Co. v. Sullivan, concerned a paid advertisement by civil rights activists in the 1960s that, as the syllabus of the case puts it, “included statements, some of which were false.” Should desegregation activists in the 1960s south have been prevented from targeting advertisements to sympathetic Northern liberals? Or should they have been forced to pay also for ads to segregationists, so that everyone saw the same ads? And should the ad have been rejected because of the false claims?

The justices in Times v. Sullivan found that “erroneous statement is inevitable in free debate, and that it must be protected if the freedoms of expression are to have the ‘breathing space’ that they ‘need . . . to survive.'” The Court cited an earlier ruling, NAACP v. Button, observing “the constitutional protection does not turn upon ‘the truth, popularity, or social utility of the ideas and beliefs which are offered.'” It is something that Senator Warren may want to review. It will be useful if she returns to her career as a law professor, but also if she advances to the office sworn to defend the Constitution.

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In Debate Over Political Speech Online, Facebook Has the Constitution on Its Side

As surely as winter follows fall, Republican election victories are followed by unconstitutional attempts to restrict political speech.

The Nixon presidency brought the Federal Election Campaign Act of 1971, which the Supreme Court partially struck down in Buckley v. Valeo. The George W. Bush presidency brought the Bipartisan Campaign Reform Act of 2002, also known as McCain-Feingold, after the senators who sponsored it. The Supreme Court partially struck down McCain-Feingold in a series of decisions, including McConnnell v. FEC, FEC v. Wisconsin Right to Life, and Citizens United.

And the Trump presidency seems to be on the verge of bringing us some kind of federal government crackdown on political speech on social media.

As usual in Washington, there is plenty of blame to go around.

Some of the blame belongs to the Republicans. They vote for these bills and sign them into law even after swearing or affirming to preserve, protect, and defend a Constitution that includes the First Amendment freedoms of speech, press, and petition.

And some of the blame belongs to the Democrats. They have such a constricted view of the boundaries of reasonable discourse and are so confident in the popularity of their own views that whenever their side loses an election, they immediately conclude that the rules need to be changed to prevent whatever vote-buying or disinformation must have caused the otherwise inexplicable outcome.

This, then, is the context in which to view the attempt by members of Congress, Democratic presidential candidates, and even the screenwriter Aaron Sorkin to portray advertising on Facebook as an unprecedented threat to American democracy, and to saddle the Facebook CEO, Mark Zuckerberg, with the responsibility of making sure that no American is swayed by a false political advertisement.

The hypocrisy is overwhelming. Between May 2018 and November 1, 2019, Senator Elizabeth Warren’s presidential campaign has spent $4,862,939 on Facebook ads, according to Facebook. This, while Warren complains publicly that “Facebook’s own employees know just how dangerous their policy allowing politicians to lie in political ads will be for our democracy.” If Facebook had followed Twitter’s example and banned political ads, Warren would have had to find some other way to get her message out.

More broadly, the way to deal with misleading political speech is not with prior restraint but by answering it with more accurate speech. That approach respects voters as smart enough to sort these things out, rather than infantilizing them as easily deceived.

In The New York Times over the weekend, a professor at the University of Virginia, Siva Vaidyanathan, called on Congress to outlaw the delivery of targeted advertising. “If the same political ads were to reach everyone in a state, district or even country, they would not just appeal to marginal constituencies, might not tend toward extremism, and could not get away with lies quite so easily,” the professor imagines.

But politicians have been advertising with tailored messages to “marginal constituencies” since long before Facebook. They use robo-calls to reach identified union members. They use direct mail to reach public-school parents, or Democratic women within a certain age range, or senior citizens. The Bill Clinton presidential campaign aired radio ads on Christian radio stations in 1996 touting that Clinton had signed the Defense of Marriage Act, which defined marriage as between a man and a woman. Our two-party system and winner-take-all electoral process already serve to erode, rather than magnify, the power of “marginal constituencies.” And anyway, sometimes something that starts as a “marginal constituency” or seems extreme—abolition, women’s suffrage, Zionism, fill in your own favorite idea here—becomes a mainstream cause. The First Amendment guarantee of political speech is supposed to apply equally, regardless of whether some professor deems your cause marginal or extreme.

One of the landmark press freedom cases of the 20th century, New York Times Co. v. Sullivan, concerned a paid advertisement by civil rights activists in the 1960s that, as the syllabus of the case puts it, “included statements, some of which were false.” Should desegregation activists in the 1960s south have been prevented from targeting advertisements to sympathetic Northern liberals? Or should they have been forced to pay also for ads to segregationists, so that everyone saw the same ads? And should the ad have been rejected because of the false claims?

The justices in Times v. Sullivan found that “erroneous statement is inevitable in free debate, and that it must be protected if the freedoms of expression are to have the ‘breathing space’ that they ‘need . . . to survive.'” The Court cited an earlier ruling, NAACP v. Button, observing “the constitutional protection does not turn upon ‘the truth, popularity, or social utility of the ideas and beliefs which are offered.'” It is something that Senator Warren may want to review. It will be useful if she returns to her career as a law professor, but also if she advances to the office sworn to defend the Constitution.

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