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Legal & Privacy Brief

2026-09-18

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Show Notes - 2026-09-18

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Legal & Privacy Brief - 2026-09-18

Today: Florida AG Uthmeier sued Netflix over deceptive data collection practices. Concora Credit will pay $9.375 million to settle TCPA claims for unconsented calls. The European Commission proposed the EU KIDS Act, which would ban social media accounts for children under 13 and impose safe-by-design mandates on platforms. EFF challenged California's SB 976 "addictive feeds" law as a violation of teens' First Amendment rights.

Enforcement Actions

Florida Sues Netflix Over Deceptive Data Collection

Florida Attorney General James Uthmeier filed a lawsuit against Netflix, alleging the streaming company misled consumers about its data collection practices. The action targets discrepancies between Netflix's public privacy representations and its actual data harvesting.

Litigation Updates

$9.375M Concora Credit TCPA Settlement

Concora Credit Inc. agreed to a $9.375 million class action settlement resolving claims it violated the Telephone Consumer Protection Act by placing calls to consumers without consent. The settlement is open for claims.

Applebee's Franchisee Faces Class Actions After April 2026 Data Breach

Two class action lawsuits were filed against an Applebee's Neighborhood Grill + Bar franchisee for failing to adequately protect private information during an April 2026 data breach.

Buc-ee's Extracts $850K Settlement From Born United Over Parody Merchandise

Buc-ee's obtained an $850,000 settlement and injunction against Born United, a clothing brand that sold parody products using a design resembling Buc-ee's trademarked beaver logo. Former co-owner and South Carolina State Senator Tom Fernandez sold his ownership stake before the settlement.

Supreme Court Bruen Analysis: Circuit Courts Misapplying Second Amendment Test

Federal circuit courts are systematically misapplying the Supreme Court's two-step Second Amendment framework from New York State Rifle & Pistol Association v. Bruen (2022), particularly in cases involving commercial firearm sales. The 3rd Circuit in United States v. Berger, the 10th Circuit in Rocky Mountain Gun Owners v. Polis, and the 1st Circuit in Beckwith v. Frey have each rejected challenges at Bruen's step one, collapsing the text-and-history test into a single inquiry. The Supreme Court's recent Wolford v. Lopez decision clarified that step one is a straightforward linguistic analysis of the Second Amendment's plain text.

Citizenship Database Challenge Fully Briefed at Supreme Court

The Trump administration asked the Supreme Court to authorize use of DHS's Systematic Alien Verification for Entitlements (SAVE) database to identify noncitizens on state voter rolls. Challengers filed their response Tuesday; the case is fully briefed and a decision could come at any time.

Regulatory Guidance

EU KIDS Act: European Commission Proposes Social Media Ban for Children Under 13

The European Commission published its EU KIDS Act proposal, which would ban social media accounts for children under 13 and require parental "mini accounts" for children aged 13-15, with one-hour daily screen time caps. The proposal mandates safe-by-design requirements for all services used by minors under 18, including bans on infinite scroll, reward tricks, push notifications during sleeping hours, unsolicited contact from strangers, and profiling-based recommendation feeds. AI companions and chatbots must be off by default. Providers must deploy the EU's privacy-preserving age verification app and submit compliance plans to the EC and third-party auditors. The proposal requires European Parliament and member state approval.

EFF Urges AI Cybersecurity Rules Based on Existing Best Practices

EFF recommended that Congress anchor any new AI lab cybersecurity legislation in established cybersecurity best practices (sandboxing, monitoring, logging) rather than AI-specific mandates. EFF cited the OpenAI-Hugging Face incident as preventable through standard controls and called for mandatory independent third-party investigations and public reporting after serious security incidents.

Privacy Developments

EFF Challenges California's SB 976 "Addictive Feeds" Law on First Amendment Grounds

EFF, the Center for Democracy & Technology, and the Wikimedia Foundation filed an amicus brief in Meta v. Bonta, arguing that California's SB 976 violates teen users' First Amendment rights by requiring parental permission before teens can view algorithmically recommended content. The brief argues the law blocks teens from discovering and distributing speech and suggests that narrower data-minimization laws targeting surveillance business models would be more constitutionally sound.

BEAD Broadband Funding: Condition 50 Bars California From Enforcing Net Neutrality and Consumer Protections

The Trump administration's NTIA included Condition 50 in California's $1.42 billion BEAD broadband award, requiring the state to waive enforcement of its affordability, net neutrality, and public-safety protections against ISPs receiving BEAD funds for 14 years. Nearly 70% of the funding would go to Comcast, AT&T, Verizon, Amazon, and SpaceX. The California CPUC was scheduled to vote on the agreement September 17. Stanford Law professor Barbara van Schewick noted California must challenge the condition before accepting the award.

Policy Changes

Supreme Court Tariff Ruling: IEEPA Authority Exceeded

The Supreme Court ruled that President Trump's "liberation day" tariffs exceeded the authority Congress granted under the International Emergency Economic Powers Act (IEEPA). Senator Katie Britt (R-AL) publicly supported tariffs while privately seeking exemptions for Alabama businesses, including TNT Fireworks, Novelis, Kronospan, and Airbus, according to FOIA-obtained emails from the U.S. Trade Representative's office.

Ken Paxton's Financial Disclosures: Potential Federal Ethics Violations

Texas AG and Republican U.S. Senate nominee Ken Paxton's federal financial disclosures appear to violate federal ethics law, according to a ProPublica/Texas Tribune investigation. Paxton reported owning seven rental properties but declared no rental income; failed to disclose mortgages on three Utah condos; and undervalued a land stake at $50,000 when his partner confirmed it was worth approximately $1 million. Ethics experts said the omissions violate federal disclosure requirements for income reporting and fair-market-value asset valuation.

EU Court Ruling Removes Platform Immunity for Algorithmic Curation

In Coyote System, the Court of Justice of the European Union ruled that platforms exercising algorithmic "control" over user content can no longer claim intermediary liability protections under EU law, regardless of whether they had actual knowledge of illegal content. The ruling separates the "knowledge" and "control" conditions for the first time, making them alternative rather than cumulative requirements. Platforms that algorithmically curate or prioritize user content now face direct liability exposure for illegal user-generated content.

Compliance Takeaways