?? LWIL #129: McFlurries Freed, Serial Swatter, Overdraft Loopholes, and More
What's on the docket this week:
Featured Story
Supreme Court to TikTok: Sell or Be Gone—National Security Trumps Your Dance Moves
The Supreme Court seems poised to back a law that could yank TikTok from U.S. app stores unless its Chinese parent company, ByteDance, sells by Jan. 19. Justices largely sided with national security concerns, framing the issue as less about free speech and more about ByteDance’s cozy relationship with the Chinese government. Chief Justice Roberts didn’t mince words, asking TikTok’s lawyer if the company’s ties to Chinese intelligence could really be ignored. Meanwhile, TikTok argues it’s an all-American operation based in California, and a group of creators is decrying the potential ban as a free speech catastrophe. Justice Gorsuch offered a rare dissent, suggesting Congress could’ve simply slapped a warning label on the app instead of pulling the plug. For now, TikTok’s fate hangs in the balance, with the court fast-tracking its decision ahead of the looming deadline. ByteDance says it won’t sell, but with 170 million U.S. users and massive fines threatening tech partners like Apple and Google, that stance might change fast.
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?? IP/Transactional
US Copyright Office Frees The McFlurry
The U.S. Copyright Office's recent exemption under the Digital Millennium Copyright Act (DMCA) is being celebrated as a win for the "right to repair" movement, specifically targeting repair restrictions on retail-level food preparation equipment, including McDonald's elusive soft-serve machines. Public Knowledge and iFixit led the charge, arguing that manufacturers, like Taylor (makers of McDonald's infamously finicky ice cream machines), use cryptic error codes and technological protection measures (TPMs) to monopolize repairs. The exemption permits bypassing these digital locks for repair purposes, so long as no copyright infringement occurs—a decision that should sweeten the repair process for franchise owners and third-party mechanics. While opponents like Taylor and media industry groups claimed that circumvention wasn't necessary for most repairs, the U.S. Copyright Office found evidence of adverse effects caused by restrictive repair practices. This decision might just keep the McFlurries flowing, one repair at a time.
?? Litigation
Elon Musk Changes X Terms to Steer Lawsuits to His Favorite Texas Court
In a legally strategic yet eyebrow-raising move, X (formerly Twitter) has updated its terms of service to funnel user lawsuits into the U.S. District Court for the Northern District of Texas. The terms dictate disputes be resolved in this court, bypassing closer venues like X's actual headquarters in Bastrop, Texas, which fall under the Western District's jurisdiction. While such forum-selection clauses are generally enforceable, critics argue that X's choice appears less about convenience and more about leveraging a potentially favorable bench, such as Judge Reed O’Connor, who famously declined to recuse himself from X-related litigation despite owning Tesla stock. Legal scholars have questioned the ethical implications of forcing litigants into jurisdictions with tenuous connections, potentially undermining fairness principles in federal venue preferences. The terms don’t guarantee cases will always land before O’Connor, as venue assignment varies within the district. Critics contend this gambit reflects a broader corporate trend of stacking the judicial deck, with X’s strategy raising concerns about whether such clauses prioritize equity—or Elon Musk’s bottom line.
领英推荐
?? Legaltech
Meta, Google, TikTok Must Face Schools’ Addiction Claims
The legal tides are shifting for Meta, Google, and TikTok, as they face lawsuits brought by school districts alleging their platforms’ “addictive” designs fuel a student mental health crisis. In a federal court ruling in Oakland, Judge Yvonne Gonzalez Rogers allowed negligence claims to proceed while trimming allegations shielded by Section 230 of the Communications Decency Act, which protects internet companies from liability over user-generated content. Rogers endorsed the school districts’ theory that these companies intentionally foster compulsive platform use, foreseeably burdening schools with the fallout of student mental health crises. Drawing parallels to Big Tobacco, the districts accuse the companies of employing addictive design elements like algorithms and “like” buttons, echoing claims in personal injury suits but with higher potential damages due to the systemic costs borne by schools. While the companies have yet to respond, the cases underline a broader reckoning for social media giants as courts grapple with their role in society’s digital dilemmas.
?? Criminal/Politics
Teen Serial Swatter Pleads Guilty
Alan Filion, an 18-year-old from California, pleaded guilty to four counts of making interstate threats in one of the largest swatting cases ever prosecuted. Filion admitted to over 375 hoax calls between August 2022 and January 2023, targeting schools, mosques, and even government officials, creating widespread panic with threats of mass shootings and bombings. His audacious operations, conducted partly for profit via advertised swatting services on social media, allegedly began as a teenage thrill before evolving into a business. The legal ramifications are severe, with each charge carrying up to five years in prison under federal law. Filion’s conduct represents a troubling intersection of digital platforms and public safety, as authorities traced his activities through Telegram and recordings of his swatting calls. The prosecution, led by the Justice Department, highlighted the scale and severity of Filion’s activities, branding him a "serial swatter" whose actions caused profound fear and chaos.
?? Finance/Econ/Regulatory
CFPB Announces Final Rule Closing “Overdraft Loophole”
The Consumer Financial Protection Bureau (CFPB) has issued a final rule addressing a regulatory loophole that allowed certain banks to sidestep disclosure requirements under the Truth in Lending Act (TILA) when offering overdraft programs. This loophole, created by a TILA amendment in 2009, permitted banks to classify overdraft coverage as a "deposit account feature" rather than an extension of credit, thereby avoiding transparency obligations. The new rule, effective in 2025, requires banks to disclose the costs of overdraft programs more prominently and align them with TILA’s credit card disclosure standards. While financial institutions have voiced concerns about compliance costs and the rule’s impact on revenue, consumer advocates argue it will curb exploitative practices and enhance consumer understanding of overdraft fees. The CFPB’s action underscores the tension between facilitating financial innovation and ensuring consumer protections in an industry where terms like "credit" are often subject to creative interpretation. With this rule, the CFPB signals its intent to close gaps in financial regulation that could erode consumer trust, even as it invites debate over the line between regulation and overreach.
?? Ethics
Don’t Touch "Sensitive Areas”
Discipline: Public reprimand.
Until next week, adjourned.
Keith & Tracey
p.s. - please send me your stories, news, & tips for inclusion in future editions [email protected]