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No. 10042522
United States Court of Appeals for the Ninth Circuit
Netchoice, LLC v. Bonta
No. 10042522 · Decided August 16, 2024
No. 10042522·Ninth Circuit · 2024·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
August 16, 2024
Citation
No. 10042522
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
NETCHOICE, LLC, doing business No. 23-2969
as NetChoice,
D.C. No.
5:22-cv-08861-
Plaintiff - Appellee,
BLF
v.
OPINION
ROB BONTA, Attorney General Of
The State Of California,
Defendant - Appellant.
Appeal from the United States District Court
for the Northern District of California
Beth Labson Freeman, District Judge, Presiding
Argued and Submitted July 17, 2024
San Francisco, California
Filed August 16, 2024
Before: MILAN D. SMITH, JR., MARK J. BENNETT,
and ANTHONY D. JOHNSTONE, Circuit Judges.
Opinion by Judge Milan D. Smith, Jr.
2 NETCHOICE, LLC V. BONTA
SUMMARY *
First Amendment
The panel affirmed in part and vacated in part the district
court’s preliminary injunction in an action brought by
NetChoice, a national trade association of online businesses
that promotes free speech on the Internet, challenging the
California Age-Appropriate Design Code Act (CAADCA),
which the California State Legislature enacted with the aims
of promoting robust online privacy protections for children
under the age of eighteen and ensuring that online products
that are likely to be accessed by children are designed in a
manner that recognizes the distinct needs of children.
The panel held that NetChoice was likely to succeed in
showing that the CAADCA’s requirement that covered
businesses opine on and mitigate the risk that children may
be exposed to harmful or potentially harmful materials
online facially violates the First Amendment. The panel
therefore affirmed the district court’s decision to enjoin the
enforcement of that requirement, and the other provisions
that were not grammatically severable from it.
The panel vacated the remainder of the district court’s
preliminary injunction because it is unclear from the record
whether the other challenged provisions of the CAADCA
facially violate the First Amendment, and it is too early to
determine whether the unconstitutional provisions of the
CAADCA were likely severable from its valid
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
NETCHOICE, LLC V. BONTA 3
remainder. The panel remanded to the district court for
further proceedings.
COUNSEL
Robert Corn-Revere (argued), Foundation for Individual
Rights and Expression, Washington, D.C.; David M. Gossett
and Meenakshi Krishnan, Davis Wright Tremaine LLP;
Washington, D.C.; Ambika Kumar, Davis Wright Tremaine
LLP; Seattle, Washington; Adam Sieff, Davis Wright
Tremaine LLP; Los Angeles, California; for Plaintiff-
Appellee.
Kristin Liska (argued), Deputy Attorney General; Elizabeth
Watson, Attorney; Anya Binsacca, Supervising Deputy
Attorney General; Thomas S. Patterson, Senior Assistant
Attorney General; Rob Bonta, Attorney General of
California; Office of the California Attorney General, San
Francisco, California; Nicole J. Kau, Deputy Assistant
Attorney General, Office of the California Attorney General,
Los Angeles, California; for Defendant-Appellant.
John P. Schnapper-Casteras and Rachael Yocum,
Schnapper-Casteras PLLC, Washington D.C.; for Amicus
Curiae The Institue for Law Innovation and Technology.
Juyoun Han, Patrick K. Lin, and Eric Baum, Eisenberg &
Baum LLP, New York, New York; for Amici Curiae
Fairplay et al..
Russell C. Bogue, Assistant Attorney General; Ashwin P.
Phatak, Principal Deputy Solicitor General; Caroline S. Van
Zile, Solicitor General; Brian L. Schwalb, Attorney General
for the District of Columbia; Office of the Attorney General
for the District of Columbia, Washington, D.C.; Kiel B.
4 NETCHOICE, LLC V. BONTA
Ireland, Deputy Solicitor General; Heidi P. Stern, Solicitor
General; Aaron D. Ford, Attorney General for the State of
Nevada; Office of the Attorney General for the State of
Nevada; for Amici Curiae Nevada, The District of
Columbia, Arizona, Arkansas, Colorado, Connecticut,
Delaware, Florida, Illinois, Maryland, Michigan, Minnesota,
Mississippi, New Jersey, New Mexico, New York, North
Carolina, Oregon, Pennsylvania, Rhode Island, and
Washington.
Gautam S. Hans, Cornell Law School, Ithaca, New York; for
Amici Curiae Privacy and First Amendment Law Professors.
Anne M. Murphy, Joseph W. Cotchett, Karin B. Swope, and
Blair Kittle, Cotchett Pitre & McCarthy LLP, Burligame,
California; for Amicus Curiae The American Academy of
Pediatrics, The American Psychological Association, and
the California Academy of Child and Adolescent Psychiatry.
Marc P. Epstein, Jon Greenbaum, and David Brody,
Lawyers' Committee for Civil Rights Under Law,
Washington, D.C.; for Amicus Curiae The Lawyers'
Committee for Civil Rights Under Law.
Glenn E. Chappell and Hassan A. Zavareei, Tycko &
Zavareei LLP, Washington, D.C.; for Amici Curiae Design
Scholars.
Jason S. Harrow, Gerstein Harrow LLP, Los Angeles,
California; for Amicus Curiae Princeton University Center
for Information Technology Policy, Tech Policy Clinic.
Alison S. Gaffney and Dean Kawamoto, Keller Rohrback
LLP, Seattle, Washington; for Amici Curiae The American
Federation of Teachers and the California Federation of
Teachers.
NETCHOICE, LLC V. BONTA 5
Alvaro M. Bedoya, Commissioner, Federal Trade
Commission, Washington, D.C.; for Amicus Curiae Federal
Trade Commissioner Alvaro M. Bedoya.
Linda Singer and David I. Ackerman, Motley Rice LLC,
Washington, D.C.; for Amici Curiae Elizabeth Denham
CBE and Stephan Wood.
Megan Iorio, Tom McBrien, and Suzanne Bernstein,
Electronic Privacy Information Center, Washington, D.C.;
for Amicus Curiae Electronic Privacy Information Center.
Matthew P. Bergman and Patrick Strekert, Social Media
Victims Law Center PLLC, Seattle, Washington; for Amicus
Curiae The Center for Humane Technology.
Stephanie A. Joyce, Potomac Law Group PLLC,
Washington, D.C.; Computer and Communication Industry
Association.
Corbin K. Barthold, TechFreedom, Washington, D.C; for
Amicus Curiae TechFreedom.
Megan L. Brown, Kathleen E. Scott, and Boyd Garriott,
Wiley Rein LLP, Washington, D.C.; Jonathan D. Urick and
Maria C. Monaghan, United States Chamber Litigation
Center; Washington, D.C.; for Amicus Curiae Chamber of
Commerce of the United States of America.
Brian R. Hardy, Marquis Aurbach Coffing, Las Vegas,
Nevada; Ben Sperry and Geoffrey A. Manne; International
Center for Law and Economics; Portland, Oregon; for
Amicus Curiae International Center for Law and Economics.
Aaron D. Mackey, Adam Schwartz, David Greene, and F.
Mario Trujillo, Electronic Frontier Foundation, San
Francisco, California; Samir Jain, Eric Null, and Kate
Ruane, Center for Democracy and Technology, Washington,
6 NETCHOICE, LLC V. BONTA
D.C.; for Amici Curiae Electronic Frontier Foundation and
Center for Democracy and Technology.
Vera Eidelman and Elizabeth Gyori, American Civil
Liberties Union Foundation, New York, New York; Jacob
A. Snow, Nicolas A. Hidalgo, Chessie Thacher, Nicole A.
Ozer, and Matthew T. Cagle, American Civil Liberties
Union Foundation of Northern California, San Francisco,
California; for Amici Curiae American Civil Liberties
Union.
Jessica R. Amunson, Lindsay C. Harrison, and Andrew C.
DeGuglielmo, Jenner & Block LLP, Washington, D.C.; for
Amicus Curiae Professor Eric Goldman.
Catherine R. Gellis, Sausalito, California; for Amicus Curiae
Floor64 Inc., doing business as The Copia Institute.
Mark W. Brennan, J. Ryan Thompson, and Thomas B.
Vietch, Hogan Lovells US LLP, Washington, D.C.; Jess
Miers, Chamber of Progress, McLean, Virginia; Suzanna
Kang, Consumer Technology Association, Arlington,
Virginia; Carlos Gutierrez, LGBT Tech, Staunton, Virginia;
David Loy, First Amendment Coalition, San Rafael,
California; Lawrence Walters, Walters Law Group,
Longwood, Florida; for Amici Curiae Chamber of Progress,
Consumer Technology Association, First Amendment
Coalition, Information Technology and Innovation
Foundation, IP Justice, LGBT Tech, The Trevor Project, and
Woodhull Freedom Foundation.
Bruce D. Brown, Katie Townsend, Gabe Rottman, Grayson
Clary, Emily Hockett, Reporters Committee for Freedom of
the Press, Washington, D.C.; for Amici Curiae Reporters
Committee for Freedom of the Press and 14 Media
Organizations.
NETCHOICE, LLC V. BONTA 7
OPINION
M. SMITH, Circuit Judge:
In 2022, the California State Legislature enacted the
California Age-Appropriate Design Code Act (CAADCA or
Act), Cal. Civ. Code §§ 1798.99.28–1798.99.40, with the
express aims of promoting robust online privacy protections
for children under the age of eighteen and ensuring that
online products that are likely to be accessed by children “are
designed in a manner that recognizes the distinct needs of
children.” See 2022 Cal. Legis. Serv. Ch. 320 (A.B. 2273)
§ 1(b); Cal. Civ. Code § 1798.99.30(b)(1). NetChoice, a
national trade association of online businesses with the
stated goal of promoting free speech and free enterprise on
the Internet, filed suit in the United States District Court for
the Northern District of California, challenging the
CAADCA on constitutional and federal preemption
grounds. The district court found that NetChoice was likely
to succeed in its argument that the provisions challenged by
NetChoice violated the First Amendment to the U.S.
Constitution and were not severable from the valid
remainder of the CAADCA. The district court therefore
entered a preliminary injunction preventing the entire law
from going into effect.
We agree with NetChoice that it is likely to succeed in
showing that the CAADCA’s requirement that covered
businesses opine on and mitigate the risk that children may
be exposed to harmful or potentially harmful materials
online, Cal. Civ. Code §§ 1798.99.31(a)(1)–(2), facially
violates the First Amendment. We therefore affirm the
district court’s decision to enjoin the enforcement of that
requirement, id., and the other provisions that are not
8 NETCHOICE, LLC V. BONTA
grammatically severable from it, id. §§ 1798.99.31(a)(3)–
(4), (c), 1798.99.33, 1798.99.35(c).
However, we vacate the remainder of the district court’s
preliminary injunction order, which not only failed to
properly consider the facial nature of NetChoice’s First
Amendment challenges to other provisions of the
CAADCA, id. §§ 1798.99.31(a)(5)–(7), (9), (b)(1)–(4), (7),
but also erroneously overstated the likelihood that
NetChoice would ultimately succeed in showing that the
unconstitutional portions of the CAADCA are not severable
from its valid remainder. We remand to the district court for
further proceedings consistent with this opinion.
LEGAL BACKGROUND
In 2018, the California State Legislature enacted the
California Consumer Privacy Act (CCPA) to give
consumers of all ages “an effective way to control their
personal information.” 2018 Cal. Legis. Serv. Ch. 55, § 2(i)
(A.B. 375). The CCPA requires, among other things, that
online providers inform users of the categories of personal
information to be collected and the purposes of such
collection. See Cal. Civ. Code § 1798.100(a)(1). The CCPA
applies to “business[es],” defined as for-profit entities that
meet certain threshold requirements. Id. § 1798.140(d). It
further defines “personal information” as any “information
that identifies, relates to, describes, is reasonably capable of
being associated with, or could reasonably be linked, directly
or indirectly, with a particular consumer or household.” Id.
§ 1798.140(v)(1).
Two years later, in 2020, California voters approved a
ballot measure that amended the CCPA to clarify and expand
its protections. See 2020 Cal. Legis. Serv. Prop. 24. The
CCPA, as amended, instructs the California Attorney
NETCHOICE, LLC V. BONTA 9
General to promulgate “regulations requiring businesses
whose processing of consumers’ personal information
presents significant risk to consumers’ privacy or security,
to . . . [s]ubmit to the California Privacy Protection Agency
on a regular basis a risk assessment with respect to their
processing of personal information.” Cal Civ. Code
§ 1798.185(a)(15)(B). The Attorney General ultimately
issued a regulation requiring businesses that buy, receive,
sell, or share the personal information of 10,000,000 or more
consumers in a calendar year to disclose various metrics,
including but not limited to the number of requests to delete,
to correct, and to know consumers’ personal information, as
well as the number of requests from consumers to opt out of
the sale and sharing of their information. 11 Cal. Code Regs.
tit. 11, § 7102(a).
In 2022, the California State Legislature enacted the
CAADCA, Cal. Civ. Code §§ 1798.99.28–1798.99.40—the
statute which gave rise to this litigation. In its effort to
protect the online data privacy of children, defined as
consumers under the age of eighteen, id. § 1798.99.30(b)(1),
the CAADCA imposes several affirmative obligations on
“business[es] that provide[] an online service, product, or
feature likely to be accessed by children,” id.
§ 1798.99.31(a). 1 Chief among these mandates is the
1
Unless the CAADCA provides an alternative definition for a term, it
expressly incorporates the definitions provided in the CCPA. Id.
§ 1798.99.30(a). The CAADCA defines “likely to be accessed by
children” to mean “it is reasonable to expect, based on [enumerated]
indicators, that the online service, product, or feature would be accessed
by children.” Id. § 1798.99.30(b)(4). The enumerated indicators include
whether the online service “is directed to children,” id.
§ 1798.99.30(b)(4)(A), whether it is “routinely accessed by a significant
10 NETCHOICE, LLC V. BONTA
provision requiring online businesses to create a Data
Protection Impact Assessment (DPIA) report identifying, for
each offered online service, product, or feature likely to be
accessed by children, any risk of “material detriment to
children that arise from the data management practices of the
business.” Id. §§ 1798.99.31(a)(1)(A), (B). In creating
these DPIA reports, online providers must address the
following, to the extent applicable:
(i) Whether the design of the online product
. . . could harm children, including by
exposing children to harmful, or potentially
harmful, content . . . .
(ii) Whether the design . . . could lead to
children experiencing or being targeted by
harmful, or potentially harmful, contacts . . . .
(iii) Whether the design . . . could permit
children to witness, participate in, or be
subject to harmful, or potentially harmful,
conduct . . . .
(iv) Whether the design . . . could allow
children to be party to or exploited by a
harmful, or potentially harmful, contact . . . .
(v) Whether the algorithms used by the
online product . . . could harm children.
number of children,” id. § 1798.99.30(b)(4)(B), and whether it “has
design elements that are known to be of interest to children, including,
but not limited to, games, cartoons, music, and celebrities who appeal to
children,” id. § 1798.99.30(b)(4)(E).
NETCHOICE, LLC V. BONTA 11
(vi) Whether targeted advertising systems
used by the online product . . . could harm
children.
(vii) Whether and how the online product . . .
uses system design features to increase,
sustain, or extend use of the online
product . . . .
(viii) Whether, how, and for what purpose the
online product . . . collects or processes
sensitive personal information of children.
Id. §§ 1798.99.31(a)(1)(B)(i)–(viii). In addition, businesses
covered by the CAADCA must “create a timed plan to
mitigate or eliminate the risk[s]” identified in a DPIA report
“before the online service, product, or feature is accessed by
children,” id. § 1798.99.31(a)(2), and must provide a list of
all the DPIA reports the business has completed, or copies
of the DPIA reports themselves, to the California Attorney
General upon written request, see id. §§ 1798.99.31(a)(3),
(4).
Apart from the required DPIA reports, the CAADCA
also compels online providers to:
(5) Estimate the age of child users with a
reasonable level of certainty appropriate to
the risks that arise from the data management
practices of the business or apply the privacy
and data protections afforded to children to
all consumers.
(6) Configure all default privacy settings
provided to children by the online service . . .
to settings that offer a high level of privacy,
12 NETCHOICE, LLC V. BONTA
unless the business can demonstrate a
compelling reason that a different setting is in
the best interests of children.
(7) Provide any privacy information, terms of
service, policies, and community standards
concisely, prominently, and using clear
language suited to the age of children likely
to access that online service . . . .
(8) If the online service, product, or feature
allows the child’s parent, guardian, or any
other consumer to monitor the child’s online
activity or track the child’s location, provide
an obvious signal to the child when the child
is being monitored or tracked.
(9) Enforce published terms, policies, and
community standards established by the
business, including, but not limited to,
privacy policies and those concerning
children.
(10) Provide prominent, accessible, and
responsive tools to help children, or if
applicable their parents or guardians,
exercise their privacy rights and report
concerns.
Id. §§ 1798.99.31(a)(5)–(10).
The CAADCA also forbids “business[es] that provide[]
an online service, product, or feature likely to be accessed by
NETCHOICE, LLC V. BONTA 13
children,” id. § 1798.99.31(b), from taking any of the
following actions:
(1) Use the personal information of any child
in a way that the business knows, or has
reason to know, is materially detrimental to
the physical health, mental health, or well-
being of a child.
(2) Profile a child by default unless . . .
(A) [t]he business can demonstrate it has
appropriate safeguards in place to protect
children[] [and] (B) [e]ither of the following
is true:
(i) Profiling is necessary to provide the
online service . . . with which the child is
actively and knowingly engaged.
(ii) The business can demonstrate a
compelling reason that profiling is in the
best interests of children.[ 2]
(3) Collect, sell, share, or retain any personal
information that is not necessary to provide
[the] online service . . . unless the business
can demonstrate a compelling reason that
[doing so] is in the best interests of children
likely to access the online service . . . .
2
The CAADCA defines “profiling” as “any form of automated
processing of personal information that uses personal information to
evaluate certain aspects relating to a natural person, including analyzing
or predicting aspects concerning a natural person’s performance at work,
economic situation, health, personal preferences, interests, reliability,
behavior, location, or movements.” Cal. Civ. Code § 1798.99.30(b)(6).
14 NETCHOICE, LLC V. BONTA
(4) If the end user is a child, use personal
information for any reason other than a
reason for which that personal information
was collected, unless the business can
demonstrate a compelling reason that use of
the personal information is in the best
interests of children.
(5) Collect, sell, or share any precise
geolocation information of children by
default unless the collection . . . is strictly
necessary for the business to provide the
service . . . requested . . . .
(6) Collect any precise geolocation
information of a child without providing an
obvious sign to the child for the duration of
that collection that precise geolocation
information is being collected.
(7) Use dark patterns to lead or encourage
children to provide personal information
beyond what is reasonably expected to
provide that online service . . . to forego
privacy protections, or to take any action that
the business knows, or has reason to know, is
materially detrimental to the child’s physical
health, mental health, or well-being.
(8) Use any personal information collected to
estimate age or age range for any other
purpose or retain that personal information
longer than necessary to estimate age. . . .
Id. §§ 1798.99.31(b)(1)–(8).
NETCHOICE, LLC V. BONTA 15
The CAADCA exclusively authorizes the California
Attorney General to bring a civil enforcement action against
any business that fails to comply with the Act’s requirements
or violates its prohibitions. See id. § 1798.99.35(d).
Violators are subject to civil penalties of $2,500 per child for
each negligent violation and $7,500 for each intentional
violation. See id. § 1798.99.35(a). However, “[i]f a business
is in substantial compliance with” their obligations to create
and disclose DPIA reports and to mitigate the risks identified
therein, “the Attorney General shall provide written notice
to the business, before initiating an [enforcement] action . . .
identifying the specific provisions of [the CAADCA] that
the Attorney General alleges have been or are being
violated.” Id. § 1798.99.35(c)(1). The business then has 90
days to cure the violation before the Attorney General may
bring suit. See id. § 1798.99.35(c)(2).
The CAADCA also authorizes the creation of a
“Children’s Data Protection Working Group,” comprised of
experts in children’s data privacy, physical health, mental
health and well-being, computer science, and children’s
rights, and appointed by various members of state
government, including the Governor and the Attorney
General. Id. § 1798.99.32. The working group is tasked
with making recommendations to the California State
Legislature on “best practices” concerning the data privacy
of children, including how children’s interests “may be
furthered by the design, development, and implementation
of an online service, product, or feature” offered by covered
business. Id. § 1798.99.32(d).
PROCEDURAL HISTORY
NetChoice’s members include Amazon, Google, Meta,
Netflix, and X. See About Us, NetChoice,
16 NETCHOICE, LLC V. BONTA
https://netchoice.org/about/. NetChoice filed this lawsuit
against Rob Bonta, the Attorney General of the State of
California (the State), on December 14, 2022, challenging
the CAADCA as facially unconstitutional and preempted by
federal statute. Specifically, the complaint asserts the
following claims: (1) violation of the First and Fourteenth
Amendments to the U.S. Constitution and Article I, § 2(a) of
the California Constitution; (2) violation of the Fourth
Amendment to the U.S. Constitution; (3) void for vagueness
under the First Amendment and Due Process Clause of the
U.S. Constitution and Article I, § 7(a) of the California
Constitution; (4) violation of the Commerce Clause of the
U.S. Constitution; (5) preemption by the Children’s Online
Privacy Protection Act, 15 U.S.C. §§ 6501–06; and
(6) preemption by the Communications Decency Act of
1996, specifically, 47 U.S.C. § 230. In particular, NetChoice
challenges the mandates of California Civil Code
§§ 1798.99.31(a)(1)–(7) and (9), and the prohibitions of
subsections (b)(1), (3)–(4), and (7). The complaint requests
declaratory and injunctive relief prohibiting enforcement of
the CAADCA.
On February 17, 2023, NetChoice moved for a
preliminary injunction to enjoin enforcement of the
CAADCA, which the district court granted on September 18,
2023. In its order supporting the injunction, the district court
began its analysis by observing that “both parties appear to
have accepted the relaxed standard for standing in a First
Amendment facial challenge,” and because of that, the court
would consider “arguments about the CAADCA’s alleged
impact on the expressive activities of individuals and entities
who are not NetChoice members.” NetChoice, LLC v.
Bonta, 692 F. Supp. 3d 924, 939 (N.D. Cal. 2023). The
district court also stated that it did not need to reach any of
NETCHOICE, LLC V. BONTA 17
NetChoice’s First Amendment arguments “based on prior
restraint, overbreadth, and vagueness,” because NetChoice’s
arguments about the CAADCA’s facial infirmities were
“dispositive.” Id. at 939–40.
The district court then proceeded to analyze whether the
CAADCA’s provisions implicated protected speech,
sufficient to trigger First Amendment scrutiny. In
undertaking this threshold inquiry, the district court grouped
the CAADCA’s provisions into two major categories: its
prohibitions, see Cal. Civ. Code § 1798.99.31(b), and its
affirmative commands, see id. § 1798.99.31(a). NetChoice,
692 F. Supp. 3d at 942. Regarding the prohibitions, the
district court observed that they “forbid the for-profit entities
covered by the [CAADCA] from engaging—with some
exceptions—in the collection, sale, sharing, or retention of
children’s personal information, including precise
geolocation information, for profiling or other purposes.”
Id. The district court, relying on the Supreme Court’s
opinion in Sorrell v. IMS Health Inc., 564 U.S. 552 (2011),
then concluded that NetChoice is likely to show that the
prohibitions necessarily regulate speech protected by the
First Amendment because the prohibitions “limit the
‘availability and use’ of information by certain speakers and
for certain purposes,” regardless of whether the information
itself constitutes protected speech or is merely a commodity.
NetChoice, 692 F. Supp. 3d at 944 (quoting Sorrell, 564 U.S.
at 571).
As for the CAADCA’s affirmative commands, the
district court noted that they “are more varied than the
[CAADCA’s] prohibitions.” Id. Regarding the DPIA report
requirement, the district court held that NetChoice is likely
to succeed in showing that the requirement regulates
protected speech (and thus triggers First Amendment
18 NETCHOICE, LLC V. BONTA
scrutiny) because the mandatory reports require covered
businesses (1) “to express” to the government their “ideas
and analysis about likely harm” to children and (2) to take
affirmative steps “to mitigate or eliminate the identified
risks,” for instance, by removing speech that might be
harmful to children. Id. As for the provisions that require
businesses to affirmatively provide information to users,
including age-appropriate information about a business’s
privacy policies, Cal. Civ. Code § 1798.99.31(a)(7), and
obvious signals to children if they are being tracked or
monitored, id. § 1798.99.31(a)(8), the district court found
that these sections “necessarily regulate [speech]” as well
because they require businesses to engage in speech (thereby
triggering the First Amendment). NetChoice, 692 F. Supp.
3d at 945.
The district court then analyzed the CAADCA’s
command that businesses enforce their “published terms,
policies, and community standards.” Cal Civ. Code
§ 1798.99.31(a)(9). The district court found that this
provision was essentially referring to “content moderation
policies.” NetChoice, 692 F. Supp. 3d at 945. By forcing
private businesses to enforce such policies or otherwise face
consequences, the district court concluded that CAADCA
was necessarily regulating speech protected by the First
Amendment. 3 Id. As for the two sections of the CAADCA
3
The district court cited the Eleventh Circuit’s decision in NetChoice,
LLC v. Attorney General, Florida, for the following proposition: “When
platforms choose to remove users or posts, deprioritize content in
viewers’ feeds or search results, or sanction breaches of their community
standards, they engage in First-Amendment-protected activity.”
NetChoice, 692 F. Supp. 3d at 945 (quoting NetChoice, LLC v. Atty.
Gen., Fla., 34 F.4th 1196, 1213 (11th Cir. 2022)). The Supreme Court
NETCHOICE, LLC V. BONTA 19
requiring businesses to estimate the age of child users and
provide them with a high default privacy setting or forego
age estimation and provide a high default privacy setting to
all users, Cal Civ. Code §§ 1798.99.31(a)(5)–(6), the district
court found that “the steps a business would need to take to
sufficiently estimate the age of child users would likely
prevent both children and adults from accessing certain
content.” NetChoice, 692 F. Supp. 3d at 945. Because these
provisions would likely “impede the ‘availability and use’ of
information,” the district court concluded that they triggered
First Amendment scrutiny as well. Id. at 946 (quoting
Sorrell, 564 U.S. at 571). Considering all the above, the
district court held “that NetChoice is likely to succeed in
showing that the CAADCA’s prohibitions and mandates
regulate speech, so that the Act triggers First Amendment
scrutiny.” Id.
Next, to determine the appropriate level of judicial
scrutiny, the district court examined what types of speech are
implicated by the CAADCA—i.e., commercial or non-
commercial speech. Id. The district court ultimately found
that it was “difficult to determine whether the [CAADCA]
regulates only commercial speech.” Id. at 947.
Accordingly, the court assumed for the purposes of the
motion for a preliminary injunction “that only the lesser
standard of intermediate scrutiny for commercial speech
applies” because the outcome of the analysis would be the
same under both intermediate scrutiny and strict scrutiny.
Id. at 948.
recently vacated the decision, but largely affirmed that principle of law.
See Moody v. NetChoice, LLC, 144 S. Ct. 2383, 2394, 2399–2400
(2024).
20 NETCHOICE, LLC V. BONTA
Applying “commercial speech scrutiny,” 4 the district
court first determined that “the CAADCA regulates speech
that is neither misleading nor related to unlawful activity.”
Id. Next, the court found that NetChoice was unlikely to
show that California failed to substantiate its substantial
interest in protecting the physical, mental, and emotional
health and well-being of minors online. Id. at 948–49.
Therefore, the district court proceeded to examine whether
the CAADCA “directly advance[s] the state interest
involved,” and whether it is not “more extensive than is
necessary to serve that interest.” Id. at 948 (quoting Cent.
Hudson Gas & Elec. Corp. v. Pub. Serv. Comm’n of New
York, 447 U.S. 557, 566 (1980)). The district court
ultimately agreed with NetChoice that it was likely to show
that all of the provisions it challenged—
§§ 1798.99.31(a)(1)–(7), 1798.99.31(a)(9),
1798.99.31(b)(1)–(4), and 1798.99.31(b)(7)—failed Central
Hudson’s means-ends inquiry. 5 NetChoice, 692 F. Supp. 3d
at 949–59.
The district court then examined whether it could sever
the unconstitutional provisions from the remainder of the
statute and concluded that it could not, primarily because of
the unconstitutional DPIA report requirement. Id. at 960.
Specifically, if a business is in substantial compliance with
4
The district court referred to the intermediate scrutiny standard set forth
in Central Hudson Gas & Electric Corporation v. Public Service
Commission of New York, 447 U.S. 557 (1980), as “commercial speech
scrutiny.” NetChoice, 692 F. Supp. 3d at 941 n.3.
5
NetChoice’s complaint did not specifically challenge
§ 1798.99.31(b)(2), which regulates child profiling. Nonetheless,
NetChoice challenged it as a content-based restriction in its motion for a
preliminary injunction, and the district court discussed it specifically in
its order. NetChoice, 692 F. Supp. 3d at 955–56.
NETCHOICE, LLC V. BONTA 21
its obligation to create, disclose, and mitigate the risks
identified in its regular DPIA reports, the Attorney General
must give it written notice of possible violations and an
opportunity to cure them before bringing suit. See Cal. Civ.
Code §§ 1798.99.35(c)(1), (2). The district court concluded
that, without the DPIA reports, it was impossible to enforce
any of the other valid provisions of the CAADCA in the
manner in which the California Legislature had envisioned.
NetChoice, 692 F. Supp. 3d at 960. While the district court
found that the inability to sever the DPIA provisions was
wholly determinative of the issue, the court also outlined
other reasons why attempting to sever other unconstitutional
provisions from the statute would be unworkable or futile.
Id. at 960–61.
The court declined to issue preliminary rulings on the
merits of NetChoice’s remaining claims, since it was clear
to the court that NetChoice was likely to succeed on its facial
claim brought under the First Amendment. Id. at 961–64.
Upon concluding that NetChoice met the remaining
preliminary injunction factors under Winter v. Natural
Resources Defense Council, Inc., 555 U.S. 7 (2008), on that
claim, the court enjoined enforcement of the CAADCA in
its entirety. NetChoice, 692 F. Supp. 3d at 964–65. The
State timely appealed.
JURISDICTION AND STANDARD OF REVIEW
We have jurisdiction pursuant to 28 U.S.C. § 1292(a)(1)
to review the district court’s grant of a preliminary
injunction. Daniels Sharpsmart, Inc. v. Smith, 889 F.3d 608,
613 (9th Cir. 2018). “We review the district court’s decision
to grant a preliminary injunction for abuse of discretion.” Id.
“A district court abuses its discretion if it rests its decision
‘on an erroneous legal standard or on clearly erroneous
22 NETCHOICE, LLC V. BONTA
factual findings.’” Am. Beverage Ass’n v. City & Cnty. of
San Francisco, 916 F.3d 749, 754 (9th Cir. 2019) (en banc)
(quoting United States v. Schiff, 379 F.3d 621, 625 (9th Cir.
2004)). “A district court’s decision is based on an erroneous
legal standard if: ‘(1) the court did not employ the
appropriate legal standards that govern the issuance of a
preliminary injunction; or (2) in applying the appropriate
standards, the court misapprehended the law with respect to
the underlying issues in the litigation.’” Cal. Chamber of
Com. v. Council for Educ. & Rsch. on Toxics, 29 F.4th 468,
475 (9th Cir. 2022) (quoting Negrete v. Allianz Life Ins. Co.
of N. Am., 523 F.3d 1091, 1096 (9th Cir. 2008)), cert. denied,
143 S. Ct. 1749 (2023).
ANALYSIS
“A plaintiff seeking a preliminary injunction must
establish that he is likely to succeed on the merits, that he is
likely to suffer irreparable harm in the absence of
preliminary relief, that the balance of equities tips in his
favor, and that an injunction is in the public interest.”
Winter, 555 U.S. at 20. On appeal, the State does not
meaningfully contest the district court’s determinations
regarding the balance of equities, irreparable injury, and
public interest factors, but does insist that NetChoice is not
likely to succeed on the merits of its First Amendment
challenge to the CAADCA. Accordingly, our analysis
focuses on whether NetChoice is likely to succeed on the
merits of its First Amendment challenge.
I. NetChoice Is Likely to Succeed in Showing That the
DPIA Report Requirement Facially Violates the First
Amendment.
“For a host of good reasons, courts usually handle
constitutional claims case by case, not en masse.” Moody,
NETCHOICE, LLC V. BONTA 23
144 S. Ct. at 2397. The Supreme Court “has therefore made
facial challenges hard to win.” Id. In a typical facial
challenge, “a plaintiff cannot succeed unless he
‘establish[es] that no set of circumstances exists under which
the [law] would be valid,’ or he shows that the law lacks a
‘plainly legitimate sweep.’” Id. (alterations in original) (first
quoting United States v. Salerno, 481 U.S. 739, 745 (1987);
and then quoting Wash. State Grange v. Wash. State
Republican Party, 552 U.S. 442, 449 (2008)).
However, in First Amendment cases, the Supreme Court
“has lowered that very high bar.” Id. “To provide breathing
room for free expression,” the Supreme Court has
“substituted a less demanding though still rigorous
standard.” 6 Id. (cleaned up); see also Tucson v. City of
Seattle, 91 F.4th 1318, 1327 (9th Cir. 2024). “[I]f the law’s
unconstitutional applications substantially outweigh its
constitutional ones,” then a court may sustain a facial
challenge to the law and strike it down. Moody, 144 S. Ct.
at 2397. As Moody clarified, a First Amendment facial
challenge has two parts: first, the courts must “assess the
state laws’ scope”; and second, the courts must “decide
which of the laws’ applications violate the First Amendment,
and . . . measure them against the rest.” Id. at 2398.
Just like the parties and lower courts in Moody, “no one
has paid much attention to” the requirements for a facial
challenge so far in this case. Id. Nevertheless, for the
6
The district court suggested that it did not consider NetChoice’s
overbreadth challenges. NetChoice, 692 F. Supp. 3d at 939–40.
However, the test described here applies to both First Amendment facial
challenges and overbreadth challenges. Compare Moody, 144 S. Ct.
2397 (discussing the proper standard for a facial challenge), with United
States v. Hansen, 559 U.S. 762, 769 (2023) (discussing the rules for an
overbreadth challenge).
24 NETCHOICE, LLC V. BONTA
reasons set forth immediately below, we conclude that this
oversight did not cause any error in the district court’s
analysis of the CAADCA’s DPIA report requirement. See
Cal. Civ. Code §§ 1798.99.31(a)(1)–(2). That is because the
DPIA report requirement, in every application to a covered
business, raises the same First Amendment issues.
Specifically, every business covered by the CAADCA
must create DPIA reports identifying, for each offered online
service, product, or feature likely to be accessed by children,
any risk of “material detriment to children that arise from the
data management practices of the business.” Cal. Civ. Code
§§ 1798.99.31(a)(1)(A), (B). In creating those reports, every
covered business must assess eight different factors related
to “harm” prior to offering a new online service, product, or
feature that is likely to be accessed by children. See id.
These factors include whether the design of the product may
expose children to harmful or potentially harmful content
and whether it may permit children to witness harmful, or
potentially harmful, conduct. Id. §§ 1798.99.31(a)(1)(B)(i),
(iii). Covered businesses are then required to “[d]ocument
any risk of material detriment to children that arises from the
data management practices of the business identified in the”
DPIA required in § 1798.99.31(a)(1), including the eight
enumerated factors. Id. § 1798.99.31(a)(2). Once these
risks are identified, every covered business must then “create
a timed plan to mitigate or eliminate the risk [of material
detriment to children] before the online service, product, or
feature is accessed by children.” Id.
Whether it be NetChoice’s members or other covered
businesses providing online services likely to be accessed by
children, all of them are under the same statutory obligation
to opine on and mitigate the risk that children may be
exposed to harmful or potentially harmful content, contact,
NETCHOICE, LLC V. BONTA 25
or conduct online. While it is certainly possible that in some
applications, a covered business will ultimately conclude
that it need not address certain risks in its DPIA report
because its new service to be offered does not create such
risks, see id. § 1798.99.31(a)(1)(B) (stating that a covered
business shall address the eight factors “to the extent
applicable”), there is no question that a covered business at
the threshold would still have to inquire into whether the risk
exists before it can decline to address it in its DPIA report.
Therefore, in every circumstance in which a covered
business creates a DPIA report for a particular service, the
business must ask whether the new service may lead to
children viewing or receiving harmful or potentially harmful
materials. Whether the State can impose such a requirement
without running afoul of the First Amendment may be
answered without speculation “about ‘hypothetical’ or
‘imaginary’ cases.” Wash. State Grange, 552 U.S. at 450.
Accordingly, unlike the record in the Moody case, the
record here is sufficiently developed to consider the scope of
the DPIA provision and whether its unconstitutional
applications substantially outweigh its constitutional ones.
We therefore proceed to consider whether the requirement is
likely to survive NetChoice’s First Amendment facial
challenge.
A. The DPIA Report Requirement Undoubtedly
Regulates Protected Speech, Thereby Implicating
the First Amendment.
The State argues that the DPIA report requirement is
“incidental to [the CAADCA’s] legitimate goals of
protecting children from excessive data collection and use
and thus is not subject to heightened [First Amendment]
scrutiny.” The State further contends that the role of the
26 NETCHOICE, LLC V. BONTA
DPIA report requirement is simply “to incentivize
businesses to be proactive about their management of
children’s data by offering businesses that complete the
DPIA a 90-day period to cure violations of the Act without
penalty,” and does “not compel businesses to express a
message or interfere with any message a business might wish
to send.”
In response, NetChoice argues that the DPIA report
requirement “constructs a censorship regime,” and “compels
services to speak,” and therefore, invites First Amendment
scrutiny. According to NetChoice, the DPIA report
requirement has little to do with privacy and instead
“force[s] covered businesses to identify and disclose to the
government potential risks that minors might be exposed to
potentially harmful content [online] and [to] develop a timed
plan to mitigate or eliminate the identified risks before
publication” (cleaned up).
We agree with NetChoice that the DPIA report
requirement, codified at §§ 1798.99.31(a)(1)–(2) of the
California Civil Code, triggers review under the First
Amendment. First, the DPIA report requirement clearly
compels speech by requiring covered businesses to opine on
potential harm to children. It is well-established that the
First Amendment protects “the right to refrain from speaking
at all.” Wooley v. Maynard, 430 U.S. 705, 714 (1977); see
also 303 Creative LLC v. Elenis, 600 U.S. 570, 586 (2023).
It is also well-established that the forced disclosure of
information, even purely commercial information, triggers
First Amendment scrutiny. See Zauderer v. Off. of
Disciplinary Counsel of Sup. Ct. of Ohio, 471 U.S. 626, 629,
650–53 (1985) (applying First Amendment scrutiny to a law
that required attorneys to disclose in their advertising certain
information regarding fee arrangements); Nat’l Ass’n of
NETCHOICE, LLC V. BONTA 27
Wheat Growers v. Bonta, 85 F.4th 1263, 1266, 1275 (9th Cir.
2023) (applying First Amendment scrutiny to a law requiring
businesses to warn consumers that glyphosate is a
carcinogen); see also Sorrell, 564 U.S. at 570 (“This Court
has held that the creation and dissemination of information
are speech within the meaning of the First Amendment.”).
Nor can we, as the State suggests, ignore that the DPIA
requirement compels speech simply because other parts of
the CAADCA may primarily or exclusively regulate non-
expressive conduct. The primary effect of the DPIA
provision is to compel speech, distinguishing it from statutes
where the compelled speech was “plainly incidental to the
[law’s] regulation of conduct.” Rumsfeld v. Forum for Acad.
& Inst. Rights, Inc., 547 U.S. 47, 62 (2006); see also Sorrell,
564 U.S. at 567 (providing examples of conduct regulations
that have incidental burdens on speech). The State cannot
insulate a specific provision of law from a facial challenge
under the First Amendment by bundling it with other,
separate provisions that do not implicate the First
Amendment.
The State makes much of the fact that the DPIA reports
are not public documents and retain their confidential and
privileged status even after being disclosed to the State, but
the State provides no authority to explain why that fact
would render the First Amendment wholly inapplicable to
the requirement that businesses create them in the first place.
On the contrary, the Supreme Court has recognized the First
Amendment may apply even when the compelled speech
need only be disclosed to the government. See Ams. for
Prosperity Found. v. Bonta, 594 U.S. 595, 616 (2021).
Accordingly, the district court did not err in concluding that
the DPIA report requirement triggers First Amendment
scrutiny because it compels protected speech.
28 NETCHOICE, LLC V. BONTA
Second, the DPIA report requirement invites First
Amendment scrutiny because it deputizes covered
businesses into serving as censors for the State. The
Supreme Court has previously applied First Amendment
scrutiny to laws that deputize private actors into determining
whether material is suitable for kids. See Interstate Cir., Inc.
v. City of Dallas, 390 U.S. 676, 678, 684 (1968) (recognizing
that a film exhibitor’s First Amendment rights were
implicated by a law requiring it to inform the government
whether films were “suitable” for children). Moreover, the
Supreme Court recently affirmed “that laws curtailing []
editorial choices [by online platforms] must meet the First
Amendment’s requirements.” Moody, 144 S. Ct. at 2393.
The State resists NetChoice’s characterization of the
DPIA report requirement as constructing a censorship
scheme by arguing that “the mitigation requirement contains
no reference to content whatsoever; it solely requires a
company to mitigate risks from its data management
practices.” But that argument ignores that
§ 1798.99.31(a)(2) specifically defines data management
practices by reference to the statutory factors a covered
business must assess under § 1798.99.31(a)(1)(B) when
assessing those risks. Those factors require consideration of
content or proxies for content. For instance, the CAADCA
expressly requires a covered business to assess “[w]hether
the design of the online product . . . could . . . expos[e]
children to harmful, or potentially harmful, content on the
online product”; “[w]hether the design . . . could lead to
children experiencing or being targeted by harmful, or
potentially harmful, contacts”; and “[w]hether the design . . .
could permit children to witness, participate in, or be subject
to harmful, or potentially harmful, conduct.” Cal. Civ. Code
§§ 1798.99.31(a)(1)(B)(i)–(iii). The CAADCA
NETCHOICE, LLC V. BONTA 29
unquestionably requires a covered business to mitigate that
risk, and the State’s argument to the contrary has failed to
convince us otherwise.
At oral argument, the State suggested companies could
analyze the risk that children would be exposed to harmful
or potentially harmful material without opining on what
material is potentially harmful to children. However, a
business cannot assess the likelihood that a child will be
exposed to harmful or potentially harmful materials on its
platform without first determining what constitutes harmful
or potentially harmful material. To take the State’s own
example, data profiling may cause a student who conducts
research for a school project about eating disorders to see
additional content about eating disorders. Unless the
business assesses whether that additional content is “harmful
or potentially harmful” to children (and thus opines on what
sort of eating disorder content is harmful), it cannot
determine whether that additional content poses a “risk of
material detriment to children” under the CAADCA. Nor
can a business take steps to “mitigate” the risk that children
will view harmful or potentially harmful content if it has not
identified what content should be blocked.
Accordingly, the district court was correct to conclude
that the CAADCA’s DPIA report requirement regulates the
speech of covered businesses and thus triggers review under
the First Amendment.
B. Strict Scrutiny Applies to the DPIA Report
Requirement.
Given that the DPIA report requirement triggers review
under the First Amendment, the district court then needed to
determine the appropriate level of scrutiny in assessing
whether NetChoice was likely to succeed in showing that the
30 NETCHOICE, LLC V. BONTA
requirement violates the First Amendment. In its
preliminary injunction order, the district court found that it
was “difficult to determine whether the [CAADCA]
regulates only commercial speech.” NetChoice, 692 F.
Supp. 3d at 947. Accordingly, the court assumed for the
purposes of the preliminary injunction “that only the lesser
standard of intermediate scrutiny for commercial speech
applies” because the outcome of the analysis would be the
same under both intermediate commercial speech scrutiny
and strict scrutiny. Id. at 947–48. While we understand the
district court’s caution against prejudicing the merits of the
case at the preliminary injunction stage, there is no question
that strict scrutiny, as opposed to mere commercial speech
scrutiny, governs our review of the DPIA report
requirement.
Laws regulating commercial speech are generally
subject to a lesser standard than strict scrutiny. See Cent.
Hudson, 447 U.S. at 563–66. Speech is commercial when it
“does ‘no more than propose a commercial transaction.’”
Bolger v. Youngs Drug Prods. Corp., 463 U.S. 60, 66 (1983)
(quoting Va. State Bd. of Pharmacy v. Va. Citizens
Consumer Council, Inc., 425 U.S. 748, 762 (1976)). We
have recognized that the “commercial speech ‘analysis is
fact-driven, due to the inherent “difficulty of drawing bright
lines that will clearly cabin commercial speech in a distinct
category.”’” First Resort, Inc. v. Herrera, 860 F.3d 1263,
1272 (9th Cir. 2017) (quoting Greater Balt. Ctr. for
Pregnancy Concerns, Inc. v. Mayor & City Council of Balt.,
721 F.3d 264, 284 (4th Cir. 2013)). Therefore, in close
cases, we consider the three factors identified by the
Supreme Court in Bolger v. Youngs Drug Products
Corporation, to determine if speech is commercial. Id.
(“‘[S]trong support’ that the speech should be characterized
NETCHOICE, LLC V. BONTA 31
as commercial speech is found where the speech is an
advertisement, the speech refers to a particular product, and
the speaker has an economic motivation.” (quoting Hunt v.
City of Los Angeles, 638 F.3d 703, 715 (9th Cir. 2011))). If
commercial speech is misleading or related to illegal
activity, it is not entitled to protection. Cent. Hudson, 447
U.S. at 563–64. As for laws that compel the disclosure of
“purely factual and uncontroversial” commercial speech,
such laws are subject to a form of rational basis review.
Zauderer, 471 U.S. at 651. For all other commercial speech,
courts must apply a form of intermediate scrutiny by asking
“whether the asserted governmental interest is substantial,”
“whether the regulation directly advances the governmental
interest asserted,” and “whether [the law] is not more
extensive than is necessary to serve that interest.” Cent.
Hudson, 447 U.S. at 566.
The DPIA report requirement—in requiring covered
businesses to opine on and mitigate the risk that children are
exposed to harmful content online—regulates far more than
mere commercial speech. In the DPIA report, a covered
business must do far “more than propose a commercial
transaction.” Va. State Bd. of Pharmacy, 425 U.S. at 762.
Instead, businesses covered by the CAADCA must opine on
potential speech-based harms to children, including harms
resulting from the speech of third parties, disconnected from
any economic transaction. Cf. Riley v. Nat’l Fed’n of the
Blind of N.C., Inc., 487 U.S. 781, 796 (1988) (“Our lodestars
in deciding what level of scrutiny to apply to a compelled
statement must be the nature of the speech taken as a whole
and the effect of the compelled statement thereon.”); Wheat
Growers, 85 F.4th at 1266, 1275 (assuming that a warning
to customers about a carcinogen is purely commercial
speech). The mere fact that a business may earn revenue
32 NETCHOICE, LLC V. BONTA
from its services is “insufficient by itself” to render its
opinions about those services “commercial.” Bolger, 463
U.S. at 67. And the DPIA requirement goes further, because
it not only requires businesses to identify harmful or
potentially harmful content but also requires businesses to
take steps to protect children from such content. Therefore,
the DPIA report requirement appears to meet none of the
three Bolger factors: (1) the reports are not advertisements,
(2) they require businesses to go beyond opining about their
products or services to opine on highly controversial issues
of public concern and then take steps to censor material that
the company has deemed sufficiently harmful, and
(3) businesses do not have a clear economic motivation to
provide these opinions or perform this state-required
censorship. The same can be said for the speech that
businesses are deputized into self-censoring by operation of
the CAADCA’s mitigation provision. There should be no
doubt that the speech children might encounter online while
using covered businesses’ services is not mere commercial
speech. Further, a business’s opinion about how its services
might expose children to harmful content online is not
“purely factual and uncontroversial.” Zauderer, 471 U.S. at
651. We therefore conclude that the subjective opinions
compelled by the CAADCA are best classified as non-
commercial speech. See Riley, 487 U.S. at 796 (“[W]e do
not believe that the speech retains its commercial character
when it is inextricably intertwined with otherwise fully
protected speech.”).
Amicus Institute for Law, Innovation & Technology
(iLIT) contends that the district court “fundamentally
misunderst[oo]d what DPIAs entail, how they are used,
where they originated, when they are necessary—and the
central fact that they are widespread and commonly used.”
NETCHOICE, LLC V. BONTA 33
Tellingly, iLit compares the CAADCA’s DPIA report
requirement with a supposedly “similar DPIA requirement”
found in the CCPA, and proceeds to argue that the district
court’s striking down of the DPIA report requirement in the
CAADCA necessarily threatens the same requirement in the
CCPA. But a plain reading of the relevant provisions of both
laws reveals that they are not the same; indeed, they are
vastly different in kind.
Under the CCPA, businesses that buy, receive, sell, or
share the personal information of 10,000,000 or more
consumers in a calendar year are required to disclose various
metrics, including but not limited to the number of requests
to delete, to correct, and to know consumers’ personal
information, as well as the number of requests from
consumers to opt out of the sale and sharing of their
information. 11 Cal. Code Regs. tit. 11, § 7102(a); see Cal
Civ. Code § 1798.185(a)(15)(B) (requiring businesses to
conduct regular risk assessments regarding how they process
“sensitive personal information”). That obligation to collect,
retain, and disclose purely factual information about the
number of privacy-related requests is a far cry from the
CAADCA’s vague and onerous requirement that covered
businesses opine on whether their services risk “material
detriment to children” with a particular focus on whether
they may result in children witnessing harmful or potentially
harmful content online. A DPIA report requirement that
compels businesses to measure and disclose to the
government certain types of risks potentially created by their
services might not create a problem. The problem here is
that the risk that businesses must measure and disclose to the
government is the risk that children will be exposed to
disfavored speech online. Accordingly, iLIT’s concern that
34 NETCHOICE, LLC V. BONTA
the district court’s ruling necessarily threatens other DPIA
schemes throughout the country, is misguided.
Considering the above, the district court in its
preliminary injunction analysis should have subjected the
DPIA report requirement to strict scrutiny, as opposed to
mere intermediate commercial scrutiny. Strict scrutiny is
warranted because the DPIA report requirement (1) compels
speech with a particular message about controversial issues,
see Nat’l Inst. of Fam. & Life Advocs. v. Becerra, 585 U.S.
755, 766 (2018); and (2) deputizes private actors into
censoring speech based on its content, see United States v.
Playboy Ent. Grp., Inc., 529 U.S. 803, 806, 813 (2000).
While it is true that “a State possesses legitimate power to
protect children from harm, [] that does not include a free-
floating power to restrict the ideas to which children may be
exposed.” Brown v. Ent. Merchants Ass’n, 564 U.S. 786,
794 (2011) (citations omitted).
C. The DPIA Report Requirement Likely Fails
Strict Scrutiny.
Although the district court stopped short of concluding
that strict scrutiny governed its review of the DPIA report
requirement, the court’s ultimate conclusion that the DPIA
report requirement is likely to fail First Amendment scrutiny
was correct.
Assuming arguendo that the State has a compelling
interest in protecting children from “being pushed . . .
unwanted material, such as videos promoting self-harm,” as
the State itself contends, the State is unlikely to show that
the DPIA report requirement is “the least restrictive means”
available for advancing that interest. Playboy Ent. Grp., 529
U.S. at 813. As Amici American Civil Liberties Union and
American Civil Liberties Union of Northern California
NETCHOICE, LLC V. BONTA 35
(together, the ACLU) note in their amicus brief, the
CAADCA’s broad requirement that companies identify the
risk of children being exposed to potentially harmful content
necessarily compels companies to “assess the potential for
[online] material to instigate grief, sorrow, pain, hurt,
distress, or affliction in a minor.” Such material
includes online mental health resources and
communities that many children turn to for
support. It touches reporting about school
shootings, war, climate change, and teen
suicide. And it reaches minors’ own political
or religious speech, as well as their personal
updates about deaths in the family, rejection
from a college, or a breakup.
The State could have easily employed less restrictive means
to accomplish its protective goals, such as by
(1) incentivizing companies to offer voluntary content filters
or application blockers, (2) educating children and parents
on the importance of using such tools, and (3) relying on
existing criminal laws that prohibit related unlawful
conduct.
The State also asserts that the DPIA report requirement
protects children’s safety by encouraging companies to
proactively assess “how their products use children’s data
and whether their data management practices or product
designs pose risks to children,” so that “fewer children will
be subject to preventable harms.” Again, assuming this
interest is compelling, the DPIA report requirement is still
likely to fail on the tailoring-end of the analysis. See
Playboy, 529 U.S. at 813. While it is true that some of the
specific factors businesses are required to assess in their
36 NETCHOICE, LLC V. BONTA
DPIA reports are directly related to remedying harms arising
from a business’s data management practices and design
features, see Cal Civ. Code §§ 1798.99.31(a)(1)(B)(vii),
(viii) (requiring self-assessments about harmful design
features and data collection practices), the relevant
provisions are worded at such a high level of generality that
they provide little help to businesses in identifying which of
those practices or designs may actually harm children. Nor
does the presence of these factors overcome the fact that
most of the factors the State requires businesses to assess in
their DPIA reports compel them to guard against the risk that
children may come across potentially harmful content while
using their services, see id. §§ 31(a)(1)(B)(i), (ii), (iii), (iv),
(vi), which is hardly evidence of narrow tailoring. 7
In addition, a disclosure regime that requires the forced
creation and disclosure of highly subjective opinions about
content-related harms to children is unnecessary for
fostering a proactive environment in which companies, the
State, and the general public work to protect children’s
safety online. For instance, the State could have developed
a disclosure regime that defined data management practices
and product designs without reference to whether children
would be exposed to harmful or potentially harmful content
or proxies for content. Instead, the State attempts to
indirectly censor the material available to children online, by
7
Because most of the required factors relate to compelled speech about
potential content-related harms to children, we do not reach whether a
more limited DPIA report requirement for businesses to consider
whether a product “uses system design features to increase, sustain, or
extend use of” a product by children, Cal. Civ. Code
§ 1798.99.31(a)(1)(B)(vii), or whether a product “collects or processes
sensitive personal information of children,” id.
§ 1798.99.31(a)(1)(B)(viii), would survive First Amendment scrutiny.
NETCHOICE, LLC V. BONTA 37
delegating the controversial question of what content may
“harm to children” to the companies themselves, thereby
raising further questions about the onerous DPIA report
requirement’s efficacy in achieving its goals. And while the
State may be correct the DPIA reports’ confidentiality reflect
a degree of narrow tailoring by minimizing the burden of
forcing businesses to speak on controversial issues, that
feature may also cut against the DPIA report requirement’s
effectiveness at informing the greater public about how
covered businesses use and exploit children’s data.
Ultimately, the DPIA report requirement falls well short
of satisfying strict First Amendment scrutiny. The district
court was therefore correct to conclude that NetChoice is
likely to succeed in showing that the DPIA report
requirement facially violates the First Amendment.
II. It Is Unclear From the Record Below Whether Other
Challenged Provisions of the CAADCA Facially
Violate the First Amendment.
In every application of the DPIA report requirement to a
covered business, the DPIA report requirement raises the
same First Amendment issues. Accordingly, the current
record allows us to analyze whether the DPIA report
requirement is likely to violate the First Amendment was
through a facial challenge. Whether NetChoice is likely to
succeed on its facial challenge as to the remaining provisions
it challenges is less certain. For instance, most of those
provisions, by their plain language, do not necessarily
impact protected speech in all or even most applications. See
Cal. Civ. Code §§ 1798.99.31(a)(5)–(6), (9), (b)(1)–(4), (7).
As in Moody, the record needs further development to allow
the district court to determine “the full range of activities the
law[] cover[s].” Moody, 144 S. Ct. at 2397. But even for
38 NETCHOICE, LLC V. BONTA
the remaining provision that is likely to trigger First
Amendment scrutiny in every application because the plain
language of the provision compels speech by covered
businesses, see Cal. Civ. Code §§ 1798.99.31(a)(7), we
cannot say, on this record, that a substantial majority of its
applications are likely to fail First Amendment scrutiny.
Consider, for instance, the CAADCA’s prohibition
against using
dark patterns to lead or encourage children to
provide personal information beyond what is
reasonably expected to provide that online
service . . . to forego privacy protections, or
to take any action that the business knows, or
has reason to know, is materially detrimental
to the child’s physical health, mental health,
or well-being.
Cal. Civ. Code § 1798.99.31(b)(7). California law defines a
“dark pattern” as “a user interface designed or manipulated
with the substantial effect of subverting or impairing user
autonomy, decisionmaking, or choice.” Id. § 1798.140(l).
Based on the record developed so far in this litigation, it is
unclear whether a “dark pattern” itself constitutes protected
speech and whether a ban on using “dark patterns” should
always trigger First Amendment scrutiny, and the district
court never grappled with this question. 8 Moreover, even in
applications where the ban on “dark patterns” is likely to
impact other categories of protected speech, such as the
editorial decisions of social media companies, it is far from
8
According to Amici Design Scholars, examples of dark patterns may
include the “infinite scroll” feature on X (formerly Twitter), “autoplay”
on YouTube and TikTok, and “streaks” on Snapchat.
NETCHOICE, LLC V. BONTA 39
certain that such a ban should be scrutinized as a content-
based restriction, as opposed to a content-neutral regulation
of expression. See United States v. O’Brien, 391 U.S. 367,
376–77 (1968). Without considering the full range of how
the CAADCA’s ban on “dark patterns” might apply to
covered businesses, the district court had no basis to
conclude that NetChoice was likely to succeed in its facial
challenge to the ban. See Moody, 144 S. Ct. at 2397–98.
The district court also sustained facial attacks on several
other provisions that, on their face, do not necessarily impact
protected speech in all or even most applications. See Cal.
Civ. Code §§ 1798.99.31(a)(1)(5)–(6), (9), (b)(1)–(4).
Notably, the district court concluded that many of these
provisions were unlikely to survive First Amendment
scrutiny because of its finding that these requirements would
ultimately curtail the editorial decisions of social media
companies covered by the CAADCA or chill the expression
of their third-party users. But the focus on whether and how
these provisions may impact content moderation policies,
without considering any other potential applications, treats
NetChoice’s challenges “more like as-applied claims than
like facial ones.” Moody, 144 S. Ct. at 2398. Instead, the
court focused on possible applications of these provisions to
social media companies—a subset of the businesses covered
by the CAADCA—and speculated about how that subset of
applications could ultimately have a substantial effect on
those companies’ editorial discretion or the expression of
their third-party users.
The only remaining provision challenged by NetChoice
that clearly triggers First Amendment scrutiny in all its
applications is § 1798.99.31(a)(7) of the CAADCA, which
requires online businesses to “[p]rovide any privacy
information, terms of service, policies, and community
40 NETCHOICE, LLC V. BONTA
standards concisely, prominently, and using clear language
suited to the age of children likely to access that online
service, product, or feature.” In every application of that
provision to a covered business, it compels speech and
triggers First Amendment scrutiny. However, it is unclear
from the record below whether a substantial majority of
those applications are likely to fail First Amendment
scrutiny. In many circumstances, all or most of the speech
compelled by this provision is likely to be purely factual and
non-controversial. See Zauderer, 471 U.S. at 651.
However, the district court never explored that possibility
because it assumed that this provision primarily dealt with
social media companies’ disclosure of content-moderation
policies and that such disclosures were subject to strict
scrutiny. NetChoice, 692 F. Supp. 3d at 945, 953–54.
In light of the above, we conclude that the district court’s
failure to properly consider the facial nature of NetChoice’s
challenges to §§ 1798.99.31(a)(5)–(7), (9), (b)(1)–(4), (7) of
the CAADCA makes it practically impossible for us to
determine on appeal whether these provisions are likely to
facially violate the First Amendment. That failure alone is
enough for us to vacate the district court’s preliminary
injunction as to those provisions. See Sports Form, Inc. v.
United Press Int’l, Inc., 686 F.2d 750, 752 (9th Cir. 1982)
(“A district court’s order [granting or denying a preliminary
injunction] is reversible for legal error if the court . . .
misapprehends the law with respect to the underlying issues
in litigation.”).
NETCHOICE, LLC V. BONTA 41
III. It Is Too Early to Determine Whether the
Unconstitutional Provisions of the CAADCA Are
Likely Severable from Its Valid Remainder.
Because it is unclear to us whether NetChoice is likely
to succeed in its facial challenges to §§ 1798.99.31(a)(5)–
(7), (9), (b)(1)–(4), (7) of the CAADCA, it is premature for
us to consider as a whole whether the invalid portions of the
CAADCA are severable from the valid remainder of the
statute. See Calfarm Ins. Co. v. Deukmejian, 771 P.2d 1247,
155–56 (Cal. 1989). We do not have a full picture of what
the invalid portions of the CAADCA are likely to be.
Nevertheless, we do have enough information from the
record below to review the district court’s determination that
the DPIA report requirement, see Cal. Civ. Code
§§ 1798.99.31(a)(1)–(2), is unlikely to be severable from
provisions of the law that NetChoice does not challenge on
First Amendment grounds, see, e.g., id. §§ 1798.99.32,
1798.99.35.
“Severability is . . . a matter of state law.” Sam Francis
Found. v. Christies, Inc., 784 F.3d 1320, 1325 (9th Cir.
2015) (alteration in original) (quoting Leavitt v. Jane L., 518
U.S. 137, 139 (1996)). “In California, the presence of a
severability clause in a statutory scheme that contains an
invalid provision ‘normally calls for sustaining the valid part
of the enactment.’” Garcia v. City of Los Angeles, 11 F.4th
1113, 1120 (9th Cir. 2021) (quoting Cal. Redevelopment
Ass’n v. Matosantos, 267 P.3d 580, 607 (Cal. 2011)). No
such severability clause exists in the CAADCA.
Regardless of whether there is a severability clause,
courts must also examine whether the invalid portion of a
statute is “grammatically, functionally, and volitionally”
severable from the valid remainder of the statute. Calfarm
42 NETCHOICE, LLC V. BONTA
Ins. Co., 771 P.2d at 1256; Legislature v. Eu, 816 P.2d 1309,
1335 (Cal. 1991) (“[I]t is clear that severance of particular
provisions is permissible despite the absence of a formal
severance clause.”). A provision is “grammatically”
severable “if it is ‘distinct’ and ‘separate’ and, hence, ‘can
be removed as a whole without affecting the wording of any’
of the measure’s other provisions.’” Hotel Emps. & Rest.
Emps. Int’l Union v. Davis, 981 P.2d 990, 1009 (Cal. 1999)
(quoting CalFarm Ins. Co., 771 P.2d at 822). An invalid part
of a law is “functionally” severable “if it is not necessary to
the measure’s operation and purpose.” Id. In other words,
the “part to be severed must not be part of a partially invalid
but unitary whole. The remaining provisions must stand on
their own, unaided by the invalid provisions nor rendered
vague by their absence nor inextricably connected to them
by policy considerations. They must be capable of separate
enforcement.” People’s Advoc., Inc. v. Superior Ct., 226
Cal. Rptr. 640, 649 (Cal. Ct. App. 1986). Volitional
severability “depends on whether the remainder would have
been adopted by the legislative body had the latter foreseen
the partial invalidation of the statute.” Matosantos, 267 P.3d
at 608 (internal quotation marks omitted).
Here, §§ 1798.99.31(a)(3)–(4), (c), 1798.99.33,
1798.99.35(c) of the CAADCA all explicitly refer to the
DPIA report requirement. Without the DPIA report
requirement, these remaining provisions no longer make
grammatical sense. Accordingly, we affirm the district
court’s severability analysis insofar as it enjoined these
provisions on the basis that they are not severable from the
DPIA report requirement.
However, we vacate the district court’s determination
that the DPIA report requirement is unlikely to be
functionally severable from the remainder of the law. For
NETCHOICE, LLC V. BONTA 43
instance, NetChoice has failed to show why the CAADCA’s
“Children’s Data Protection Working Group,” which is
tasked with making recommendations to the California State
Legislature on “best practices” concerning the data privacy
of children, cannot function without the DPIA report
requirement. See id. § 1798.99.32. The working group can
certainly “stand on [its] own,” with or without the DPIA
report requirement. People’s Advoc., 226 Cal. Rptr. at 649.
It is capable of “separate enforcement.” Id.
We also think it is a much closer question than the
district court assumed whether the elimination of the 90-day
cure period, which cannot operate without the DPIA report
requirement, see Cal. Civ. Code § 1798.99.35(c), necessarily
dooms the Attorney General’s civil enforcement of other
provisions of the CAADCA. The district court likened the
90-day cure period as a “condition precedent” to enforcing
other provisions in the CAADCA, but that is not necessarily
true. As the State persuasively argues, a business can
functionally comply with, for instance, the unchallenged
requirement that it “provide an obvious signal to child users
when they are being tracked,” id. § 1798.99.31(a)(8), even if
the business did not complete a DPIA report and even if no
cure period is available. However, we cannot discern at this
stage of the litigation if elimination of the 90-day cure period
affects whether provisions concerning the Attorney
General’s civil enforcement of valid sections of the
CAADCA are volitionally severable.
CONCLUSION
For the foregoing reasons, we AFFIRM the district
court’s preliminary injunction insofar as it enjoined
enforcement of California Civil Code §§ 1798.99.31(a)(1)–
(4), (c), 1798.99.33, 1798.99.35(c), and VACATE the
44 NETCHOICE, LLC V. BONTA
remainder of the preliminary injunction. 9 Both parties shall
bear their own costs on appeal. See Fed. R. App. P. 39(a)(4).
9
The panel need not reach any of the alternative grounds for affirming
the district court’s preliminary injunction. Those issues are inadequately
briefed on appeal, and the district court has not meaningfully evaluated
the parties’ arguments in the first instance. See generally Detrich v.
Ryan, 740 F.3d 1237, 1248–49 (9th Cir. 2013) (en banc) (observing that
it is “standard practice . . . to remand to the district court for a decision
in the first instance without requiring any special justification for so
doing”), overruled on other grounds by Shinn v. Ramirez, 596 U.S. 366
(2022); Ecological Rts. Found. v. Pac. Lumber Co., 230 F.3d 1141, 1154
(9th Cir. 2000) (discussing prudential reasons why an appellate court
typically does not address alternative grounds for affirmance).
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT NETCHOICE, LLC, doing business No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT NETCHOICE, LLC, doing business No.
02OPINION ROB BONTA, Attorney General Of The State Of California, Defendant - Appellant.
03BONTA SUMMARY * First Amendment The panel affirmed in part and vacated in part the district court’s preliminary injunction in an action brought by NetChoice, a national trade association of online businesses that promotes free speech on the
04The panel held that NetChoice was likely to succeed in showing that the CAADCA’s requirement that covered businesses opine on and mitigate the risk that children may be exposed to harmful or potentially harmful materials online facially vio
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT NETCHOICE, LLC, doing business No.
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This case was decided on August 16, 2024.
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