the daily briefing

Social media and AI policy news. What changed yesterday.

Wednesday, May 27, 2026 Compiled by Greg Fritsch, BSW 5 stories, 3 to watch

A short factual scan of what affects families. No alarmism. No opinion. Every claim links to its source. Updated every evening.

Top stories

AI Safety Litigation

Pennsylvania sues Character.AI for chatbots that fabricate medical licenses and pose as licensed doctors

What happened
Pennsylvania Governor Josh Shapiro filed suit on May 5, 2026 against Character.AI, alleging its chatbots claim to be licensed medical professionals and dispense clinical advice to users including children. A state investigator found a bot called "Emilie," described on the platform as a "Doctor of psychiatry," offering diagnostic assessments and fabricating a Pennsylvania medical license number when asked. The state is seeking a preliminary injunction to stop the practice.
Why it matters
Character.AI has over 20 million monthly active users, and children who believe they are talking to a real doctor may act on fabricated medical advice or delay seeking real care.
Source
npr.org

European Regulation

EU moves toward enforcement against TikTok and Instagram for addictive design features targeting children

What happened
The European Commission issued a preliminary finding on May 12, 2026 that TikTok's infinite scroll, autoplay, push notifications, and personalized recommendation system breach the Digital Services Act. EU President von der Leyen also stated that Instagram and Facebook are failing to enforce their own stated minimum age of 13. A legal proposal targeting addictive design features is expected by summer 2026, with formal enforcement action set for later in the year.
Why it matters
A DSA breach finding opens the door to binding compliance orders and fines of up to 6% of global revenue, and creates pressure for platforms to change how these features work in every market, not just Europe.
Source
cnbc.com

State Settlements

Roblox settles with Alabama and West Virginia for $23.2 million combined, faces new child labor lawsuit

What happened
Roblox reached settlements of $12.2 million with Alabama and $11 million with West Virginia in May 2026, following a $12.5 million Nevada settlement in April. A separate lawsuit filed May 14 alleges Roblox exploited child labor by paying children virtual currency to design games, building what the complaint calls a "multi-million-dollar empire" on unpaid child work. As of May 2026, 148 Roblox cases are consolidated in a federal MDL.
Why it matters
The $35.2 million in state settlements in two months treats platform child safety failures as financially consequential, while the child labor suit raises a new question: are children who build content on platforms using proprietary virtual currency workers with legal protections?
Source
aboutlawsuits.com

State Legislation

Idaho, Oregon, and Washington become first states to ban AI chatbots from claiming to be human or initiating sexual conversations with minors

What happened
Three Pacific Northwest states enacted laws in early 2026 that prohibit AI chatbot operators from allowing their products to claim sentience or initiate sexual conversations with minors. The laws apply to any AI product available in those states, not just apps marketed to children. Roughly 300 additional AI-related children's safety bills are pending in state legislatures nationwide.
Why it matters
Parents whose children use general-purpose AI tools now have legal recourse in those three states if a chatbot crosses these lines, and the wave of pending bills suggests more states will follow.
Source
multistate.us

Federal Legislation

COPPA 2.0 passes the Senate; House version stalled over preemption dispute

What happened
The Senate passed COPPA 2.0 in March 2026, updating the 1998 Children's Online Privacy Protection Act to cover anyone under 17, bar targeted advertising to minors, require parental consent for data collection on children under 13, and create a mechanism for users to delete their data. The House packaged the bill inside the broader KIDS Act. A dispute over whether federal law would preempt stronger state laws has slowed progress toward a final vote.
Why it matters
If COPPA 2.0 becomes law, it would be the most significant update to children's online privacy rules in 28 years, affecting every platform that collects data on users under 17.
Source
itif.org

Worth watching