Attacks on Section 230, the liability limiting shield for online platforms, are coming from President Trump, Republicans and Democrats on Capitol Hill. But the debate around curtailing or repealing the law is full of misunderstandings about how it functions and the consequences of changing it. To understand Section 230 better, it helps to think of its liability protections encouraging speech online similarly to how incorporating provides liability protections that encourage entrepreneurship.
The liability limiting benefits of incorporation are widely understood and accepted as beneficial. When entrepreneurs incorporate their business, they protect their personal property from potential litigation and risk. This doesn’t mean there’s no liability for the corporation, but it does eliminate significant and excessive litigation. This limiting of liability tips the scales in favor of continued entrepreneurship and increased commerce.
Section 230 is similar in that it encourages maximum speech online by ensuring that platforms won’t be held liable for what others post on that site. It acts as a filter that keeps platforms from being hauled into court every time someone objects to a post by a third party.
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