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META, MARK ZUCKERBERG FACE SHAREHOLDER PRESSURE OVER EFFORTS TO PROTECT KIDS
ONLINE: NEED ‘TRANSPARENCY’

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Published May 28, 2024, 5:50 p.m. ET
0:01
/
0:53


'AI death calculator' creators issue urgent warning about frighteningly-accurate
tool


Meta boss Mark Zuckerberg faces a potential revolt at the company’s annual
meeting on Wednesday as shareholders push the Big Tech firm to step up
transparency regarding its efforts to protect kids online.

A group led by Lisette Cooper, vice chair of the Franklin Templeton subsidiary
Fiduciary Trust International and the parent of a child sex abuse survivor, is
backing a non-binding resolution urging Meta’s board to publish an annual report
tracking the company’s performance on child safety and protecting young users
from harm on its apps.

The report would require “quantitative metrics appropriate to assessing whether
Meta has improved its performance globally regarding child safety impacts and
actual harm reduction to children on its platforms.”

4
Mark Zuckerberg recently apologized to the families of victims of online sex
abuse during a high-profile Congressional hearing.. REUTERS

“If they want to reassure advertisers, parents, legislators, shareholders on
whether they’re making a different on dealing with this problem on harm to
children, they need to have transparency,” Cooper said in an interview with The
Post. “They need better metrics.”



The resolution is set for a vote during a time of intense scrutiny for
Zuckerberg-led Meta – which faces a legal and regulatory crackdown in the US and
abroad about its alleged failure to keep kids safe on Instagram and Facebook.


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TOUR FLOP: SOURCE


HOW A B-MOVIE ACTOR DUPED FRIENDS AND FAMILY OUT OF $690M FOR 'HOLLYWOOD'S
BIGGEST PONZI SCHEME'


GOOGLE 'TAKING SWIFT ACTION' TO REMOVE BIZARRE AI SEARCH RESULTS — LIKE TELLING
USERS TO EAT ROCKS

Zuckerberg himself recently apologized to the families of victims of online sex
abuse during a high-profile Congressional hearing.

Meta’s board of directors opposes the resolution, arguing in an April proxy
statement that the “requested report is unnecessary and would not provide
additional benefit to our shareholders.”

Cooper and her allies cite a raft of pending litation against Meta related to
child safety. Last October, Meta was sued by dozens of states who alleged that
the company had “ignored the sweeping damage these platforms have caused to the
mental and physical health,” including poor sleep, disruption to schoolwork,
anxiety and depression.

A separate suit from New Mexico’s attorney general alleged Meta has exposed
underage users to purported sex predators.

4
Mark Zuckerberg apologized to families of online abuse victims in January.
rfaraino

As The Post reported earlier this month, Meta is also spearheading a massive
lobbying campaign to kill or weaken a pair of New York bills aimed at protecting
kids online.

“Children are going to be the users of the future. If they have a bad experience
on the platform, they are not going to keep coming back. This makes a huge
difference to us as investors,” Cooper added.

Two of the largest proxy advisory firms, Institutional Shareholder Services and
Glass Lewis & Co. have recommended shareholders vote in favor of the resolution.

“We believe that the requested report and the adoption and reporting of targets
will provide shareholders with valuable information, so they can better
understand this sensitive issue in the context of the Company’s efforts to
minimize harmful content on its platforms,” Glass Lewis said regarding the
proposal.

ISS determined that “shareholders would benefit from additional information on
how the company is managing the risks related to child safety.”

Shareholder resolutions are essentially doomed without the support of
Zuckerberg, who controls 61% of the company’s voting power through his ownership
of so-called super voting Class B shares.

4
Meta had advised shareholders to vote against the proposal that would require
the company to publish an annual report tracking the company’s performance on
child safety. AP

Proxy Impact, which filed the resolution on Cooper’s behalf, noted in a filing
that a similar proposal at last year’s annual meeting received nearly 54%
support from shares that weren’t controlled by Meta management.

“This is like a basic first step for any business plan – get the data,” said
Proxy Impact CEO Michael Passoff. “What gets measured gets managed, and they’re
not doing that. Or if they are, they just aren’t making it available to anyone.”

In its proxy filing, Meta noted various steps it has taken to address online
child safety concerns, including the creation of “more than 30 tools across our
apps to help support teens and families” and existing policies that prohibit
harmful content that seeks to exploit kids.

“We want people, especially young people, to foster their online relationships
in a safe, positive, and supportive environment, and we work closely with a
broad range of stakeholders to inform our approach to safety,” the company said.

4
Meta faces a looming crackdown over its online safety practices to protect kids
from abuse. DimaBerlin – stock.adobe.com

Meta’s board also recommended that shareholders reject a number of other
resolutions, including one requesting a third-party report that would assess the
“potential risks and benefits of instituting a higher minimum age for users of
its social media products.”

Meta’s legal and regulatory headaches on the issue of child safety aren’t
limited to the US.

Earlier this month, the European Commission revealed it was investigating
whether Meta had violated a sweeping new law called the Digital Service Act,
which requires the largest tech firms to police content on their platforms.

What do you think? Post a comment.

European watchdogs expressed concern that Facebook and Instagram “may stimulate
behavioral addictions in children” as well as “rabbit-hole effects,” where kids
stay glued to the apps despite harmful health effects.

Meta could face fines of up to 6% of its annual revenue if it is found to have
violated the DSA.




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Filed under
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 * safety
 * 5/28/24

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Mark Zuckerberg recently apologized to the families of victims of online sex
abuse during a high-profile Congressional hearing.. REUTERS
Mark Zuckerberg apologized to families of online abuse victims in January.
rfaraino
Meta had advised shareholders to vote against the proposal that would require
the company to publish an annual report tracking the company’s performance on
child safety. AP
Meta faces a looming crackdown over its online safety practices to protect kids
from abuse. DimaBerlin - stock.adobe.com
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