New York Governor Kathy Hochul signed legislation mandating social media companies display warnings regarding the mental health impact of "addictive feeds" on young users.
The law specifically targets platforms utilizing features such as autoplay and infinite scroll. Companies must now post cautionary labels on these feeds.
Following the announcement, shares of Meta Platforms (META), Snap (SNAP), and Alphabet (GOOGL) all traded lower. The legislation, driven by growing concerns over children's well-being, created investor uncertainty, with sentiment around Meta's stock turning more bearish on some platforms.