[House Hearing, 118 Congress] [From the U.S. Government Publishing Office] UNDER THE MICROSCOPE: EXAMINING THE CENSORSHIP-INDUSTRIAL COMPLEX AND ITS IMPACT ON AMERICAN SMALL BUSINESSES ======================================================================= HEARING before the COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTEENTH CONGRESS SECOND SESSION __________ HEARING HELD JUNE 26, 2024 __________ [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Small Business Committee Document Number 118-054 Available via the GPO Website: www.govinfo.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 55-971 WASHINGTON : 2024 HOUSE COMMITTEE ON SMALL BUSINESS ROGER WILLIAMS, Texas, Chairman BLAINE LUETKEMEYER, Missouri PETE STAUBER, Minnesota DAN MEUSER, Pennsylvania BETH VAN DUYNE, Texas MARIA SALAZAR, Florida TRACEY MANN, Kansas JAKE ELLZEY, Texas MARC MOLINARO, New York MARK ALFORD, Missouri ELI CRANE, Arizona AARON BEAN, Florida WESLEY HUNT, Texas NICK LALOTA, New York CELESTE MALOY, Utah NYDIA VELAZQUEZ, New York, Ranking Member JARED GOLDEN, Maine DEAN PHILLIPS, Minnesota GREG LANDSMAN, Ohio MARIE GLUESENKAMP PEREZ, Washington SHRI THANEDAR, Michigan MORGAN MCGARVEY, Kentucky HILLARY SCHOLTEN, Michigan JUDY CHU, California SHARICE DAVIDS, Kansas CHRIS PAPPAS, New Hampshire Ben Johnson, Majority Staff Director Melissa Jung, Minority Staff Director C O N T E N T S OPENING STATEMENTS Page Hon. Roger Williams.............................................. 1 Hon. Nydia Velazquez............................................. 3 WITNESSES Ms. Jenin Younes, Litigation Counsel, New Civil Liberties Alliance, Washington, DC....................................... 5 Mr. Benjamin Weingarten, Investigative Journalist & Columnist, RealClearInvestigations & RealClearPolitics, Washington, DC.... 7 Ms. Carrie Sheffield, Senior Policy Analyst, Independent Women's Forum, Winchester, VA.......................................... 9 Dr. Mary Anne Franks, Eugene L. and Barbara A. Bernard Professor in Intellectual Property, Technology, and Civil Rights Law, George Washington Law School, Washington, DC................... 11 APPENDIX Prepared Statements: Ms. Jenin Younes, Litigation Counsel, New Civil Liberties Alliance, Washington, DC................................... 30 Mr. Benjamin Weingarten, Investigative Journalist & Columnist, RealClearInvestigations & RealClearPolitics, Washington, DC............................................. 34 Ms. Carrie Sheffield, Senior Policy Analyst, Independent Women's Forum, Winchester, VA.............................. 45 Dr. Mary Anne Franks, Eugene L. and Barbara A. Bernard Professor in Intellectual Property, Technology, and Civil Rights Law, George Washington Law School, Washington, DC... 50 Questions and Answers for the Record: Questions from Hon. Nydia Velazquez to Dr. Mary Anne Franks and Answers from Dr. Mary Anne Franks...................... 54 Additional Material for the Record: American Sunlight Project.................................... 57 Rumble, CEO, Chris Pavlovski................................. 63 The Free Press............................................... 65 UNDER THE MICROSCOPE: EXAMINING THE CENSORSHIP-INDUSTRIAL COMPLEX AND ITS IMPACT ON AMERICAN SMALL BUSINESSES ---------- WEDNESDAY, JUNE 26, 2024 House of Representatives, Committee on Small Business, Washington, DC. The Committee met, pursuant to call, at 10:02 a.m., in Room 2360, Rayburn House Office Building, Hon. Roger Williams [chairman of the Committee] presiding. Present: Representatives Williams, Luetkemeyer, Meuser, Van Duyne, Alford, Crane, Bean, Maloy, Velazquez, Landsman, Scholten, Thanedar, and Davids. Chairman WILLIAMS. I want Mr. Crane from the great State of Arizona to lead us in the pledge and the prayer. Would you please stand. Mr. CRANE. All right. We will pray first. Lord, thank you for opportunity to be here this morning. We ask that You continue to bless this nation. We ask that you would continue to bless small businesses in our economy. We ask that you will bless this committee hearing today in Your name. Amen. All. Amen. I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Chairman WILLIAMS. So good morning, everyone. I now call the Committee on Small Business to order. Without objection, the Chair is authorized to declare a recess of the committee at any time. We are going to do things a little differently today because we are expecting votes to be called around 10:30. So we will do our best to get through opening statements introductions, or witness testimony before we recess to go vote. We will then reconvene when votes are complete and begin Member questions at that time. So I now recognize myself for my opening statement. Welcome to today's hearing, which will examine how the federal government is tipping the scales against certain business online. I would like to start off by thanking our witnesses for being with us today. Your attendance and input on these important issues is greatly appreciated. The online marketplace is essential for small businesses and generate revenue in the modern economy. Business owners use social media and online platforms to reach their customers' earned revenue from advertising and promote products. Over a year ago it was brought to this committee's attention that the government has funded certain third-party organizations, which are making it harder for conservative businesses to succeed online. Now when I first heard about this, it seemed simply un- American and against what we should stand for as a country. Our economy is based on competition, where anyone that has a superior product, price, or customer service is able to build a successful business. However, during this committee's investigation, we found out that this is simply no longer the case. The committee uncovered a vast networks of non-profits, research groups, and other entities that receive government funding with the goal of stopping misinformation. As these groups attempt to define what is true, there are many voices and businesses whose reach is being reduced simply because they believe something that is against the mainstream narrative. An example of a viewpoint that would prevent the reach of a business or publisher online would be that the COVID-19 virus is man-made, and came from a lab. Even though this is now a widely not--this is now a wildly accepted theory, about how global pandemic began, this view expressed just 2 years ago would have been censored online and limited the reach of your business. The issue has extremely consequential First Amendment implications which are working their way through the judicial system, and this hearing will examine how the efforts had been trickling down to affect small businesses. The committee uncovered three main ways in which the small business ultimately could get affected by these censorship efforts: First these misinformation organizations flagged with content and acceptable posts on social media websites, thereby eliminating the reach to customers if they get in the cross hairs of these third parties; now secondly, there are government-led pressure campaigns to remove certain businesses from online marketplaces, preventing them from selling their products over the internet; and, finally, these organizations hinder businesses from earning an advertising revenue and other income streams by diminishing a business' reputation in the case of media outlets, their circulation. To put this plain and simple, the government has been caught collaborating with private entities to censor narratives that they don't like. And yes, your taxpayer dollars are being used to do this. Main street is constantly working as hard as possible to compete and thrive. The emergence of online marketplaces has provided millions of small businesses with new ways to make money and reach customers. However, we have found out that all businesses online are not given a fair chance to succeed in this new battleground. So if you do not agree with a company, the customer can choose not to do business with them. But when the government inserts itself in the process to tip the scales against certain businesses, it simply is unacceptable. So finally, I ask unanimous consent to enter into the record a statement from Rumble CEO, Chris Pavlovski, emphasizing the importance of free speech to not only this country, but to small business upon which our economy depends. So without objection, it is so ordered. I want to thank you all again for being here with us today, and I am looking forward to today's important conversation. And with that I yield to our distinguished Ranking Member from New York, Ms. Velazquez. Ms. VELAZQUEZ. Thank you, Mr. Chairman. Good morning, everyone, and thank you for being here. I must admit, when I heard the title of this hearing, I was terrified. The Censorship Industrial Complex--that sounds frightening. The thought that thousands of universities, NGOs, and government agencies are pondering to silence any dissenting views is a horrifying proposition. Are they really trying to silence our cherished small businesses? Thankfully, the idea itself is fiction, cynically created by the right-wing outrage machine to drum up fear during election season. There is simply no evidence that anyone in the small business community is being censored by the government for legitimate political speech. Nor is there evidence that the accused universities and NGOs that make up the so-called Censorship Industrial Complex have actually censored anyone. A quick look into the facts of my colleagues' investigation reveals a baseless effort to stir up anger and fear as we approach election season. It is the oldest trick in the book, and a cynical misuse of committee resources. Let's take a look at the basic claims of their investigation. First, the major claim is that the U.S. Government funded the development of software that censors conservative media. However, the fact is that a nonprofit organization had already developed proprietary software that can detect patterns of misinformation online. The Global Engagement Center of the State Department gave an award of $100,000 for 3 months of work to expand that software to six more languages: Chinese, Japanese, Korean, Vietnamese, Russian, and Ukrainian, to be used in Asia and Eastern Europe. I suspect few of my colleagues will be against the State Department using its resources to detect Chinese or Russian propaganda overseas. However, that is exactly what they are attacking at a crucial moment in history for our national security. The second major claim is that this software has been used primarily to censor conservatives here in the U.S. Again, this is baseless. The software assembles a list of thousands of websites around the world, a small fraction of which are American, which have a tendency to publish what they call adversarial content. Basically, content created to drive engagement by creating outrage. Advertisers realized a long time ago that social media algorithms boost this type of content because it helps keep users online, but they do not want to sponsor it. This software fills a niche that advertising agencies were asking for. It is not censorship. It is capitalism, something my colleagues usually, without a doubt, support. After all, if companies were forced to sponsor content they disagree with, that would be an egregious violation of the freedom of speech. Let's acknowledge what this investigation truly is an attempt by the majority to weaponize the federal government against universities and nonprofit organizations they disagree with. They want you to believe conservatives across the country are being silenced by some Orwellian censorship regime. That is pure fiction. In reality, it is they who seek to silence this organization through threat of lawfare, investigation, and by encouraging harassment. It is censorship by proxy. Mr. Chairman, when it comes to the intersection of social media, free speech, and small businesses, they are plenty of legitimate points of debate. We could talk about Section 230, or the concentrated private power of just a few tech companies to dictate who seeks what, or whose voice gets heard. We could talk about the reliance of small businesses on these platforms, and the power platforms have to charge high fees. We could even talk about how small firms are innovators, influencers, creators, and engineers of these platforms. Mr. Chairman, the Censorship Industrial Complex is simply a distraction. My hope will be that you will use the gavel to bring attention to real issues facing small businesses. While we may disagree on tax or regulatory policy or the best way to help small firms access capital, we can actually agree that those are real issues. I yield back. Thank you. Chairman WILLIAMS. The gentlelady yields back. And I will now introduce our witnesses. Now our first witness here with us today is Jenin Younes. Ms. Younes is litigation counsel for the New Civil Liberties Alliance located here in Washington, D.C. At the New Civil Liberties Alliance, Ms. Younes has played a significant role in First Amendment challenges to the government's involvement in censorship and social media. Ms. Younes graduated from the New York University School of Law where she earned her doctorate of law degree, and from Cornell, which I think we have a colleague that also went to Cornell up here. Ms. VAN DUYNE. [Inaudible.] Chairman WILLIAMS. Well, there is two of you. That is scarier--earned her degree of law from Cornell University where she earned her bachelor of art's degree. So thank you for joining us today. And I am looking forward to today's important conversation. Our next witness here with us today is Mr. Benjamin Weingarten. Mr. Weingarten is investigative journalist and columnist for the RealClearInvestigations and RealClearPolitics. In addition to his role as RealClear, Mr. Weingarten is a columnist and contributor to several print and media outlets, including the Federalist and Newsweek. Mr. Weingarten is also the founder and CEO of Changeup Media, a media consulting production firm helping individuals and institutions create compelling content. Mr. Weingarten graduated from Columbia University where he earned his bachelor of arts degree in economics and political science. I want to thank you, sir, for being here with us today and look forward to our conversation. Our next witness here with us today is Ms. Carrie Sheffield. Ms. Sheffield is the senior policy analyst at the Independent Women's Forum located here in Washington, D.C. As a former small business owner in the digital media industry, Ms. Sheffield knows the importance of advertising to reach new customers and grow your audience. Ms. Sheffield is familiar with the inequities considered conservatives face in this space. Ms. Sheffield is the author of the best-selling book, ``Motorhome Prophecies: A Journey of Healing and Forgiveness.'' And like many authors, Ms. Sheffield knows the importance of using platforms like Amazon to sell books and products. Ms. Sheffield earned her bachelor of arts in communication from Brigham Young University, then went on to earn her master of policy from Harvard University. I want to thank you each for joining us today. I am also looking forward to our conversation. And with that I now recognize the Ranking Member from New York, Ms. Velazquez, to briefly introduce our last witness appearing before us today. Ms. VELAZQUEZ. Thank you, Mr. Chairman. Our final witness today is Dr. Mary Anne Franks. Dr. Franks is the Eugene L. and Barbara A. Bernard Professor in Intellectual Property, Technology, and Civil Rights Law at the George Washington University Law School. She is an internationally recognized expert on the intersection of civil rights, free speech, and technology. Dr. Franks is also the president and latest leader and tech policy director of the Cyber Civil Rights Initiative. A nonprofit dedicated to combating online abuse and discrimination. She holds a juris doctorate from Harvard Law School, and a doctorate and master's degree from Oxford University where she studied as a Rhodes scholar. Thank you, Dr. Franks, for providing your testimony today. Chairman WILLIAMS. Thank you, and we appreciate, again, all of you being here today. So before recognizing witnesses, I would like to remind them that their oral testimony is restricted to 5 minutes in length. That is important. And if you see the light turn red in front of you, it means your 5 minutes have concluded, and you should wrap up your testimony. If you keep going, you are going to hear this. That means stop, okay? So I now recognize Ms. Younes for her 5-minute opening remarks. STATEMENTS OF JENIN YOUNES, LITIGATION COUNSEL, NEW CIVIL LIBERTIES ALLIANCE, ON BEHALF OF NEW CIVIL LIBERTIES ALLIANCE; BENJAMIN WEINGARTEN, INVESTIGATIVE JOURNALIST AND COLUMNIST, REALCLEARINVESTIGATIONS & REALCLEARPOLITICS, ON BEHALF OF REALCLEARINVESTIGATIONS & REALCLEARPOLITICS; CARRIE SHEFFIELD, SENIOR POLICY ANALYST, INDEPENDENT WOMEN'S FORUM, ON BEHALF OF INDEPENDENT WOMEN'S FORUM; AND DR. MARY ANNE FRANKS, EUGENE L. AND BARBARA A. BERNARD PROFESSOR IN INTELLECTUAL PROPERTY, TECHNOLOGY, AND CIVIL RIGHTS LAW, GEORGE WASHINGTON LAW SCHOOL STATEMENT OF JENIN YOUNES Ms. YOUNES. Chairman Williams, Ranking Member Velazquez, and Members of the committee, thank you for having me here today. Over the past several years, investigative journalists, lawyers, and individual Americans have uncovered a vast federal censorship enterprise that targets American speech on social media. In the words of a White House staffer named Rob Flaherty, this enterprise stems from the highest levels of the White House and involves the efforts of at least a dozen federal agencies, if not more. Politicians and media have attempted to portray these efforts as laudable attempts to fight misinformation, disinformation, and malinformation on social media. Of course what constitutes misinformation, disinformation, and malinformation are determines made by the censors. Government actors have used threats, coercion, pressure, and influence on private social media companies to effectuate censorship of disfavored views, including scientists such as Jayanta Bhattacharya and Martin Kulldorff, and journalists like Alex Berenson. That conduct is the subject of a case that was just decided in the Supreme Court about 10 minutes ago, and I still haven't had a chance to read the decision, Murthy v. Missouri. In the other cases, the government has outsourced private censorship programs--sorry, censorship programs to private industry in attempts to circumvent First Amendment strictures. The State Department, through its Global Engagement Center, has funded the development, marketing, and promotion of hundreds of tools and technologies designed to combat misinformation and disinformation online. They act with the purpose of depriving our clients, Daily Wire and Federalist, and other disfavored media outlets of revenue and visibility, thereby diminishing their reach on social media and elsewhere. Our clients were severely impacted, along with hundreds of other small independent and conservative-leaning news outlets and journalists. Why is this a problem? First, Congress created GEC within the State Department to counter foreign propaganda and disinformation efforts. Congress also included a funding limitation. None of the funds authorized to be appropriated or otherwise made available to carry out this section shall be used for purposes other than counting foreign propaganda and misinformation that threatened United States national security. Yet GEC is intricately involved in the development of technologies that are intended to and do result in the suppression of American speech. This use of funds to stifle domestic speech constitutes an unlawful misappropriation of funds. It is also an alter virus action because GEC's mandate is to counter foreign propaganda. Second, even if Congress wanted to, it could not constitutionally give GEC the authority to fund market and promote companies like NewsGuard and GDI because this activity violates the First Amendment. Supreme Court jurisprudence has made clear the government cannot use private industry to accomplish what the Constitution prohibits from doing directly. In a case called Norwood v. Harrison, for example, the court said it is axiomatic that the government may not induce, encourage, or promote private persons to accomplish what it is constitutionally forbidden to accomplish. Another indication that this program is not and never was about protecting Americans' national security interest is that companies such as NewsGuard and GDI targeted primarily if not exclusively conservative speech, which should strike any fair- minded person as suspect. Its viewpoint discrimination and its anathema to the First Amendment, which doesn't tolerate government silencing views of political adversaries. By the way, I am not a political conservative or Republican. I am left-leaning. To say the least, I don't agree with much of the speech that has been the subject of this censorship program. But I recognize that it is extremely dangerous to put government in deciding--in charge of deciding who and what should be heard and who and what should be silenced. That is precisely what the Framers of the Constitution issued when they included the First Amendment in the Bill of Rights. They understood the government actors are just people, and in no better position than I or any American to decide what is true and false. The First Amendment implicitly recognizes our dignity as individuals. We are not inferior beings who need to be told who or what to believe by a monarch. We are capable of evaluating competing claims in light of our individual experiences and perspectives. Some say the plethora of information that social media allows to be put forth at a rapid pace requires governmental interference, once again, protect people from bad or false ideas. But social media doesn't change the fundamental premise underpinning the First Amendment. The best way to address problematic or false ideas is through counter speech, not censorship. Censorship does not make bad ideas or lies go away. It drives them underground where they fester. As the saying goes, sunlight is the best disinfectant. And rapidity with which information may be posted on social media also means that lies and other problematic speech can be combated that much more quickly. Those who think there is nothing wrong with the government censorship regime exposed through this case as well as Murthy v. Missouri should think long and hard about what this means when power changes hands. Do you want President Trump's administration funding tools and technologies designed to censor speech he disfavors? It is time Americans recognize the danger we face, not from misinformation, disinformation, or malinformation, but from our government deeming itself arbiter of the truth and inserting itself into the marketplace of ideas so as to silence those that it disfavors. Thank you. Chairman WILLIAMS. The time is up. I now recognize Mr. Weingarten for his 5-minute opening remarks. STATEMENT OF BENJAMIN WEINGARTEN Mr. WEINGARTEN. Chairman Williams, Ranking Member Velazquez, and Members of the committee, thank you for the opportunity to testify. Free speech and a free press are bedrock features of our republic. The Censorship-Industrial Complex therefore imperils our republic. Disturbingly, the U.S. Government has played an indelible role in fostering this censorship regime--one that has purged unauthorized opinions and inconvenient facts en masse. Today's hearing highlights one insidious instance of it: federal funding, direct and indirect, via the State Department's Global Engagement Center, of entities in NewsGuard and GDI that threaten the viability of media companies that dare to dissent from establishment orthodoxy. The relationships this committee is probing and the stonewalling it has faced should concern all Americans. GEC's stated mission is to counter ``foreign...propaganda and disinformation efforts.'' NewsGuard says it aims to ``systematically defund sources of harmful misinformation''-- foreign and domestic. It does so by rating and reviewing thousands of outlets for ``reliability'' and creating what it calls ``exclusion lists''--blacklists for brands to provide ad agencies and ad tech partners for use in determining where not to place ads. GDI, likewise, says it seeks to ``reduce'' disinformation by ``remov[ing] the financial incentive'' it says works behind it, ad revenue. It took arms ad-tech companies with a ``dynamic exclusion list''--reportedly containing 2,000 ``risky'' publications, including American ones. Perversely then, a foreign-facing agency has supported entities that exist to put disfavored domestic outlets out of business. Those NewsGuard and GDI have targeted suggest they have been smeared and stigmatized for taking positions on matters from COVID-19 to the war in Ukraine, contrary to those of the political establishment, consequently incurring financial and reputational damage. NewsGuard's alleged viewpoint discrimination can be seen in the significantly higher scores on average that it has lavished on left-learning sources over right-leaning ones--and in the Kafkaesque correspondences dissident sources left and right have had with its readers when challenging seemingly unmerited scores. GDI's blacklist isn't public, but its 2022 report on ``disinformation risk'' among U.S. sources betrays a similar bias. There, it lists among its 10 least risky publications nine liberal--too progressive corporate media outlets--and The Wall Street Journal. Its 10 riskiest publications include nine conservative or libertarian outlets and RealClearPolitics. Many maligned by NewsGuard and GDI report plummeting ad revenues-- which GDI's executives have gloated about. Some say they have lost traffic. Our experience at RealClearPolitics and RealClearInvestigations may be more troubling. RCP's bread and butter is curating compelling analysis--from sources left and right, corporate and independent--on key issues of the day, so readers can weigh both sides. We score a 62 on NewsGuard's 100- point scale based on the subjective assessments of NewsGuard's journalists, who analyze a sample of other journalists' work to render judgment on whole outlet. Amazingly, NewsGuard dings us in part for our quote, unquote, ``undisclosed'' conservative bent. The implication is that it either dismisses the feature of viewpoint diversity that we promote, or worse, sees viewpoint diversity as a bug. RCP, mind you, ranks below NPR, The Washington Post, and Politico, all of which garner perfect NewsGuard scores despite their biases and bungles. These scores influence not only advertisers but up to half a billion readers through NewsGuard's partnerships. They appear next to sites in search results on browsers equipped with NewsGuard's extension. A low rating is a digital Scarlet letter. RealClear investigations curates deep dives from sundry sources and publishes our own from journalists with diverse perspectives--some antithetical to my own. NewsGuard has branded us biased as well, albeit while giving us an 80. The rater would seem to see bias in our pursuit of stories and angles competitors miss or ignore. It took RCI to task for unmasking the whistleblower behind the first impeachment of President Trump--in the face of political pressure, our silent peers folded under. As for GDI, beyond landing on its risky list, RCP may be on its secret blacklist, too. Now RealClear has thrived despite these entities, but the Censorship-Industrial Complex has made a highly competitive business harder, and placed us at a competitive disadvantage. Our ad revenue has declined materially, forcing us to devote substantially more time and resources to fundraising. We have seen a meaningful drop in certain search rankings. And we've taken a reputational hit. Even if the risk raters were unobjectionable, the fundamental issue would remain. Through funding and supporting such entities, government has abridged our freedom of speech and of the press by proxy. Taxpayer dollars should not back those who would silence Americans by destroying our media businesses. Thank you. Chairman WILLIAMS. The gentleman yields back. I now recognize Ms. Sheffield for her 5-minute opening remarks. STATEMENT OF CARRIE SHEFFIELD Ms. SHEFFIELD. Mr. Chairman, Ms. Ranking Member, thank you for inviting me today. My name is Carrie Sheffield, and I am a senior policy analyst at the Center for Economic Opportunity at Independent Women's Forum. We are a nonprofit organization committed to increasing the number of women who value free markets and personally liberty. Prior to my current role, I founded Bold TV, a small business which I ran from 2015 until selling its assets in 2019 to an educational nonprofit. Bold TV is a digital media news network featuring newsmakers across politics, business, and lifestyle. At Bold TV, we utilize tools from Facebook Live, Instagram, Twitter, Amazon Fire, Apple News, YouTube, and other tech and content distribution partners to grow our audience. Just prior to my departure, our viewership was approximately 30 to 70,000 views on each Bold TV program which approximately 10.16 million organic impressions for the first 6 months of 2019. In addition to social media monetization tools, Bold TV also maintained a website using a private marketplace ad exchange network for revenue. I am also an author with my first book, Motorhomes Prophecies, published in March by Hachette Book Group. My publisher uses ad exchanges to sell books. Ad exchanges are the lifeblood of small businesses, both for selling and promoting their content to external audiences. A recent survey from the Connected Commerce Council of more than 2,400 businesses found that among small and mid-size businesses, SMBs, 40 percent of SMB publishers say that digital ads drive over half of their overall revenue. The survey also found 71 percent of SMB publishers, including 72 percent of Black and 65 percent of Hispanic-led SMB publishers say they could not have launched and sustained their business without digital advertising revenue. Seventy- nine percent of SMB publishers say digital ads helped them compete with much larger competitors. My media experience leads me to believe government censors and interferes with small businesses. This impacts businesses' abilities to use digital ads and sell products in the online marketplaces such as Amazon, Etsy, or eBay. For example, under the leadership of Chairwoman Lina Khan, President Biden's Federal Trade Commission seeks to punish authors by like myself by harming our ability to sell books on Amazon at lower prices to customers. The government can also interfere with advertising revenue by supporting companies that attack the credibility of businesses. This can occur through government reliance on organizations, such as the Global Disinformation Index, GDI, a media-rating website. GDI appears to be a tool for the U.S. Government to circumvent our First Amendment rights and censor American small businesses. Evidence suggests the U.S. State Department gave taxpayer funds to GDI, which then downrated conservative media organizations, including the Daily Wire and the Federalist. In response, the Federalist and the Daily Wire jointly fired a lawsuit in December. The complaint alleges the Biden administration used U.S. funds to tap GDI which has relationships with social media giants and deep-pocketed advertisers. Federal election data shows State Department employees for many years have favored Democrats over Republicans with their political contributions. For example, during the 2016 cycle, State Department employees gave Democrats almost eight times the amount of money they gave Republicans. This disproportionate financial support could indicate motivation for the alleged viewpoint discrimination against conservative media. At Independent Women's Forum and our sister 501(c)(4) organization, Independent Women's Voice, we rely heavily on digital tools to reach our audiences. Last year we witnessed suppression over political differences from tech platform Eventbrite. Eventbrite banned our page, Let Women Speak, organized by our IWN Austin chapter. Eventbrite claimed we violated community guidelines for perpetuating hate speech. Eventbrite believes in silencing women's voices in the high stakes national conversation on protecting female safety in sports, prisons, and battered women's shelters. While IWN has no evidence, the government pressured Eventbrite to remove our event, it is worth noting two important facts: First, IWF has is vocally and visibly opposed to the Biden administration's illegal rewrite of Title IX's protections for women, prohibiting sex-based discrimination. Second, the Sixth Circuit Court of Appeals ruled the Biden administration violated the First Amendment by pressuring technology companies to suppress or remove social media posts. In conclusion, America cannot function as a healthy republic without freedom of speech. Commercial freedom and freedom of expression go hand in hand. As the Supreme Court has noted for more than a century, businesses are voices for people. I am grateful to this committee for investigating this issue and look forward to working with your team in the days ahead to ensure a robust marketplace of ideas flourishes in America. Chairman WILLIAMS. The lady yields back. And I now recognize Dr. Franks for her 5-minute opening remarks. STATEMENT OF DR. MARY ANNE FRANKS Ms. FRANKS. Thank you. As noted in my introduction, I am a law professor at the George Washington Law School, and I specialize in the intersection of the First Amendment Technology and Civil rights. I am also the president of the Cyber Civil Rights Initiative, which is the leading U.S. nonprofit organization focused on combating image-based sexual abuse. I am speaking only on my own behalf today. I am drawing on the expertise that I have developed in both of these roles to offer explanations of settled First Amendment doctrine, and to emphasize how harassment and intimidation campaigns against misinformation researchers, especially when it is instigated by government officials, chill freedom of expression and jeopardize national security. The First Amendment, broadly speaking, protects speech from government suppression. It does not protect speech from criticism or competition. It does not guarantee any speaker a platform or a profit. The same First Amendment that protects one person's right to speak also protects the right of another person to reject, to discredit, or ignore that speech. The fact that critical speech may lead to negative consequences for those who are criticized, such as a decline in popularity or in revenue merely indicates that the speech is effective, not that it is censorship. Competition is not censorship. Counterspeech is not censorship. Research is not censorship. Providing information to businesses about other businesses is not censorship. Efforts to convince consumers, advertisers, and the public that certain content is false, is fraudulent, harmful, extremist, harassing or exploitative, is not censorship. None of this changes just because the government may have provided funding for the speech in question. While the Supreme Court has held that ``government officials cannot attempt to coerce private parties in order to punish or suppress views that the government disfavors,'' the government is allowed to speak on its own behalf, and to take sides in controversial matters. The government is allowed, for example, to promote military enlistment and war bonds during wartime without also having to promote messages that discourage those efforts. The government is allowed to fund certain messages or perspectives and not others. In the 1991 case of Rust v. Sullivan, Chief Justice Rehnquist, writing for the majority, stated that the First Amendment allows the government ``to selectively fund a program to encourage certain activities it believes to be in the public interest, without at the same time funding an alternative program, which seeks to deal with the problem in another way.'' The individuals, organizations, and research institutions that are fighting to maintain the integrity of our elections, our public health systems, our information ecosystem, are speakers, not censors. Their speech is more urgently needed now than ever as we face unprecedented threats to our democracy from both outside and inside the United States. If there were any doubt as to the significance of this speech, it has been dispelled by the increasingly desperate and aggressive attempts to silence it. Misinformation researchers have been vilified, defunded, harassed, and threatened, including by Members of Congress--government officials using taxpayer dollars to instigate hearings, subpoenas, lawsuits, document requests, and investigations to literally shut down speech that they do not like. And unlike the federal funding programs attacked in this hearing, these actions by government officials are not merely encouraging speech that they prefer, but punishing the speech that they fear. These efforts have been chillingly effective. It was announced recently that the Stanford Internet Observatory, a cross-disciplinary program that provided in-depth analyses of social media's role in child exploitation and the spread of false information about elections and vaccines ``may shut down amid the political and legal attacks that have,'' as The Washington Post says, ``cast a pall on efforts to study online misinformation,'' attacks that have included ``lawsuits, document requests and threats of physical harm,'' including the targeting of student volunteers. This is what censorship looks like: Government-led efforts to directly suppress disfavored speech as well as to leverage third parties to assist in those efforts. The harassment and silencing of misinformation researchers, especially in a year when a record-breaking number of elections will take place around the world, threatens free speech and democracy on unprecedented scale. If Congress genuinely wants to address the threat of censorship, it should start by acknowledging that the call is coming from inside the House. Thank you. Chairman WILLIAMS. The lady yields back. As I mentioned at the beginning, the committee--they have called for votes. So we will take a brief recess until 11:15, and we will reconvene and begin the questions. So thank you. [Recess.] Chairman WILLIAMS. The committee will now come to order. We will now move to the Member questions under the 5-minute rule. And I want to thank all of you for bearing with us as we voted. I now recognize myself for 5 minutes. We heard in the Ranking Member's opening statement that there is no evidence of government censorship affecting small businesses. However, three of our witnesses' testimony seem to negate that assertation. Additionally, we heard from Dr. Franks that this hearing is meant to harass research groups and universities. This is simply not true. We are asking for transparency to ensure that taxpayer dollars are not being weaponized to silence political opponents. Also, our committee has only sent letters to federal agencies, no universities, or other private actors. This is a textbook congressional oversight. Now, though, through our investigation, we have seen hundreds of awards that have been given through the SBIR programs to companies who claim to be disinformation experts to police the internet and interfere with Americans' right to free speech. One of these examples is NewsGuard. NewsGuard is multiple products, one of which uses politicized metrics to rate the media outlets based on their supposed credibility. And if NewsGuard claims an organization is not credible, their advertising revenue is severely affected. NewsGuard is reportedly rated around 10,000 media outlets, many of them small and medium businesses. So Ms. Younes, can you tell us more about how NewsGuard operates and how they impact the ability of businesses to earn revenue. And why it is a problem that the federal government is giving these kind of companies money? Ms. YOUNES. So NewsGuard rates media companies based on their ostensible reliability. And that has the effect of driving advertiser revenue away from them if their rank is unreliable. Now, I believe that GDI is even worse than NewsGuard. And their secret blacklist was actually revealed sometime before we started this litigation and was part of the reason we actually did. And their secret blacklist showed that all of the sites that they ranked were reliable were liberal, including, you know, websites such as The Huffington Post, which I would argue don't really engage in the most journalistic practices of the highest integrity. And all of the ones that they deemed unreliable were conservative. So really shows that this is viewpoint discrimination. Not to mention the fact that the GEC shouldn't be funding any of this at all, because their mandate is to deal with foreign so-called disinformation. And these are domestic news sites that they are ranking. Chairman WILLIAMS. Thank you. NewsGuard and companies like them don't just impact the businesses. They rate small businesses. They are not large enough to have an internal advertising department often partnered with advertising companies to help get their products or services out to the public. Many of these advertising companies look at the ratings that NewsGuard gives media companies when deciding where to place a small business ad. So, Ms. Sheffield, if I am a small business owner, which I actually am in Texas, and looking to place advertisements to online--to a conservative audience. But the advertising partner I am working with is partnered with a company like NewsGuard, am I going to have issues reaching out to the audiences I need to reach out to? Ms. SHEFFIELD. Well, so in the industry, there is a term called ``brand safe.'' And a lot of times, especially for a small startup or a medium-sized business, a lot of these big brands, like, say, Nike, or some of the bigger marquis brands, they are not going to be familiar with smaller startups. And so, they rely on some third parties to determine whether or not this organization or this media outlet is quote, unquote ``brand safe.'' And that brand safe designation can really make or break the future of a business. As I said earlier in my testimony, that 40 percent of small and medium business publishers say that digital ad sales drive over half of their overall revenue. So this could be the death knell if they are not considered brand safe. Chairman WILLIAMS. Okay. Mr. Weingarten, in the limited time that we have, over the course of our investigation, we found that so-called fact-checking organizations are being used to bolster traditional media outlets by labeling others, often small- and medium-sized outlets as untrustworthy if they question the accepted narratives. So this creates a conflict of interest for many news organizations; either get in line and stop asking tough questions, or lose out on advertising revenue, potentially get out of the business. So based on the output of Newsguard's and similar companies' ratings, which narratives do you see being silenced, and do you think this is a creating an environment where those in power are not being held accountable? Mr. WEINGARTEN. I think there is substantial evidence to suggest that views, for example, with respect to virtually every aspect of COVID-19 from origins to mitigation measures would lead a site to get downgraded to the extent they took positions that were antithetical to those of public health authorities. We have also seen this as well with respect to the war in Ukraine. And I think what is so chilling about this ultimately is if this entire disinformation, counter-disinformation--so-called ecosystem existed in and of itself without any sort of government backing, I think we would probably still find it objectionable, but we would say there is a First Amendment right to it, it is protected. The problem here is that government is conferring its blessing on this entire ecosystem, which clearly exists to chill speech officials don't like. Chairman WILLIAMS. Thank you. And I now recognize the Ranking Member for 5 minutes of questions. Ms. VELAZQUEZ. Thank you, Mr. Chairman. Dr. Franks, have you seen any evidence that ties money from federal awards to the ratings of American media outlets by GDI? Ms. FRANKS. I have not. Ms. VELAZQUEZ. In recent testimony, you highlight the real- world consequences of the investigations launched by Congressional Republicans, that by the way, are basically partisans. For instance, according to your subpoena, you asked for any awards related to the National Democratic Institute and the role combating misinformation overseas. Yet your subpoena voids asking for any records related to the International Republican Institute, which does similar work overseas, and has also gotten awards from GEC. Let's be serious about this issue. Dr. Franks, can you discuss how this investigation, the legal expenses they create, and harassment they invite can have a chilling effect on the legitimate political speech of individuals? Ms. FRANKS. Yes, particularly through the use of things like very burdensome subpoenas, as you have mentioned, invasive record requests for massive amounts of private communications, work product, including student volunteers, in some cases, demands for closed-door interrogations of researchers, expensive lawsuits that take not only money, but time away from researchers and their important work. Those who are involved in these investigations have, at times, lied about researchers' work, have vilified them in the press. They have made false accusations about them on social media, which has led to extensive harassment and threats by online mobs who have published their private information in some cases, have expressed threats against their family members, and made many of these researchers fear for their safety. And in response, many of those individuals have closed down their social media accounts entirely. They have canceled speaking engagements, they have withdrawn from their work, they have withdrawn from civic participation. And this is, in fact, what it looks like to see government coercion and actual silencing. Ms. VELAZQUEZ. Thank you. Mechanisms that protect our national security are being threatened, while organizations that combat misinformation by our adversaries are shutting down. Can you broadly discuss the spread of information warfare from our adversaries, specifically during this upcoming election season? Ms. FRANKS. Broadly speaking, information warfare really thrives on social tensions, it thrives on misinformation, it thrives on a polluted information ecosystem. And so, when we are concerned about foreign interference with our elections and other processes, we have to be concerned about the integrity of that information environment. And so the attempts to shut down research on mis- and disinformation makes us more vulnerable to those kinds of attacks. And these kinds of threats are only escalating with the advancement of AI. We have already seen evidence that AI is being used by foreign sources to make their campaigns of disinformation and misinformation and sowing political division even more effective. Ms. VELAZQUEZ. Social media algorithms tend to promote content that is sensational or divisive, because those posts tend to drive more engagement. If advertisers choose to withdraw their ads from posts because they do not want to be associated with the message, is that censorship? Ms. FRANKS. It is not censorship, and it is, in fact, quite the opposite. It is the First Amendment protected right to choose to disassociate from speech with which you disagree. Ms. VELAZQUEZ. Is there any evidence of social media algorithms favoring one political viewpoint over another? Ms. FRANKS. To the extent that there is evidence of partisan special treatment, that actually runs in the opposite direction. There have been multiple studies conducted by social media platforms and others that have indicated that, in fact, it is conservative speech, right-wing speech, that receives preferential treatment. And that even at times Meta, for instance, on its Facebook service decided to change its algorithm so that it could boost right-wing content over left- wing content. Ms. VELAZQUEZ. In my colleagues' quest to be the ultimate victim, they often come close to recognizing a real problem, the power of the counsel of social media platforms to control what is essentially the entire information flow in the country. What material steps could we take to enrich competition in social media and create more transparency among them? Ms. FRANKS. If we are really concerned about that conglomeration, that consolidation of power in these few companies, one of the first things we would need to do is to reform Section 230(C)(1), which is providing just absolutely unconscionable amount of immunity to social media platforms for engaging in harmful facilitation of content. We could also encourage the Federal Trade Commission to do more oversight and regulation of unfair and deceptive practices. And we could also provide funding for local media, for other news sources, for other kinds of interactions that people could engage in for specific participation in public discourse. Ms. VELAZQUEZ. Thank you. I yield back. Chairman WILLIAMS. The gentlelady yields back. I now recognize Representative Meuser from the great State of Pennsylvania for 5 minutes. Mr. MEUSER. Thank you, Mr. Chairman. And thank you to our witnesses as well. You know, interesting and disturbing at the same time. All right. We appreciate the honesty of how there are those on this panel that feel that government has the right to choose what information should be permitted to be published on social media. Now certainly, I think we agree at a private sector or the confines of your own home or just personally, you can choose not to read a particular newspaper or choose not to provide information to your children, and the private sector within a business. But the government, the United States Government has the right to pull information that it disagrees with? Am I hearing this right? Ms. Franks, we are going to get to that. Are we actually hearing that right? So let me ask you this. Thank you again for your honesty. So let me--Ms. Sheffield, the advertisers are being pushed from free speech platforms. Can you discuss how those censorship efforts are affecting, you know, the implications for your small businesses? Ms. SHEFFIELD. Yes, as we have heard from my colleague and also from litigation from other outlets and in my personal experience, whether it is investors or advertisers, there is certainly a perception that if you lean a certain way, that if you have populous impulses, that somehow you are not considered brand safe. Mr. MEUSER. So in Title IX, you mentioned something about Title IX. So if I believe in Title IX and boys shouldn't be playing girls' sports, I could be censored? Ms. SHEFFIELD. Absolutely. And in our case, we were censored by the tech platform Eventbrite---- Mr. MEUSER. Right. Ms. SHEFFIELD.--which removed our event which allowed women to speak---- Mr. MEUSER. Right. Ms. SHEFFIELD.--about sexual assault and their concern with being forced to be---- Mr. MEUSER. Thank you. Ms. SHEFFIELD.--placed in the---- Mr. MEUSER. And, Ms. Franks, do you think that is wrong? Ms. FRANKS. You asked the question of whether or not you had it right, if you are hearing this correctly. And I would say, no, you are not, if what you are saying---- Mr. MEUSER. Unless specifically--is Ms. Sheffield wrong in what she just said? Ms. FRANKS. I am not entirely clear what point was being made there. Mr. MEUSER. Okay. Then we will move on. Ms. FRANKS. But you did ask whether or not you were hearing correctly. I do just want to say that, no, what I was suggesting was not my feeling about the law, this is, in fact, the statement of the law. Mr. MEUSER. And you were pretty clear. I am going to reclaim my time. Mr. Weingarten? Ms. FRANKS. That First Amendment actually does allow the government to express its own viewpoints, but it does not of course allow it to silence a dissent---- Mr. MEUSER. You cited Rehnquist, okay? Rehnquist decision, and the draft was taking place. Okay. Rehnquist decision would not have suppressed or censored anyone online or putting up a billboard that said, I am against the draft. You are suggesting that would be appropriate by the government and that is dead wrong. Ms. FRANKS. I am suggesting that words mean something, and the words ``silencing'' and ``censoring'' mean something. Mr. MEUSER. No---- Ms. FRANKS. These websites have not---- Mr. MEUSER. Counter speech. That's what we call it, and that is what the schools have called it. Ms. FRANKS.--they have not been confined. They have not been imprisoned. They have not been---- Mr. MEUSER. That is what we call it, and that is what the schools have called it. And that was what is appropriate, counter speech, diversity in ideas and discussion. Ms. FRANKS. Exactly what the GDI is providing, yes. Mr. MEUSER. Is that what the GDI is providing, Mr. Weingarten? Mr. WEINGARTEN. The government has the bully pulpit and a whole slew of other tools to express its viewpoint. Funding entities that exist to bankrupt media companies that propagate dissenting viewpoints, expressly, to me is un-American, unconstitutional, and frankly just wrong on its face. Mr. MEUSER. They have labeled you all in pretty nasty terms. They labeled real clear--almost risky and untrustworthy media outlets impacted operations--to impact your operations and revenues. Do you want to talk about that a minute? Mr. WEINGARTEN. Well, first, it bears noting that when a NewsGuard comes to you with the rating that it does, it does so with the backing of one of its largest investors, which is a major ad, PR company representing major clients, including the likes of, for example, Pfizer, pharmaceutical companies. And it does so with advisors that include the former head of the State Department's Global Engagement Center, the former head of CIA, NSA, as well as the former Homeland Security advisor. So when it does so, it is a big deal for you to be tarnished and your reputation to be attacked with very little recourse against it on seemingly subjective grounds. Mr. MEUSER. Not by a competitor, by the government. Mr. WEINGARTEN. De facto. Mr. MEUSER. De facto, okay. Ms. Younes, how has government's involvement using taxpayer dollars, okay, my dollars, my constituent's dollars to interfere with the ability of small businesses to compete online because of--because they may have questioned the origins of COVID, because they feel immunity when COVID was there might be comparable to getting the vaccine--or they have concerns about the vaccine, or they believe in Title IX, or they have other beliefs that maybe this administration doesn't agree with. How does that hurt small business? Ms. YOUNES. It drives revenue away, and it interferes with our ability to reach the public, which they have a First Amendment right to do as the press. Mr. MEUSER. My time has expired. Thank you, Mr. Chairman. Chairman WILLIAMS. The gentleman yields. I now recognize Representative Landsman from the great State of Ohio for 5 minutes. Mr. LANDSMAN. Thank you, Mr. Chair. The Court did rule as we were sitting here, or earlier, in favor of the administration. The Supreme Court on Wednesday rejected a Republican-led effort to sharply limit White House officials and other federal employees from pressuring social media companies to remove posts from their platforms that the U.S. Government deems problematic. In a 6-3 ruling, the court said the challengers did not have legal grounds or standing to bring the case against the Biden administration because the States and individuals could not show that they were directly harmed by the communications between federal officials and social media platforms. Writing for the majority, Justice Amy Coney Barrett said companies like Facebook and YouTube have longstanding content moderation policies that place warning labels on certain posts and delete others. The challengers, Barrett wrote, did not demonstrate the company's actions to remove posts that were traceable to the government. These lead me to a couple of questions. One is the Court has spoken. Just to clarify, let's start with warning labels. The government has said that cigarette companies have to put-- tobacco companies have to put warning labels on their products because it causes cancer. And this is just a yes or no question. I just--Ms. Younes, do you oppose those warning labels? Ms. YOUNES. No. Mr. LANDSMAN. Okay. Mr. Weingarten, do you oppose those warning labels? Mr. WEINGARTEN. No. Mr. LANDSMAN. Ms. Sheffield, do you oppose those warning labels? Ms. SHEFFIELD. I don't think it is applicable here, but---- Mr. LANDSMAN. Yes or no? Ms. SHEFFIELD. It is apples or oranges, but no. Mr. LANDSMAN. Good. Ms. Franks? Ms. FRANKS. No, I do not oppose it. Mr. LANDSMAN. Now, here we will get to something a little bit more applicable, Ms. Sheffield. Sheffield? Ms. SHEFFIELD. Sheffield, yes, Like ``The Nanny.'' Mr. LANDSMAN. Yeah. During the thirties and forties, Hitler's Nazi Government used propaganda, not just in Germany, but here in the United States, as you are aware. One of the leading causes of drivers of anti-Semitism and ultimately horrible events, including the Holocaust has been blood libel, including this lie that Jews killed Jesus. Let's say, as they did in the thirties and forties, that the Nazi Government was paying for content on platforms that Jews killed Jesus and that they needed to be round up. Would you have a problem, Ms. Younes, if the government pulled that content? Ms. YOUNES. I am sorry, who is putting the content up? Mr. LANDSMAN. Well, this was content that was put up and distributed throughout the United States in the 1930s and early '40s. And so, if similar content was put out on media platform now, yes or no, do you have a problem? Ms. YOUNES. I do not think that the government should be involved in censoring that. I think that counter speech is the appropriate way to go. Mr. LANDSMAN. So in this case, it is fine, Jews killed Jesus, round them up, you can keep it. Mr. Weingarten? Mr. WEINGARTEN. Well, I'd want to think more about the hypothetical. What I think is inapt to this is you are talking about foreign-funded on domestic platforms. Mr. LANDSMAN. Right, we don't---- Mr. WEINGARTEN. We are also talking about an enemy regime, not American speech on issues that are politically---- Mr. LANDSMAN. Foreign adversaries don't pay for this by saying, Hey, we are paying for this. We don't know who is paying for the content. Ms. Sheffield, yes or no? Are you okay with this or no? Ms. SHEFFIELD. This hearing is about the Global Engagement Center, which is the U.S. State Department and whether or not they spent U.S. tax dollars to suppress American citizens. The analogy is clearly irrelevant. Mr. LANDSMAN. Ms. Franks, you would agree that that content needed to be removed? Ms. FRANKS. I believe that if the government made the choice that it wanted to assist organizations in countering that message, or suggesting that there were tools that could be used so that that message could be countered with truthful and factual information, that that would be acceptable. Mr. LANDSMAN. I think that's right. Ms. Sheffield, your beef is with Eventbrite. I mean, you are frustrated because Eventbrite thought that promoting an event that bullied children was a problem. That is how they saw it. It is a private company. Did you take them to court? Ms. SHEFFIELD. We requested them to reinstate our event, and they chose not to respond. But again, that is just one of numerous---- Mr. LANDSMAN. And did you take them to court? Ms. SHEFFIELD. We have waited--we sent out a message to them. We waited for a response. The event has already passed. But again, this--the question is---- Mr. LANDSMAN. But you could if you wanted to. You have access to the criminal justice system, the court system. You can take them to court. Ms. SHEFFIELD. We could. Mr. LANDSMAN. Okay. Ms. SHEFFIELD. And, in fact, we actually are taking the Biden administration to court for its illegal rewrite of Title IX. Mr. LANDSMAN. Just be careful because the Supreme Court just said, I wouldn't do that. Thank you, and I yield back. Ms. SHEFFIELD. The Supreme Court just said this was not based on---- Chairman WILLIAMS. The gentleman yields back. The time is up. I now recognize Representative Van Duyne from the great State of Texas for her 5 minutes. Ms. VAN DUYNE. Thank you very much. Mr. Landsman just quotes from today's SCOTUS opinion. But it is important to highlight exactly what you were saying, that neither the individual nor the State plaintiffs have established Article 3, which is standing. It doesn't mean that they do not have standing to sue. This is not a decision based on the merits. Ms. Younes, you are our constitutional--can you give us some clarity on this? Ms. YOUNES. Sure. Actually, I am one of the lawyers on the case, so I know it well. This was also limited to the preliminary injunction. They said because a preliminary injunction is about forward-looking relief, and they hadn't-- the plaintiffs hadn't established a likelihood that they would be harmed in the future because some of these programs appeared to be ending. So this is not about the merits. The court actually specifically said it was not expressing the views to the merits. The case will continue in the district court. And I suppose that is essentially the issue is this is limited to the preliminary injunction. They are not saying that the government didn't do anything wrong. Ms. VAN DUYNE. Thank you for clarifying that. I wanted to make sure that that was clarified and not just cut off. The State Department's so-called Global Engagement Center which is exactly what we are here to talk about today had spent millions of taxpayer dollars to silence American small businesses who do not share their liberal, political beliefs. The CEO of the Global Disinformation Index even admitted that this list has, quote, ``significant impact on the advertising revenue,'' unquote, on the companies, showing that they are knowingly attempting to destroy livelihoods of those with which they disagree. Meanwhile, the Global Disinformation Index scores NPR as one of the least risky outlets, citing as quote, ``neutral, fact-based content.'' Contradicting GDI's rating, an NPR staffer who worked there for 25 years wrote about his experiences at NPR, and highlighted the level of bias that GDI failed to recognize. This article said that when stories NPR labeled as disinformation turned out to be credible, such as the legitimacy of the Hunter Biden laptop and the COVID-19 lab leak theory, that NPR quote, ``pretended it never happened and performed no self-reflection.'' Mr. Chairman, I ask for unanimous consent to enter the full article into the record. Chairman WILLIAMS. No objection. Ms. VAN DUYNE. The Biden administration has pledged to be the most transparent administration in history. But instead, we found that they have been stonewalling our requests time and time again because they know exactly what they are doing, and they are using improper use of taxpayer funds, if not completely unethical and illegal. We will continue to expose this administration's extremist agenda and their lawless acts as we work to provide accountability for American small businesses. I was stunned, Ms. Franks, that you had to say that, Oh, they haven't been imprisoned. Is that now the bar that we are setting? So we are fine bankrupting these businesses, we are fine blacklisting them, we are fine shutting them down, and silencing their voice, but at least they are not being imprisoned yet. Ms. FRANKS. Sorry, was that a question for me? Ms. VAN DUYNE. No, it is not a question. I am just flabbergasted at your statement. Ms. FRANKS. I misunderstood---- Ms. VAN DUYNE. Mr. Weingarten, do you think the Global Disinformation Index is a fair assessment? Mr. WEINGARTEN. I don't, but even if it was, the government shouldn't be funding it. Ms. VAN DUYNE. So given that opinions are often difficult to separate from fact and that facts evolve over time, would it even be possible to assess the accuracy of a media outlet in a truly objective fashion? Mr. WEINGARTEN. It is an inherently subjective exercise--as outlets put out news and views that are varying. And to have some sort of ``ministry of truth,'' or ``ministries of truth'' out there with the government's blessing is incredibly chilling. Ms. VAN DUYNE. So why is it an issue that the federal government is funding supposed fact-checking organizations? Mr. WEINGARTEN. Because effectively, this amounts to abridging of speech by proxy. Even if you couldn't draw a straight line from a government official saying ``Take down X, Y, Z speech,'' the government is effectively giving its blessing through its funding to these entities, which exist to put out of business, some entities, and also, by the way, effectively provide a subsidy to the protected whitelisted publications as well. So it is a dual-edged sword. It is picking winners and losers de facto with government funding. Ms. VAN DUYNE. But it is picking winners and losers based on what? Mr. WEINGARTEN. Well, it seems clear when you look at the breakdowns of how the scores come out based upon ideology. Viewpoint--diversity is antithetical it seems to these entities. Ms. VAN DUYNE. So Ms. Franks said that typically what happens is it benefits conservative news outlets. Has that been your experience? Is that what you have seen? Mr. WEINGARTEN. We have seen ratings to suggest-- NewsGuard's ratings reviewed--large samples of both right- leaning and left-leaning publications, and it comes out that the left-leaning publications rank substantially higher, 25- plus points higher on NewsGuard's 100-point scale than right- leaning publications. Ms. VAN DUYNE. Can you give any examples of right-wing publications that they have disparaged? Mr. WEINGARTEN. Well, they cast, I guess, RealClearPolitics and RealClearInvestigations, as having an undisclosed conservative bias. But, of course, this includes the Federalist, I think probably well The Daily Wire, Townhall, I believe, a slew of other so-called right-wing leaning entities as well. Ms. VAN DUYNE. Excellent. Thank you, and I yield. Chairman WILLIAMS. The gentlelady yields back. Now I recognize Representative Crane from the great State of Arizona for 5 minutes. Mr. CRANE. Thank you, Mr. Chairman. I appreciate the hearing today. I want to start with you, Ms. Franks. I believe you said the government has the right to participate in expressing its viewpoint. Is that what you said? Ms. FRANKS. Yes. Mr. CRANE. I don't--respectfully, Ms. Franks, I don't think that is what we are really talking about here today. We are not talking about the government expressing its viewpoints. What we are really talking about is when the government pays and uses taxpayer dollars to fund these entities that we are talking about here today that actually discredit some of these news sites, and drives away their advertisers. Do you think that is fair as well? Ms. FRANKS. What is fair is for the government to be able to fund projects and organizations that do certain things with those funds that may include competing in the marketplace of ideas, and they may be winning in the marketplace of ideas. But the government is not making those choices. And when certain news outlets lose in the marketplace of ideas, they may want to blame the government for that, but maybe they are just losers. Mr. CRANE. So--okay. Ms. Franks, do you think---- Ms. FRANKS. It is actually Dr. Franks. Mr. CRANE. Okay. Dr. Franks, sorry. Ms. Younes here said that when she was looking at these entities and the organizations that they have blacklisted, every single one of them was a conservative-leaning organization. Do you think that is fair as well? Is that okay, Dr. Franks? Ms. FRANKS. You used a different name, so I wasn't sure you were talking to me. Mr. CRANE. Yeah, I am still talking to you. I am still looking at you. I am still talking to you. Ms. FRANKS. Would you repeat the question for me. Mr. CRANE. Yeah. You seem to have a problem paying attention to the questions being asked of you today. I will repeat it for you again. Do you think that it is okay that these entities that are blacklisting companies, all of the companies on the list that are blacklisted are conservative outlets? Ms. FRANKS. Do I think that it is okay for a company, for a nonprofit organization to develop tools that offer rankings? In other words, offer speech of criticism, critical speech about certain businesses? Yes, I think that is okay, because that is protected First Amendment activity. Mr. CRANE. So you think it is okay for the federal government to be using our tax dollars to basically, through a proxy, blacklist one side of the aisle? You think that is okay? Ms. FRANKS. I do not, because that is not what is happening. Mr. CRANE. Really? How so? Ms. FRANKS. Yes. Because---- Mr. CRANE. Then why are all the companies on the list, the blacklist, conservative groups? Ms. FRANKS. I think that is something the conservatives would need to answer. Mr. CRANE. No. I think that is something you need to answer. Ms. FRANKS. I am not working with any of these companies. Mr. CRANE. Because we are talking about censorship here and there is only one group of people being censored. Ms. FRANKS. No one is being censored according to---- Mr. CRANE. Ms. Younes here admitted she is not even a Republican. She leans left. Yet she is telling us that all of the companies on the blacklist are conservative groups. How do you square that, Doctor? Ms. FRANKS. I don't have to square that, because, as I said, the focus here---- Mr. CRANE. I know, because you don't have to make any sense, do you? Ms. FRANKS. May I answer the question? Mr. CRANE. Yeah, go ahead. Ms. FRANKS. The First Amendment has certain principles and certain rules. People may not like them. People may disagree with them. People may not like the fact that someone out there may say conservatives are all bad or liberals are all bad. The correct response to not liking that is to engage in your own speech, as is often happening here. It is not to say, Oh, this is censorship, we are being silenced. It is simply to say we disagree with what is being said here. Try to compete, and if you are good enough, maybe you will win. Mr. CRANE. Ms. Younes, what do you have to say about what Dr. Franks just said? Ms. YOUNES. I want to be clear that this wasn't just about NewsGuard and GDI. The government was funding hundreds, at least 300 tools and technologies that were designed to censor speech. Some of them weren't even pretending to censor foreign disinformation, quote, unquote. ``Disinformation.'' Of course, that is a subjective term. They were hosting COVID disinformation challenges where they were giving grants to companies who showed that they were the best at censoring COVID disinformation. COVID is not really a national security or foreign topic, even if it has some tinges of that. So this was about the government using its authority--the government can't use its authority, can't use its power, and can't use its money in order to censor views it doesn't like. It is the government. Yes, it has a right to censor--sorry, to express its own views, but not to use those views to censor. That is where it stops. And the Court expressly said that in Vullo recently actually. Mr. CRANE. Mr. Weingarten, I am going to allow you to comment on this exchange. Mr. WEINGARTEN. I would just say briefly we have heard a robust defense of the government's purported right to speak, which is we have established, really looks like a right to censor, and the censor is portrayed as the victims here. But Americans' speech, en masse, has been censored by this Censorship-Industrial Complex on a slew of issues that expressly reflect protected political speech, and if a stop isn't put to it, we are going to lose this right in toto. Mr. CRANE. Thank you. Mr. Chairman, I yield back. Chairman WILLIAMS. Gentleman yields back. I now recognize Representative Bean from the great State of Florida for 5 minutes. Mr. BEAN. Thank you very much, Mr. Chairman. Good morning to you, and good morning, Small Business Committee. For 237 years, our nation has been the beacon, the shining example of freedom around the world. Other nations look to us with envy. The cornerstone of that freedom is our First Amendment freedom of the--freedom of the press, freedom of speech, what is one of the many things that separates America from the rest of the world. Hopefully, America is watching. America, are you watching? Because thanks to the congressional investigations by the Judiciary Committee, we now know the Biden administration has been undermining freedom of the press and freedom of the speech almost since they took office. Here is how they do it. Here is the recipe to undermine Americans' right to know. They push big tech to change their terms of service, to fit the administration's agenda. One such company was Amazon. We have got the smoking gun evidence right here. On March 12th, 2021, Biden at the White House emailed Amazon's vice president of public policy about the high levels of propaganda and misinformation and disinformation at Amazon. They continued to pressure Amazon to give warnings about anybody questioning the COVID vaccines, but that was not enough. They continued to press them on taking these books out of reach, or even just making them disappear. Thousands of books about the vaccine were disappeared overnight. Still not enough. They continued to press them. We have got the memos. They continued to press Amazon to put something called ``do not promote'' designation under the table at Amazon, and then another 43 books that questioned the vaccine just disappeared. If you are going to sell anything, America looks to Amazon as it is the largest bookstore in our nation, and it has a drastic effect on getting the word out. So I will start with Ms. Sheffield. How important is it that an author to have access to sell books on Amazon? Is that a big deal? Ms. SHEFFIELD. It is huge. It is the largest book seller, and as I mentioned in my opening remarks, the FTC under Lina Khan, the Biden administration has sought to basically suppress authors from being allowed to offer their books at the lowest price, and it is an Orwellian attempt to destroy what is known as the consumer welfare standard, and the consumer welfare standard has been the bedrock of competition in this country for decades, and it is truly troubling that Lina Khan believes that she can be a rogue actor, and she keeps getting swatted down in the courts repeatedly. That is the only silver lining of her actions. Mr. BEAN. So it is a big deal is your answer. It is a big deal and it stifles free speech. It does stifle free speech. Do you find it ironic that the Biden administration pointed the finger at States like my State, the free State of Florida, for removing porn, pornographic materials from elementary schools, yet they actually went to Amazon to have these books secretly removed? Do you find honor--irony in that, Ms. Sheffield? Ms. SHEFFIELD. Oh, absolutely. I mean, it--but it is also not surprising from this administration that we see over and over the overreach of government to suppress speech. It is interesting this Congressman---- Mr. BEAN. Let's just do this, because I have got more questions to get to. Let the record reflect the witness says yes, it is very ironic. Here is how they did it, too. America, are you still listening? Because they used something called NewsGuard and then they get to pick and choose what sources, what news. If you like them, they'll promote you, and if they don't like you through NewsGuard, then they can bankrupt you, they can label you disinformation, and it is shocking. It should be shocking to you, America. But how about this? It also concerns me the NewsGuard is partnered with the American Federation of Teachers, the largest teachers' union, 1.7 million teachers now have NewsGuard in their classrooms where their news is chosen for them. It means that students using NewsGuard are told generally conservative outlets cannot be trusted, yet they should put their faith in organizations, legacy media, like The New York Times. We don't--we know about The New York Times. It doesn't have--there is a bias. We all know there is a bias. Our students are indoctrinated not to trust outlets based on NewsGuard's partisan ratings, and if you don't get the good ratings, then you are not trusted and no one wants to advertise or go there. So Mr. Weingarten, does it worry you that students are being told that outlets such as RealClear and other media outlets cannot be trusted? Does that bother you? Mr. WEINGARTEN. It is troublesome, and particularly given that media literacy education is starting to be mandated in a lot of States, which is going to mean you are going to have to get your news content from NewsGuard raters. Mr. BEAN. I will take it as a yes. Thank you, and I yield back, Mr. Chairman. Chairman WILLIAMS. Gentleman yields back. I now Representative Maloy from the great State of Utah for 5 minutes. Ms. MALOY. First of all, I just want to thank the witnesses for being here, and I apologize I have had to be in and out a couple of times. I testified in front of a committee once and I spent a lot of time preparing, and the Members came in and out and I found that kind of irritating, so I apologize, but that has been me today. I think I am going last, right, Mr. Chair? One more. Okay. So I don't have to---- Chairman WILLIAMS. Do you want to go last? Ms. MALOY. No. I am good. I just wanted to know if I need to wrap it up or if I can build. Okay. I feel like I talk about the same things a lot in this committee, but what we are here talking about isn't necessarily what the First Amendment says, but what the proper roles of government agencies are. And this is the Small Business Committee, and the reason we are talking about it here and not in Oversight or Judiciary right now is because we have got government entities that are acting outside of their proper role, and it is having a negative impact on main street businesses in the United States of America, and that is something I think we should all find troubling, no matter where you fall on the political spectrum. And so, I do have questions, but I want to be clear when I start asking questions that that is where I am coming from. That is what we are talking about here, is what role the government should be playing in picking winners and losers in the free market. So Mr. Weingarten, I want to start with you, because you talked about something that I want to give you a little bit more time to follow up on. So we are talking about foreign facing--foreign facing agencies--easy for me to say--that are supposed to be giving ratings to disinformation coming from other nations, correct? Mr. WEINGARTEN. That is correct. Ms. MALOY. And now they are using those authorities to do what? Mr. WEINGARTEN. They are using those authorities effectively to attempt to cripple the business models of disfavored media companies, U.S.-based media companies included. Ms. MALOY. So we are not really talking about government speech and what is and isn't allowed. We are talking about these specific agencies have authorities and they are acting outside of those authorities. Am I understanding that correctly? Mr. WEINGARTEN. That is how I see it--and not to speak, but to suppress others' speech. Ms. MALOY. Yeah. And it is not just about saying what somebody can or can't say, but they give a rating, and based on that rating, somebody may or may not be able to get sponsors. Mr. WEINGARTEN. That is correct. Ms. MALOY. So as a politician, I know how hard it is to get your message out in front of people, and as a Member of Congress, I kind of have a naturally built-in platform. In fact, I am using it right now. But for a main street business, if they get a negative rating because of their conservative views, that can have a real impact on their ability to get their product in front of customers, not necessarily a government program or government policy, but we are talking about main street businesses struggling to get their products in front of people because they hold a view that is unpopular with the government agency. Am I off base here? Mr. WEINGARTEN. No. That is correct. Ms. MALOY. Okay. So I am most of the way through my time. I just want to, before I am done, give each of you three a chance. Is there anything you wanted to say today that no one's asked you the right question to get you to say? Ms. YOUNES. The First Amendment says that the government shall not abridge the freedom of speech, abridge. So the government should not be using its power to censor ideas, whether it is through coercion, collusion, any of those means. I think that is the most important principle that I want to put forth. Ms. MALOY. I agree. That is also how they taught it in my law school. Mr. WEINGARTEN. It is notable that in the opinion that came down today, there is a footnote in the majority's opinion which says ``Because we do not reach the merits, we express no view as to whether the Fifth Circuit correctly articulated the standard for when the Govern-ment transforms private conduct into State action.'' So it is not a ruling on the merits, but the Court's silence on the merits I think speaks to the imperative for legislative action to be taken, because the courts are not necessarily going to provide a panacea on this issue. Ms. MALOY. Yeah. Ms. Sheffield. Ms. SHEFFIELD. Yes. Being from Utah, great to connect with you. My ancestors helped found Salt Lake City. Ms. MALOY. Wonderful. Ms. SHEFFIELD. So I mentioned earlier in my remarks about the I think staggering ratio of eight-to-one when we are talking about State Department employees donating to Democrats by an eight-to-one margin versus Republicans. To me, this begs the question to what extent is the unelected bureaucracy of the politburo of the State Department and other government agencies, to what extent do these unelected bureaucrats shape what happens in terms of these funds and government taxpayer money for projects like the University of Cambridge Social Decision Making lab, the Moonshot CVE, the Atlantic Council Digital Forensic's research lab, who elected these bureaucrats at the State Department and other agencies to take my tax dollars, your tax dollars, the people--my cousins and uncles in Utah, their tax dollars to fund these suppressive activities? I think---- Ms. MALOY. I don't know if you are allowed to question me, but the answer is nobody. And I am going to just cut you off so I can use the rest of my time to point out, since you brought up Salt Lake City, it was settled by people who were running from the government telling them they couldn't exercise their First Amendment rights, so this isn't the first time this has happened. It is important, and having this hearing is bedrock important to what we do as Americans. And with that, Mr. Chairman, I yield back. Chairman WILLIAMS. Lady yields back. I now recognize Representative Alford from the great State of Missouri for 5 minutes. Mr. ALFORD. Thank you, Chair, and thank you for holding this all-important meeting, and thank you, Ranking Member Velazquez, as well. The First Amendment is at the heart of what makes this country great. The right, the freedom of speech, the prohibition on government infringement, is what separates our country from the rest of the world. However, the Biden administration does not agree with this. This administration has been using the power of the executive branch to infringe upon America's right to freedom of speech. While the First Amendment prevents direct government intervention, the administration has found a back door by finding and supporting so called disinformation organizations. There have been more than 500 U.S. federal government contracts or grants awarded on disinformation since 2020. This funding has been used to build a network of government-backed nonprofits, so called fact-checkers, organizations of foundations to push the left-wing narrative by declaring anything right of the New York Times is disinformation. They have been successful in doing this. As revealed in an email from a Meta executive to Mark Zuckerberg, quote, We are facing continued pressure from external stakeholders, including the White House, to remove more COVID-19 vaccine discouragement content. If the federal government is successful in moving companies as large as Meta with a market cap well over $1 trillion, what can they do to small businesses? I was in the news business for 35 years. My goal was to tell the truth. When we have organizations like this that are coming in and telling us what the truth is and limiting the truth from getting out, we are in a big world of hurt when it comes to the First Amendment. Ms. Younes, one of the most disturbing aspects of government-backed censorship was the State Department's support of the Global Disinformation Index, or GDI. The GDI's mission is to catalyze industry and government to defund disinformation. Can you please explain the legal basis upon which your clients brought the case against the State Department and its Global Engagement Center. Ms. YOUNES. There are three main claims. First of all, it is a First Amendment violation because by funding and working with the Global Disinformation Index, which is effectively blacklisting conservative news sites or disfavored news sites, the government is interfering in the marketplace of ideas, and effectively censoring our clients. There is--it has to go through a couple of levels. You have to--it is not direct. It is through these mechanisms. And that is what makes it kind of insidious and has been allowing them to get away with it. It is also a problem because the GEC is supposed to be fighting--their mandate is to fight foreign disinformation. They operate under the State Department, which is about foreign affairs. They are not supposed to be dealing with domestic speech and they don't even pretend. For instance, there was a presentation which you can look at online in which the GEC's technology and engagement representative Alexis Frisbie said that they were having conversations to ensure there is discussion occurring, so I think you know those are in terms of interaction. That is talking about it at domestic level. They are not even pretending this is about foreign disinformation anymore. Mr. ALFORD. Mr. Weingarten, NewsGuard is another left-wing organization supposedly ranking disinformation in the news. Let me tell you, just because you have news in your title doesn't mean you are a news organization, or you are fit to call what are balls and strikes in the news business. We have dealt with them on the Armed Services Committee. We are getting them out of the business of regulating speech for the DOD. It doesn't only decide which source of media are or not disinformation. They also have partnered with the largest teachers' union in the world to teach students about disinformation. What does NewsGuard's partnership with the American Federation of Teachers, a top donor to President Biden, mean for center right news? Mr. WEINGARTEN. I think it means that the American children are going to get a left-wing or left-wing-oriented diet of news content going forward to the extent the relationship persists, and what is called media literacy education increasingly gets mandated in States across the country. Mr. ALFORD. How much of a danger are organizations like NewsGuard to the foundations and principles of America? Mr. WEINGARTEN. I think they pose an existential threat. It would be illiberal for them to exist even if they weren't government funded, but the government funding makes it particularly chilling and disturbing. Mr. ALFORD. This is a very, very disturbing issue that we are dealing with in all realms of government right now in the committees on which we serve. This is of utmost importance, because if you cannot get information that is unfiltered and the truth to people, we are going to be brainwashed into a liberal woke, broke, ideal of what America truly is. Thank you, and I yield back. Chairman WILLIAMS. Gentleman yields back, and I would like to thank our witnesses today for their testimony and for appearing before us today. We had some good testimony. Without objection, Members have 5 legislative days to submit additional materials and written questions of the witnesses to the Chair, which will be forwarded to the witnesses, so I ask the witnesses to please respond promptly if that happens. If there is no further opinions, without objection, the committee is adjourned. [Whereupon, at 12:05 p.m., the committee was adjourned.] A P P E N D I X [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]