Repealing Section 230 would cost investors at least $1.3 trillion, resulting in a 2.9% decline in the S&P 500, according to a new study. The research also indicates that such a repeal would impose losses on each state's average retirement savings of at least $9,000 per saver. This is significant as most people's retirement savings are invested in stock holdings like S&P 500 Index funds, which include companies affected by the potential repeal.

The study further projects that repealing Section 230 would lead to over 655,000 lawsuits annually against digital services. Both digital services and their users would incur more than $100,000 in legal fees per case, totaling approximately $65.6 billion per year. The Computer & Communications Industry Association’s Research Center released the study titled “Repealing Section 230 Would Cost Americans Over $1.3 Trillion,” highlighting the adverse effects of repealing Section 230 of the Communications Act.

Currently, Section 230 places legal accountability on communicators of speech rather than on the digital services that publish it. It also enables digital services to moderate content safely to protect children and maintain internet safety.

Trevor Wagener, CCIA Chief Economist and Research Center Director, stated: “As lawmakers aim to make the internet safer and more useful, they should consider what opening U.S. companies to more lawsuits for what users say and do online will cost users, tech companies, and investors. It will negatively impact the stock market and personal retirement savings, decimate user-generated content, create significant barriers to entry for new tech startups, overwhelm the court system with new cases, and increase legal costs for digital services.”