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On The State of /r/PICS: Profanity, Offensive Content, and An Open Letter : r/pics
(teddit.adminforge.de)
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The thing is, they need to be accessible or they are liable for lawsuits if I understood it right. They took all the labour TPAs do in this regard for granted. So much so they weren't even aware it was necessary and had regulations in the first place.
Profitability needs somebody who understands what their product is and what kind of legal requirements they need to fulfill. So even under the profitability lens their behavior is destructive.