P&G's $1.2B Volume Drops 27% to 86th in U.S. as MPA Challenges Meta's Use of PG-13 in Content Moderation

Market Snapshot

On November 6, 2025, Procter & , . This volume ranked PG 86th among U.S. stocks for the day, . The muted volume suggests limited short-term investor engagement, though the positive price movement indicates some residual demand. The disparity between volume and price action may reflect a lack of broader market catalysts for the stock, with the firm’s performance seemingly unaffected by the recent regulatory and legal developments involving Meta and the Motion Picture Association (MPA).

Key Drivers

The Motion Picture Association (MPA) has escalated a legal dispute with Meta Platforms (META), demanding the tech giant cease using the term “PG-13” to describe content moderation policies on Instagram’s teen accounts. At the heart of the conflict lies a fundamental disagreement over methodology: the MPA, which has maintained its movie-rating system for nearly six decades, asserts that its PG-13 designation is derived from a rigorous, human-curated process involving parental evaluations of entire films. In contrast, Meta’s automated AI-driven systems, which filter content for teen accounts, rely on algorithmic analysis rather than human judgment. The MPA argues that Meta’s use of the PG-13 label is “literally false and highly misleading,” as it creates a false equivalence between two fundamentally different classification systems. This misalignment, the MPA contends, risks eroding public trust in its established ratings, which have long served as a benchmark for parental guidance.

Meta, however, has defended its approach as a reasonable approximation of tailored to the unique context of social media. The company emphasizes that its content restrictions aim to align with the “general expectations” of parents, even if the methodology diverges from the MPA’s process. A Meta spokesperson stated that the firm’s use of PG-13 terminology constitutes “fair use” and that its intent was never to imply an official partnership with the MPA. This legal and semantic defense mirrors broader tensions in digital content regulation, where traditional frameworks struggle to adapt to the dynamic, AI-driven nature of online platforms. The dispute also underscores the growing scrutiny of Meta’s safety measures for young users, particularly after reports revealed that its AI guidelines previously allowed inappropriate interactions with minors.

The MPA’s cease-and-desist letter, sent on October 28, demands Meta “immediately and permanently disassociate” its teen accounts and AI tools from the PG-13 rating system. The association warns that continued use of the label could dilute the MPA’s trademark and confuse consumers, who may conflate Instagram’s automated filters with the MPA’s curated ratings. This legal pressure comes amid a broader regulatory environment where U.S. agencies are intensifying oversight of AI systems for potential harms, including their impact on youth. Meta’s recent announcements—such as allowing parents to disable private chats with —reflect a strategic pivot toward addressing these concerns. However, the company’s reliance on AI for content moderation remains contentious, particularly as it faces lawsuits and criticism over past failures to protect young users.

The implications of this dispute extend beyond Meta and the MPA. The MPA represents major film studios, including Disney, Warner Bros. Discovery, and Netflix, all of whom stand to benefit from preserving the integrity of their rating system. Conversely, Meta’s ability to innovate in content moderation using AI could set precedents for how tech companies navigate intellectual property and regulatory boundaries. The outcome may also influence how other platforms approach content classification for younger audiences, particularly as AI becomes increasingly central to . For now, the MPA’s legal challenge highlights the challenges of bridging traditional media standards with the evolving landscape of social media, where speed and scalability often conflict with the precision of human-led processes.