Policy Over Purpose: Auditing LLM Content Moderation of Reclaimed Slur Usage

Christina Chance, Kai-Wei Chang

As Perspective API is deprecated, platforms are turning to large language models for content moderation, encoding policy as natural language that the model must interpret at inference time. Reclaimed slurs test this design directly. The same term can express in-group pride or target the community that reclaimed it, and misreading it silences the speech moderation is meant to protect. We audit four general-purpose LLMs and four moderation-specific systems, with Perspective API as a legacy baseline, on IYKYK, a corpus of reclaimed and derogatory usage of three slurs annotated by community members. Across the policy, decision, reasoning, disparity, and steering layers of this audit, we find that whether a system was purpose-built for moderation explains little about how it handles reclaimed language. No system reliably agrees with community judgment, and all fail most on language reclaimed within Black communities. What separates systems is instead how their policy is represented. Only systems whose policy is expressed in the prompt can be steered at all, and even then, explicit definitions change how models justify a decision more than how they make it. We argue that policy…