Key facts
- Meta is facing a trial in California over allegations of harming young users through its platforms, Facebook and Instagram.
- The lawsuit claims Meta intentionally designed addictive features and violated federal law by collecting data on children under 13 without parental consent.
- Dozens of states filed the lawsuit, with four states — California, Colorado, Kentucky, and New Jersey — leading the current trial.
- Plaintiffs are seeking substantial financial damages, potentially up to $1.4 trillion, and structural changes to Meta's operations.
- Meta disputes the allegations, asserting its commitment to youth safety and research.
- Legal experts believe that while the potential damages are high, a full payout of $1.4 trillion is unlikely and could lead to Meta's bankruptcy.
Meta is facing a significant trial in California federal court, initiated by several states, alleging that its platforms, Facebook and Instagram, have contributed to a youth mental health crisis. The lawsuit, filed three years ago by dozens of states, accuses the social media company of knowingly designing features to addict young users and of violating federal law by collecting data on children under 13 without parental consent.
The trial, which began Tuesday in Oakland, features California, Colorado, Kentucky, and New Jersey as lead plaintiffs, with other states expected to pursue their cases later. The states are seeking substantial financial damages, potentially up to $1.4 trillion, and are also pushing for extensive changes to how Meta operates its platforms.
Meta has disputed the allegations, stating that it has implemented safety features and conducted research to address concerns about young users. The company has also incurred significant legal expenses, reporting a profit decline partly due to $2.4 billion in legal costs last month.
Legal experts suggest that while the potential damages are immense, a full payout of $1.4 trillion is unlikely, as it could lead to Meta's bankruptcy. Professor Eric Goldman noted that the states are seeking "extraordinary damages and they are going to seek extraordinary structural remedies if they succeed." Professor James Grimmelmann added that such an award would effectively mean the states would own Meta, which he considers highly improbable.
This trial is considered more complex than a previous bellwether case in Los Angeles, where a state court awarded $6 million to a single plaintiff who testified to social media addiction, finding Meta and Google's YouTube negligent. The current case centers on state and federal statutes, including child privacy, false advertising, and unfair competition laws, according to Professor Rebecca Allensworth.