Meta Platforms is set to confront a coalition of state attorneys general in a federal court trial in California starting Wednesday. The case centers on allegations that the company designed Facebook and Instagram to be addictive for children, potentially leading to significant financial repercussions and necessitating extensive modifications to its platforms. The trial in Oakland, anticipated to span seven weeks, will examine the claims from Colorado, Kentucky, California, and New Jersey that Meta engineered its platforms to captivate young users and deceived consumers regarding their safety. It will also address allegations from 29 states asserting that the company unlawfully gathered and utilised children’s data in contravention of federal law. Jury selection is scheduled for Wednesday, followed by opening statements set to commence on August 18. Meta founder and CEO Mark Zuckerberg is anticipated to provide testimony, alongside Instagram head Adam Mosseri. In terms of potential damages and implications for Meta, the trial represents the most significant examination to date of youth social media litigation. This occurs within the context of a wider global reassessment regarding the impact of social media on younger users. Meta has indicated that the damages could reach as high as $1.4 trillion, approaching the company’s market capitalisation of $1.5 trillion, although the solicitors general have not publicly revealed the amount they may pursue. The attorneys general of Colorado, Kentucky, California, and New Jersey are requesting that the judge issue an order compelling the company to enforce age restrictions, remove infinite scroll, and implement additional modifications to its platforms.
A spokesperson for Meta stated that the company firmly contests the allegations and is assured that evidence will demonstrate its enduring dedication to supporting young individuals. “We’ve listened to parents, worked with experts and law enforcement, and conducted in-depth research to understand the issues that matter most,” the spokesperson said in a statement. The lawsuit initiated by the states in 2023 arose from a comprehensive multistate investigation examining the effects of Instagram and Facebook on younger audiences. The investigation was initiated in response to revelations from Meta whistleblower Frances Haugen, who provided testimony to a U.S. Senate committee in 2021 indicating that the company was aware of the potential harm its products posed to young users and possessed the knowledge to enhance their safety, yet opted against implementing those changes in pursuit of greater profits. “Meta knows its platforms are harming children and teens but continues to keep kids addicted, as we’ve alleged in our lawsuit,” New Jersey Attorney General Jennifer Davenport said in a statement ahead of the trial. “Our kids are not data points to be monetized.” A poll last week found an overwhelming majority of Americans – 85% – think social media can be addictive for children, with 61% of respondents saying social media companies need firmer oversight. Meta and other social media companies are encountering increasing scrutiny from legislators and the judiciary. Wednesday’s trial is one of many cases initiated by states, municipalities, school districts, and individuals concerning claims that their products are detrimental to young users.
Meta has indicated that the surge of litigation may significantly affect its business operations and financial outcomes. Trials in the two cases that have already gone to juries resulted in verdicts against Meta. Last week, a New Mexico judge ordered the company to pay $567 million and implement changes to its platforms after determining that the company was responsible for exacerbating a children’s mental health crisis in the state. The company also reached a settlement in a lawsuit initiated by a Kentucky school district, which was scheduled for trial in June. Meta has categorically refuted the allegations presented in the cases, asserting that it has taken measures to safeguard children on its platforms. The company has contended that it could not have misled consumers regarding the addictive nature of its platforms, as “social media addiction” is not classified as a recognised psychiatric condition. Legal experts have indicated that the recent trial may represent a crucial juncture for Meta, as the company’s recent courtroom setbacks have intensified the pressure it faces. “Big damage awards and judicial dictates about features both potentially pose existential threats to social media defendants,” said Eric Goldman. On Monday, Meta’s attempt to postpone the trial and suspend numerous other lawsuits was thwarted when a U.S. court rejected its appeal of prior rulings that permitted the cases to advance, citing that the appeal was filed prematurely. U.S. District Judge Yvonne Gonzalez Rogers, who previously presided over Elon Musk’s lawsuit against OpenAI and its CEO Sam Altman, will oversee the trial and render her decision following its conclusion in October.
Rogers has opted for the unconventional approach of forming an advisory jury tasked with providing answers to particular enquiries, which she will utilise to inform her ruling. Advisory juries, seldom employed, render verdicts on particular issues designated by the judge; however, the judge retains the discretion to overlook their conclusions in her final ruling. In addition to seeking monetary damages, the states are requesting that Rogers mandate the platforms implement changes on a national scale. The states are urging Meta to impose age restrictions on its users, remove all algorithms and AI models developed using children’s data, and discontinue features such as infinite scroll and notifications. They are also requesting the court to instruct Meta to modify the algorithm it employs for content promotion, emphasising well-being over engagement, and to impose stringent time limits for younger users, alongside numerous other adjustments. The lawsuit represents one of over 3,000 legal actions initiated by school districts, individuals, and various entities in federal court against Meta, Snap Inc, Alphabet, and ByteDance, which have been consolidated under the jurisdiction of Rogers. A second group of over 3,300 lawsuits, primarily initiated by individuals against the companies, is currently pending in Los Angeles state court.
