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Meta Faces 'Astronomical' Consequences in California Trial Over Alleged Harmful Design

Meta Faces 'Astronomical' Consequences in California Trial Over Alleged Harmful Design

Meta is facing a critical federal trial in Oakland, California, co-led by California Attorney General Rob Bonta, concerning allegations that the company fostered addictive behavior in teens and children through the design of Facebook and Instagram. This trial involves a coalition of 29 state attorneys general, with lawyers from California, Colorado, New Jersey, and Kentucky arguing the case. The lawsuit claims Meta violated federal and state laws, including the Children’s Online Privacy Protection Act (COPPA) and various consumer protection statutes. Industry experts are likening this to the 'Big Tobacco' moment for social media, referencing the 1990s lawsuits against tobacco companies. Earlier this month, Meta lost a similar case in New Mexico, resulting in nearly $1 billion in penalties and mandated changes to its services. However, the California trial is considered to have potentially far greater consequences due to the state's significant legal influence and reach.
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Meta Faces Landmark Federal Trial Over Allegations of Addictive Social Media Design for Youth

Meta Faces Landmark Federal Trial Over Allegations of Addictive Social Media Design for Youth

Meta Faces Landmark Federal Trial Over Allegations of Addictive Social Media Design for Youth
AP News AP News
States take Meta to trial in California in the biggest fight yet over social media harms to children

States take Meta to trial in California in the biggest fight yet over social media harms to children

Of the thousands of lawsuits Meta faces over child safety on its platforms, none may be more consequential than one going to trial this week in California
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Meta Faces Federal Trial Over Youth Mental Health Crisis, Potential $1.4 Trillion in Damages

Meta Faces Federal Trial Over Youth Mental Health Crisis, Potential $1.4 Trillion in Damages

Meta is heading to a federal trial in Oakland, California, facing accusations from multiple states that its platforms, Facebook and Instagram, contribute to the youth mental health crisis. The lawsuit alleges that Meta knowingly designed features to addict children and collected data on minors under 13 without parental consent, violating federal law. Four states—California, Colorado, Kentucky, and New Jersey—are leading this initial trial, with 25 other states expected to pursue similar cases later. The potential financial damages could theoretically reach $1.4 trillion, a figure close to Meta's entire market capitalization. Meta disputes these allegations, stating its commitment to supporting young people and highlighting its efforts to implement safety tools. This trial follows two previous cases this year where Meta lost over harms to children and teens, contributing to a reported profit decline and $2.4 billion in legal expenses.
TheStreet TheStreet
Meta stock battered by threat that is hurting the social media giant

Meta stock battered by threat that is hurting the social media giant

If Meta's court loss from two weeks ago in New Mexico left the company's shareholders shaken, the court battle that is just beginning in California could turn out to be an existential crisis for the social media giant. Meta shares closed trading down 3.54% Monday, August 17, as markets seemed to ...
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States Accuse Meta of Designing Platforms to Addict Children and Violate Privacy Laws

States Accuse Meta of Designing Platforms to Addict Children and Violate Privacy Laws

Meta Platforms is currently on trial in federal court in Oakland, California, facing accusations from a coalition of 29 states. The lawsuit alleges that Meta deliberately designed Facebook and Instagram with features like infinite scroll, autoplay, and recommendation algorithms to keep young users engaged for as long as possible, effectively addicting children. Furthermore, the states claim that Meta knowingly allowed children under 13 to use its platforms and collected their personal data without parental consent, which violates the Children's Online Privacy Protection Act. The trial, presided over by U.S. District Judge Yvonne Gonzalez Rogers, involves four states initially: California, Colorado, Kentucky, and New Jersey, with proceedings for the remaining states expected later. The states are seeking up to $1.4 trillion in penalties and significant changes to how Facebook and Instagram operate. Meta has denied these allegations, stating that the attorneys general offer no proof of users being misled and...
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Why states fought to present a united case against Meta over youth social media harms

Why states fought to present a united case against Meta over youth social media harms

By Diana Novak Jones Aug 18 (Reuters) - As opening statements get underway in a landmark trial over claims that Meta Platforms misled the public about the safety of Instagram and Facebook for young users and violated child privacy laws, one of the biggest fights in the case has already been resolved
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Meta Platforms Faces Pivotal Federal Trial Over Child Safety and Data Collection

Meta Platforms Faces Pivotal Federal Trial Over Child Safety and Data Collection

Meta Platforms Faces Pivotal Federal Trial Over Child Safety and Data Collection
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Federal Judge Allows Star Witness and Key Evidence in California's Lawsuit Against Meta Over Child Safety

Federal Judge Allows Star Witness and Key Evidence in California's Lawsuit Against Meta Over Child Safety

A federal judge has ruled that California can present a star witness and key evidence during opening statements in its lawsuit against Meta. The ruling, issued by California Northern District Chief Judge Yvonne Gonzalez Rogers, resolves two significant pretrial disputes in favor of the multistate coalition of attorneys general. The lawsuit alleges that Meta designed its products to addict children and misled the public about their safety. The judge dismissed Meta's attempt to prevent whistleblower Arturo Béjar from testifying, calling it a 'Hail Mary' attempt by the defense. Additionally, the states are permitted to show jurors select evidence supporting their claims during opening statements, weeks before the evidence is formally introduced through witness testimony. This decision marks another legal setback for Meta, which has actively sought to prevent the case from going to trial and to limit the evidence presented.
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California Lawmakers Advance Bills to Curb Addictive Social Media Features for Minors

California Lawmakers Advance Bills to Curb Addictive Social Media Features for Minors

California's State Senate Appropriations Committee has approved two bills, AB 1709 and AB 2, aimed at regulating social media use among children. AB 1709 seeks to ban social media platforms from offering addictive features, such as auto-scroll, infinite scroll, and notifications, to users under the age of 16. AB 2 would enable parents and children to pursue civil penalties and damages against platforms if a minor experiences harm due to these features. Assemblyman Josh Lowenthal, the Long Beach Democrat behind both bills, highlighted growing bipartisan concern over children's engagement with social media, noting that children spend an average of five hours daily on these platforms. The legislation does not intend to prohibit minors from using social media entirely but rather to ensure platforms offer less addictive options, such as chronological timelines without mainstream features. The proposals are now awaiting a decision from the full State Senate within the next two weeks before potentially moving to ...
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US Appeals Court Allows Lawsuits Against Social Media Giants Over Addictive Design

US Appeals Court Allows Lawsuits Against Social Media Giants Over Addictive Design

The Ninth US Circuit Court of Appeals in San Francisco has rejected appeals from Meta and TikTok, allowing over 3,000 lawsuits against social media companies, including Meta, Google, TikTok, and Snapchat, to proceed. These lawsuits, filed by various US states, local authorities, school districts, parents, and individuals, allege that the companies intentionally designed their platforms to be addictive, particularly for children and adolescents. Plaintiffs claim this design has contributed to increased depression, anxiety, body image dissatisfaction, and other mental health problems among American youth. The companies had argued that Section 230 of the Communications Decency Act of 1996 should protect them from these lawsuits, asserting it prevents them from being sued for not providing warnings about the alleged addictiveness of their platforms. However, the Ninth Circuit Court interpreted Section 230 as offering a defense against legal liability, not complete immunity from lawsuits, and deemed it prematur...
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How Facebook Quietly Built a Moat Wall Street Missed

How Facebook Quietly Built a Moat Wall Street Missed

Beyond the headlines about social media, discover the powerful, hidden infrastructure and ecosystem strategies that form Meta's true competitive advantage.