Meta Faces Up to $1.4 Trillion in Potential Penalties in Youth Social Media Case

World

A federal trial against Meta Platforms has begun in the United States, with state authorities accusing the company of designing Facebook and Instagram with features capable of fostering addictive use among children and teenagers. The plaintiffs argue that the model was intended to increase user engagement and advertising revenue while creating risks for young users.

Meta Faces Up to $1.4 Trillion in Potential Penalties in Youth Social Media Case
The broader federal litigation combines claims brought by attorneys general from 29 states. The current Oakland trial, however, involves four states — California, Colorado, Kentucky and New Jersey. Opening statements began on August 18, with the proceedings expected to last several weeks.

The states allege that Meta deliberately used features designed to keep users on its platforms for longer and misled the public about the safety of its services for children. Features under scrutiny include infinite scrolling, algorithmic recommendations, notifications and “likes.”

Meta denies the allegations. The company argues that the states have not demonstrated that it intentionally sought to make its platforms dangerous for children and says the evidence presented by the plaintiffs lacks necessary context.

If the plaintiffs prevail, potential penalties could reach $1.4 trillion. Beyond financial sanctions, the states are seeking changes to the operation and design of Meta’s platforms, including possible restrictions on certain features and stronger safeguards for minors.

In June, US District Judge Yvonne Gonzalez Rogers rejected Meta’s attempt to have the case dismissed before trial, allowing the states’ claims to proceed. The court also ruled that Meta had failed to meet certain requirements under the federal Children’s Online Privacy Protection Act (COPPA) concerning parental notice and consent for children’s data.

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