Meta Faces Fresh $1.4trn Legal Battle Over Facebook, Instagram Youth Safety

Meta Platforms, owner of Facebook and Instagram, is facing a major legal challenge as 29 US states take the social media giant to court over allegations that its platforms were designed to maximise engagement among young users while failing to adequately protect them from potential harm.

The landmark trial, which began in Oakland, California, is expected to last about seven weeks and could determine how social media companies design and operate platforms used by children and teenagers.

The states allege that Meta’s use of features such as infinite scrolling encouraged compulsive use, while also accusing the company of misleading consumers about platform safety and unlawfully collecting minors’ data. However, Meta has denied the allegations, saying it has invested in measures to improve safety for younger users. The case comes amid a wider legal assault on social media companies, with more than 3,000 related lawsuits allowed to proceed after a US appeals court rejected efforts to block them under Section 230 of the Communications Decency Act.

Meta’s legal exposure has also grown after a New Mexico court recently ordered the company to pay $567 million into a fund for teen mental health, following an earlier $375 million civil penalty over child-protection violations, a ruling Meta plans to appeal.

Meanwhile, damages sought in some of the California claims could reach as much as $1.4 trillion, although the final financial exposure will depend on the court’s findings and remedies. Also, the states are seeking changes to Meta’s platform design, including restrictions on features considered addictive and stronger age-verification measures.

Hence, the outcome could therefore extend beyond Meta, potentially influencing how technology companies design products, collect data from minors and balance user engagement with child safety, making the trial a significant test of corporate responsibility in the social media industry.