US appeals court says social media addiction lawsuits can proceed

The US 9th Circuit Court of Appeals has permitted a multitude of lawsuits to proceed against Meta Platforms, Google, ByteDance's TikTok, and Snap Inc's Snapchat over allegations that the tech giants intentionally designed their platforms to be addictive to younger users. This decision came days after a New Mexico judge deemed Meta to have established a public nuisance, compelling the company to contribute $567 million to a teen mental health fund and implement youth safety measures.

The appeals court rejected Meta and TikTok's attempts to overturn a lower court ruling that mandated the companies face more than 3,000 lawsuits filed in federal court, citing that they had submitted their appeal too early. The companies argued that Section 230 of the Communications Decency Act of 1996, which typically shields internet companies from claims over content posted by their users, also precludes lawsuits claiming they failed to inform the public about the addictive nature of their platforms.

However, the 9th Circuit ruled that Section 230 confers a defense against liability but not immunity from lawsuits, thereby finding the appeal premature. Additionally, the court denied Meta's request to delay a trial scheduled for the following day in a lawsuit brought by 29 state attorneys general. This lawsuit alleges that Meta illegally collected and utilized children's data, engineered its platforms to maintain young users' engagement, and deceived consumers about their safety.

The lawsuit further asserts that the company misled consumers about the safety of its platforms, resulting in a $375 million verdict in a related trial. The ruling grants plaintiffs their final procedural avenue before the anticipated trial commences.