Meta settles with US states over social media harms

Meta Platforms has agreed to a settlement to address allegations that its Instagram and Facebook platforms were designed to addict children, deceive consumers about safety, and improperly collect data on underage users, according to court documents. The agreement was reached during a federal trial in California involving 29 states, effectively ending a high-profile test of claims that social media companies harmed young users.

Just a day before jury selection began on August 12, a federal appeals court denied an attempt to halt the trial. These claims are part of a larger wave of litigation filed by states, local governments, school districts, and individuals against Meta and other social media companies, alleging they contributed to a nationwide youth mental health crisis.

The federal trial addressed claims from attorneys general of California, Colorado, Kentucky, and New Jersey that Meta violated state consumer protection laws. It also covered claims from the 29 states that Meta violated the federal Children's Online Privacy Protection Act by collecting personal data from users they knew were children without parental consent, and using that data to train AI models.

Despite denying the allegations, Meta argued it could not have misled consumers about addictive tendencies as "social media addiction" is not recognized as a psychiatric condition. In its trial filings, Meta estimated potential penalties from the involved states to be as high as $1.4 trillion, though a specific figure closer to $200 billion was mentioned at a pre-trial hearing.

The lawsuit sought additional monetary damages and an order directing Meta to make significant platform changes and prevent children from creating accounts. The case is part of a broader string of lawsuits against Meta, Snapchat, YouTube, and TikTok, all facing numerous lawsuits alleging they knowingly designed addictive features for children and teens, exacerbating a mental health crisis.

The federal cases were consolidated under U.S. District Judge Yvonne Gonzalez Rogers in Oakland, alongside individual, school district, and state government lawsuits. Numerous additional cases against the companies remain pending in state courts. A Los Angeles judge is handling thousands of individual lawsuits alleging personal harm caused by the platforms' designs.

Around 30 states have initiated lawsuits against the companies in state courts, with a trial ongoing in Nashville since July concerning a state's claims against Meta. The settlement follows Meta's losses in both phases of a landmark New Mexico lawsuit, where a jury ordered the company to pay $375 million for misleading consumers about platform safety and an additional $567 million for creating a public nuisance and implementing youth safety measures.

A Los Angeles jury previously found Meta liable for a plaintiff's depression and anxiety, ordering a $6 million damages payment. All four companies settled the first trial in federal court, where a Kentucky school district was to receive a $27 million payout.