Meta, US states have discussed settling teen social media harm case, Bloomberg News reports

Meta Platforms and state attorneys general have reportedly explored the possibility of reaching a settlement mid-trial in a lawsuit accusing the company of intentionally designing Facebook and Instagram to be addictive for young users, according to a report by Bloomberg News. The potential deal emerged during a federal court trial in California, which is scrutinizing claims filed by 29 states alleging Meta harmed young users.

The trial commenced just days before jury selection began on August 12, and a federal appeals court had recently denied an attempt to halt proceedings. Meta and state attorneys general from California, Colorado, Kentucky, and New Jersey declined to comment further on the matter. In response, several state attorneys general issued advisories, notifying the media of upcoming press conferences, including Nevada Attorney General Aaron Ford, who announced plans for a major consumer protection settlement with a leading technology firm.

The legal dispute is part of a broader wave of litigation involving states, local governments, school districts, and individuals, all alleging that Meta and other social media companies contributed to a nationwide youth mental health crisis. The federal trial focused on allegations that Meta violated state consumer protection laws and the federal Children’s Online Privacy Protection Act by collecting personal data from users under the assumption they were minors, without parental consent, and using that data to train machine learning and generative AI models.

Meta has denied these allegations, asserting it has made significant efforts to safeguard children on its platforms and argued that social media addiction is not a recognized psychiatric condition, rendering any claim of misleading consumers about addictive features unfounded.