Meta is gearing up for a significant trial following two previous losses this year regarding child safety issues on its platforms. The trial, set to commence on Tuesday in Oakland, California, involves a federal case overseen by U.S. District Judge Yvonne Gonzales Rogers. Although an eight-person jury will provide input, the final decision rests with Judge Rogers. Expected to span at least six weeks, the trial may feature testimonies from Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri.
The lawsuit traces back nearly three years when multiple states, representing both U.S. political parties, jointly filed a case in California federal court. The legal action accused Meta, the parent company of Facebook, Messenger, Instagram, and WhatsApp, of breaching federal regulations by collecting data from users under 13 without parental consent. The complaint, spanning 233 pages, alleged that Meta engaged in deceptive practices to hide the harmful and addictive nature of its platforms for young users. It also accused Meta of profiting from targeted advertising through data collection.
The trial’s initial phase involves four states – California, Colorado, Kentucky, and New Jersey. Additional states might hold separate trials later, depending on the outcome of this trial. Legal experts suggest that a negative ruling for Meta could prompt the company to seek avenues to avoid further litigation with other states.
Meta faces potential financial repercussions in the ongoing trial, with the company estimating a possible financial liability of up to $1.4 trillion. However, legal analysts deem this figure unrealistic, stating that such a penalty could bankrupt Meta. Besides financial damages, the state attorneys general are pushing for structural changes to Meta’s platforms, such as implementing age restrictions and eliminating features like infinite scrolling.
Meta refutes the allegations and emphasizes its efforts in supporting young users. The company has introduced new safety measures, including teen accounts on Instagram with enhanced privacy settings and parental controls. Despite facing legal challenges, Meta continues to defend its stance on promoting user safety.
In a related development, Meta reported a decline in profits recently, citing legal expenses totaling $2.4 billion. The company is currently appealing a case in New Mexico, where it was ordered to pay significant penalties for platform-related harms to young individuals. The ongoing legal battles underscore the mounting pressure on Meta regarding child safety issues and platform addiction concerns.