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Meta faces $200bn trial over child data and social media addiction

Meta, the parent company of Instagram and Facebook, is facing a landmark legal challenge brought by 29 US state attorneys general, alleging the deliberate design of addictive products harmful to young people.

  • The trial, involving 29 US states, began on Tuesday in federal court in Oakland, California.
  • The lawsuit alleges Meta collects data on children under 13 without parental consent and designs psychologically manipulative features.
  • Attorneys general suggest damages could reach $200bn if Meta is found liable, an amount equivalent to its 2025 annual revenue.

A landmark legal challenge against Meta, the parent company of Instagram and Facebook, has gone to trial in federal court in Oakland, California. More than half of US states have joined the lawsuit, which was initially filed by 29 state attorneys general in 2023.

The lawsuit accuses Meta of deliberately designing addictive products that have harmed young people. It also alleges that Meta regularly collects data on children under 13 without parental permission, violating federal and state laws. The trial is expected to last between six and eight weeks.

California's attorney general, Rob Bonta, stated that Meta designed a dangerous product for young users, knew it was dangerous, and then misled children, families, and the community. The attorneys general claim that if Meta is found liable, damages could be as high as $200bn, an amount equivalent to the company's 2025 annual revenue. They are also seeking product design changes to enhance child safety.

Meta denies all allegations, stating that the claims are unsubstantiated and the financial demands are disproportionate. The company argues that the attorneys general offer no proof of anyone being misled and are attempting to penalise Meta for industry-wide challenges.

Internal research by Meta, including a 2019 survey of 2,500 teens, is expected to be presented. The survey results indicated that young people are aware Instagram can be detrimental to their mental health but feel compelled to use it due to fear of missing out.

Why this matters: This trial could have significant financial and operational consequences for Meta, potentially leading to substantial damages and mandated changes to its product designs aimed at child safety.

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