Meta is facing a major legal fight in the US over how Facebook and Instagram treat young users. The states accused Meta of designing its platforms deliberately in a way that attracts teenagers and minors. The lawsuit was filed in federal court in Oakland, California. The most notable part of the case involves top legal officers of 29 states demanding massive financial penalties on behalf of the public, and along with that, they want the platforms to change the way they operate.
The states have alleged that Meta violates state consumer protection and federal privacy laws, which carry massive penalties once proven and multiply by millions of teenage users. Meta has denied the claims and says it has taken steps to improve safety. Though there’s no direct statement from any Meta spokesperson, reports reveal that the company's calculations show USD 1.4 trillion as a penalty if the company loses the case, an amount close to its market capitalization.
Instagram head Adam Mosseri recently faced questions about the platform’s ‘Take a Break’ feature. The tool was meant to help teens spend less time on Instagram. However, only a small number of teens used it before Meta made it a default setting in 2024.
The states say this points to a wider problem. They argue Meta knew about risks to young users but did not do enough to deal with them.
This is not Meta’s first major child-safety case. In New Mexico, the company was ordered to pay another USD 567 million in August. This pushed its total liability in the case to about USD 942 million. The court also ordered changes to its teen safety measures.
The latest trial could have a much bigger impact. A loss may bring a massive bill and force Meta to change how its apps work. For the company, the pressure is now coming from both the courtroom and its own users.