Meta Faces Trial Over Alleged Exploitation of Youth on Social Media
A trial has begun against Meta Platforms Inc., with the California attorney general's office alleging that the company targeted children on Facebook and Instagram using technology designed to create compulsive usage and boost ad revenue. The lawsuit, brought by 29 states, claims Meta misled users about safety risks and privacy intrusions. During her opening statement, Megan O'Neill of the AG’s office described how Meta's business model involves hooking young users, holding them for long periods, harvesting data, and concealing harmful practices. Meta has denied these allegations, calling the lawsuit unreasonable and accusing state attorneys general of seeking excessive penalties without proof that residents were harmed. The company warned it could face up to $1.4 trillion in fines if found guilty — a figure close to its market cap. However, O'Neill suggested this was exaggerated for shock value, estimating damages closer to $193 billion. The case is significant as it involves potential changes to how Meta operates and carries penalties under state consumer protection laws. The trial also reflects broader global concerns about the impact of social media on youth mental health.
Tickers: $META
Topics: children's privacy Meta social media regulation trial