Meta, US States Discuss Mid-Trial Settlement In Teen Social Media Addiction Case

Meta Platforms Inc. and attorneys general from 29 US states have held discussions over a possible settlement in the middle of a trial accusing the social media company of designing Facebook and Instagram to encourage addictive use among teenagers, as per a report by Bloomberg (BBG).

The trial is in its second week at a federal court in Oakland, California, and could expose Meta to significant financial penalties as well as court-ordered changes to how its platforms operate.

The case comes as governments worldwide face growing pressure to address the impact of social media on young people.

Australia and European authorities have introduced or proposed restrictions on youth access, while US legislative efforts have had limited success.

Meta Faces Potential $1.4 Tn Exposure

The states have accused Meta of violating consumer protection and privacy laws, alleging that the company knowingly developed features that encouraged prolonged and compulsive use among young users while misleading consumers about its safety measures.

Meta rejected the allegations and argued that the states are demanding unreasonable changes to its products along with an “outlandish payout.”

Meta’s own estimates suggest that a defeat in the case could result in penalties of as much as $1.4 trillion, as per BBG.

A settlement would probably involve a substantially smaller financial payment, although its terms could also include changes to the company’s platform design.

Zuckerberg Expected To Testify

The first week of proceedings included testimony from Instagram head Adam Mosseri and current and former Meta employees involved in developing the company’s platforms and studying how teenagers use features intended to limit problematic behavior.

Lawyers are also expected to call Meta founder and CEO Mark Zuckerberg as a witness, the report said.

The four states leading the case have pursued separate claims under state laws, while the broader group of 29 states has alleged that Meta collected data from children under 13 in violation of the federal Children’s Online Privacy Protection Act.

Meta, Alphabet Inc’s Google, Snap Inc and TikTok are also facing more than 3,000 personal injury claims in the US, along with about 1,300 lawsuits brought by public school districts, as per Bloomberg.