The lawsuit of four US states against the social networking company Meta begins tomorrow in federal court in Oakland, California. Among the thousands of lawsuits related to child safety online, the trial is expected to be one of the most significant for the company, the Associated Press reported, quoted by News.bg.
Authorities accuse Meta of contributing to the mental health crisis among children and youth through the intentionally addictive design of its social platforms, as well as collecting personal data from children under 13 without the necessary parental consent.
According to the lawsuit, Meta uses its technology to attract and retain children and teens on its platforms, with the main motive for this being to increase revenue.
The plaintiffs in the case are California, Colorado, Kentucky and New Jersey, with 25 more states expected to take similar legal action.
Potential sanctions of $1.4 trillion
The claims include huge financial damages, which could theoretically reach $1.4 trillion, as well as demands for changes in the way Instagram and Facebook are managed.
This amount is roughly equal to Meta's market capitalization. If the company is actually ordered to pay such damages, it could lead to bankruptcy and effectively turn the states into owners of a significant part of its assets.
However, legal experts consider such a scenario to be extremely unlikely.
Meta argues that the potential penalty is not related to an actual violation and that an amount of this magnitude would be unprecedented in the field of consumer protection.
According to Cornell University law professor “ James Grimmelman said the company simply doesn't have enough money to pay $1.4 trillion. Such a decision would bankrupt Meta and deprive its shareholders of their assets.
He cited another case involving Anthropic's artificial intelligence training as an example. The lawsuit initially sought $150,000 for each copied book, but the damages were later reduced to $3,000 per book, or about $1.5 billion in total.
A Complex Federal Lawsuit
The current lawsuit is particularly complex because it was filed by the attorneys general of four states and involves various state and federal laws.
Among them are provisions for protecting children's privacy, laws against misleading advertising, and rules related to unfair competition.
According to a law professor at „Vanderbilt“ Rebecca Allensworth said the number of alleged violations could be significant precisely because of the different laws and jurisdictions involved in the case.
The lawsuit differs from a Los Angeles case earlier this year in which a woman who started using social media as a child sued Meta and YouTube. The court then awarded $6 million in damages and found that the companies were negligent in the design and operation of the platforms, as well as that they did not warn clearly enough about the potential risks to minors.
Meta has already introduced measures to protect children
In recent years, Meta has taken a number of actions aimed at limiting the risks to minors.
In 2024, the company introduced Teen Accounts on Instagram, which by default have stricter settings, include parental controls and restrictions on messages and access to certain content.
Meta also uses artificial intelligence to determine whether users under 13 are using Instagram, as well as whether teenagers provide false information about their age to gain access to adult accounts.
However, the pressure on the company continues. Earlier this month, a judge in New Mexico ordered additional safety measures, including time limits on minors using the platforms, restrictions on AI chatbots, and mandatory warnings.
These measures currently only apply to users in New Mexico.