Meta faces 29-state youth safety trial
- Meta faces a federal trial led by four states within a 29-state coalition alleging Facebook and Instagram harmed young users and improperly collected children’s data.
- Meta shares were down 3.71% at $547.84 in Tuesday trading, though the broader market move cannot be attributed solely to the trial.
- The states are seeking financial penalties and nationwide changes, including age restrictions and limits on features such as infinite scroll.
Meta Platforms (NASDAQ:META) faces a federal trial involving 29 states over allegations that Facebook and Instagram were designed to addict young users and misrepresented platform safety.
California, Colorado, Kentucky and New Jersey are leading the trial in Oakland, where an eight-person advisory jury will provide guidance to U.S. District Judge Yvonne Gonzalez Rogers.
Meta denies wrongdoing and argues that the states have not demonstrated that residents were misled or harmed, while pointing to investments in protections for younger users.
The states are also pursuing claims that Meta improperly collected children's personal data and have discussed penalties potentially around $200 billion, while Meta has said claimed exposure could reach $1.4 trillion.
Following the start of the trial, Meta Platforms' share price was down 3.71% at $547.84 in Tuesday trading.
The states are asking the court to consider changes including stronger age restrictions and removal of features such as infinite scroll, with Mark Zuckerberg and Instagram head Adam Mosseri expected to testify.
The 2023 lawsuit followed a multistate investigation into youth safety and forms part of broader litigation against Meta and other social-media companies over alleged harms to younger users.
