Child Safety Lawsuit Against Meta: $200 Billion Compensation Demand

In a case heard in Oakland, California, four states are leading a class action lawsuit against Meta. In the lawsuit filed by 29 states in 2023, the cases of the other 25 states are expected to be addressed in the coming period. State attorneys general allege that Meta designed Facebook and Instagram to be addictive to children and collected data from users under 13 without parental consent. The plaintiffs are seeking not only monetary penalties but also fundamental changes to the company's operations. These demands include mandatory parental consent for young users, changes to algorithms allegedly engaging in 'dopamine manipulation,' and the removal of filters. In documents submitted to the court, Meta argued that the states' demands could theoretically reach $1.4 trillion, while the plaintiffs stated they are seeking approximately $200 billion in penalties. Meta, which has over 3 billion users, denies the allegations and says it will prove the safety measures it has developed to protect young people. CEO Mark Zuckerberg is also expected to testify during the hearings. U.S. District Judge Yvonne Gonzalez Rogers, who is presiding over the case, has previously overseen high-profile cases involving tech giants such as Apple and OpenAI. A ruling is expected in early October. Meta has previously suffered a $2.4 billion profit loss due to earlier lawsuits. Prof. Nora Freeman Engstrom from Stanford Law School stated that this case could mark the beginning of a reckoning of similar scale in the tech sector. The lawsuit could redefine social media platforms' responsibilities regarding child safety and have significant implications across the industry. This is not investment advice.