Meta faces major U.S. trial over youth safety claims and platform changes

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Meta trial youth safety

Highlights

A federal trial in Oakland opens against Meta as 29 states allege Facebook and Instagram are addictive to youth, unsafe, and improperly handle children's data.
States seek financial penalties up to $1.4 trillion and nationwide operational changes to Meta's apps, including age restrictions and banning infinite scroll.
The trial, featuring expected testimony from Mark Zuckerberg and Adam Mosseri, marks a major legal test amid growing lawsuits against Meta, Snap, ByteDance, and Alphabet over youth safety.

California trial opens with broad claims

As reported by Reuters, attorneys for Colorado, California, New Jersey and Kentucky begin opening statements on Tuesday in federal court in Oakland, leading a bipartisan coalition of 29 states. The advisory jury hears claims that Meta designed Facebook and Instagram in ways that are addictive to children and teens, misled consumers about platform safety and improperly collected and used children's personal data in violation of federal law.

U.S. District Judge Yvonne Gonzalez Rogers is set to make the final decision in the case after hearing from the eight-person jury, which is serving in an advisory role. Meta founder and CEO Mark Zuckerberg and Instagram head Adam Mosseri are both expected to testify during the multiweek proceedings.

Meta says it has invested heavily in protections for young users and rejects the allegations as unsupported. In a statement before arguments, a company spokesperson says the states offer no proof that residents were misled and are trying to punish Meta for wider industry challenges such as age verification.

Potential penalties and wider industry impact

The states are asking the court not only for financial penalties but also for operational changes that could alter Meta's apps across the country. Their requested remedies include age restrictions, an end to infinite scroll and other platform modifications that would apply nationwide.

Meta says possible penalties could reach $1.4 trillion, close to its roughly $1.5 trillion market value, while the attorneys general say in a hearing last week that the amount could be closer to $200 billion. The lawsuit, filed in 2023, grows out of a multistate investigation announced after whistleblower Frances Haugen's 2021 Senate testimony that Meta knew its products could harm young users and understood how to make them safer.

The states are expected to present internal Meta documents, research and testimony from former employees and outside experts. The case stands as one of the biggest tests yet for youth social media litigation, as Meta, Snap, ByteDance and Alphabet face mounting legal and political pressure over claims that their products damage young users and could affect future business and financial results.

Our earlier report noted that Meta Platforms was facing mounting legal pressure from a California lawsuit alleging harm to children and teens, adding to broader scrutiny of the social media company. We also highlighted that these legal overhangs were being watched alongside other market catalysts, as investors weighed how regulatory and courtroom risks could affect sentiment toward major tech names.

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