A major court trial against Meta begins in the US: over $1 trillion at stake

Facebook and Instagram app icons / unsplash
Фото: Facebook and Instagram app icons / unsplash

One of the largest court trials against Meta over the impact of Facebook and Instagram on children and adolescents has begun in the federal court in Oakland, California. Jury selection started on August 12, and opening statements are scheduled for August 18. The case may last about two months.

In the first phase of the trial against Meta, California, Colorado, Kentucky, and New Jersey are the plaintiffs. The state attorneys general claim that the company deliberately used mechanisms in its social networks capable of creating excessive addiction in minors, while misleading users and parents about the safety of Facebook and Instagram.

A separate set of claims concerns children under 13. The plaintiffs accuse Meta of collecting their personal data without proper parental consent, which may violate the federal Children's Online Privacy Protection Act - COPPA.

Even before the trial began, Meta attempted to have the case dismissed without a trial, but at the end of June the federal court rejected this request. The California Department of Justice also reported that the court agreed with its position: Meta's mechanism for obtaining parental consent was not sufficient to meet COPPA requirements.

Where did the $1.4 trillion figure come from

The financial claims could be unprecedented. According to the San Francisco Chronicle, the four states seek sanctions against Meta totaling over $1 trillion.

However, the $1.4 trillion figure needs clarification: it is not an already imposed fine or a final court-determined amount. It was Meta itself that estimated in its court documents that the states' proposed method for calculating potential sanctions could yield approximately $1.4 trillion. The states' own proposals for calculating penalties remain confidential.

The states calculate potential sanctions based on the number of violations and fines provided by local law. Meta calls this approach unreasonable and denies the allegations, stating that it has been implementing tools for protecting teens and parental controls for years.

In addition to monetary penalties, the plaintiffs seek changes in platform operations. If successful, the case could affect the design of Facebook and Instagram, user age verification, data collection rules for minors, and features designed to retain attention.

Earlier, "Kurs Ukrainy" wrote about another major legal direction against Meta, Google, and TikTok over accusations of creating mechanisms that habituate children to prolonged use of social networks. The current Oakland trial is a separate case: here the claims against Meta are brought by state attorneys general, and one of the key issues is also compliance with federal rules for protecting children's data.

The case is being heard by federal Judge Yvonne Gonzalez Rogers. Its outcome could become a benchmark for other lawsuits by US states against Meta and significantly influence future disputes regarding the responsibility of social platforms for the safety of minors.

Based on materials: San Francisco Chronicle, California Department of Justice, Barron's./

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