A significant legal development has seen Meta, the parent company of Facebook and Instagram, hit with a substantial penalty of $375 million (approximately €317 million) by a United States court. The court’s decision, delivered by a jury, found that Meta knowingly contributed to the harm of children’s mental health and also concealed crucial information regarding child sexual exploitation on its platforms.
The jury’s verdict, announced on a Tuesday, determined that Meta engaged in “unconscionable” trade practices. This means the company unfairly exploited the vulnerabilities and inexperience of young users. Furthermore, the jurors identified thousands of breaches of New Mexico’s Unfair Practices Act, a state law designed to shield consumers from deceptive and unfair business dealings.
In response to the verdict, a Meta spokesperson indicated that the company contests the decision and intends to appeal. The spokesperson stated, “We work hard to keep people safe on our platforms and are clear about the challenges of identifying and removing bad actors or harmful content. We will continue to defend ourselves vigorously, and we remain confident in our record of protecting teens online.”
It’s important to note that Meta will not be required to alter its current operational practices immediately. A subsequent phase of this trial is scheduled for May, where a judge will deliberate on whether Meta’s platforms constitute a “public nuisance.” This phase will also determine if Meta should be compelled to fund public programs aimed at addressing the harms identified.
Unpacking the Lawsuit: Allegations Against Meta
The legal action originated in 2023 when Raul Torrez, the Attorney General of New Mexico, initiated the lawsuit. Torrez’s office conducted an investigation into Meta’s platforms, which, according to his claims, revealed them to be “prime locations for predators to trade child pornography and solicit minors for sex.”
To gather evidence, the Attorney General’s office employed a covert approach, utilising decoy accounts posing as 14-year-olds. This investigation reportedly uncovered that Meta’s platforms directed young users towards a “stream of egregious, sexually explicit images” and even suggested that children join unmoderated Facebook groups, thereby facilitating commercial sex activities.
The lawsuit also contended that Meta has not adequately disclosed or addressed the pervasive dangers associated with social media addiction. While Meta has not formally acknowledged the existence of social media addiction, company executives did concede during the trial to “problematic use” and expressed a desire for users to have positive experiences on their platforms.
During the trial, jurors were presented with internal Meta correspondence and reports concerning child safety. They also heard testimony from a range of individuals, including Meta executives, platform engineers, whistleblowers, psychiatric experts, and safety consultants.
A key aspect of the jury’s deliberation involved assessing whether social media users were misled by specific assurances regarding platform safety made by Meta executives. This included statements from Meta CEO Mark Zuckerberg, Instagram head Adam Mosseri, and Meta’s global head of safety, Antigone Davis.
The jury also took into consideration Meta’s alleged failure to rigorously enforce its ban on users under the age of 13. Additionally, they examined the role of Meta’s algorithms in potentially prioritising sensational or harmful content and the concerning prevalence of social media content related to teen suicide.
A Broader Trend: Big Tech Under Scrutiny
New Mexico’s case represents one of the earliest trials to emerge from a widespread wave of litigation targeting social media platforms and their impact on young people.
Across the United States, more than 40 state attorneys general have initiated lawsuits against Meta. These lawsuits broadly allege that the company is contributing to a significant mental health crisis among young people by intentionally designing features on Instagram and Facebook to be addictive.
Meanwhile, jury deliberations are also underway in a separate “bellwether trial” in California. This trial will determine whether Meta and Google platforms are indeed harmful and addictive to children.
That particular lawsuit was brought forth by a 19-year-old, identified only by the initials “KGM.” KGM claims that her early and extensive use of Meta’s Instagram and Google’s YouTube led to a severe exacerbation of her depression and suicidal thoughts.
The core argument of this lawsuit is that the companies made deliberate design choices, employing tactics similar to those used in casinos, to enhance the addictive nature of their platforms, ultimately to boost profits. This legal challenge highlights growing concerns about the ethical responsibilities of major technology companies in safeguarding the well-being of their youngest users.
