US states accuse Meta of designing addictive features for teens, facing up to $200bn in penalties

By: Shivam Mishra Read Time: 4 minutes

Overview

Attorneys general from 29 US states have accused Meta of designing Facebook and Instagram features that addict children and teenagers, worsen mental health, and violate child privacy and consumer protection laws.

The states have informed the court that penalties could total approximately $200 billion, though the final amount—if any—would depend on the court's findings and the remedies it orders.

The trial, stemming from a lawsuit filed in 2023, is expected to last six to eight weeks.

Opening Arguments

During opening arguments, California Deputy Attorney General Megan O'Neill stated that Meta "carried out a campaign to deceive, to mislead its users, legislatures, teachers and parents," according to CNBC.

O'Neill cited internal company documents, including one stating, "the young ones are the best ones," and another in which Meta acknowledged: "Teens are hooked despite how it makes them feel. Instagram is addictive," as reported by The Guardian.

"They knew," O'Neill said. "Time and again, profits won."

Allegations

The states allege that Meta violated federal and state laws, including:

• The Children's Online Privacy Protection Act (COPPA)
• Various consumer protection statutes

They argue that features such as infinite scroll, autoplay, and beauty filters were intentionally designed to keep younger users engaged for longer periods.

Penalties and Remedies

After the first day of proceedings, California Attorney General Rob Bonta said the case is focused on "civil penalties, restitution and distortion," rather than primarily on damages, CNBC reported.

"This is not a damages case," Bonta said at a press conference.

Meta has previously argued that the case could expose it to penalties of as much as $1.4 trillion. Bonta pushed back on that framing, noting that state attorneys general told the court last week that approximately $200 billion was a more likely figure.

"To be clear, we are not asking for $1.4tn dollars," he said, adding that the larger figure represented "the highest possible number that could ever be calculated based on that data" and that "It's a figure Meta estimated." CNBC reported that Meta disputes this claim.

Trial Leadership

Although the case was brought by a coalition of 29 state attorneys general as part of consolidated multidistrict litigation, lawyers from California, Colorado, Kentucky, and New Jersey are leading the trial.

Structural Remedies Sought

According to CNBC, the states are seeking structural remedies, including:

• Deleting personal data collected from children under 13
• Removing related algorithms and models trained on that data
• Eliminating certain design features from Meta's platforms

Meta's Response

Meta rejected the claims in full. During his opening remarks, the company's attorney, Paul Schmidt, argued that the internal records and email exchanges presented by state lawyers had been stripped of their broader context and selectively extracted from lengthier discussions, The Guardian reported.

Schmidt said the company had carried out multiple studies focused on younger users, framed around the question, "what can we do to support teens in this space."

He added that Meta has shut down over one million accounts belonging to children younger than 13 and said the company is "acting in a meaningful way to remove" underage users, according to The Guardian.

Meta Spokesperson Statement

"Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout."

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"The state AGs may call this a landmark case, but their limited claims are unsubstantiated and their financial demands are vastly disproportionate. The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification."

In a public statement updated this month, Meta said it has introduced Teen Accounts across Instagram.