Meta faces massive state lawsuits over social media addiction

What happened?

California Attorney General Rob Bonta, along with those of Florida, New York, and Texas, filed a civil lawsuit against Meta Platforms Inc. (formerly Facebook) on October 23, 2023, in the Superior Court of California. The lawsuit alleges that Meta deliberately designed its platforms Facebook and Instagram with addictive features—such as constant notifications, algorithms that prioritize emotional content, and infinite scrolling—to maximize minors' usage time, knowing the risks to their mental health. According to the court document, Meta allegedly violated consumer protection laws, unfair competition laws, and false advertising laws in all four states. The lawsuit seeks $1.4 trillion in damages, the largest ever requested in a case of this kind, and injunctive relief requiring Meta to redesign its platforms.

Why is this important?

This lawsuit is the first of its kind to bring together states from both political parties—California and New York are Democratic, Florida and Texas are Republican—indicating a bipartisan consensus on the need to regulate big tech practices. The claimed amount, $1.4 trillion, is roughly equivalent to Spain's GDP and reflects the magnitude of the alleged harm. If the court rules in favor of the states, it could force Meta to pay massive damages, redesign its platforms, and set a legal precedent affecting the entire social media industry. Additionally, the lawsuit adds to other legal actions, such as the 41-state class action in 2021 and FTC investigations. The case could accelerate the passage of laws like the Kids Online Safety Act (KOSA) in the US Congress, which seeks to impose a duty of care on platforms regarding minors.

Consequences for Meta and the sector

Meta already faces multiple investigations and lawsuits over the impact of its products on youth mental health. In 2021, whistleblower Frances Haugen leaked internal documents showing the company knew about Instagram's harmful effects on teenage girls' body image, particularly an internal study indicating that 13% of British and 6% of American users attributed suicidal thoughts to Instagram. Since then, regulatory pressure has increased. This new lawsuit could accelerate the implementation of changes such as stricter parental controls, default time limits for minors (Meta already introduced time reminders on Instagram in 2022), and greater algorithmic transparency. On the market side, Meta's stock (META) fell 1.2% on the day of the lawsuit, though the company remains valued at over $800 billion. Other platforms like TikTok, Snapchat, and YouTube would take note to adjust their own policies, especially after TikTok faced similar lawsuits in 2022 from Indiana and Utah. Moreover, the lawsuit could inspire actions in the European Union, which has already passed the Digital Services Act (DSA), requiring systemic risk assessments and mitigation measures for large platforms.

What readers should know

The lawsuit is based on each state's consumer protection law, not a specific federal law. This means that even without national regulation, states can act. Parents and educators should watch for case updates, as it could lead to concrete changes in minors' user experience, such as removing algorithmic feeds for teenagers or enabling parental controls by default. Additionally, anyone who used Facebook or Instagram as a minor could potentially be part of a future affected class, though no class has been certified yet. Finally, this case underscores the importance of digital literacy and critical use of social media, especially among young people. Organizations like Common Sense Media already offer guides for parents on how to talk to their children about social media use.

Historical context

This is not the first time a tech company has been sued for addiction. In 2019, a US court dismissed a similar lawsuit against Epic Games over the addictive design of Fortnite, arguing it could not be equated with unfair practices. However, the scale and state backing of this case make it unique. In 2021, a California court allowed a lawsuit against Meta for harm to minors' mental health to proceed, but this new case is broader. If successful, it could inspire similar actions in other countries, such as the European Union, which has already passed the DSA, or the United Kingdom, which is considering the Online Safety Bill. Additionally, the lawsuit recalls historical cases against the tobacco industry in the 1990s, which resulted in multibillion-dollar settlements and regulatory changes. As then, it is alleged that the company knew the risks and did not warn users. The comparison is relevant: tobacco caused physical addiction, while social media generates behavioral addiction, but both cases seek to hold companies accountable for foreseeable harm.