Over twenty American states have accused Meta of illegally collecting minors’ personal data and misleading users. If the lawsuit is upheld in court, Meta could face penalties reaching $1.4 trillion, approximately equivalent to the company’s current market value.
The lawsuit is being examined in a United States Federal Court, where Attorneys General from California, Colorado, Kentucky, and New Jersey argue that Meta, the parent company of Instagram, has systematically engaged in unfair business practices and deceived users about its data processing practices.
Meta’s legal team, in its court filings, described the plaintiffs’ claims as unprecedented and artificially inflated. They assert that the compensation calculations are derived from a combination of data sources, with certain users counted multiple times, urging the court to dismiss major portions of the claims.
It is noted that the plaintiffs did not provide specific examples of cases with penalties aligning to such a scale under existing children’s online privacy and consumer rights protection laws.
This lawsuit is one of over 2,000 similar cases across the United States involving Meta, Snap, and TikTok, all accused of violating the Children’s Online Privacy Protection Act (COPPA).
Meta has faced setbacks in similar cases before. Still, she emphasizes the safety of its algorithms and argues that parents bear responsibility for their children’s social media use.
Following the submission of court documents, Meta representatives confirmed their commitment to defending their position, emphasizing that the lawsuit’s calculations lack basis. Meanwhile, the California Attorney General’s office continues to assert that Meta prioritized commercial interests over child safety, further exacerbating the mental health crisis among America’s youth.
The trial is expected to commence this August.