Setbacks for Meta continue: Tech giant calls allegations of misleading users ‘unsubstantiated’ ahead of upcoming trial

Tech giant Meta on Thursday (local time) pushed back against claims made by state attorneys in its latest social media addiction trial, calling allegations that it misled users about the safety of its apps and that features of its platforms harmed users "unsubstantiated."

A Meta spokesperson made these remarks to ABC News and said, "The State AGs may call this a landmark case, but their limited claims are unsubstantiated, and their financial demands are vastly disproportionate," adding, "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."

Meta claims that damages in this case could be around $1.4 trillion. The spokesperson noted, "Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout," and further said, "We stand by our record of creating strong protections for teens, and look forward to making our case in court."

Meta faces lawsuit from 29 states

The tech giant's remarks come ahead of an upcoming trial in federal court in Oakland, California. The case centers on a lawsuit filed against the company in October 2023 in the Northern District of California by a coalition of 29 state attorneys general. Four states, California, Colorado, New Jersey, and Kentucky, are arguing the case in federal court.

The lawsuit accuses Meta, the tech giant behind platforms like Facebook, Instagram, and WhatsApp, of having "harnessed powerful and unprecedented technologies to entice, engage, and ultimately ensnare youth and teens." The lawsuit highlights features including infinite scrolling and push notifications, alleging that the apps were designed to keep young users engaged on the platforms for as long as possible.

The lawsuit also accuses Meta of violating a federal online privacy law by collecting personal information from children without obtaining parental consent.

The trial will begin next week, on August 18, and is expected to last seven weeks, Reuters reported, adding that Mark Zuckerberg, Meta's Chief Executive Officer (CEO), is expected to testify, along with Adam Mosseri, Instagram's chief.

The states are also seeking significant changes to the company's apps for users under the age of 18, including removing infinite scrolling, video autoplay and "like" counts.

California AG on lawsuit against Meta

Rob Bonta, California Attorney General, said in a statement earlier this week, "One of my most important jobs as Attorney General is to protect our children from harm. Meta designed a dangerous product for young users, knew it to be dangerous, and then lied to children, families, and the community about how dangerous it was." Bonta spearheaded the initial filing against Meta in 2023.

Trouble mounts for Meta

Zuckerberg-led Meta is facing what can be called one of the most turbulent times for the company as it faces a slew of lawsuits over allegations that its apps were designed to be addictive and that the company failed to protect children and teenagers from their harmful impact. Earlier this month, a New Mexico court fined Meta $567 million and ruled that the company should make sweeping changes to its apps, arguing that they contributed to a mental health crisis among young people.

Earlier this year, Meta faced another setback after a landmark trial in Los Angeles, where a jury found Meta and YouTube (owned by Google) negligent in designing their apps, which impacted a 20-year-old woman. The jury found that design features in Meta and YouTube's apps, including autoplay, recommendation algorithms, and notifications, contributed to the woman developing anxiety and depression when she was a teenager.

The upcoming trial could become a major test of Meta’s responsibility for the impact of its platform designs on young users, with billions of dollars and sweeping changes to its apps at stake.