Meta Platforms and U.S. state attorneys general have engaged in discussions regarding a potential settlement during an ongoing federal trial, Bloomberg News reported Tuesday. The litigation involves allegations that the company intentionally designed Facebook and Instagram to be addictive to younger users.
The trial, currently taking place in a California federal court, follows a lawsuit brought by 29 states. It is part of a broader collection of legal actions from local governments, school districts, and individuals claiming that social media platforms have contributed to a mental health crisis among youth. On August 12, jury selection for the case began after a federal appeals court declined to pause the proceedings.
The specific claims in this trial include allegations from the attorneys general of California, Colorado, Kentucky, and New Jersey that Meta violated state consumer protection laws. Additionally, 29 states allege Meta violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from users it knew were children without obtaining parental consent. These states claim the data was used to train generative AI and machine learning models.
The scale of the litigation is significant, involving more than half of U.S. states and targeting a company that reported its Instagram head, Adam Mosseri, testified that few teenagers were aware of existing safety features. While the specific dollar amount of a potential settlement has not been reported, Nevada Attorney General Aaron Ford’s office described an upcoming announcement as a "major consumer protection settlement" involving a leading technology company. A settlement could establish a legal and regulatory precedent for how other social media firms manage young users' data and addictive design elements.
What happens next depends on the conclusion of these settlement discussions. If an agreement is not finalized, the federal trial in California will continue to its verdict. Several state attorneys general have scheduled press conferences for late Tuesday and Wednesday to provide updates on consumer protection matters. Meta has denied the allegations, maintaining that it works to protect children and arguing that "social media addiction" is not a recognized psychiatric condition. The exact effective date of any policy changes or the final cost to Meta is not yet known.