Instagram and Facebook could cost Meta a trillion-dollar fine

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A possible fine of US$1.4 trillion (around R$7.7 trillion) placed Meta at the center of a legal dispute in the United States. Four states accuse the company of creating features that would encourage excessive use of Facebook and Instagram by teenagers.

The trial, scheduled for August, will also analyze whether the company misled users about the security of the platforms and violated rules to protect minors.

Four US states accuse Meta of creating resources that would encourage excessive use of social media by teenagers. – Image: Algi Febri Sugita / Shutterstock

States question Facebook and Instagram resources

California, Colorado, Kentucky and New Jersey claim that Meta developed features capable of encouraging the compulsive use of social networks by young people. The states also allege that the company did not adequately disclose the risks involved.

The value of the possible penalty was calculated based on the estimate of teenagers affected by the platforms and the fines provided for in state laws. The amount comes close to the market value of Meta itself.

The company, however, disputes the calculation. In a document presented to the Court, he stated that the value is not supported by the evidence in the case. “A sanction of this size has no parallel in the history of the application of consumer protection laws,” declared Meta.

The lawsuit also involves accusations of violating the federal Children’s Online Privacy Protection Act (COPPA), which prevents the collection of data from minors without parental consent.

Accusations involve privacy and excessive use

In addition to the lawsuit filed by the four states, other actions against Meta are ongoing in the United States.

Among the main points analyzed are:

  • allegations that Facebook and Instagram were created with potentially addictive features;
  • suspicions of collecting data from children without authorization from their guardians;
  • trial scheduled for August, while other state actions will have separate analyses.

Meta denies the accusations. The company claims that attorneys general have not presented evidence that it misled consumers and argues that so-called “social media addiction” is not an officially recognized psychiatric condition.

 

Facebook and Instagram logos on a smartphone
Facebook and Instagram are at the center of a legal dispute over digital safety and social media addictions among teenagers. – Image: mundissima / Shutterstock

Case could influence new actions against platforms

The company also faces other lawsuits related to the protection of children and adolescents. According to Reuters29 states filed lawsuits against Meta, while another 14 filed complaints based on their own laws.

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Last month, District Judge Yvonne Gonzalez Rogers rejected Meta’s request to dismiss the trial. According to her, there are still open questions about the possible addictive nature of the platforms, the company’s statements on the subject and the targeting of these services towards children.

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Following the ruling, California Attorney General Rob Bonta said Meta prioritized profit over children’s safety and promised to hold the company “fully” accountable for its role in the teen mental health crisis.

The August trial will be another test to define how American justice intends to deal with accusations against large social networks involving the safety of young users.

Source: www.olhardigital.com.br

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