Meta held liable for child safety in landmark legal rulings

Meta has lost two major lawsuits in the US, marking the first time the company has been held legally responsible for endangering child safety. In the first case, a jury found Meta liable for violating the Unfair Practices Act (a New Mexico state law). The very next day, a jury in Los Angeles found that Meta knowingly designed its apps to be addictive to children and teens, thereby endangering the mental health of the plaintiff, a 20-year-old known as K.G.M.

The financial penalties from these two verdicts include:

• New Mexico Case: A total fine of $375 million, based on the maximum penalty of $5,000 per violation.
• Los Angeles Case: A combined fine of $6 million, with Meta found 70% liable and co-defendant YouTube found 30% liable.

These rulings represent a major shift in how social media platforms are litigated. Rather than focusing on content moderation, which is heavily protected under US law, prosecutors targeted specific design features such as endless scroll and round-the-clock notifications. Allison Fitzpatrick, a digital media lawyer and partner at Davis+Gilbert, explained the shift: “They took the model that was used against the tobacco industry many years ago, and instead of focusing on things like content, they focused on these addictive features — how the platform is designed, and issues with the design, which is different than content, where you have this First Amendment argument.”

Internal documents unsealed during the litigation reveal a pattern of inaction regarding the platforms’ negative impact on minors. The documents show that Meta sought to increase engagement even through “finstas” (fake Instagram accounts used by teens to hide from parents or teachers). In 2019, Meta conducted 24 in-person, one-on-one interviews with users exhibiting problematic usage, which affects an estimated 12.5% of users. Furthermore, an internal email from January 2021 showed that product teams were actively trying to maximize how often users open Instagram. Kelly Stonelake, a former Meta employee and whistleblower who is currently suing the company for alleged gender-based discrimination and harassment, stated that the unsealed evidence reflects her firsthand experiences. This follows a history of scrutiny on Capitol Hill, which intensified after whistleblower Frances Haugen leaked internal documents in 2021 showing Meta knew Instagram was harming teen girls.

A Meta spokesperson stated that the company plans to appeal the verdicts, arguing that reducing teen mental health to a single cause overlooks broader issues and the digital communities teens rely on. Meanwhile, US lawmakers on Capitol Hill continue to debate legislative solutions. However, privacy advocates warn of unintended consequences. Evan Greer, the director of Fight for the Future, reported that the proposed Kids Online Safety Act would do more to surveil adults and censor speech than protect minors.

Why it matters

Meta’s recent court losses mark the first time the company has been held liable for endangering child safety, potentially opening the floodgates for thousands of pending cases regarding the company’s design features.