A federal judge on June 30 refused to throw out a lawsuit brought by dozens of U.S. state attorneys general that accuses Meta Platforms of intentionally making Facebook and Instagram addictive for children and hiding the harm those designs caused.
In a late Monday decision, U.S. District Judge Yvonne Gonzalez Rogers, sitting in Oakland, California, denied Meta’s motion to dismiss the states’ allegations that the company engaged in deceptive and unfair practices. The court also rejected Meta’s effort to eliminate claims tied to alleged breaches of the federal Children’s Online Privacy Protection Act - commonly referred to as COPPA.
The judge wrote that it was undisputed Meta failed to comply with COPPA’s requirements for providing notice and obtaining parental consent, and on that point the court granted summary judgment in favor of the states. That determination leaves the states’ statutory claim on notice and parental consent intact and resolved in the states’ favor for the purposes of the litigation.
Meta did not immediately provide a comment when asked on Tuesday.
Key points
- The court denied Meta’s motion to dismiss claims of deception and unfair business practices related to Facebook and Instagram.
- The judge found Meta did not comply with COPPA notice and parental consent requirements and awarded summary judgment to the states on that issue.
- The ruling was issued by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, on June 30.
Sectors affected
- Technology and social media platforms, given the focus on major social networks.
- Legal and regulatory services, due to the litigation and statutory findings.
Risks and uncertainties
- Legal exposure - The denial of Meta’s dismissal motion and the summary judgment on COPPA notice and consent requirements increase the legal challenges the company faces.
- Regulatory and compliance focus - The finding that Meta did not meet COPPA requirements highlights compliance vulnerabilities for companies handling data and access for children.
- Public and market reaction - The court ruling may prompt continued attention from state attorneys general and other stakeholders; Meta had not immediately responded to requests for comment.
This decision allows the states’ remaining claims to proceed through the litigation process. The court’s grant of summary judgment on the COPPA notice and consent issue establishes a resolved point in the states’ favor for the current case, while the other allegations of deception and unfairness will remain active as the lawsuit advances.