Bloomberg Law
States Sue Meta, Instagram Promoters Test Limits
Nov 27, 2023
Matthew Schettenhelm, Bloomberg Intelligence Analyst, discusses Meta Platforms being sued by 41 states over addictive features in Instagram and Facebook that are harming the mental health of young people. Ann Lipton, business law professor at Tulane University, discusses how Instagram promoters are testing the limits of a 90-year-old securities law.
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Quick takeaways
- Meta Platforms is facing a federal lawsuit for intentionally designing addictive features that harm the mental health of young users on Instagram and Facebook.
- There is a lack of clarity and consensus among circuits regarding the liability of social media platforms for misleading statements and the application of securities laws to crypto offerings.
Deep dives
Meta Platforms Sued for Addictive Features Harming Youth Mental Health
Meta Platforms, the parent company of Instagram and Facebook, is facing a federal lawsuit filed by 41 states for knowingly harming the mental health of young users. The lawsuit alleges that Meta intentionally designed its social media platforms to be more addictive to kids and young people, exploiting them for profit. Features like the addictive algorithm, constant flood of new content, and fear of missing out are said to monopolize the time and attention of young users. The lawsuit seeks damages, civil penalties, and changes in how the company serves teens.
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