OAKLAND, Calif.-Opening arguments in a massive child safety trial against Meta Platforms began Tuesday.
The case, brought by the state attorneys general of California, Kentucky, Colorado and New Jersey in federal court, will explore whether Meta violated state consumer protection laws and the federal Children's Online Privacy Protection Act of 1998, commonly known as COPPA, by knowingly making its platforms addictive and going after young users.
The trial, taking place at a federal courthouse in Oakland, Calif., comes on the heels of Meta's nearly $1 billion loss in New Mexico state court and could cost the tech company 200 times as much money if it loses, according to a recent filing.
"What you're going to hear in this trial is how Meta hooked children on its platforms," Megan O'Neill, a deputy attorney general for the California Department of Justice, said during opening arguments. "It designed platforms so that children would keep coming back."
Meta is facing thousands of lawsuits from more than 40 state attorneys general, school districts and individual social media users that allege the company prioritized growth over the safety of its underage users.
So far, Meta lost the first two such civil cases that went to trial, the one in New Mexico and another in Los Angeles brought by a 20-year-old woman. The company has said it disagrees with the rulings and will appeal both verdicts. In the Los Angeles case, the woman won $6 million from Meta and YouTube.
Meta settled another case with a Kentucky school district. And a Florida teen dropped his case last month without receiving payment-which was viewed as a win for Meta.
A similar trial, brought by Tennessee's attorney general is also playing out in that state, the results of which could cause ripple effects across the country. Losing several state AG cases would make it more difficult for Meta to say the verdicts are isolated incidents and could create significant problems for its business model.
As part of remedies for the New Mexico trial, a judge ordered Meta to create a $567 billion abatement fund and to limit the amount of time that young people can spend on its apps. The company must turn off push notifications on teens' accounts overnight and by default hide the number of "likes" on photos, the judge said in his order.
On its most recent earnings call in July, Meta's finance chief Susan Li said Meta is facing a number of youth-related trials that could ultimately result in a material loss. The company spent $2.4 billion on legal proceedings in the second quarter. It brought in $60.8 billion in revenue.
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