OAKLAND, CALIFORNIA / RankWire.AI / – A significant legal setback occurred for Meta and TikTok as their attempt to challenge ongoing youth addiction lawsuits was dismissed. The U.S. Circuit Court of Appeals in the ninth circuit rejected an early appeal from both companies on Aug. 10. This decision allows over 3,000 consolidated federal cases to proceed before U.S. District Judge Yvonne Gonzalez Rogers in Oakland. Plaintiffs claim that design choices on these platforms foster compulsive usage and have contributed to mental health issues among children and teens.
Meta and TikTok had requested an immediate review of decisions made by lower courts concerning Section 230 of the Communications Decency Act. The appeals court clarified that Section 230 serves as a defense against liability, not as an immunity from lawsuits. Consequently, the court ruled that the companies could not pursue the appeal at this stage. The ruling does not determine whether Section 230 will ultimately prevent any of the claims. Instead, it allows the federal proceedings to move forward according to the existing orders from the trial court.
The lawsuit encompasses claims from various groups, including families, individuals, school districts, cities, and state authorities. In addition, plaintiffs have filed suits against Alphabet’s Google, which owns YouTube, and Snap, the operator of Snapchat. Their allegations focus on features engineered to promote repeated engagement among young users. The complaints point to supposed links between social media use and issues such as depression, anxiety, body image concerns, and other mental health challenges. Both companies have denied these allegations. Moreover, around 3,300 related cases remain consolidated in California state court.
States initiate separate legal action against Meta
In addition to the federal case, Meta faces a distinct suit filed by 29 state attorneys general. Jury selection for this case is set to take place on Aug. 12 in Oakland, with the trial scheduled to start on Aug. 17. The states accuse Meta of unlawfully collecting and utilizing children’s personal data. They also contend that Facebook and Instagram incorporated features that foster compulsive usage among minors. Further claims allege Meta misled consumers about safety protections on its platforms. Meta has denied any misconduct.
The states have based their claims on the Children’s Online Privacy Protection Act as well as various state consumer protection statutes. Additionally, California, Colorado, Kentucky, and New Jersey have filed their own state law claims within the case. A federal judge previously declined to dismiss the case before trial, citing unresolved disputes that require further proceedings. Several states have also submitted calculations seeking financial penalties if they prevail. Meta has challenged these figures and questioned the legal grounds for the amounts requested.
Major rulings expand the scope of youth safety litigation
This broader legal action against social media giants has already resulted in notable rulings. On Aug. 6, a judge in New Mexico ordered Meta to allocate $567 million to a youth mental health fund and related initiatives. The order also mandated safety measures for Facebook and Instagram over the following five years. Earlier, a New Mexico jury imposed a $375 million civil penalty in March, culminating in a combined exposure of $942 million for Meta in the state case.
In another case, a Los Angeles jury found against Meta and Google in March, awarding $6 million to the plaintiff in a social media addiction suit. Jurors concluded that Instagram and YouTube’s design contributed to addiction and mental health issues among children. TikTok and Snap resolved the case through undisclosed settlement agreements prior to trial. Meta and Google have indicated plans to appeal the verdict.