👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Social media companies must face youth addiction lawsuits, US judge rules

Published 11/14/2023, 12:09 PM
Updated 11/14/2023, 06:41 PM
© Reuters. FILE PHOTO: A 3D printed Facebook's new rebrand logo Meta is seen in front of displayed Google logo in this illustration taken on November 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
GOOGL
-
META
-
SNAP
-

By Jonathan Stempel and Nate Raymond

(Reuters) -A federal judge on Tuesday rejected efforts by major social media companies to dismiss nationwide litigation accusing them of illegally enticing and then addicting millions of children to their platforms, damaging their mental health.

U.S. District Judge Yvonne Gonzalez Rogers (NYSE:ROG) in Oakland, California, ruled against Alphabet (NASDAQ:GOOGL), which operates Google and YouTube; Meta Platforms (NASDAQ:META), which operates Facebook and Instagram; ByteDance, which operates TikTok; and Snap, which operates Snapchat.

The decision covers hundreds of lawsuits filed on behalf of individual children who allegedly suffered negative physical, mental and emotional health effects from social media use including anxiety, depression, and occasionally suicide.

The litigation seeks, among other remedies, damages and a halt to the defendants' alleged wrongful practices.

"Today’s decision is a significant victory for the families that have been harmed by the dangers of social media," the plaintiffs' lead lawyers - Lexi Hazam, Previn Warren and Chris Seeger - said in a joint statement.

More than 140 school districts have filed similar lawsuits against the industry that are also before Gonzalez, and 42 states plus the District of Columbia last month sued Meta for youth addiction to its social media platforms.

Alphabet through a spokesperson called the allegations "simply not true," and said that protecting children "has always been core to our work." A TikTok spokesperson said it had "robust safety policies and parental controls."

Snap declined to comment. Meta did not respond to a request for comment.

In her 52-page ruling, Rogers rejected arguments that the companies were immune from being sued under the U.S. Constitution's First Amendment and a provision of the federal Communications Decency Act.

The companies said that provision, Section 230, provides immunity from liability for anything users publish on their platforms, and required the dismissal of all claims.

But Rogers said the plaintiffs' claims were broader than just focusing on third-party content and said the defendants did not address why they should not be liable for providing defective parental controls, not helping users limit screen time and creating barriers to deactivating accounts.

She cited as an example allegations that companies could have used age-verification tools to warn parents when their children were online.

"Accordingly, they pose a plausible theory under which failure to validly verify user age harms users that is distinct from harm caused by consumption of third-party content on defendants' platforms," Rogers wrote.

© Reuters. FILE PHOTO: A 3D printed Facebook's new rebrand logo Meta is seen in front of displayed Google logo in this illustration taken on November 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Rogers said the companies legally owed a duty to their users arising from their status as product makers and could be sued for negligence over their duty to design reasonably safe products and to warn users of known defects.

But the judge said the companies owed no legal obligation to protect users from harm from third-party users of their platforms, and she narrowed the litigation by dismissing some of the claims the plaintiffs were pursuing.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.