‘The young ones are the best ones’: Meta on trial for alleged effort to hook kids
California and 28 other states sued Meta, alleging it intentionally designed platforms to attract children under 13 and violated privacy laws. Meta defends its efforts to protect young users and argues the lawsuit is politically motivated. The trial could result in billions in damages and force Meta to change its business practices. Meta's internal data shows significant usage of Instagram by 11- and 12-year-olds, despite terms of service barring them.
How this was made
The 30-second read
Why it matters
The article highlights expanded liability theories (under-13 focus), potential damages magnitude (over $3B for under-13 violations cited), and injunctive relief sought, all of which can affect valuation through legal-risk repricing.
Market read
Courtroom openings and damages framing can move META via legal-risk expectations, especially with Section 230 defense and potential injunctive relief in play.
What to watch
Section 230’s role is central; appellate review and how the defense is handled at trial may matter more than the opening statements for ultimate liability.
Background
A coalition of 29 state attorneys general is suing Meta in federal court, with a prior California LA jury case (Kaley Glenn-Mills) already decided in March.
Ticker impact
California’s opening in a multistate federal trial alleges Meta designed platforms to hook kids under 13, citing internal memos and data mining claims.
Bias to downside or volatility into fall as the case progresses, with headline-driven swings around rulings and appeals.
The article is a primary, time-sensitive courtroom development describing allegations, damages scale, and the Section 230 defense posture, all of which can reprice legal risk even before any verdict.
Market effects
Sets precedent risk for social media and ad-tech business models reliant on youth engagement and data practices.
US state and federal court actions in Northern District of California can influence broader regulatory posture affecting large platforms.
Could reinforce global scrutiny of child-safety and data-mining practices for major social networks.
Counterpoint
Meta argues the law prevents it from retaining under-13 data and that requested design changes are unworkable, implying plaintiffs may struggle to prove causation and damages.
Key entities
- companyMeta
Defendant in a multistate federal trial alleging it designed platforms to hook children under 13 and violated COPPA.
- government_officialCalifornia Deputy Atty. Gen. Megan O’Neill
Prosecutor in the trial opening, reading internal memo language about targeting preteens.
- lawyerPaul W. Schmidt
Meta’s lawyer arguing COPPA limits Meta’s ability to keep under-13 data and use it for modeling.
- executiveMark Zuckerberg
Meta CEO referenced as expected to testify this fall.
- judgeChief Judge Yvonne Gonzalez Rogers
Oversees the multidistrict litigation in Northern District of California.
