Lead DevelopmentFACT · 5/5••Via CNBC Investing
Meta Platforms child-privacy trial opens
Opening arguments began in a multi-state lawsuit against Meta Platforms alleging violations of a federal child privacy law, consumer protection statutes and fostering addictive behavior in young users. States seek remedies that could include deletion of data and models trained on children’s data and changes to product features such as infinite scroll. Meta’s lawyers warned potential liability could reach $1.4 trillion, while state lawyers suggested roughly $200 billion is more realistic. Market participants are pricing notable volatility in Meta shares and say headlines about product or algorithm changes are likely to drive stock moves and affect the company’s core advertising business.
- •A group of 29 U.S. states filed a lawsuit against Meta Platforms alleging violations of a federal child privacy act, consumer protection statutes, and fostering addictive behavior in children and teens.
- •Attorneys for Meta warned the company could face up to $1.4 trillion in liability; state attorneys suggested about $200 billion is a more realistic figure.
- •States’ sought remedies include deleting data allegedly acquired from children and eliminating models trained on that data, as well as product changes such as removing infinite scroll or altering algorithms.