US court clears thousands of lawsuits against Meta, Google, TikTok & Snapchat

MUMBAI: The social media giants are facing another scroll-stopping legal battle. A US appeals court has cleared the way for thousands of lawsuits against Meta Platforms, Google, TikTok and Snapchat alleging that their platforms were designed to be addictive to young users.

According to Reuters, the San Francisco-based 9th US Circuit Court of Appeals rejected an appeal by Meta and TikTok seeking to overturn a lower court decision that allowed more than 3,000 federal cases to proceed.

The companies had argued that Section 230 of the Communications Decency Act, which generally shields online platforms from liability over content posted by users, should also protect them from claims linked to the allegedly addictive design of their products.

The appeals court disagreed with that interpretation. It ruled that Section 230 provides a defence against liability rather than immunity from being sued, meaning the companies had appealed too early in the litigation.

The lawsuits have been filed by parents, individuals, school districts, municipalities and states. They allege that social media companies intentionally designed their platforms to keep young users engaged, contributing to problems including depression, anxiety, body-image concerns and other mental health issues.

The cases have been centralised before US District Judge Yvonne Gonzalez Rogers in Oakland, California, with plaintiffs seeking damages, penalties and restitution.

The court also rejected Meta’s request to postpone a multistate trial involving 29 state attorneys general. The case alleges that Meta illegally collected and used children’s data, designed its platforms to keep young users hooked and misled consumers about safety.

The trial is scheduled to begin on Wednesday. Reuters reported that Meta had argued the trial should not proceed while its appeal remained pending, but the court rejected that request.

The decision comes days after a New Mexico judge found that Meta had created a public nuisance in the state. The company was ordered to pay $567 million into a teen mental health fund and implement measures aimed at improving youth safety.

That ruling followed an earlier phase in which a jury ordered Meta to pay $375 million after finding that the company had misled consumers about the safety of its platforms.

Meta has denied the allegations and declined to comment on the latest appeals court ruling. TikTok representatives also did not immediately respond to requests for comment.

The latest ruling adds to a growing list of legal challenges facing social media companies over their treatment of young users.

Lawyers representing thousands of school districts and individuals in the federal litigation said the decision would allow the multistate trial to proceed, as well as a separate trial involving school district claims scheduled for February.

Beyond the federal cases, the companies face hundreds of similar lawsuits in state courts, including around 3,300 cases consolidated in California.

In the first such case to reach a verdict, a Los Angeles jury in March found Meta and Google negligent for designing platforms that harmed young users. It awarded $6 million to a young woman who said she became addicted to Instagram and YouTube as a child.

For Meta, Google, TikTok and Snap, the latest ruling means the legal fight over how social platforms are designed for young users is moving forward. With thousands of cases now able to advance, the scrutiny of Big Tech’s approach to youth safety is set to intensify.