Meta, TikTok, Google and Snap Just Lost a Major Court Battle— and Must Face More Than 3,000 Lawsuits Over Addictive Platforms Targeting Young Users

A U.S. appeals court has given the green light for thousands of lawsuits against leading social media companies Meta Platforms (NASDAQ:META), Alphabet’s Google (NASDAQ:GOOGL) (NASDAQ:GOOG), ByteDance’s TikTok, and Snap Inc’s Snapchat (NYSE:SNAP).

The lawsuits accuse these firms of creating addictive products targeting young users.

On Monday, the 9th U.S. Circuit Court of Appeals, based in San Francisco, dismissed an appeal by Meta and TikTok to overturn a lower court ruling. The ruling required these companies to face over 3,000 lawsuits filed in federal court, with the court stating that the companies had appealed prematurely, reported Reuters.

The companies argued that Section 230 of the Communications Decency Act of 1996, which generally shields online platforms from liability for user-generated content, also protects them from lawsuits alleging they failed to warn the public about the addictive nature of their platforms.

However, the 9th Circuit clarified that Section 230 serves as a defense against liability rather than providing immunity from lawsuits, rendering the appeal premature. Attorneys Lexi Hazam and Previn Warren, who represent thousands of school districts and individuals suing Meta and other companies, said the ruling clears the way for the states’ trial to proceed, as well as a separate trial involving claims brought by school districts that is scheduled for February.

Meta, Google, TikTok and Snap did not immediately respond to Benzinga’s request for comments.

Social Media Faces Growing User Concerns

This development comes on the heels of a recent ruling where Meta was ordered to pay $567 million and make significant changes to its platforms for minors in New Mexico after a judge ruled it created a “public nuisance”.

In June, YouTube, owned by Alphabet, reached a confidential settlement with a 16-year-old Florida teenager who alleged the platform contributed to his social media addiction and mental health struggles. The teen claimed he began using social media around age 8 and later experienced sleep problems, anxiety and depression. The settlement terms were not disclosed.

Meanwhile, a survey conducted by privacy company Incogni revealed that 55% of respondents post less on social media than they did five years ago. This trend could pose a significant challenge for Meta’s advertising business, which relies on a constant stream of fresh content to keep users engaged.

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Meta, TikTok, Google and Snap Just Lost a Major Court Battle— and Must Face More Than 3,000 Lawsuits Over Addictive Platforms Targeting Young Users

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.