Meta has faced a series of legal setbacks, losing a lawsuit in New Mexico and a separate case in Los Angeles, marking the first time the company has been held responsible for designs that harm teens. The Los Angeles jury found that Meta knowingly engineered addictive features targeting young users, endangering their mental health, with YouTube found partly liable as well. Combined fines in these cases total over $381 million, and thousands of similar lawsuits are pending nationwide.
The rulings focus on Meta’s design choices such as endless scrolling and constant notifications rather than user-generated content. Legal experts compare the strategy to past tobacco litigation, where the product design itself was under scrutiny.
Internal Meta documents revealed during litigation show a pattern of prioritizing teen engagement even when it conflicted with child safety. Employees discussed tactics to increase usage during school hours and through hidden “finsta” accounts. Reports from 2019 highlighted the negative effects of Meta products on users’ well-being, with leadership explicitly aiming to maximize teen screen time.
Meta insists that it no longer sets teen engagement as a goal and points to Instagram Teen Accounts, introduced in 2024, which include safety measures such as private defaults, tagging restrictions, and screen time reminders for under-16 users.
Former Meta employee Kelly Stonelake, who oversaw go-to-market strategies for Horizon Worlds and is currently suing the company for gender-based discrimination, says the court revelations reflect her firsthand experiences. She criticizes current legislative proposals, arguing that they risk over-censorship and could prevent families and states from seeking justice, like in the New Mexico case.
The rulings mark a potential turning point in tech accountability as courts begin to hold companies responsible not just for content on their platforms but for the very way their products are designed to engage young users. Stakeholders now face pressure to craft solutions that balance child safety, free expression, and innovation.

