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'Legal Siege' Looms Against Social Media Companies
Bloomberg
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3 months ago
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Tech
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00:00
And in one of the key lines in your story about this, Olivia, you talk about how one lawyer who's
00:05
going to be representing the federal cases says, all told, this is a massive legal siege
00:09
on the social media industry. Why is it all coming in this wave?
00:14
I mean, we have been seeing these lawsuits filed in state and federal court over a number of years
00:20
now. This all started back in 2022 after Francis Hagen kind of blew the whistle on Facebook,
00:27
releasing a trove of documents about how the social media giant was kind of impacting youth
00:33
mental health. Following that, we saw plaintiff's attorneys really focus in on that and start to
00:39
file lawsuits against these companies, accusing them of harming children. And over the course of
00:45
three years, all of those lawsuits, or the majority of them now, have been consolidated into two
00:51
different litigation tracks. In state court and in federal court, we're going to see these cases
00:57
come to the courtrooms next year. And it's going to be, you know, as he mentioned in the story,
01:02
a massive legal siege on the social media industry. We're expecting to see, you know, a number of
01:07
trials next year and possibly thousands of plaintiffs waiting in the wings once those trials close.
01:15
Olivia, a part of the reason that this litigation has been pending for quite a long time is that the
01:20
social media companies have had this liability shield, right, that has protected them in some
01:26
sense from user harm litigation. Explain that shield and why it's now not preventing these pieces of
01:33
litigation moving forward. Yeah, that's right. I mean, the Communications Decency Act, this is a federal
01:39
law that has long protected social media platforms and really any internet platform from facing user
01:45
harm lawsuits. What that law does is it provides an immunity shield or a blanket that says you cannot
01:53
file a lawsuit against these companies for the content that exists on their sites. What these cases
02:00
are trying to do is sidestep that immunity blanket by saying this is not about the content that users are
02:06
posting to Facebook, to Instagram, Snapchat or TikTok. This is about the design of the platforms,
02:12
that these companies intentionally designed their platforms to try and addict young users and
02:19
resulting in many harms to kids from, you know, mental health harms like depression, anxiety, all the way
02:27
through to self-harm and suicidal issues. Olivia, often the markets ignore potential legal threats for big
02:36
tech companies. And it has been notable that actually a lot of companies have been trying to update the
02:41
protections for children in particular, I think of Instagram just last week. How have they set
02:46
themselves up to really tackle this in a forward going way? Yeah, as these cases have been piling up
02:52
in the courtrooms, we've seen almost every one of the defendants start to update their policies to
02:59
really try and get better, stronger safeguards for kids. And you saw that recently with what
03:05
Meta announced on Instagram. And that's certainly true. But at the same time, this litigation is not
03:12
going away. These allegations stand in court. And I think what's remarkable about the kind of position
03:18
that we're in right now, is that as of next year, we're going to see the alleged victims of social
03:24
media into the courtroom for the first time in the US. So these cases are going to be tried.
03:30
Juries are going to hear testimony from teenagers, from experts, from company insiders as well about
03:37
whether or not social media has actually harmed the mental health of youth. A lot of people have
03:43
been asking that question, but a jury will have to face that question for the first time next year.
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