Key insights
- The Supreme Court declined to hear Meta's appeal in a lawsuit filed by Vermont over Instagram's alleged addictive design for young users. This decision allows the lawsuit to proceed, adding to the legal challenges Meta faces regarding social media's impact on youth mental health. While negative for Meta, the immediate market impact on US equities is limited.
Investing.com -- The U.S. Supreme Court declined on Tuesday to hear Meta Platforms’ appeal in a lawsuit filed by Vermont’s attorney general over allegations that Instagram was designed to be addictive to young users.
The justices rejected Meta’s challenge to a lower court decision allowing the case to proceed. Meta had argued that Vermont courts lack jurisdiction over the matter.
Vermont Attorney General Charity Clark filed the lawsuit in 2023 in state court under Vermont’s consumer protection law. The suit claims Instagram was designed to exploit teenagers’ developing brains to foster addiction and increase advertising revenue, including advertisements targeting Vermont markets and teens. The state also alleges Meta misled consumers about the product’s safety.
Meta contended that Vermont did not allege the app or its features were designed in the state, nor that any misrepresentations about Instagram’s safety or addictiveness occurred in Vermont. In February, Meta CEO Mark Zuckerberg testified at a youth social media addiction trial in California, denying that Instagram targets children.
The Vermont lawsuit alleges Instagram studied teens’ neurological, cognitive and psychological vulnerabilities to encourage compulsive and excessive app use, causing harm to mental health.
The case represents part of broader litigation nationwide by individuals, municipalities, states and school districts addressing social media’s effects on young users, with lawsuits examining how companies designed and operated their platforms.
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