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Meta is tobacco, Trump loves French oil, FedEx’s fake tariffs, “blame AI” CEOs, Larry Fink’s anxietywash

Meta is tobacco, Trump loves French oil, FedEx’s fake tariffs, “blame AI” CEOs, Larry Fink’s anxietywash

Published 6 months, 2 weeks ago
Description

Story of the Week (DR):

Meta and YouTube Found Negligent in Landmark Social Media Addiction Case: A jury found the companies harmed a young user with design features that were addictive and led to her mental health distress. DR

Historic Financial Penalties

New Mexico: A jury ordered Meta to pay $375M in civil penalties ($5,000 per violation) for misleading the public about child safety.

Los Angeles: In the first social media addiction trial of its kind, the jury awarded $6M in total damages (compensatory and punitive) to a single 20-year-old plaintiff, with Meta ordered to pay 70% and YouTube 30%.

Section 230 "Immunity" is Cracking

These trials successfully sidestepped Section 230 by focusing on product design (like infinite scroll and autoplay) rather than the content itself. The juries ruled that the "addictive" nature of the apps was a design defect, not a speech issue.

Direct Liability for "Addictive" Features

For the first time, a jury found that features like infinite scrolling, notifications, and video autoplay were intentionally designed to "hook" young users.

In the Los Angeles "KGM" trial, the jury found both Meta and YouTube negligent for creating products that they knew would harm children’s mental health while failing to provide adequate warnings to parents.

Evidence of "Profits Over Safety"

The trials featured internal documents and depositions from Mark Zuckerberg and Instagram head Adam Mosseri. The evidence convinced jurors that executives were warned by their own employees about risks to children—including sexual exploitation and mental health "problematic use"—but chose to prioritize engagement and profits over implementing safety guardrails.

A "Big Tobacco" Moment for Tech

Legal experts are comparing these verdicts to the 1990s lawsuits against the tobacco industry. Because the California trial was a "bellwether" (a test case), the win for the plaintiff opens the floodgates for thousands of similar pending lawsuits from families and school districts. It signals that social media companies can now be sued for the health consequences of their platforms, just like cigarette manufacturers.

Elon Sux 2:

Elon Musk loses big in court; X boycott perfectly legal: X admonished for “fishing expedition” as judge dismisses ad boycott lawsuit.

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