Meta sued in Australia class action alleging harm to children

SYDNEY

This photo shows the applications of Meta's social media platforms Facebook, Instagram and Threads on a smart phone.

Meta and its social media platforms Facebook and Instagram are facing a class action law suit in Australia over allegations that addictive design features are harming children and teenagers.

The suit filed in the Federal Court on behalf of eight applicants seeks to recover compensation for Facebook and Instagram users who were exposed to harmful content or developed an addiction to social media, law firm Minter Ellison and Litigation Lending said in a statement.

In August, Meta agreed to pay up to $17.7 billion in the United States to settle claims that it deliberately engineered its platforms to hook young users.

Meanwhile, a judge on Oct. 21 ordered Meta to pay New Mexico $25 billion after a jury found the company liable for deceiving users about privacy on Facebook, marking the biggest fine ever against the tech giant.

Facebook’s deception was intentional and executives consistently misled users about how the platform worked, state District Court Judge Francis J. Mathew wrote in his ruling.

Meta beat investor expectations for third-quarter revenue on Oct. 21 as it doubles down on a global AI race but the social media giant’s profits took a hit due to the legal settlement in the U.S.

The company reported $9.86 billion in profits from July to September, almost 50 percent below investor expectations, which Meta said was dragged down by a $9.9 billion charge related to the settlement.