Meta Loses COPPA Ruling, BIPA Advances

Meta is facing a double-barreled legal threat just as it ramps up AI features and bets big on WhatsApp in India. In Oakland, a federal judge let state attorneys general move forward with claims that Facebook and Instagram were intentionally designed to addict kids, citing Meta’s own internal documents and over 100 potentially deceptive statements. With a critical advisory jury trial set for August, Meta risks having its core engagement tactics—like time-on-platform levers—curtailed or even reengineered by court order. The cost for growing user engagement just got higher, and safety may soon outrank speed when it comes to rolling out new features.

But here’s the catch: a separate court in San Francisco just revived a class action accusing Meta of collecting users’ voiceprints without consent. Under Illinois’ strict biometric privacy law, even the capability to identify users by voice puts Meta on the hook for damages, forcing it to build new consent and data protection guardrails nationwide. That could slow down Meta’s AI push, especially for anything using voice data or generative tools, since patchwork compliance is a nonstarter for global products.

Meanwhile, Meta’s $900 million stake in Indian fintech CRED and the appointment of CRED founder Kunal Shah as WhatsApp chief signal a pivot toward utility and payments—exactly the kind of business that could cushion the blow if courts clamp down on engagement-driven growth. Featuring analysis from Law360, Reuters, and TechCrunch.

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