Meta Whistleblowers Claim Company Covered Up Risks to Children

Parents, teachers and lawmakers have all expressed serious concerns about the effect social media and other online activity has on children. Industry leaders have pledged to study the possible dangers and work on developing standards aimed at minimizing harm to young users. Perhaps no company plays a more important role in this process than Meta. The company, run by Mark Zuckerberg, owns numerous popular platforms, including Facebook, Instagram and WhatsApp. 

Meta has conducted extensive research regarding the impact its offerings have on children. Zuckerberg and other company officials have shared what they say are their findings with Congress, investors and the general public. However, multiple whistleblowers have reportedly come forward alleging that Meta leadership provided misleading information about these studies. According to these accounts, internal pressure discouraged research that might generate evidence of child harm—particularly in virtual reality. One of the whistleblowers allegedly raised concerns with a manager, but was advised not to raise the issue. 

One of the whistleblowers, Dr. Jason Sattizahn, accused the company of purposely downplaying what It found because minors are so important for driving the online engagement that results in revenue. While many businesses spin the results of their research, Sattizahn says that Meta manipulated findings and even erased data that could have threatened stock prices or profits. 

Should the allegations be substantiated, there could be several areas of legal exposure for Meta.  Statements to investors could face scrutiny under Section 10(b) of the Securities and Exchange Act if child-safety assurances were misleading or omitted material risks. Representations regarding internal controls might also lead to Sarbanes-Oxley violations.   

Under the Federal Trade Commission Act, unfair or deceptive practices are prohibited. Moreover, the Children’s Online Privacy Protection Act (COPPA) may be implicated by alleged mishandling of underage users and related data. Allegations of manipulating or erasing research data also raise spoliation and obstruction risks, particularly if the company could reasonably anticipate the information being reasonably related to existing or foreseeable litigation. 

Despite the government’s resources and reach, employees on the inside usually know first when a company is not being honest in what it says to the government and general public. If you are aware of misconduct, an experienced attorney at Kardell Law Group can advise you of your rights, the legal protections that apply to whistleblowers and possible compensation if you expose fraud against the government.