NYC says mental health impact on teens cost city $100 million in new social media lawsuit
New York City has filed a lawsuit against several social media giants, claiming they exploit the health of young users.
TheStreet's Sara Silverstein brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Thursday, February 15.
Full Video Transcript Below:
SARA SILVERSTEIN: I'm Sara Silverstein, reporting from the New York Stock Exchange. Here's what we're watching on TheStreet today.
Investors are reacting to some economic data — retail sales fell 0.8 percent in January, more than the 0.3 percent expected. Markets are also digesting weekly jobless claims – 212,000 Americans filed for unemployment last week, above expectations of 219,000.
Investors are looking ahead to further inflation data out Friday — the Producer Price Index– which measures the price wholesalers pay for goods and services. This report will be key when the Federal Reserve makes its next interest rate decision in March.
In other news - the biggest city in the U.S is suing some of the biggest names in tech. The City of New York has filed a lawsuit against TikTok, Instagram, Facebook, Snapchat, and YouTube - saying the social media platforms are designed to exploit younger users. The lawsuit also claims the platforms cost the city $100 million in mental health programs and services each year.
Of the suit, New York City Mayor Adams said, "NYC is the first major American city to take combined steps of this magnitude and call out the danger of social media clearly and directly just as the Surgeon General did with tobacco and guns."
The lawsuit alleges the social media platforms are responsible for an increase in depression and suicide among young people - and they impose a "large burden on cities, school districts, and public hospital systems that provide mental health services to youth."
However, New York has an uphill battle ahead of it. A nearly 30-year-old law, labeled Section 230, states that tech companies aren't responsible for what their users post to platforms - making it hard to successfully sue social media companies.
That'll do it for your daily briefing. From the New York Stock Exchange, I'm Sara Silverstein with TheStreet.
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