In April 2020, the State of Washington sued Meta, alleging violations of Washington’s Fair Campaign Practices Act (FCPA). The case centered on Meta’s failure to comply with state disclosure laws, which require companies hosting political advertisements to maintain and disclose specific records of those ads. The state argued that Meta’s actions obstructed transparency in campaign finance, a cornerstone of Washington’s electoral integrity.
What the state asked for
The state sought several remedies to address Meta’s alleged violations. This included civil penalties for each instance where Meta failed to comply with disclosure requirements, an injunction mandating Meta to adhere to the law, and reimbursement of the state’s attorney’s fees and litigation costs. The lawsuit aimed to hold Meta accountable for hindering public access to critical information about political advertising on its platform.
The court’s decision
The lower court ruled in favor of the state, finding that Meta had committed 822 violations of Washington’s disclosure law. The court imposed $24.66 million in civil penalties and $10.52 million in attorney’s fees and costs, totaling $35.18 million. Notably, the court awarded treble damages for certain claims, finding certain of Meta’s violations to be intentional. The court also issued an injunction requiring Meta to satisfy the judgment within 30 days.
Meta appealed the decision, arguing that the disclosure law violated the First Amendment, was preempted by federal law (specifically Communications Decency Act at 47 USC 230), and that the lower court had miscalculated damages. However, the appellate court upheld the lower court’s decision in full, rejecting each of Meta’s arguments.
Why this case matters:
- Reinforces Campaign Transparency: The case underscores the importance of public access to information about political advertising, a critical element of electoral transparency.
- Holds Big Tech Accountable: The decision demonstrates that even global technology companies must comply with state laws, reinforcing the limits of federal protections such as Section 230.
- Sets a Legal Standard: This ruling may inspire other states to enforce or strengthen campaign finance laws to ensure transparency in digital advertising.
State of Washington v. Meta Platforms, Inc., — P.3d —, 2024 WL 4929812 (Wash. Ct. App., Div. 1, Dec. 2, 2024).