Snap Faces Legal Challenge Over Youth Safety and Data Practices

Snap Inc., the parent company of social media platform Snapchat, is confronting a significant new legal challenge. The company has been sued by Texas Attorney General Ken Paxton, who filed the complaint yesterday. The lawsuit alleges the tech firm engaged in deceptive business practices concerning minor safety and employed manipulative platform design.

The legal action centers on several key accusations. Primarily, the Attorney General claims Snap falsely marketed its platform as safe for children. Despite carrying a "12+" age rating in app stores, the suit contends that minors regularly encounter inappropriate content, including material related to drug use and sexual imagery.

A major focus is also on platform features like "Snapstreaks," which are accused of being deliberately engineered to foster addictive behavior among young users. Furthermore, the complaint includes a serious data privacy allegation, stating that Snap violated the state's SCOPE Act by sharing or selling personal data from minors without obtaining parental consent.

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The financial stakes are substantial. Paxton is seeking civil penalties of up to $10,000 for each violation of the Texas Deceptive Trade Practices Act. The lawsuit also aims to secure a court injunction that would prohibit Snap from promoting its application to children.

Company Defense and Broader Context

Snap has issued a firm rebuttal to the allegations. A company spokesperson stated that the lawsuit fundamentally misrepresents how the platform operates. In its defense, Snap points to its comprehensive safety tools, user tutorials, and ongoing investments in privacy protection. This is not Texas's first action of this kind; the state has previously pursued similar litigation against other social media companies.

This legal pressure arrives at a pivotal moment for Snap's strategic direction. The company recently reported its 2025 financial results on February 4th and is currently emphasizing the development of its new subsidiary, Specs Inc. The market launch of Specs Inc.'s augmented reality glasses is scheduled for the second half of 2026. Investors are now left to gauge the potential impact of the Texas proceedings on this hardware initiative and the core advertising revenue business.