Meta Platforms has disclosed that US state attorneys-general are seeking up to $1.4 trillion in penalties, alleging the company intentionally made Facebook and Instagram addictive for young users and misled the public about platform safety, according to an Indian Express report. The amount revealed in a July 6 Meta court filing is nearly equal to its current market capitalisation of around $1.5 trillion.
The number and where it came from?
Meta disclosed the sum in response to attorneys general’s filings regarding potential damages if the states succeed at trial. The figure had not been previously released. In its filing, Meta argued that such a penalty is unprecedented in consumer protection enforcement and unsupported by evidence.
The states’ filings remain sealed. At a June court hearing, the attorneys general explained that they calculated penalties by multiplying the number of violations by the fines set in state law. They based the violation count on the estimated number of teens and young users affected by Meta’s actions.
Who is suing and over what?
California, Colorado, Kentucky, and New Jersey brought the specific claims that will determine the penalty amount. However, the case is broader: a total of 29 states have sued Meta in federal court, with most alleging violations of the federal Children’s Online Privacy Protection Act (COPPA) for collecting children’s data without proper parental consent. The litigation is consolidated in the Northern District of California under the title In re Social Media Adolescent Addiction/Personal Injury Product Liability Litigation.
What will the August trial cover?
The trial will begin in Oakland, California, before U.S. District Judge Yvonne Gonzalez Rogers. It will address all claims under COPPA, as well as four states’ separate allegations that Meta violated state consumer protection laws by misleading the public about platform safety.
Last month, Judge Rogers denied Meta’s request to dismiss the case before trial. She found that genuine factual disputes remain regarding whether
- Meta’s platforms were designed to be addictive
- The company falsely denied this
- It partially targeted children.
Meta’s defense
Meta has denied wrongdoing throughout. The company has argued that attorneys general have not produced evidence that it misled consumers, contending, in part, that “social media addiction” is not an established clinical or scientific diagnosis—a position it has used to challenge the core premise of the states’ case.
What are the states saying?
California Attorney General Rob Bonta’s office was the only one of the four plaintiff states to respond publicly to Meta’s filing. A spokesperson stated the lawsuit “alleges Meta has prioritized profits over the safety of kids and fueled the mental health crisis” affecting American children and confirmed that California’s Department of Justice will pursue accountability at…
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