BY MIRABEL ODETAA
Meta Platforms is facing a potential $1.4 trillion penalty after four U.S. states argued that the company should pay massive financial sanctions over allegations that it deliberately designed Facebook and Instagram to keep young users addicted while misleading the public about the platforms’ safety.
The staggering figure was disclosed in a court filing submitted by Meta on Monday as part of an ongoing legal battle in federal court. According to the company, the proposed penalty was calculated by California, Colorado, Kentucky and New Jersey as part of their arguments over how damages should be determined if they succeed at trial.
The amount is significant because it is nearly equal to Meta’s current market value, which stands at approximately $1.5 trillion. Meta strongly rejected the proposed calculation, describing it as unprecedented and unsupported by both the facts and the law.
In its filing, the company argued that consumer protection cases have never resulted in penalties anywhere close to the amount being sought. Meta also stated that the states’ calculations are based on flawed assumptions and insisted it will continue to defend itself vigorously in court.
The lawsuit is scheduled to go to trial in August in Oakland, California, where U.S. District Judge Yvonne Gonzalez Rogers will oversee the proceedings. The case focuses on allegations that Meta knowingly built features into Facebook and Instagram that encouraged excessive use among children and teenagers while publicly downplaying or denying the risks associated with its platforms.
California Attorney General Rob Bonta said the lawsuit alleges that Meta placed profits ahead of children’s well-being and contributed to a growing mental health crisis affecting young Americans. His office said it is prepared to present its case in court and hold the company accountable for its alleged conduct.
Officials representing Colorado and New Jersey declined to comment following the latest court filing, while Kentucky’s Attorney General’s office did not immediately respond to requests for comment.
Although the states’ detailed calculations remain under seal, attorneys previously explained during a June court hearing that they estimated penalties by multiplying the number of alleged legal violations by the maximum fines allowed under each state’s consumer protection laws. Those violations are based on estimates of the number of children and teenagers who were allegedly affected by Meta’s practices.
The August trial will also address claims brought under the Children’s Online Privacy Protection Act, commonly known as COPPA. A total of 29 states have sued Meta in federal court, alleging the company collected personal information from children without obtaining the legally required parental consent.
In addition to the federal privacy claims, California, Colorado, Kentucky and New Jersey accuse Meta of violating their consumer protection laws by misleading users and parents about the safety of Facebook and Instagram, particularly regarding claims that the platforms were not designed to be addictive.
Meta has consistently denied the allegations. The company argues that there is no recognized psychiatric diagnosis known as “social media addiction” and says there is no evidence it intentionally deceived consumers about the nature of its platforms. According to Meta, the attorneys general cannot prove that its public statements regarding addiction were false or misleading.
The legal challenges against Meta extend well beyond this case. Fourteen additional states have filed similar lawsuits under their own laws, with those claims expected to be heard in a separate trial scheduled for February.
Last month, Judge Gonzalez Rogers rejected Meta’s attempt to cancel the upcoming August trial. In her ruling, she concluded that important factual disputes remain unresolved, including whether Meta intentionally designed its platforms to encourage compulsive use, whether it falsely denied doing so, and whether it specifically targeted children and teenagers with certain platform features.
Meta is not the only technology company facing increasing legal scrutiny over the impact of social media on young users. Snap Inc., the parent company of Snapchat, Alphabet Inc., the parent company of YouTube, and ByteDance are also defending thousands of lawsuits filed in federal and state courts. The cases generally allege that these companies knowingly designed features that encouraged excessive engagement among children and teenagers, contributing to mental health problems.
State governments across the United States have launched numerous legal actions against the major social media companies, accusing them of prioritizing user engagement and advertising revenue over the safety of younger audiences. Some of these lawsuits have been consolidated into the federal proceedings before Judge Gonzalez Rogers, while others continue independently in state courts.
One of the earliest cases to reach a jury was filed by the state of New Mexico. In March, a jury awarded the state $375 million after determining that Meta had misled consumers. A New Mexico judge is now considering the second phase of that case, which seeks additional financial damages as well as a court order requiring Meta to make significant changes to Facebook, Instagram and WhatsApp in an effort to improve child safety and reduce potential harms for young users.
The outcome of the August trial could become one of the most consequential legal battles ever faced by a social media company. If the states prevail, the case could reshape how technology companies design and market their platforms to children while setting new standards for accountability across the social media industry.
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