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Meta Platforms said four U.S. states are seeking $1.4 trillion in civil penalties in a lawsuit accusing the company of designing Facebook and Instagram to addict young users and misleading the public about the platforms' safety.
The figure, disclosed in a court filing on Monday, comes ahead of an August trial in federal court in Oakland, California, where California, Colorado, Kentucky and New Jersey are pursuing consumer protection claims against the social media giant.
Meta said the proposed penalty—roughly equivalent to its current market value of about $1.5 trillion—is unsupported by the evidence and without precedent.
"A sanction of that size has no analog in the history of consumer protection enforcement," the company said in its filing.
The penalty calculation itself has not been made public because the states' filings remain under seal. However, during a court hearing in June, attorneys representing the states said they calculated damages by multiplying the number of alleged violations by the maximum fines permitted under each state's consumer protection laws.
According to the states, the number of violations is based on the estimated number of teenagers and young users allegedly affected by Meta's conduct.
The August trial will address claims brought by 29 states under the federal Children's Online Privacy Protection Act (COPPA), along with separate consumer protection allegations from California, Colorado, Kentucky and New Jersey.
The states allege Meta misled consumers by downplaying the risks posed by Facebook and Instagram and by failing to disclose that the platforms were designed in ways that encouraged compulsive use among young users.
Meta has denied the allegations, arguing there is no evidence it misled consumers because "social media addiction" is not a formally recognized psychiatric disorder. The company contends that statements denying its platforms are addictive therefore cannot be considered false.
Last month, U.S. District Judge Yvonne Gonzalez Rogers rejected Meta's request to dismiss the case, ruling that factual disputes remain over whether the company's platforms are addictive, whether Meta knowingly misrepresented their safety, and whether the company intentionally targeted children with certain product features.
Following that ruling, California Attorney General Rob Bonta accused Meta of prioritizing profits over children's well-being and said the state would seek to hold the company fully accountable for its alleged role in the youth mental health crisis.
The litigation is part of a broader legal battle facing major social media companies. Meta, Snap, Alphabet-owned YouTube and ByteDance-owned TikTok are defending thousands of lawsuits in U.S. federal and state courts alleging they deliberately designed platform features that encourage excessive use among children and teenagers, contributing to mental health harms.
A separate trial covering claims brought by another 14 states under their respective state laws is scheduled to begin in February.
The figure, disclosed in a court filing on Monday, comes ahead of an August trial in federal court in Oakland, California, where California, Colorado, Kentucky and New Jersey are pursuing consumer protection claims against the social media giant.
Meta said the proposed penalty—roughly equivalent to its current market value of about $1.5 trillion—is unsupported by the evidence and without precedent.
"A sanction of that size has no analog in the history of consumer protection enforcement," the company said in its filing.
The penalty calculation itself has not been made public because the states' filings remain under seal. However, during a court hearing in June, attorneys representing the states said they calculated damages by multiplying the number of alleged violations by the maximum fines permitted under each state's consumer protection laws.
According to the states, the number of violations is based on the estimated number of teenagers and young users allegedly affected by Meta's conduct.
The August trial will address claims brought by 29 states under the federal Children's Online Privacy Protection Act (COPPA), along with separate consumer protection allegations from California, Colorado, Kentucky and New Jersey.
The states allege Meta misled consumers by downplaying the risks posed by Facebook and Instagram and by failing to disclose that the platforms were designed in ways that encouraged compulsive use among young users.
Meta has denied the allegations, arguing there is no evidence it misled consumers because "social media addiction" is not a formally recognized psychiatric disorder. The company contends that statements denying its platforms are addictive therefore cannot be considered false.
Last month, U.S. District Judge Yvonne Gonzalez Rogers rejected Meta's request to dismiss the case, ruling that factual disputes remain over whether the company's platforms are addictive, whether Meta knowingly misrepresented their safety, and whether the company intentionally targeted children with certain product features.
Following that ruling, California Attorney General Rob Bonta accused Meta of prioritizing profits over children's well-being and said the state would seek to hold the company fully accountable for its alleged role in the youth mental health crisis.
The litigation is part of a broader legal battle facing major social media companies. Meta, Snap, Alphabet-owned YouTube and ByteDance-owned TikTok are defending thousands of lawsuits in U.S. federal and state courts alleging they deliberately designed platform features that encourage excessive use among children and teenagers, contributing to mental health harms.
A separate trial covering claims brought by another 14 states under their respective state laws is scheduled to begin in February.
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