Meta Faces $1.4 Trillion Penalty Demand Over Youth Addiction Claims

Meta Platforms said in a court filing on Monday that four U.S. states are seeking $1.4 trillion in penalties, alleging the company deliberately designed Facebook and Instagram to keep young users addicted while misleading the public about the platforms’ safety.

The figure was disclosed in Meta’s response to filings by the state attorneys general outlining how potential penalties should be calculated if they succeed at trial.

The number, which has not previously been disclosed and is close to Meta’s market capitalization of around $1.5 trillion, comes ahead of an August trial in Oakland, California over the claims brought by California, Colorado, Kentucky and New Jersey against the company.

Meta said the amount was unsupported by the evidence.

Tallying Damages

The lawsuits, brought by 29 U.S. states, accuse Meta of violating the federal Children’s Online Privacy Protection Act by collecting children’s data without proper parental consent and misleading consumers about the safety and addictiveness of Facebook and Instagram. Four states are also pursuing claims under their consumer protection laws, while another 14 states will have their claims heard separately next year.

Meta Denies Addiction Claims

Meta denies the allegations, arguing there is no evidence it misled users and that “social media addiction” is not a recognised psychiatric condition. Last month, U.S. District Judge Yvonne Gonzalez Rogers allowed the case to proceed, citing unresolved factual disputes over whether Meta’s platforms were designed to be addictive and targeted at children.

The case is part of a broader wave of litigation against Meta and other social media companies over the alleged impact of their platforms on children’s mental health. Earlier this year, Rob Bonta accused Meta of prioritising profits over child safety, while a jury in New Mexico awarded the state $375 million in a related case after finding the company had misled consumers.

(With inputs from Reuters)