Meta, the parent company of Facebook, faces potential penalties totaling $1.4 trillion in a lawsuit initiated by several U.S. states. The staggering amount stems from allegations that Meta intentionally made its platform addictive for young users.
Leading the legal action are California, Colorado, Kentucky, and New Jersey, with proceedings taking place in Oakland, California, under U.S. District Judge Yvonne Gonzalez Rogers. While the details of the states' filings remain confidential, some information emerged during a June hearing.
The $1.4 trillion figure derives from a calculation that multiplies the estimated number of violations by the fines designated by each state. This estimation is based on the number of young individuals reportedly affected by Meta's alleged harmful design. The states claim that Meta misled consumers regarding the safety of its platform.
Meta has refuted these allegations, asserting that "social media addiction" is not an officially recognized psychiatric condition. Nevertheless, Judge Rogers rejected a motion to dismiss the trial last month, indicating that it remains to be seen whether Meta’s platforms are genuinely addictive or if the company falsely denied that they were designed to attract younger users.
Meta stated in a court filing, “A sanction of that size has no analog in the history of consumer protection enforcement.” Currently, Meta's market capitalization stands at $1.52 trillion, slightly exceeding the proposed penalty.
This case is part of a broader legal conflict; a recent trial in New Mexico awarded the state $375 million in March after determining that Meta had misled consumers. New Mexico is actively pursuing additional damages and pressuring Meta to modify Facebook, Instagram, and WhatsApp.
Furthermore, 29 states are pursuing another lawsuit against Meta in federal court, alleging violations of the Children's Online Privacy Protection Act (COPPA).
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