Meta Platforms has revealed that four U.S. states are seeking nearly $1.4 trillion in penalties over allegations that Facebook and Instagram were intentionally designed to addict young users while misleading the public about the safety of the platforms. The figure, disclosed in a court filing ahead of an August trial in Oakland, California, is close to the company’s current market value. The lawsuit, led by California, Colorado, Kentucky and New Jersey, alleges Meta violated state consumer protection laws by prioritizing profits over the well-being of children and teenagers.
Meta has strongly denied the allegations, calling the proposed penalty unprecedented and unsupported by evidence. The company argues that “social media addiction” is not an officially recognized psychiatric condition and therefore denies misleading consumers about the addictiveness of its platforms. The states, however, have calculated the proposed penalties by estimating the number of affected young users and applying fines permitted under state laws. A federal trial in August will also examine claims under the Children’s Online Privacy Protection Act involving 29 states.
The case is part of a broader legal battle involving Meta and other major social media companies, including Snapchat, YouTube and TikTok, over claims that their platforms intentionally use addictive features that contribute to a youth mental health crisis. Last month, the court rejected Meta’s attempt to dismiss the trial, ruling that key factual disputes must be resolved in court. Meanwhile, New Mexico recently secured a $375 million jury verdict against Meta in a related case, with further proceedings underway to seek additional damages and platform reforms.
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