Meta Platforms is facing potential penalties of up to US$1.4 trillion in a high-profile lawsuit brought by four U.S. states, which accuse the company of designing Facebook and Instagram to be addictive for young users while misleading the public about the platforms' safety. The case is set to go to trial next month and could become one of the largest consumer protection actions ever pursued against a technology company.
According to a court filing, Meta disclosed that the attorneys general of California, Colorado, Kentucky, and New Jersey are seeking penalties totalling approximately US$1.4 trillion if they prevail in the lawsuit. The amount, which is close to Meta's current market valuation of around US$1.5 trillion, was revealed in the company's response to the states' proposed penalty calculations.
Meta has strongly contested the figure, describing it as legally and factually unsupported.
Trial to Examine Youth Safety Claims
The trial is scheduled to begin in August in a federal court in Oakland, California, where the states allege that Meta deliberately engineered features on Facebook and Instagram to maximize engagement among teenagers and young users while downplaying potential mental health and safety risks.
The lawsuit claims the company prioritised business growth and advertising revenue over user wellbeing by encouraging excessive platform usage among minors.
Meta has denied the allegations and said there is no evidence that it misled users regarding the safety of its platforms.
How the $1.4 Trillion Figure Was Calculated
Although the states' detailed filings remain sealed, court proceedings indicate that prosecutors calculated the proposed penalties by multiplying the estimated number of alleged violations by the maximum fines permitted under individual state consumer protection laws.
The alleged violations are based on the estimated number of teenagers and young users affected by Meta's conduct over several years.
Meta argued that the proposed calculation has no precedent in the history of consumer protection enforcement, calling it an unprecedented attempt to impose excessive financial penalties.
Broader Legal Battle Continues
The August trial is part of a wider legal challenge facing Meta across the United States. A total of 29 states have filed federal claims accusing the company of violating the Children's Online Privacy Protection Act (COPPA) by collecting personal information from children without obtaining proper parental consent.
The upcoming proceedings will address both the federal privacy allegations and the consumer protection claims brought by the four participating states.
An additional 14 states have separately filed lawsuits under their own consumer protection laws, with those claims scheduled to be heard in a separate trial in February.
Meta Rejects Addiction Allegations
Meta continues to reject accusations that its platforms are inherently addictive. The company has argued that "social media addiction" is not a formally recognised psychiatric condition, and therefore its previous statements regarding the safety of Facebook and Instagram cannot be considered misleading.
The company has also maintained that it has introduced numerous safety tools, parental controls, and age-appropriate protections aimed at improving the online experience for younger users.
The outcome of the August trial is expected to be closely watched by technology companies, regulators, and policymakers worldwide, as it could influence future approaches to platform accountability, child online safety, and digital consumer protection.
𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐛𝐲 𝐣𝐨𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 WhatsApp Channel now! 👈📲
𝑭𝒐𝒍𝒍𝒐𝒘 𝑶𝒖𝒓 𝑺𝒐𝒄𝒊𝒂𝒍 𝑴𝒆𝒅𝒊𝒂 𝑷𝒂𝒈𝒆𝐬 👉 Facebook, LinkedIn, Twitter, Instagram