Meta Platforms has said several U.S. states are seeking to impose an unprecedented US$1.4 trillion penalty, accusing the company of deliberately designing Facebook and Instagram to attract young users while misleading the public about the platforms’ safety.
Meta made the disclosure in a court filing submitted on July 6, responding to the proposed penalties outlined by attorneys general from four U.S. states—California, Colorado, Kentucky, and New Jersey. The case is scheduled to go to trial in August in Oakland.
The company argued that the proposed financial penalty is unsupported by sufficient evidence and would be unlike anything previously imposed under U.S. consumer protection laws governing technology companies. Meta noted that the requested amount is close to its total market value, which stood at approximately US$1.52 trillion.
The plaintiff states say they calculated the damages by applying penalties allowed under each state’s laws and multiplying them by the number of alleged legal violations. They argue that the number of violations is based on the estimated number of children and teenagers affected by Meta’s practices.
So far, 29 U.S. states have filed lawsuits against Meta, with many alleging that the company violated laws designed to protect children online, particularly by collecting children’s personal data without obtaining parental consent.
Meta has denied the allegations, insisting that prosecutors have failed to produce evidence showing it intentionally manipulated users or designed its platforms to make children addicted.
The trial is also expected to examine broader claims that Meta, alongside platforms such as Snap Inc., YouTube, and TikTok, introduced features that encourage excessive use by children and teenagers, potentially contributing to mental health problems.
In March, a court in New Mexico ordered Meta to pay US$375 million, ruling that the company had misled users in the state.