California: Meta USD 1.4tn (£1.1 trillion) penalty claim has emerged ahead of a major youth safety trial in California involving allegations linked to Facebook and Instagram.
Meta Platforms Inc., stated that in a court filing that four US states have sought penalties amounting to USD 1.4 trillion (£1.1 trillion). The claims allege that the company designed its platforms to engage young users excessively and misled the public about safety risks.
The figure has been disclosed in response to filings from attorneys general outlining how penalties could be calculated if the states succeed. The amount is close to Meta’s market capitalisation of about USD 1.5 trillion (£1.2 trillion). The case is scheduled for trial in August in Oakland, California.
California, Colorado, Kentucky and New Jersey have brought the claims, and representatives for the attorneys general have not responded to the filing. Court records show the states have calculated damages by multiplying alleged violations by fines allowed under state laws, with the number of violations tied to estimates of affected teens and young users.
A broader legal action has been underway, with 29 states filing suit in federal court. Most claims allege violations of the Children’s Online Privacy Protection Act, citing data collection from children without proper parental consent.
Meta has rejected the accusations, saying there is no evidence that it misled consumers about platform addictiveness and that social media addiction is not recognised as a formal psychiatric condition. A separate group of 14 states has also filed claims under their own laws, with those cases due to go to trial in February.
US District Judge Yvonne Gonzalez Rogers has allowed the case to proceed. California Attorney General Rob Bonta, stated that Meta prioritised profits over child safety and violated consumer protection laws.
Meta has also faced similar legal pressure alongside other technology companies. Snapchat, YouTube and TikTok, along with parent firms, have been involved in thousands of lawsuits across US courts over comparable allegations.
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