US States Seek Up to $1.4 Trillion from Meta in Youth Addiction Lawsuit

Meta Platforms has disclosed that attorneys general from US states are seeking penalties totaling up to $1.4 trillion. The states allege that the company intentionally designed its platforms, Facebook and Instagram, to be addictive for young users and misled the public regarding platform safety.

The figure was revealed in a court filing by Meta as a response to potential damages if the states succeed in their case. The requested penalty amount is nearly equivalent to Meta's current market capitalization, which stands at approximately $1.5 trillion.

While California, Colorado, Kentucky, and New Jersey brought the specific claims that will determine the penalty amount, the lawsuit involves a broader coalition. A total of 29 states are suing Meta, primarily alleging violations of the Children's Online Privacy Protection Act (COPPA) for improperly collecting children's data.

The trial, set to begin in Oakland, California, will address claims related to COPPA and separate allegations from four states concerning violations of state consumer protection laws. Meta has denied all allegations, arguing that "social media addiction" is not a clinically recognized condition.

California Attorney General Rob Bonta's office stated the lawsuit "alleges Meta has prioritized profits over the safety of kids and fueled the mental health crisis" affecting American children. Meta faces similar litigation from other tech companies like Snap, Alphabet (YouTube), and ByteDance (TikTok).