Meta Platforms faces a $1.4 trillion penalty demand from four U.S. states in an upcoming trial. California, Colorado, Kentucky, and New Jersey allege the company designed Facebook and Instagram to be addictive to minors. The states also claim Meta misled the public regarding platform safety.
A trial scheduled for August will address these claims alongside allegations from 29 other states. These additional states allege Meta violated the federal Children's Online Privacy Protection Act.
The requested penalty nearly equals Meta's total market capitalization. Meta argues the figure lacks precedent in consumer protection history.
Meta denies the allegations and maintains that social media addiction is not an established psychiatric condition. The company states it did not violate child privacy laws because it marketed its platforms to a general audience.