Meta Faces $1.4 Trillion in Damages from 4 U.S. States Over Alleged Teen Social Media Addiction

Meta Platforms is facing up to $1.4 trillion in potential fines from four U.S. states, which allege the company intentionally designed Facebook and Instagram to make teenage users addicted while concealing the platforms’ potential safety risks. The figure was revealed in a court filing submitted by Meta on July 6, responding to arguments from state attorneys general over penalty calculations. If the states prevail in court, the damages would be calculated under relevant consumer protection laws. This amount, previously undisclosed, is close to Meta’s current market value of approximately $1.5 trillion. Meta has labeled the proposed damages as 'absurd,' stating, 'Sanctions of this magnitude are unprecedented in the history of consumer protection enforcement.' The company argues the plaintiffs’ calculation lacks factual or legal basis and insists it will continue to defend itself. Spokespeople for the New Jersey Attorney General’s office declined to comment, while representatives for the other states’ attorneys general did not respond to media inquiries. The lawsuit is led by California, Colorado, Kentucky, and New Jersey, with trial scheduled for August in federal court in Oakland, California. The states claim the total penalty is derived by multiplying the number of violations—estimated based on the number of youth and young adult users affected by Meta’s platforms—by the maximum fine allowed under each state’s consumer protection laws. Meanwhile, 29 states have filed similar lawsuits in federal court, mostly alleging violations of the federal Children’s Online Privacy Protection Act (COPPA), claiming Meta collected children’s data without proper parental consent. The August trial, presided over by U.S. District Judge Yvonne Gonzalez Rogers, will cover all federal COPPA claims as well as the four states’ claims under their respective consumer protection laws, alleging Meta misled consumers about platform safety. Meta denies all allegations, arguing that prosecutors lack evidence to prove the company misled users about addiction, as 'social media addiction' is not an established medical or psychiatric condition. Therefore, the company contends that stating its platforms are not addictive does not constitute false advertising. California Attorney General Rob Bonta stated after a recent ruling that Meta 'put profits over children’s safety,' violating consumer protection laws, and pledged to 'hold Meta fully accountable' for its role in the youth mental health crisis. An additional 14 states have filed separate lawsuits under their own state laws, to be tried separately in February next year. Last month, Judge Rogers rejected Meta’s motion to dismiss the case, ruling that factual disputes remain over whether Meta’s platforms are addictive, whether the company falsely denied designing addictive features, and whether it 'partially' targeted children. Meta, along with Snapchat and its parent Snap Inc., YouTube and its parent Alphabet Inc., and TikTok and its parent ByteDance, now face thousands of lawsuits in federal and state courts across the U.S. These lawsuits allege the companies knowingly designed their platforms to be addictive to children and teens, exacerbating the youth mental health crisis. Cases have been filed by states nationwide, some consolidated under Judge Rogers’ jurisdiction and others proceeding independently in state courts. New Mexico was the first state to go to trial, where in March a jury found consumers were misled, ordering Meta to pay $375 million in damages. A second phase of the case is now underway, seeking additional damages and court-ordered changes to Meta’s Instagram, Facebook, and WhatsApp platforms.