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Meta faces states seeking $1.4 trillion in penalties in youth trial
The penalty figure, disclosed in a July 6 court filing, is tied to how sanctions would be calculated if the states win, and the case is set for an August trial in Oakland.
Meta Platforms said four states are seeking $1.4 trillion in penalties over allegations that it designed Facebook and Instagram to be addictive for young users and misled the public about the platforms’ safety, according to a July 6 court filing reviewed by Insurance Journal.
Meta disclosed the number in its response to attorneys general filings about how penalties should be calculated if the states prevail, saying the requested sanction would have no analog in consumer protection enforcement history. The states have based their calculations, in part, on estimated teens and young users affected by Meta’s actions, multiplying alleged violations by fine amounts set by state law, Insurance Journal reported.
The states in this phase are California, Colorado, Kentucky, and New Jersey, and an August trial in Oakland, California is scheduled before U.S. District Judge Yvonne Gonzalez Rogers. The trial is set to address claims under the federal Children’s Online Privacy Protection Act, along with the four states’ allegations that Meta violated their state consumer protection laws by misleading them about safety.
Meta denied the allegations, arguing the attorneys general lack evidence it misled consumers about alleged addictiveness because “social media addiction” is not an established psychiatric condition, and statements about that topic could not be false. Insurance Journal also noted that 29 states have sued Meta in federal court overall, with an additional 14 states bringing claims under their own laws for a separate trial in February.