Meta faces $1.4T penalty claim in youth safety case
- Meta Platforms (NASDAQ:META) said four states are seeking up to $1.4 trillion in penalties over youth safety allegations.
- The company argued that the requested amount is unsupported and has no comparable precedent in consumer protection cases.
- The claims will be addressed in an August trial involving allegations about Facebook and Instagram’s impact on young users.
Meta Platforms (NASDAQ:META) said in a court filing that four U.S. states are seeking as much as $1.4 trillion in penalties over allegations that Facebook and Instagram were designed to encourage excessive use among young users and that the company misled the public about platform safety.
The penalty figure was submitted in Meta’s response to state attorneys general filings ahead of an August trial in Oakland, California.
Meta said the proposed penalty amount is unsupported by evidence and would have no comparable example in consumer protection enforcement.
The claims are being brought by California, Colorado, Kentucky, and New Jersey, which said penalties should be calculated based on the number of alleged violations and state law fine amounts.
Meta has denied the allegations, arguing that the states have not shown the company made false statements about platform addictiveness or intentionally targeted children.
The August trial will address claims under federal and state consumer protection laws, while additional state cases are scheduled for separate proceedings.
