Meta Says States Seek $1.4 Trillion in Penalties Over Teen Social Media Addiction Lawsuit - EconoTimes
Summary
Four U.S. states—California, Colorado, Kentucky, and New Jersey—are pursuing a lawsuit that seeks approximately $1.4 trillion in penalties against Meta Platforms, alleging the company intentionally designed Facebook and Instagram to be addictive for young users and misled the public about the platforms’ safety. The states’ court filing, submitted ahead of an August trial in Oakland, California, details a calculation method that multiplies the number of alleged violations by the maximum penalties allowed under state law; Meta argues the figure is unsupported by evidence and unprecedented in consumer‑protection enforcement. The August trial will also address claims from 29 states under the federal Children’s Online Privacy Protection Act (COPPA), which accuses Meta of collecting children’s personal data without proper parental consent. Meta denies all allegations, asserting there is no evidence it deceived consumers about addiction risks and that addiction is not a formally recognized psychiatric disorder. A U.S. District Judge rejected Meta’s request to dismiss the case, leaving key factual questions—whether the platforms were intentionally designed to be addictive, whether Meta misrepresented their risks, and whether the company specifically targeted children—open for determination. The lawsuit is part of a broader wave of legal action against major social media companies, including Snap, Alphabet’s YouTube, and TikTok parent ByteDance, over allegations that addictive platform features contribute to a youth mental‑health crisis. In a related case, New Mexico secured a $375 million jury verdict against Meta earlier this year, and a judge continues to consider additional damages and potential changes to Facebook, Instagram, and WhatsApp.
(Source:Econotimes)