Meta says US states are seeking $1.4 trillion in penalties in August youth safety trial
Meta said the states calculated penalties by multiplying alleged violations by fine amounts set under state law.
- On Monday, Meta Platforms disclosed that four states are seeking $1.4 trillion in penalties, alleging the company designed Facebook and Instagram to addict young users and misled the public about platform safety.
- The figure emerged ahead of an August trial in Oakland, California, where District Judge Yvonne Gonzalez Rogers will oversee claims brought by California, Colorado, Kentucky, and New Jersey regarding consumer protection violations.
- Meta called the amount unsupported by evidence, noting the penalty is nearly equivalent to its market capitalization of around $1.5 trillion and has "no analog in the history of consumer protection enforcement."
- California Attorney General Rob Bonta promised to hold the company "fully accountable," as twenty-nine states pursue lawsuits alleging Meta violated the Federal Children's Online Privacy Protection Act by collecting data without proper consent.
- Factual disputes remain over whether social media platforms were addictive, as a separate trial for fourteen states is scheduled for February, following District Judge Yvonne Gonzalez Rogers' rejection of Meta's bid to cancel proceedings.
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