Meta Platforms disclosed on July 6 that attorneys general from 29 US states are seeking up to $1.4 trillion in penalties, alleging the company made Facebook and Instagram addictive for young users and misled the public about platform safety. The amount nearly matches Meta’s current market capitalization of around $1.5 trillion, according to medianama.com.
The figure was revealed in a court filing responding to the states’ claims, which remain sealed. California, Colorado, Kentucky, and New Jersey brought specific claims that will determine the penalty amount. At a June hearing, attorneys general explained they calculated penalties by multiplying the number of violations by fines set in state law, basing the violation count on the estimated number of teens affected by Meta’s actions, medianama.com reported.
The lawsuit is consolidated in federal court and primarily alleges violations of the Children’s Online Privacy Protection Act (COPPA) for collecting children’s data without proper parental consent. Meta argued in its filing that such a penalty is unprecedented in consumer protection enforcement and unsupported by evidence. The case highlights increasing regulatory scrutiny on social media platforms’ impact on youth and data privacy.
Meta’s market capitalization stood at approximately $1.5 trillion at the time of the filing. The next court proceedings will clarify the scope of penalties and potential impact on the company’s operations, as detailed by medianama.com.