US states seek $1.4 trillion from Meta over alleged harms to young Instagram users

As US states seek nearly $1.4 trillion in penalties, Meta is preparing for what could become one of the most expensive legal battles in the history of the tech industry. The penalties stem from allegations that Meta deliberately designed Facebook and Instagram in ways that kept young users glued to their screens while failing to adequately warn them about the potential risks associated with prolonged use.

The dispute is set to go to trial in August in California, where attorneys general from California, Colorado, Kentucky, and New Jersey will present their case against the social media giant. The amount being sought was reportedly calculated by estimating the number of teenagers and young users allegedly affected and applying the financial penalties permitted under each state's consumer protection laws.

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While the detailed calculations remain under seal, state lawyers have previously indicated that the total figure is based on the number of alleged violations multiplied by the maximum penalties allowed under state law. Meta has consistently argued that the claims and the damages sought have no factual basis.

Trial part of a much wider legal challenge

The upcoming trial is only one part of Meta's broader legal troubles. More than two dozen states have accused the company of violating children's online privacy, while the four states involved in the August trial allege that Meta breached their consumer protection laws by misrepresenting the safety of its platforms and the risks they posed to young users.

Meta is also expected to face similar lawsuits filed by another coalition of 14 states under their respective laws. The company had attempted to halt the August trial, but that request was rejected last month.

California Attorney General Bob Bonta has accused Meta of prioritizing profits over children's well-being and vowed to hold the company "fully accountable" for its alleged role in the youth mental health crisis.