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Four states are seeking $1.4 billion in fines from Meta over allegations that the social media giant designed Facebook and Instagram to be addictive to children and withheld information from the public about the harm the apps cause to young users, Meta said in court Monday.
The lawsuit is being heard by California, Colorado, Kentucky and New Jersey. Meta disclosed the trillion-dollar figure in its response to attorney general filings on how the fines should be calculated if the states prevail in a trial that begins next month in Oakland, California.
The company said the number, which is close to Meta's estimated market capitalization of $1.5 trillion, is not supported by evidence.
“A penalty of that size has no analog in the history of strengthening consumer protection,” the company said in a filing.
JUDGE ALLOWS CLAIMS THAT META CREATED FACEBOOK AND INSTAGRAM FOR CHILDREN.
Meta said four states are seeking $1.4 billion in punitive damages from the company over allegations that the social media giant designed Facebook and Instagram to exploit children. (Getty Images / Getty Images)
Fox Business has reached out to Meta for further comment.
State records are sealed, but they said during a hearing last month that they were calculating fines by multiplying the number of violations by the amounts set by state law. They said the number of violations was based on the estimated number of new users contacted by Meta's social media platforms.
About 30 states have sued Meta in federal court, most of which say the company violated the Children's Online Privacy Protection Act by collecting data from children without proper parental consent.
The lawsuit will address all claims brought under that law, as well as allegations by the four states that the tech giant violated their state laws intended to protect consumers by misleading the public about the safety of its platforms.
Meta denied these allegations, saying that ordinary lawyers have no evidence that they misled the public about the addiction of their platform as being addicted to social media is not a normal state of mind.
The company also pushed back against allegations that it violated the Children's Online Privacy Protection Act because it markets Facebook and Instagram to a wider audience than just children under 13.
GOOGLE'S YOUTUBE ACHIEVED AMNESTY OF THE LAW THAT LISTENED TO IT AS A CHILD OF SOCIAL NEWS
About 30 states have sued Meta in federal court. (Image credit by Onur Dogman/SOPA Images/LightRocket via Getty Images/Getty Images)
Another 14 states have applied under their own laws, which will be heard in a separate case next year.
Late last month, US District Judge Yvonne Gonzalez Rogers denied Meta's request to dismiss the case, saying factual disputes remain about whether social media is addictive, whether the company falsely denies it designed it that way and whether “part” of it markets the sites to children.
“We strongly disagree with these allegations and we hope that the evidence will show our commitment to supporting young people,” said a Meta spokesperson in a statement sent to Fox Business at the time.
The trial will begin next month in Oakland, California, in a lawsuit filed by California, Colorado, Kentucky and New Jersey. (Arda Kucukkaya/Anadolu via Getty Images / Getty Images)
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Meta, Snapchat, YouTube and TikTok are facing thousands of lawsuits in federal and state courts alleging that they intentionally designed their platforms to be addictive to young users, contributing to mental health issues.
New Mexico was the first state to be sued, with a judge awarding it $375 million in March after finding that Meta misled consumers in the state.
A New Mexico judge is also considering the second part of the federal lawsuit, which asks for more damages and an injunction ordering the company to make changes to Facebook, Instagram and WhatsApp.
Reuters contributed to this report.
