Four States Seek $1.4 Trillion in Penalties, Meta Says
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Four U.S. states, including California, Colorado, Kentucky, and New Jersey, are suing Meta. They are appealing to the court to make Meta pay $1.4 trillion in Penalties if they win the case.
The case is brought to the attorneys general filings on how penalties should be calculated if the states win at the trial set to begin next month in Oakland, California.
The states claim that Meta deliberately makes Facebook and Instagram addictive for children and teenagers, knowing this could harm the mental health of children, and still did not tell the full truth about these risks.
However, Meta denies the accusation, saying that they do not make its apps addictive on purpose. Though there is no evidence to prove the claims. Meta also says the penalty is too high and lacks legal basis.
The state filings are sealed, but they said during last month's hearing that they were calculating the penalties by multiplying that number by the fine allowed under each state’s law. They also stated that the number of violations is estimated based on the count of young users affected by Meta's social media platforms.
Additionally, nearly 30 states have sued Meta in federal court, with most alleging that the company violated the federal Children's Online Privacy Protection Act by collecting data from children without proper parental consent.
The trial will consider all claims brought under that law, along with four states' allegations that Meta violated their state laws aimed at protecting consumers by misleading the public about the safety of their platforms.
Also read: US juries rule against Meta and Google testing legal protections
Meta has responded to the accusations, saying that it violated the Children's Online Privacy Protection Act by marketing Facebook and Instagram to a broad audience, not just to children under 13.
Another 14 states have brought claims under their own laws, which will be heard at a separate trial next year.
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