Meta has disclosed that four U.S. states are seeking approximately $1.4 trillion in penalties in a youth safety lawsuit targeting Facebook and Instagram. The company revealed the figure in a court filing on Monday, ahead of a trial scheduled for August in Oakland, California.
The case involves California, Colorado, Kentucky, and New Jersey, which accuse Meta of designing its platforms to maximize engagement among young users and of misleading the public about safety measures. Meta has denied these allegations and questioned the penalty demand, calling it unprecedented.
Meta Questions $1.4 Trillion Penalty Claim
According to Meta, the proposed penalty figure emerged from filings by the attorneys general outlining how penalties should be calculated if the states prevail at trial. The company noted that the amount is close to its market value and argued that the states have not provided evidence to support such a sum.
In its filing, Meta stated, “A sanction of that size has no analog in the history of consumer protection enforcement.” The company also asserted that the figure lacks a proper legal basis under the facts of the case.
The states’ filings are sealed, but they explained part of their methodology at a June court hearing. They indicated that they calculated the number of alleged violations and multiplied that by fine amounts permitted under state consumer laws. The violations were based on estimates of teens and young users allegedly affected by Meta’s conduct. Representatives for the attorneys general did not immediately comment after Meta disclosed the figure.
Facebook and Instagram Face Youth Safety Trial
The August trial will take place before U.S. District Judge Yvonne Gonzalez Rogers. It will cover claims under the federal Children’s Online Privacy Protection Act (COPPA) as well as consumer protection claims from the four states.
Twenty-nine states have sued Meta in federal court, with many alleging that the company collected data from children without proper parental consent. The four states also claim that Meta misled the public about whether Facebook and Instagram were safe for young users.
Meta rejects this position. The company argues that the attorneys general have not shown that it misled users about platform addiction. It also contends that “social media addiction” is not an established psychiatric condition, so its statements about addiction cannot be false.
Judge Rogers recently denied Meta’s request to cancel the trial, stating that factual disputes remain, including whether the platforms were addictive, whether Meta denied designing them that way, and whether the company partly directed the platforms at children.
Meta Also Faces WhatsApp Scrutiny in India
Separately, Meta is facing a regulatory issue in India over a new WhatsApp usernames feature. The feature would allow users to chat without sharing phone numbers. India’s Ministry of Electronics and Information Technology has asked Meta to pause the rollout and explain its safety controls.
Officials have raised concerns that usernames could be used for spoofing or fraud, with scammers potentially copying names linked to real people, government offices, or trusted organizations. Meta has until July 9 to send a detailed response.
WhatsApp has defended the feature, stating that usernames will be optional and that users will not be searchable only through a username. The company also says users will see safety information before replying to unknown accounts, including the sender’s country and whether the account is new.
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