Four state attorneys general opened their case against Meta Platforms in federal court in Oakland on Monday, accusing the technology giant of deliberately designing Facebook and Instagram to addict young users and lying about the platforms’ safety, in a trial that could result in penalties of up to $1.4 trillion.
The trial, the largest state-led consumer protection case against a social media company, pits California, Colorado, Kentucky, and New Jersey against Meta, with U.S. District Judge Yvonne Gonzalez Rogers presiding. California Attorney General Rob Bonta said Meta “designed a dangerous product for young users, knew it to be dangerous, and lied about how dangerous it was.”
A Record-Breaking Penalty Request
The $1.4 trillion penalty figure, disclosed in a July court filing, approaches Meta’s entire market capitalization of roughly $1.5 trillion. The states argue the penalty is warranted given the scale of harm alleged, citing millions of children exposed to features designed to maximize engagement at the expense of mental health. The case combines claims under the federal Children’s Online Privacy Protection Act with state-level consumer protection statutes.
In March, a separate New Mexico jury found that Meta had misled consumers and awarded the state $375 million. That verdict added momentum to the broader multi-state litigation now unfolding in Oakland. The trial follows a ruling by Judge Gonzalez Rogers in June that rejected Meta’s bid for summary judgment, finding genuine factual disputes over whether its platforms are addictive and whether the company misrepresented their safety.
What the States Allege
The attorneys general allege that Meta deployed features such as infinite scroll, autoplay video, and push notifications specifically engineered to hook young users, while publicly assuring parents and regulators that its platforms were safe. California’s complaint cites internal company documents suggesting executives were aware of the risks to minors but prioritized engagement metrics over safety.
Twenty-nine states have filed similar federal lawsuits against Meta, primarily focused on violations of children’s privacy laws. The Oakland trial will address those claims alongside the four lead states’ broader allegations of consumer fraud. Kentucky Attorney General Russell Coleman drew a parallel to past litigation: “We did it with the Tobacco Settlement in the 1990s. We did it with the companies behind the opioid crisis. We’ll do it again with Meta.”
Meta’s Defense
Meta has denied all allegations, arguing that “social media addiction” is not an established psychiatric condition and therefore statements that its platforms were not addictive cannot be false. The company has pointed to investments in parental controls and age verification tools as evidence of its commitment to youth safety.
The case arrives as Congress continues to debate broader legislation regulating children’s online activity, and as public concern about the mental health effects of social media on young people continues to grow. A ruling against Meta could embolden regulators and lawmakers to pursue stricter rules across the industry.
Sources: California Attorney General’s Office; CNBC; Reuters; Indian Express
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