The states of California, Colorado, Kentucky, and New Jersey are seeking up to $1.4 trillion in penalties against Meta, alleging that Facebook and Instagram were designed to create addiction in teens and mislead the public about the safety of using the platforms. The total penalty sought is nearly as large as Meta’s current market value of $1.56 trillion.
A trial is scheduled for August 2026 in Oakland, California, involving claims under state law and the Children’s Online Privacy Protection Act (COPPA). The high penalty amount is based on the number of teens affected multiplied by the amount of the fine under each state’s law.
Judge Yvonne Gonzalez Rogers previously denied Meta’s request to dismiss the case. Meta said there were still factual disputes about whether Meta’s platform was addictive and whether the platform targeted child users. Meta added that “social media addiction” is not a recognized psychiatric term, so the claim that the platform is not addictive cannot be considered false.
In March of this year, Meta was ordered to pay a $375 million penalty by a court in New Mexico for misleading users about the safety of children on its Facebook, Instagram and WhatsApp platforms. The jury found Meta liable for endangering children and exposing them to sexual material and contact with sexual predators.
The New Mexico court decision opens the door for other states to also drag Meta for the same offense. So far, 29 states have sued Meta in federal court and 14 other states have brought cases in their respective state courts.
Cases involving other companies such as Snapchat, YouTube, TikTok are also ongoing, with thousands of claims alleging that these platforms also cause addiction among children and adolescents.
