Four US states are seeking up to $1.4 trillion in penalties from Meta over allegations that Facebook and Instagram were designed to addict young users and that the company misled the public about their safety.
California, Colorado, Kentucky and New Jersey calculated the potential penalties using the estimated number of affected young users and the fines allowed under their respective state laws, Reuters reported. The amount is close to Meta’s market value of approximately $1.5 trillion.
The figure represents the potential penalties the states could pursue if they win their cases. A court has not ordered Meta to pay the amount.
Meta disclosed the $1.4 trillion calculation in a court filing responding to the state attorneys general’s proposals for determining penalties.
The company called the amount unsupported by evidence and argued that no consumer-protection case had ever resulted in a comparable sanction.
The states’ detailed filings remain sealed. However, their lawyers said at a June hearing that they calculated the amount by multiplying the estimated number of violations by the financial penalties available under state law.
The four state cases will be heard during a trial scheduled to begin in August in Oakland, California, before US District Judge Yvonne Gonzalez Rogers.
The trial will also cover claims brought by 29 states against Meta. Most of those states accuse the company of violating the federal Children’s Online Privacy Protection Act by collecting children’s data without the required parental consent.
Another 14 states have filed claims under their own laws. Those cases are scheduled for a separate trial in February 2027.
Judge Rogers previously rejected Meta’s attempt to prevent the August trial. She found that factual disputes remained over whether Meta’s platforms were addictive, whether the company falsely denied designing them that way and whether the services were partly directed at children.
Meta has denied misleading consumers and argues that social media addiction is not an officially established psychiatric condition.
Instagram head Adam Mosseri previously compared excessive social media use to becoming strongly absorbed in a television series.
The American Psychiatric Association says social media addiction is not currently included as a diagnosis in the DSM-5-TR. However, it also recognises that problematic and compulsive social media use can disrupt daily functioning and personal relationships.
The upcoming trial follows a major loss for Meta in New Mexico.
A jury ordered the company to pay $375 million in March after finding that it violated state consumer-protection law and misled residents about the safety of Facebook, Instagram and WhatsApp.
The jury found 75,000 violations and imposed a penalty of $5,000 for each one. Meta said it disagreed with the decision and planned to appeal.
A judge is also considering additional demands from New Mexico, including further financial penalties and orders requiring Meta to change parts of its platforms.
Meta and several other social media companies also agreed to pay approximately $27 million to settle a lawsuit filed by a Kentucky school district.
The district accused Meta, TikTok, Snap and YouTube of contributing to a mental-health crisis among students through allegedly addictive platform designs. Meta contributed $9 million to the combined settlement.
Meta now faces thousands of lawsuits in federal and state courts over claims that its platforms and engagement features harmed children and teenagers.
The $1.4 trillion figure is not a final fine, but it shows the unprecedented financial exposure Meta could face if the four states successfully prove their allegations.
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