Four U.S. states are seeking roughly $1.4 trillion in civil penalties from Meta over claims that Facebook and Instagram were built to addict young users. The demand, disclosed in a court filing ahead of an August 18 trial in Oakland, nearly matches the company's entire market value.
Four U.S. states are pressing Meta for about $1.4 trillion in civil penalties, arguing that Facebook and Instagram were designed to hook young users. The figure surfaced in a court filing filed ahead of an August 18 trial in Oakland, California.
A penalty that rivals the company's value
The scale of the demand stands out. Meta's market capitalization stood at roughly $1.48 trillion in early July, which puts the proposed penalties nearly level with the whole company. Meta called a sanction of that size unprecedented and said it has no analog in the history of consumer protection enforcement.
Two sets of claims, two tracks
The states are split across different claim types. California, Colorado, Kentucky and New Jersey are pursuing state consumer protection claims, while 29 states are bringing claims under the federal Children's Online Privacy Protection Act.
Meta rejects the allegations and contends the states lack evidence to support their case. Another 14 states have filed separate claims set for trial in February.
Source: GuruFocus
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