Meta, the owner of Facebook and Instagram, faces one of its most important legal challenges this week in California. This lawsuit stands out among thousands that the company faces regarding child safety. If successful, the states involved could demand financial penalties up to $1.4 trillion and enforce changes in how Meta operates its platforms.
The lawsuit alleges that Meta intentionally designed features to addict children and teens to its platforms, contributing to a mental health crisis among the youth. It also claims Meta collects data on children under 13 without parental consent, violating federal law. The case involves four states—California, Colorado, Kentucky, and New Jersey—as primary plaintiffs, with trials for 25 other states expected later.
Meta has used powerful technologies to engage, entice, and ultimately ensnare youth and teens, driven by profit motives.
The company disputes these claims, asserting its commitment to supporting young users through collaboration with parents, experts, and law enforcement. Meta emphasizes its research efforts to address relevant issues.
For Meta, the trial presents high stakes, especially following its profit decline last month partly due to $2.4 billion in legal expenses. Paying the demanded penalty could push Meta towards bankruptcy, given it approaches the company’s entire market value. Eric Goldman, a Santa Clara University Law expert, noted the states’ aggressive legal approach seeks to establish a significant precedent with substantial damages and structural remedies.
Legal experts consider a $1.4 trillion penalty unlikely. James Grimmelmann of Cornell Law points out that even with high potential damages, courts usually avoid imposing maximum fines. As seen in the Anthropic artificial intelligence case, actual penalties often fall short of initial claims.
This federal trial in Oakland involves more complex legal considerations than a similar case in Los Angeles earlier this year. In Oakland, state attorneys general allege Meta’s violations of privacy, false advertising, and unfair competition statutes.
While Meta has already implemented safety tools for minors, states aim to secure additional changes. For example, Instagram’s teen accounts now have default privacy settings and restrictions. Yet, states and safety advocates call for further measures. Recently, a judge in New Mexico mandated new safety steps, such as time limits and mandatory warnings, for users in that state.
Laura Marquez-Garrett from the Social Media Victims Law Center emphasized the potential for these legal actions to drive meaningful changes. She expressed hope in a discussion with advocates that these trials represent a significant opportunity to address fundamental issues.
During jury selection, many acknowledged Meta’s role in the youth mental health crisis, while also attributing responsibility to other factors, such as parental roles and global issues, including climate change.

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