{"id":789269,"date":"2026-07-09T13:28:15","date_gmt":"2026-07-09T13:28:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/789269\/"},"modified":"2026-07-09T13:28:15","modified_gmt":"2026-07-09T13:28:15","slug":"meta-faces-1-4-trillion-penalty-in-lawsuit-over-teen-mental-health","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/789269\/","title":{"rendered":"Meta faces $1.4 trillion penalty in lawsuit over teen mental health"},"content":{"rendered":"<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\"><a class=\"hover:text-vertical-primary underline decoration-2 underline-offset-4 decoration-vertical-primary\" href=\"https:\/\/www.dexerto.com\/entertainment\/meta-glasses-will-now-stop-recording-if-theyve-been-tampered-with-3384064\/\" rel=\"nofollow noopener\" target=\"_blank\">Meta<\/a> could be facing huge legal penalties after a coalition of US states argued the social media giant should pay up to $1.4 trillion in a lawsuit centered on teen mental health.<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">Brought forward by California, Colorado, Kentucky, and New Jersey, the lawsuit essentially accuses Meta of violating the Children\u2019s Online Privacy Protection Act (COPPA), which prohibits companies from collecting personal information from children under 13 without parental consent. <\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">If they succeed in the lawsuit and gain the full amount they have proposed, Meta says it could face penalties totalling a staggering $1.4 trillion \u2013 a sum equal to the company\u2019s valuation, which Meta has called \u201coutlandish.\u201d<\/p>\n<p>Article continues after ad<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">The states allege that Facebook and Instagram were deliberately designed to be addictive for younger users, contributing to a range of mental health issues including anxiety, <a class=\"hover:text-vertical-primary underline decoration-2 underline-offset-4 decoration-vertical-primary\" href=\"https:\/\/www.dexerto.com\/gaming\/finishing-a-video-game-can-trigger-post-game-depression-study-finds-3339309\/\" rel=\"nofollow noopener\" target=\"_blank\">depression<\/a>, self-harm, and suicide. The lawsuit also accuses Meta of misleading the public about the safety risks associated with its platforms.<\/p>\n<p>Article continues after ad<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">Meta has repeatedly denied the allegations and argues the states\u2019 proposed penalties are legally unjustified. In a <a target=\"_blank\" rel=\"noreferrer noopener nofollow\" class=\"hover:text-vertical-primary underline decoration-2 underline-offset-4 decoration-vertical-primary\" href=\"https:\/\/www.courtlistener.com\/docket\/65407433\/3237\/in-re-social-media-adolescent-addictionpersonal-injury-products-liability\/\">court filing<\/a>, the company claimed the four states were improperly double or even triple-counting teens who allegedly experienced harm by calculating penalties based on how much time users spent on Facebook and Instagram each day.<\/p>\n<p>Article continues after ad<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">\u201cThese remedies have no basis in the record in this case, are entirely unmoored from the claimed deceptive statements or unfair practices, are based on features this Court has held are immune from liability under Section 230, and violate the legal and due process limits on the scope of [Unfair Practices Act] penalties,\u201d Meta\u2019s lawyers wrote, referring to the federal law that broadly shields online platforms from liability for user generated content.<\/p>\n<p><img alt=\"Meta logo\" loading=\"lazy\" width=\"1024\" height=\"576\" decoding=\"async\" data-nimg=\"1\" class=\"cursor-zoom-in\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/Meta-logo-1024x576.jpg\"\/>Meta<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">Although the specific remedies sought by the states remain unknown, attorneys representing the plaintiffs said during a court hearing that their calculations were based on each state\u2019s laws and estimates of the number of underage users affected.<\/p>\n<p>Article continues after ad<\/p>\n<p>Article continues after ad<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">Meta also argued that the proposed financial punishment is unprecedented, writing: \u201cA sanction of that size has no analog in the history of consumer protection enforcement,\u201d and describing the states\u2019 proposed remedies as \u201cunsubstantiated\u201d and \u201coutlandish.\u201d<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">A spokesperson for the California Attorney General\u2019s Office defended the lawsuit, saying: \u201cOur lawsuit alleges Meta has prioritized profits over the safety of kids and fueled the mental health crisis we see impacting a generation of American children. The California Department of Justice looks forward to holding Meta fully accountable at trial in August.\u201d<\/p>\n<p>Article continues after ad<\/p>\n<p class=\"text-neutral-grey w-full mb-4 text-body-6 md:text-body-5 font-body dark:text-neutral-white external:text-custom-content-text external:dark:text-custom-content-text\">They\u2019re currently scheduled to face trial in federal court in Oakland on August 18, and legal experts generally expect any potential penalty to be significantly lower than the $1.4 trillion figure.<\/p>\n","protected":false},"excerpt":{"rendered":"Meta could be facing huge legal penalties after a coalition of US states argued the social media giant&hellip;\n","protected":false},"author":2,"featured_media":789270,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":["post-789269","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-au","tag-australia","tag-health","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/789269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=789269"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/789269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/789270"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=789269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=789269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=789269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}