Meta Fights $1.4 Trillion Penalty as Child Safety Trial Opens

California Attorney General Rob Bonta said Tuesday that the state's child safety case against Meta Platforms Inc. is about "civil penalties, restitution and distortion," not a damages claim. The trial opened in Oakland federal court and is expected to run six to seven weeks.

"This is not a damages case," Bonta told a press conference after the first day of arguments.

The case unites 29 state attorneys general across party lines. They accuse Meta of designing Facebook and Instagram to encourage addictive behavior in children, harming their mental health. Bonta and the attorneys general of Colorado, New Jersey and Kentucky are co-leading the proceedings.

Meta's lawyers have warned that potential penalties could reach $1.4 trillion – roughly the company's current market capitalization. State attorneys told U.S. District Judge Yvonne Gonzalez Rogers last week that $200 billion is a more likely figure. An advisory jury was seated to hear testimony, but Gonzalez Rogers will render the final verdict.

"We are not asking for $1.4 trillion dollars," Bonta said Tuesday. He described the figure as "the highest possible number that could ever be calculated based on that data" and said it was one "Meta estimated." Meta disputes that characterization. Bonta said plaintiffs will seek "a significant financial gain in the form of total existing civil penalties." He added, "The judge will exercise discretion as to what that will be."

The 2023 lawsuit alleges Meta violated the Children's Online Privacy Protection Act and various state consumer protection statutes. During opening arguments, California Deputy Attorney General Megan O'Neill told the advisory jury that Meta executives made public statements that contradicted the company's internal research on youth mental health.

"Meta, one of the largest, most powerful companies in the world, carried out a campaign to deceive, to mislead its users, legislatures, teachers and parents," O'Neill said.

Paul Schmidt, a Covington & Burling trial attorney representing Meta, disputed the notion that executives misled the public. "As you hear the evidence we will be asking you, does this prove the specific things they are claiming?" Schmidt asked the eight jurors.

If the states prevail, they want Meta to delete all personal data for children under 13, remove algorithms and machine-learning models trained on that data, and eliminate design features like infinite scroll, autoplay and beauty filters.

Meta has already lost ground on similar claims. The trial follows a court victory by New Mexico Attorney General Raúl Torrez in a separate child sexual exploitation case. In that matter, a jury ruled in March that Meta must pay $375 million in civil penalties for violating New Mexico's unfair practices act. The judge later directed Meta to pay an additional $567 million into an abatement fund.

Bonta said Meta is "first in line" among social media platforms that state attorneys general are pursuing. "Several states already have pending lawsuits now against TikTok," he said. "I'm also concerned about YouTube as well as Snap."

"Who goes first? Who goes last? Ideally, they all go at the same time," Bonta said. "That's not possible. In an ideal world, they would all commit to the same reforms and changes to all kids and keep them safe."