Home NATIONAL NEWS Meta faces $1.4 trillion penalty over alleged harms to young Instagram users

Meta faces $1.4 trillion penalty over alleged harms to young Instagram users

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Source : INDIA TODAY NEWS

Meta is preparing for a courtroom battle that could become one of the most expensive legal fights in the history of the tech industry. The company has revealed that four US states are seeking nearly $1.4 trillion (around Rs 120 lakh crore) in penalties, alleging that Meta deliberately built Facebook and Instagram in ways that kept young users glued to their screens while failing to be honest about the risks.

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Reuters reported that the dispute will head to trial in August in California, where the states of California, Colorado, Kentucky and New Jersey will present their case against the social media giant. The amount being sought is extraordinary, coming close to Meta’s market valuation of roughly $1.5 trillion and suggests how seriously regulators are treating allegations related to children’s online safety.

According to court documents filed by Meta, the four states arrived at the massive figure by estimating how many teenagers and young users were affected and then applying financial penalties permitted under their respective consumer protection laws. While the detailed calculations remain under seal, state lawyers had earlier indicated that the total was based on the number of alleged violations multiplied by penalties allowed under state law. Meta, however, argues that the demand has no legal or factual basis.

“A sanction of that size has no analog in the history of consumer protection enforcement,” the company said in its filing.

The company has also pushed back against the central allegation that its platforms are addictive. In its defence, Meta argues that “social media addiction” is not recognised as an established psychiatric condition, meaning its previous public statements denying that Facebook and Instagram are addictive could not have been misleading.

The upcoming trial is part of a much wider legal challenge facing the company. More than two dozen US states have accused Meta of violating the Children’s Online Privacy Protection Act by collecting children’s data without proper parental permission. The August proceedings will cover those federal privacy claims as well as accusations from the four states that Meta breached their consumer protection laws by allegedly misrepresenting the safety of its platforms. Another group of 14 states has also filed similar lawsuits under their own laws. Those cases are expected to be heard separately next year.

Meta had attempted to stop the August trial from moving forward, but the request was rejected last month. The judge overseeing the case said there were still important factual questions that need to be examined in court, including whether Meta intentionally designed features that encourage excessive use, whether it falsely denied doing so, and whether some of those features were aimed at younger users. Following that decision, California Attorney General Rob Bonta accused the company of prioritising profits over children’s well-being and pledged to hold Meta “fully accountable” for its alleged role in the youth mental health crisis.

The debate is no longer limited to Instagram

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The case against Meta also shows a big change in the technology industry. Until recently, concerns around digital addiction largely focused on social media apps. Today, similar questions are beginning to surround artificial intelligence products as they become more conversational and emotionally engaging.

Just last month, Florida Attorney General James Uthmeier filed a lawsuit against OpenAI and CEO Sam Altman, accusing the company of overlooking safety concerns while rapidly expanding ChatGPT. Florida claims OpenAI released the chatbot without sufficient safeguards and failed to adequately address risks ranging from harmful advice to excessive dependence among younger users. OpenAI has denied wrongdoing and says it continues to improve safety measures.

The discussion has also moved beyond legal complaints. Over the past few months, several reports have revealed people developing deep emotional bonds with AI chatbots. One widely discussed case involved a 66-year-old woman who said she gradually fell in love with a chatbot after initially using ChatGPT for practical tasks like gardening advice, tax help and writing a dating profile. Another report profiled users who described AI companions as supportive partners during periods of loneliness, illness and personal hardship.

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While many users say they understand these systems are not human, psychologists have raised concerns that highly personalised conversations could increase emotional dependence if people begin replacing real-world relationships with AI interactions.

OpenAI says it is aware of these risks. The company has introduced new guidance aimed at encouraging healthier interactions and says its models are designed to make it clear that users are communicating with artificial intelligence, not a real person.

– Ends

Published By:

Ankita Garg

Published On:

Jul 7, 2026 13:33 IST

SOURCE :- TIMES OF INDIA