Meta Faces High-Stakes Legal Battle in California

Meta is entering a critical trial in an Oakland, California, federal court, led by California Attorney General Rob Bonta alongside a coalition of 29 state attorneys general. The lawsuit alleges that Meta knowingly designed addictive, harmful features on Facebook and Instagram and misled families about their safety, violating consumer protection laws and the Children’s Online Privacy Protection Act (COPPA).

 Experts compare the case to 1990s tobacco litigation, where industry giants faced massive financial penalties and diminished influence for misleading the public about product harms.

The case follows a recent New Mexico court ruling where Meta was ordered to pay nearly $1 billion ($375M for unfair practices; $567M for an abatement fund regarding child safety) and implement stricter age verification tools.

 Plaintiffs are focusing on application design features and safety misrepresentations, bypassing Section 230 protections that usually shield tech platforms from third-party content liability.

Financial damages could range from state estimates of $200 billion up to Meta's previous worst-case estimate of $1.4 trillion.

A huge financial penalty could impact Meta's core ad business (98% of its revenue), which funds its AI initiatives (expected to cost up to $145 billion this year).

 Beyond monetary fines, the state AGs are seeking nationwide injunctive relief that could force Meta to remove addictive design features (infinite scroll, autoplay, ephemeral content, beauty filters, and engagement-optimized algorithms).

It could also force Meta to delete all personal data collected from children under 13, including any algorithms and models trained on that data.

Meta denies the allegations, arguing that the AGs' claims are unsubstantiated, the requested damages are vastly disproportionate, and features like age verification reflect industry-wide challenges rather than illegal practices. Meta plans to appeal its loss in New Mexico.