Meta says US states seek USD 1.4 trillion over Facebook and Instagram alleged harm to teens

HIGHLIGHTS

Meta has said that four US states are seeking about USD $1.4 trillion in penalties.

The states accuse Meta of making Facebook and Instagram addictive for young users and misleading the public about their safety.

The company argued that the amount has no legal basis and is not supported by the evidence

Meta says US states seek USD 1.4 trillion over Facebook and Instagram alleged harm to teens

Meta has said that four US states are seeking about USD $1.4 trillion in penalties in a lawsuit accusing the company of making Facebook and Instagram addictive for young users and misleading the public about their safety. The figure was revealed in a court filing made by Meta on Monday, reports Reuters. The company revealed the figure in its response to the attorneys general’s filing on how penalties should be calculated if the states prevail at trial.

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The lawsuit was filed by the states of California, Colorado, Kentucky and New Jersey. Meta has disagreed with the proposed penalty. The company argued that the amount has no legal basis and is not supported by the evidence. “A sanction of that size has no analog in the history of consumer protection enforcement,” Meta said in the court filing.

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The report comes at a time when Meta is also facing regulatory scrutiny in India over a new WhatsApp feature. Last week, the company announced WhatsApp usernames, a feature that will let people chat without sharing their phone numbers. 

Soon after the announcement, the Ministry of Electronics and Information Technology (MeitY) asked Meta to pause the rollout. The ministry also asked for an explanation on how the feature would prevent identity spoofing and online fraud. Officials are concerned that scammers can create usernames similar to those of real people, government offices or trusted organisations.

In response, WhatsApp has defended the feature, saying usernames will be optional and people will not be able to search for someone simply by entering a username. WhatsApp added that users will see safety information before replying to messages from unknown people. This will include the sender’s country, whether the account is newly created and whether both users are members of any common groups. The company also said well-known names and their variations have been reserved to reduce impersonation.

Meta even met MeitY officials to explain the feature. The company has until July 9 to submit its detailed response to the government.

Also read: After 3,200 Xbox layoffs, Microsoft tells employees more changes are coming  

Ayushi Jain

Ayushi Jain

Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile