Social Media Giants Could Face Even Stiffer Penalties Under California Bill

SACRAMENTO, California — Tech giants may face steeper penalties in California in cases where their platforms are found liable for fostering anxiety, depression and other harms to children if Gov. Gavin Newsom signs a bipartisan bill that state lawmakers approved Friday.

The measure could potentially increase payouts as social media addiction lawsuits against Meta, Google, TikTok and Snapchat mount. Some of the cases, such as a landmark ruling in Los Angeles earlier this year, have already eaten into the platform-makers’ bottom lines.

It comes on the heels of a major settlement announced Wednesday that will see Meta pay U.S. states up to a total of $18 billion to resolve claims that its platforms addicted and harmed kids.

“What we see in this massive settlement that just took place the other day is that the platforms are more concerned with financial damages than they are anything else,” bill author Assemblymember Josh Lowenthal, a Democrat, said on the Assembly floor. “They will change their design when it hurts them in the wallet.”

Lowenthal’s bill, AB 2, threatens fines of up to $1 million per child harmed in cases where companies are found responsible for harms through negligent product design. The measure is technology-neutral, meaning it could be invoked in cases related to kids’ use of social media, AI chatbots or other platforms.

Penalties could be even stiffer in some cases: Another provision in the bill dictates that penalties may exceed $1 million per child if a court finds a tech giant owes significant damages to a harmed child or family. In those cases, a company would be required to pay out three times the amount of damages determined.

That poses a significant risk for the tech giants. Instagram, Facebook, YouTube, TikTok and Snapchat are already facing hundreds of cases alleging that the platforms were designed to hook kids and resulted in significant harm, despite tech executives’ insistence that they were safe. Some major national law firms, like the Florida-based Morgan & Morgan, are also seeking out additional plaintiffs who could file future cases.

In March, a Los Angeles jury ruled Google and Meta must pay $6 million in a youth addiction case viewed as a precursor to further claims. Then this month in New Mexico, a federal judge ordered Meta to pay damages totaling nearly $1 billion and add new youth safety features to its platforms as part of a separate child-harm case.

The tech industry has pushed back on Lowenthal’s proposal, arguing it infringes on free speech rights and unfairly exposes them to greater liability. Meta helped sink a similar California bill in 2024, and this summer, the company tried but failed to insert so-called safe harbor provisions that would have shielded tech giants from increased penalties if they voluntarily implemented certain child safety features.

Industry groups have also indicated they may sue on First Amendment grounds if Lowenthal’s bill becomes law.

There are some limits on Lowenthal’s plan. Recent amendments clarify that the legislation won’t apply to cases pending before January 2027, and that its rules for determining fines will sunset in 2035.

Newsom has not indicated whether he will sign or veto the measure, though he and his wife, first partner Jennifer Siebel Newsom, have made kids’ online safety a priority issue during their tenure. He has until Sept. 30 to make a decision on bills.