Meta agrees to $16.7 billion settlement over youth mental-health claims
Meta will pay up to $16.7 billion and implement new safety features for its platforms after a coalition of state attorneys general sued the company over alleged harms to children.
Meta and a coalition of state attorneys general announced a settlement that requires the company to pay up to $16.7 billion and to introduce a series of safety measures on Facebook and Instagram. The consent judgment calls for daily usage limits, nighttime blocks for teenage users, stronger age-verification tools, and expanded parental-control options.
California Attorney General Rob Bonta said the agreement will make social media "less dangerous for our kids" and noted that the settlement involves a bipartisan coalition of 51 attorneys general. The filing states that each party waives the right to appeal the final judgment.
Meta said the payment will be made in annual installments over ten years and will fund youth-online-safety initiatives designated by the participating states. About 70% of the settlement amount, roughly $12.7 billion, will go to the states, with the remaining portion linked to compliance by other platforms such as YouTube and TikTok.
The settlement follows earlier state actions, including a New Mexico judgment ordering Meta to pay $567 million into an abatement fund. Shares of Meta rose 5% in pre-market trading after the news was released. The trial, held in Oakland, is the second week of a case that began with a 2023 lawsuit filed by 29 state attorneys general.