Meta agrees to pay up to $17.1 billion to settle state lawsuits over social-media addiction
Meta will pay up to $17.1 billion and implement new child-safety features after 47 states sued the company for allegedly designing addictive platforms and violating child-privacy laws.
Meta, the owner of Facebook and Instagram, reached a settlement on Wednesday with 47 U.S. states that had sued the company over claims that its platforms are designed to be addictive and that it violated the Children’s Online Privacy Protection Act. The agreement, approved by Judge Yvonne Gonzalez Rogers, requires Meta to pay at least $12.1 billion over the next ten years, with an additional $5 billion contingent on other social-media firms reaching similar deals. A separate settlement with Texas brings the total potential payout to roughly $18 billion.
Under the deal, Meta will introduce a series of child-safety measures, including a two-hour daily usage limit for teens, night-time restrictions on Facebook and Instagram, muted push notifications during school hours, enhanced age-verification processes, and stricter parental controls. California’s attorney general said the state could receive at least $1.5 billion, while other states such as New Jersey, Massachusetts, Virginia and Georgia expect payouts ranging from $100 million to $525 million.
"Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months," said California Attorney General Rob Bonta.
"We just announced an agreement with a bipartisan group of 52 Attorneys General across U.S. states, territories and the District of Columbia to set a new industry standard, building on our longstanding efforts to empower parents and support teens," a Meta spokesperson said in an email.
"With significant new resources for our communities and comprehensive restrictions on Meta's platforms for young people, we are taking a major step towards breaking the cycle of social media addiction," said New York Attorney General Letitia James.
State officials said the funds will be used to expand mental-health services for young people and to educate the public about the risks associated with social-media use. Critics, including former Meta engineers, have questioned the effectiveness of the new safeguards, arguing that prior safety features have had limited impact.