Meta Agrees to Pay $16.7 Billion, Limit Teen Use in US States Lawsuit

Meta, the parent company of Facebook and Instagram, has reached a settlement in a major lawsuit brought by a coalition of 47 US states. The tech giant has agreed to pay as much as $16.7 billion and to introduce significant new restrictions on how teenagers use its social media platforms.

The proposed settlement, filed in federal court, aims to resolve claims that Meta's platforms have contributed to teen user addiction and harmed young people's mental health. California Attorney General Rob Bonta stated that Meta has agreed to "massive transformations" within months to reduce harm, calling the agreement "real change, real transparency, and real enforceable protections for children."

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Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms, and will do it within months

While Meta has consistently denied any wrongdoing or admission of liability, Virginia Attorney General Jay Jones argued that the company had "intentionally deceived the public about the addictive and harmful design features" that have impacted youth mental health. He believes the settlement will "put an end to these dangerous practices and deliver meaningful relief."

The settlement mandates a series of usage limitations for users under 18. This includes a "hard cap" of two hours of daily use across Meta's platforms, with parents having the option to lift this restriction. Additionally, underage users will be suspended from the sites between midnight and 6 a.m. Meta's "School Mode" will mute notifications by default between 8 a.m. and 3 p.m., except for direct messages and account security alerts. The company will also be required to respond to 90% of teen reports on potentially harmful content within six hours and implement measures to identify and remove younger users.

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For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health