Meta Faces $17 Billion Settlement Over Teen Social Media Addiction Lawsuit

Meta, the parent company of Facebook and Instagram, is reportedly on the verge of a landmark $17 billion settlement with 29 U.S. states. The lawsuit accuses the tech giant of deliberately designing its social media platforms to hook children and harvest their data, while simultaneously misleading the public about the risks.

The trial, now in its second week, centers on allegations that Meta prioritized engagement and data collection over the well-being of its youngest users. States argue that features on platforms like Instagram were intentionally crafted to foster addiction, leading to negative impacts on adolescent mental health.

“

This is one feature with a disappointingly low usage rate which since this time has significantly improved.

Testimony from Meta executives has come under intense scrutiny. Adam Mosseri, who oversees Instagram, admitted in court that the company promoted teen safety tools, such as "Take a Break" and "Quiet Mode," without fully disclosing their disappointingly low initial usage rates. He acknowledged that while over 90% of teens who set reminders kept them on, the overall adoption rate for these features was only 1-2% of accounts initially.

“

Early test results show that once teens set the reminders, more than 90% of them keep them on.

Internal documents presented during the trial revealed that "Take a Break" achieved an adoption rate of just 1.8%, while "Quiet Mode" reached 8.7%. Francesco Fogu, Meta's director of product design at Instagram, expressed unawareness of these specific numbers when questioned, a response that appeared to surprise the presiding judge. Meta has since implemented measures like turning these features on by default for Teen Accounts, which include parental controls launched in 2024.

If Meta fails to reach a settlement, the states are seeking approximately $200 billion in penalties. The trial is expected to continue through late September, with Meta founder and CEO Mark Zuckerberg also slated to testify.

“

knew adoption rates would be lower