Meta reaches multi-billion dollar settlement with U.S. states over social media harms

The Meta-owned parent company of Facebook and Instagram has agreed to a multi-billion dollar settlement with numerous U.S. states to resolve a dispute over the alleged dangers of social media for children and teenagers. The digital company will pay up to $16.68 billion to the states as part of the agreement, according to court documents.

Meta also committed to nationwide changes for its younger users. These include default daily time limits and nighttime access restrictions. The settlement allows the company to avoid a trial. Twenty-nine states had accused Meta in a California federal court of intentionally designing its social networks to make minors addicted. They also claimed the company misled consumers about the safety of its platforms and illegally collected children's personal data to train AI models. Meta has denied the allegations.

According to U.S. media reports, Meta has agreed to implement several fundamental changes for underage users of its services in the U.S. The New York Times reported that Meta must prevent endless scrolling and introduce daily usage limits of two hours on its Instagram and Facebook platforms. The company must also restrict usage between midnight and 6 a.m. and mute notifications between 10 p.m. and 7 a.m. Certain filters and the display of likes will also be limited, and age verification measures will be improved.

During the legal proceedings, Instagram chief Adam Mosseri admitted that the company had concealed the introduction of new features aimed at protecting young users. The "Take a Break" feature, introduced in 2021, which reminds users after a certain time that they have been on the app for a while, was barely used by young people because it was hardly promoted. Similarly, only a few teenagers used the "Sleep Mode" introduced in 2023. The lawsuit was led by the states of California, Colorado, Kentucky, and New Jersey on behalf of a total of 29 states. They sought restrictions and drastic penalties of around $200 billion – several thousand dollars for each adolescent affected nationwide. The trial stems from the so-called "Facebook Files," released by former Facebook employee Frances Haugen in late 2021, which revealed Meta's awareness of potential harm from its platforms.

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