Key facts
- Meta agreed to a $17.1 billion settlement with 47 U.S. states over social media addiction lawsuits.
- The settlement includes new child-safety measures such as daily time limits and muted notifications for teens.
- States alleged Meta deliberately designed its platforms to be addictive and misled users about risks.
- Meta also faces allegations of violating the Children's Online Privacy Protection Act.
- The agreement is subject to court approval and includes a payout of at least $12.1 billion over 10 years.
Meta, the parent company of Facebook and Instagram, has agreed to a substantial settlement totaling up to $17.1 billion with 47 U.S. states to resolve a lawsuit concerning social media addiction among young users. The agreement, approved by Judge Yvonne Gonzalez Rogers, aims to address allegations that Meta deliberately designed its platforms to be addictive and misled the public about the associated risks.
States accused Meta of violating consumer protection laws and the Children's Online Privacy Protection Act (COPPA) by collecting and using personal data of users under 13. While Meta denied the claims, it characterized the settlement as a significant step toward establishing new industry standards for youth safety on social media platforms.
The settlement mandates Meta to implement new child-safety measures, including a two-hour daily time limit for teens on its platforms, restrictions on nighttime usage, and muted push notifications during school hours. Additionally, the company will enhance age verification processes for users under 18 and introduce more robust parental controls, including limits on social-comparison features like 'like' counts.
The financial terms of the settlement include a minimum payout of $12.1 billion over the next decade to the coalition states. A further $5 billion could be added if other social media companies, such as TikTok and YouTube, agree to similar settlements in the future. California is expected to receive at least $1.5 billion, with other states like New Jersey, Massachusetts, Virginia, and Georgia also set to receive substantial amounts.