Meta has agreed to settle a landmark lawsuit brought by state attorneys general over allegations that the company designed its social media platforms to addict children and harm their mental health. The settlement, announced Wednesday through court filings, requires Meta to pay up to $17 billion and implement significant changes to Facebook and Instagram.
The case was brought by 29 states, co-led by California Attorney General Rob Bonta, along with Colorado, New Jersey and Kentucky. The settlement also involves 47 states, the District of Columbia and U.S. territories, according to sources. The agreement ends a federal trial in California that had been expected to include testimony from Meta CEO Mark Zuckerberg.
Under the settlement terms, Meta must establish safeguards for teenage users nationwide. These include default daily time limits for users under 18, blocks on app access during nighttime hours and school days, and restrictions on notifications during those periods. The company must also implement enhanced age assurance measures to prevent children from accessing the platform or age-restricted content, and create tools to help parents and guardians protect their children online.
Additionally, Meta agreed to ban certain features that may contribute to mental health problems. California Attorney General Bonta specified that the company will remove plastic surgery filters from its platforms. The changes are required to be implemented within months of the settlement's approval.
The settlement resolves allegations that Meta violated federal child privacy laws and state consumer protection statutes. Meta has denied all allegations throughout the proceedings, characterizing the states' claims as seeking an "outlandish payout," according to sources.
The financial settlement is structured as payments over 10 years. California may receive between $1.5 billion to $2.1 billion from the agreement, Bonta announced. The total amount could reach $17.1 billion if other social media platforms, including TikTok and YouTube, agree to settle their own cases with the states, according to state attorneys general.
The settlement still requires approval from a judge before it becomes final. Instagram CEO Adam Mosseri testified in the California trial on Tuesday, one day before the settlement was announced.
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