Meta reaches $16.68 billion settlement over social media harms to children

Meta Platforms has agreed to pay up to $16.68 billion in a settlement to resolve claims brought by several states across the country. The lawsuit alleged that the company designed Facebook and Instagram to be addictive for children, misled consumers about safety, and improperly collected personal data of underage users. The settlement was reached during a California federal trial involving claims from 29 states, averting a major test of accusations that social media companies harmed young users.

In addition to the financial settlement, Meta committed to implementing changes for teenage users of Facebook and Instagram worldwide, including daily usage limits and nighttime blocks. Despite agreeing to settle, Meta denied any wrongdoing. The shares of Meta rose 4.4% in pre-market trading. The claims were part of a larger wave of litigation targeting social media companies for allegedly contributing to a youth mental health crisis.

The federal trial in California covered claims from four states, while the states also alleged violations of the federal Children’s Online Privacy Protection Act.