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

Meta Platforms and state attorneys general have discussed a possible mid-trial settlement in a major case accusing the company of intentionally designing Facebook and Instagram to addict teenagers, according to sources familiar with the matter. The trial, now in its second week in federal court in Oakland, California, puts Meta at risk of facing significant financial penalties and mandatory changes to its platform operations from the top legal officers of 29 states.

The states allege violations of both state consumer protection and federal privacy laws, which could result in substantial fines when multiplied by millions of young users. Meta denies the allegations and claims the attorneys general are seeking unreasonable design changes and an "outlandish payout." A settlement would likely result in a much smaller sum.

During the trial, Meta's head of Instagram and various current and former Meta employees testified about the platform's design and the impact on teen users. The case also alleges that Meta misled consumers about safety features and collected data from users under 13 years old, violating the federal Children’s Online Privacy Protection Act.

The trial highlights the global backlash against social media companies for allegedly profiting at the expense of young users, as many studies show excessive screen time is unhealthy for teenagers.