Meta reaches $16.7B settlement in youth social media harm lawsuit
The settlement was reached during a California federal trial, averting one of the highest-profile tests yet of allegations that social media companies harmed young users.
Meta Platforms agreed to a $16.7 billion settlement over the next decade in a lawsuit involving alleged harm to youth from using its social media platforms, Facebook and Instagram. The agreement, announced on Wednesday, ends a federal trial that alleged Meta designed the platforms to addict children and misled the public about their safety.
The settlement represents a sweeping effort to define how Meta serves young users, with a focus on protecting their well-being. California Attorney General Phil Weiser emphasized the importance of safeguarding children, stating the settlement's relief is "very meaningful and well beyond what any court has ordered or is likely to order."
The new rules will limit teenagers' daily usage to two hours, block usage between midnight and 6 a.m., and disable most push notifications during school hours. Meta denies wrongdoing while agreeing to the settlement. The payout represents a fraction of the company's profit and revenue. Meta's shares rose as much as 4.1%, and closed up 1.1%.
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