Meta reaches $18 billion of settlements over children's social media addiction

Meta Platforms reached an agreement on August 26 to pay up to $18 billion in settlements to end federal and state lawsuits alleging the company designed Facebook and Instagram to addict children and misled consumers about safety. The settlement, announced Wednesday, concludes a high-profile trial that tested claims social media harms children.

While Meta will not undergo significant changes, the accord represents a broad effort to define how it serves young users. Colorado Attorney General Phil Weiser stated the relief from the settlement is meaningful and exceeds court orders. Meta agreed to limit teenagers' Facebook and Instagram use to two hours daily and block usage from midnight to 6 a.m. without parental consent.

These limits may tighten if other companies adopt similar terms. The settlement does not require Meta to abandon personalized recommendations or targeted advertising. The total payout amounts to about three to four months of the company's profit. Meta emphasized ensuring a safe and productive experience for teens on its platforms as an absolute imperative.