Meta Reaches $18B Settlement With States in Trial Over Teen Social Media Addiction

Meta Platforms and U.S. state attorneys general have reportedly discussed settling a lawsuit alleging the company intentionally designed Facebook and Instagram to be addictive for young users, according to a Bloomberg News report on Tuesday. The discussion comes as a federal court trial in California proceeds, which is being watched closely as one of the most significant cases examining whether social media companies have harmed young users.

Just days prior to jury selection commencing on August 12, a federal appeals court ruled against halting the trial. Representatives from Meta and the attorneys general of California, Colorado, Kentucky, and New Jersey were unavailable for comment outside of regular business hours. Later that day, several state attorneys general issued advisories alerting the media about pending press conferences, including Nevada Attorney General Aaron Ford, who announced plans for a major consumer protection settlement involving a prominent technology company.

The lawsuit stems from a larger wave of legal action initiated by states, local governments, school districts, and individuals who allege that Meta and other social media companies have contributed to a nationwide youth mental health crisis. During the federal court trial, attorneys general from Colorado, California, Kentucky, and New Jersey argued that Meta violated state laws protecting consumers.

The trial also addressed claims from 29 states that Meta breached the federal Children’s Online Privacy Protection Act by gathering personal data from users it knew were minors without obtaining parental consent and using that data to train artificial intelligence models. Meta has rejected these allegations, asserting that it has made significant efforts to safeguard children on its platforms.

The company contended that it could not be accused of misleading consumers about the addictive nature of its services, arguing that "social media addiction" is not recognized as a psychiatric condition.