Meta settles closely watched social media addiction lawsuit for $18B

Meta Platforms Inc. has agreed to pay $18 billion to resolve a lawsuit alleging the company makes children addicted to Facebook and Instagram. The 2023 lawsuit was filed by 29 state attorneys general. Through the settlement, Meta must not only pay compensation but also enhance its age detection features, upgrade child safety measures, and restrict content for minors during specific times.

Parents will gain the ability to switch their children's accounts to an unpersonalized feed, and Meta will block users under 18 from accessing its platforms between midnight and 6 a.m. The company will also impose a daily usage limit of one hour per child for Instagram and Facebook. An independent auditor will monitor Meta's compliance with the agreement.

The settlement covers allegations of excessive data collection and misleading parents about the safety of Meta's platforms. California Attorney General Rob Bonta hailed the agreement as a significant step to make social media safer for children. Meta plans to distribute about $12.7 billion over ten years, contingent on YouTube and TikTok adopting key safety measures.