Meta has agreed to pay $17 billion and implement stronger child-safety measures on its Facebook and Instagram platforms to settle claims from 47 states regarding the impact of social media on teen mental health. The settlement was announced by state attorneys general on Wednesday and resolves a significant legal case that accused Meta of designing features that contribute to addiction among young users.
Virginia Attorney General Jay Jones stated that Meta had misled the public about the harmful design features of its platforms, which have negatively affected youth mental health. The settlement aims to end these practices and provide relief to protect children from online harm. California Attorney General Rob Bonta noted that the settlement amount would be distributed over 10 years, with California receiving at least $1.5 billion, New Jersey $525 million, Massachusetts $366 million, and Virginia $353 million.
Meta expressed its commitment to enhancing safety for teens on its platforms, stating that it is working with state attorneys general to establish new industry standards. The company also encouraged competitors like TikTok and YouTube to adopt similar safety measures.
The settlement concludes an ongoing court case involving multiple states, including California, Colorado, Kentucky, and New Jersey, which had sued Meta in 2023. The lawsuit claimed that Meta's features were designed to addict children and that the company violated federal laws by collecting data on children under 13 without parental consent.
The trial began last week in Oakland, California, with U.S. District Judge Yvonne Gonzalez Rogers presiding. Adam Mosseri, head of Instagram, defended Meta's efforts regarding child safety and privacy during his testimony.
As part of the settlement, Meta will implement various safety features, including daily time limits for children on Instagram and Facebook, the elimination of push notifications during school hours, and enhanced parental controls. An independent auditor will evaluate the effectiveness of these safety measures.
The $17 billion settlement is a small portion of Meta's projected 2025 revenue of $201 billion. Meta's proposed settlement amount includes provisions for Texas, and the funds will be allocated annually over a decade to support youth online safety initiatives. However, 30% of the total amount will only be released if YouTube and TikTok implement similar safety features and contribute financially.
The federal lawsuit stemmed from a bipartisan investigation by attorneys general from several states, following reports indicating that Meta was aware of the negative effects of Instagram on teenagers, particularly regarding mental health and body image. Despite the introduction of new safety features, critics argue that these measures are insufficient and primarily serve as a facade.
Arturo Béjar, a former Meta engineering director, testified that the company prioritized profits over safety, focusing on user engagement metrics that could harm mental well-being. Meta had indicated that financial penalties in the case could reach up to $1.4 trillion, a figure deemed unlikely by legal experts.
This report includes contributions from Associated Press writers Sarah Rankin and Kaitlyn Huamani.