Meta to pay historic $17.1 billion in landmark settlement over teen safety

Meta has agreed to pay up to $17.1 billion in a landmark settlement with 47 states, the District of Columbia and U.S. territories over allegations that its social media platforms (Facebook and Instagram) were intentionally designed to be addictive to minors, causing widespread mental health harm.

This marks one of the largest financial penalties ever paid by any tech company to states. Besides the penalty, Meta is instructed to implement sweeping changes to its products, including daily time limits, nighttime access restrictions, and bans on features that contribute to poor health outcomes in young users.

California Attorney General Rob Bonta, who co-led the bipartisan coalition of attorneys general, said: “We have secured a settlement with Meta that will make social media less dangerous for our kids. Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms.”

The agreement binds Meta to enforce a two-hour daily limit for teens on Facebook and Instagram combined, with mandatory “productive pauses” after 15, 60 and 90 minutes of continuous use. Other measures that the firm will implement include nighttime blocks between midnight and 6 AM, notifications during school days, and robust age verification.

Meta must pay up to $16.7 billion for the lawsuit concerning the children’s safety and another $459 million for privacy violations in the Cambridge Analytica case.

This agreement came after years of investigations into how the firm concealed its internal research, which found that young users were experiencing mental health problems such as depression, anxiety, and poor body image. This trial was ongoing for two weeks in Oakland, California.