Meta Agrees To Staggering $17B Settlement Over Facebook, Instagram Youth Addiction Claims

OAKLAND, CA. (THECOUNT) — Meta Platforms, the parent company of Facebook and Instagram, has agreed to pay up to $17.1 billion and implement sweeping new protections for children and teenagers to settle claims that its platforms were deliberately designed to encourage addictive use and contributed to harm among young users.

The proposed settlement resolves claims brought by states alleging that Meta designed features on Facebook and Instagram to drive compulsive use by children and teens while misleading users, parents and the public about the risks associated with its platforms. Meta has denied wrongdoing. The settlement still requires court approval.

Under the agreement, Meta must make significant changes to the way teenagers use Facebook and Instagram. The requirements include daily usage limits, nighttime restrictions and stronger measures designed to reduce use during school hours. The company must also provide additional tools for parents and guardians to supervise their children’s use of the platforms.

Meta will also be required to implement stronger age-assurance measures designed to identify underage users and prevent children from accessing the platforms or age-restricted content. The agreement calls for additional safeguards intended to help parents protect their children online.

The settlement comes as Meta faces continuing allegations that its platforms contributed to a youth mental-health crisis. The litigation claims the company knew certain design features could encourage excessive use while continuing to employ them to increase engagement and time spent on its services.

The agreement was reached just one day after Instagram head Adam Mosseri testified in California in connection with the litigation. Meta had continued to deny the allegations while arguing that the cases could expose the company to enormous potential penalties.

The company has faced a growing series of legal challenges over the safety of Facebook and Instagram. In one New Mexico case, a jury previously ordered Meta to pay $375 million after finding the company liable for misleading consumers about safety. A judge later ordered Meta to pay an additional $567 million in that case.

Meta has also faced litigation alleging that social media use contributed to mental-health problems. In another case, a Los Angeles jury found Meta and Google liable in connection with a woman’s anxiety and depression and awarded $6 million in damages.

The settlement does not necessarily end Meta’s broader legal exposure. The company continues to face thousands of lawsuits in federal and state courts involving allegations related to youth safety, addiction and mental health.

Mark Zuckerberg founded Facebook, which later became part of Meta, and remains the company’s chief executive. Meta operates Facebook, Instagram, WhatsApp and other major technology platforms used by billions of people worldwide.

Oakland is located in Alameda County in the San Francisco Bay Area of Northern California, approximately 10 miles east of San Francisco. The federal litigation involving Meta is being handled in California.

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