Meta Platforms Inc. has agreed to a landmark settlement to resolve lawsuits brought by 47 US states, the District of Columbia, and US territories. The company will pay up to $17 billion to settle claims that it designed Facebook and Instagram to deliberately addict children and teens, misled consumers about their safety, and improperly collected children's personal data.
As part of the agreement, Meta will implement sweeping changes to its platforms for teenage users nationwide in the US. These new safeguards include daily usage limits, specifically a two-hour limit across all Meta platforms, and blocks on nighttime use. The company will also prevent youths from switching off certain safety settings without parental consent.
The settlement, one of the largest in US consumer protection history, includes a $12.7 billion payment to fund youth online safety initiatives. The agreement was reached during a California federal trial, ending a case that focused on the mental health risks posed to children and could have put Mark Zuckerberg on the stand.
While Meta denies any wrongdoing, the deal represents the largest ever Big Tech settlement. Notably, the agreement stipulates that the company will only pay out in full if TikTok and YouTube make similar concessions.