A settlement was announced in a multistate lawsuit claiming that Meta intentionally designed addictive platforms that harmed young people’s mental health.
Cutting short a landmark trial, Meta agreed to pay $17 billion and add stronger child-safety measures to its Facebook and Instagram platforms to settle claims filed by 47 states.
California Attorney General Rob Bonta said the money would be paid out over 10 years, with the state getting at least $1.5 billion if the settlement is approved by the court. New Jersey expects to receive at least $525 million. Massachusetts said it was in line for at least $366 million. Virginia’s share is worth $353 million.
“For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health,” Virginia Attorney General Jay Jones said. The settlement “will put an end to these dangerous practices and deliver meaningful relief that will protect children from online harm.”
Along with the financial payouts, the agreement included several requirements Meta must make to its apps as part of a proposed “consent judgement.”
Those changes include daily usage limits and “nighttime blocks” for teenagers who use the company’s apps, “enhanced age assurance measures” that would prevent children from using them, and the creation of additional tools for parents and guardians.
Meta said in a blog post that it was “building on our longstanding efforts to empower parents and support teens.”
“Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta,” the company said. “We want to get this right for parents and teens, and that’s why we partnered with state attorneys general to set a new industry standard.”
The settlement was reached about a week after a trial began in California, in which Instagram head Adam Mosseri was set to take the stand for a second day and Meta CEO Mark Zuckerberg was also expected to testify.
four of the states were seeking as much as $1.4 trillion in damages and changes to the company’s platforms.
In a separate case, A New Mexico court has ordered Instagram and Facebook parent company Meta to pay $567 million for an abatement fund to address harms to young people from its platforms.
In the second phase of a landmark trial, First Judicial District Judge Bryan Biedscheid said that $420 million of the total will be used for treatment services for young people. The rest will go toward awareness and prevention, screening services and other costs over the next five years.
The bench trial followed a jury’s verdict in March ordering Meta to pay $375 million for violating New Mexico’s Unfair Practices Act, and misleading the public on the risks of its sites for underage users’ mental health and risk of sexual exploitation.
As part of his ruling, Judge Biedscheid ordered Facebook and Instagram to build banner and informational screens to clearly explain its protection features, best practices and tools to address inappropriate comment, among other things, and display them regularly.
The judge also said Meta must turn off push notifications from 8 am to 3 pm on weekdays during the school year and 10 pm to 7 am on all other days for users under 18. New Mexico teen accounts also should automatically be set on private.
New Mexico Attorney General Raúl Torrez said the ruling demonstrates that companies will be held accountable when their product designs knowingly put children at risk.
“Today’s decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online,” he said in a statement.
Meta vowed to appeal the ruling. “We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content,” the company said in a statement. “We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.”