Meta Settles Child Harm Case For Billions

Meta agreed Wednesday to pay up to $17.1 billion to settle a landmark lawsuit brought by a bipartisan group of dozens of states alleging that Facebook and Instagram were designed in ways that exploited children and teens.  

The proposed settlement requires Meta to make sweeping changes to Facebook and Instagram, including time limits, nighttime access restrictions, stronger age-assurance measures, and expanded parental controls. The agreement still requires approval from U.S. District Judge Yvonne Gonzalez Rogers and potentially ends a federal trial that threatened the company with hundreds of billions of dollars in damages.

The settlement comes during the second week of a federal trial in Oakland, California. California, Colorado, Kentucky, and New Jersey had been leading the litigation brought by a coalition of 51 attorneys general, with the states alleging that Meta knowingly designed addictive features for young users, concealed information about the risks of its products, and collected personal information from children under 13 without parental consent. Meta denied the allegations and argued that its platforms already implemented measures to protect young users. As part of the settlement, the company did not admit wrongdoing. 

Under the agreement, children will face a combined two-hour daily limit on Facebook and Instagram, with mandatory pauses after 15 minutes of continuous use and additional interruptions after 60 and 90 minutes. Meta will also block minors from accessing the platforms between midnight and 6 a.m. and silence notifications overnight. The company also agreed to eliminate push notifications for children during school hours, from 8 a.m. to 3 p.m. on weekdays during the school year. 

Meta will also strengthen age-verification systems, increase parental controls, and add protections against content involving bullying, eating disorders, suicide, and self-harm. 

Other changes include restrictions on cosmetic surgery-related filters and visible like counts for minors. Young users will also receive the option of a non-personalized feed rather than an algorithmically personalized feed. An independent auditor will monitor implementation and effectiveness of the new measures. 

In its announcement of the settlement, Meta said the agreement includes approximately $18 billion in payments over 10 years, with participating states receiving approximately 70%, or $12.7 billion. The remaining approximately $5.3 billion would become payable if YouTube and TikTok implement comparable protections and make matching payments. Meta expects to record approximately $10 billion in legal expenses during the third quarter as a result of the agreement. 

The settlement also means Meta CEO Mark Zuckerberg will not testify in the federal trial. Zuckerberg had been expected to take the stand as the states presented evidence concerning what Meta executives knew about the effects of its products on children.

The trial already featured testimony from former Meta engineer Arturo Béjar, who claimed the company knew young users encountered harmful experiences on its apps at significant rates and that engagement remained a sole priority. Instagram chief Adam Mosseri testified Tuesday and disputed the allegations that Meta concealed information about the effectiveness of its child-safety features. 

The states had sought damages potentially reaching $200 billion, making the stakes of a full trial enormous for Meta. California Attorney General Rob Bonta called the agreement a major change in how Meta’s platforms operate, saying the company would implement the new measures within months. District of Columbia Attorney General Brian Schwalb said the settlement was a “monumental public health victory” and added that Meta was the first major social media platform to agree to the package of reforms. 

However, the settlement does not end Meta’s legal exposure over alleged harms to children. The company continues to face lawsuits from other states, families, school districts, and individual users. Meta also recently faced a nearly $1 billion penalty in New Mexico over child-safety claims, while a separate jury case involving Meta and Google resulted in $6 million in damages.