Meta Platforms has agreed to a settlement of a major lawsuit in the United States accusing the company of designing Facebook and Instagram in ways that could make children addicted to the platforms, while also collecting children’s personal data and misleading users about safety.
Under the agreement, Meta could pay up to $16.68 billion over 10 years to resolve claims brought by a coalition representing 29 US states and territories. The settlement still requires final approval from the court.
Meta has also agreed to introduce significant changes to Facebook and Instagram, particularly for users under 18. These measures include:
A two-hour daily usage limit for users under 18, removable only by a parent.
Overnight blocks restricting access during critical nighttime hours.
Restrictions on notifications during school hours.
A ban on cosmetic and plastic-surgery filters for teenagers.
Hiding likes and reaction counts from users under 18.
Giving teenagers the option of a non-personalised feed that does not use algorithms to recommend content.
Identifying and removing accounts belonging to children under 13.
California Attorney General Rob Bonta said the agreement would bring major changes designed to reduce the risks posed by social media to young users.
Meta, however, denied wrongdoing as part of the settlement. The company has also called for other major social media platforms, including TikTok and YouTube, to adopt similar measures, arguing that teenagers use multiple platforms.
US District Judge Yvonne Gonzalez Rogers has suspended the trial and indicated that she is inclined to approve the agreement, but will review the settlement before making a final decision.
The lawsuit had exposed Meta to potential fines of up to $1.4 trillion, while the states involved had reportedly sought a penalty of around $200 billion.
The settlement follows two major cases in New Mexico in which juries ordered Meta to pay $375 million in March and another $567 million in August.
Meta shares initially fell after news of the settlement emerged but later recovered, gaining about 2.2 percent during the day.
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