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Meta Platforms Inc. agrees to $17.1 billion settlement with states to resolve social media addiction claims

Meta Platforms Inc. reached a settlement with 29 states, D.C., and three U.S. territories to resolve allegations that its platforms, Facebook and Instagram, were designed to be addictive for young users. The company agreed to pay up to $17.1 billion to fund state youth online safety initiatives, while also committing to implement several new safety features. These include daily time limits, nighttime blocks, and muted notifications during school hours. While Meta denied wrongdoing, the settlement ends a landmark legal battle regarding how the company harvested data from children under 13 and the risks to their mental health. The agreement also resolves claims regarding the sharing of user information with third parties. Meta stated that the goal is to set a new industry standard for teen safety. The company urged competitors like TikTok and YouTube to adopt similar restrictions to ensure a consistent experience for children who move between different apps.

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