Meta Settles Child Harm Lawsuit With 29 States for Nearly $17 Billion
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Meta has reached a nearly $17 billion settlement in an expansive, 29-state lawsuit concerning claims that Meta’s Facebook and Instagram social media platforms were designed to get children addicted to using them and caused significant harm.
As Reuters reports, Meta has agreed to pay a maximum of $16.68 billion in its settlement agreement while simultaneously agreeing to make changes to its platforms, instituting new safeguards for children.
The agreed settlement will be paid out over 10 years, per NPR.
This lawsuit has been years in the making, and four of the litigating states sought up to $1.4 trillion in penalties and damages. States had more recently changed their tune, suggesting a settlement may be closer to $200 billion, which is still far higher than the final $16.68 billion figure.
The sprawling cases were widely considered among the most serious legal challenges that Meta had ever faced regarding how its social media networks have affected children.
The heart of the lawsuit concerned claims that Meta had purposefully designed Facebook and Instagram to be addictive and keep users, particularly young ones, as engaged as possible without proper regard for their health and safety. There has been considerable research into the effects of social media use on children, and many leading mental health professionals believe that there are serious risks involved.
As part of Meta’s settlement, which denies any wrongdoing, the company says it will impose daily usage limits and enact nighttime usage restrictions on children using their platforms. The company also says it will improve its measures that prevent kids from accessing age-restricted content.
“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families,” said California Attorney General Rob Bonta in a statement.
“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months,” Bonta continued.
While this ends a particularly large lawsuit against Meta, the settlement is far from the end of states trying to hold social media companies accountable for how they engage children or allegedly fail to protect them. Snapchat, YouTube, and ByteDance are all still facing thousands of related lawsuits, per Reuters.
Meta’s share price increased 1.7 percent today at the time of writing following the settlement. The company’s shares are still down 10.9 percent year to date, though.
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