Meta agrees to $16.7 billion settlement with US states over youth mental health

Settlement requires daily limits, night-time blocks, age verification

Meta has agreed to pay a maximum of $16.7 billion (£12.26 billion) to settle claims by US states that its Facebook and Instagram platforms harmed children’s mental health, according to court documents filed Wednesday. The deal, announced in federal court in Oakland, California, cuts short a landmark trial in which CEO Mark Zuckerberg had been expected to testify.

Twenty-nine states, including California, Colorado, Kentucky, and New Jersey, sued the tech giant in 2023, the Associated Press reported. A total of 47 states filed claims in the case overall.

The Associated Press reported the settlement is worth $17 billion. Virginia alone is to receive $353 million, state Attorney General Jay Jones said in a statement, calling it “one of the biggest in state consumer protection history.”

“For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health,” Jones said. He said the settlement “will put an end to these dangerous practices and deliver meaningful relief that will protect children from online harm.”

The settlement requires Meta to introduce safety features including daily limits and night-time blocks for teenage users, the BBC reported. Other mandated features include limiting access for children during school hours, stronger parental controls, and robust age verification for underage users.

District of Columbia Attorney General Brian Schwalb called the settlement “a monumental public health victory.” “The safety features Meta is required to install will fundamentally and immediately change how young people use Instagram and Facebook,” Schwalb said.

The states suing Meta alleged the company used its platforms “to entice, engage, and ultimately ensnare youth and teens” and ignored the damage the platforms did to the “mental and physical wellbeing of America’s youth.” The plaintiffs claimed Meta violated numerous federal and state privacy laws for children.

Meta denied wrongdoing in agreeing to settle, the BBC reported. The BBC said it had contacted Meta for comment.

The settlement cuts short a trial that had been expected to feature testimony from Zuckerberg before a jury.