Meta, the parent company of Facebook and Instagram, has agreed to pay up to $18 billion (£13.3 billion) to settle a landmark lawsuit brought by 48 US states, the District of Columbia, and three US territories over allegations that its platforms harmed children’s mental and physical wellbeing.
The settlement, which requires court approval, represents one of the largest corporate payouts in history and mandates significant changes to how Meta manages young users’ experiences on its platforms. The agreement includes provisions for daily time limits, night-time blocks, and other safety features designed to protect teenagers.
The states suing Meta claimed the company used its platforms “to entice, engage, and ultimately ensnare youth and teens,” and ignored the damage they did to the “mental and physical wellbeing of America’s youth.”
After the settlement was announced, District of Columbia Attorney General Brian Schwalb called it a “monumental public health victory.” He added: “The safety features Meta is required to install will fundamentally and immediately change how young people use Instagram and Facebook.”
Under the settlement, Meta will introduce several new safety measures, including:
- Limiting access for children during school hours
- Stronger parental controls
- Robust age verification for underage users
- Daily time limits and night-time blocks for teenagers
Meta agreed to pay the $18 billion in annual instalments over a 10-year period. The company said the funds will be used for youth online safety initiatives and other state priorities. Meta denied wrongdoing in agreeing to the settlement.
Following the announcement, Meta’s chief legal officer CJ Mahoney called on other social media platforms, including TikTok and YouTube, to implement the same safety features. “Our new Time Limit commitments, Night Mode features and usage limits during school hours set the right path forward for our whole industry, but this framework will only work if all our peers join us,” Mahoney said.
The settlement is a significant victory for advocates of child safety online and could set a precedent for how social media companies are held accountable for the wellbeing of their younger users.
