Meta Platforms agreed to pay up to $17.1 billion to settle lawsuits from dozens of U.S. states. The legal action alleged the company designed Facebook and Instagram with addictive features that harmed children's mental health. Lawsuits also claimed Meta improperly collected data from underage users.
The settlement requires Meta to implement sweeping safety measures for teenage users. New features include a default two-hour daily time limit and a prohibition on overnight usage. Meta will block notifications during school hours unless overridden by parental consent. The company must also enhance age verification systems and provide expanded parental tools.
Meta denied any wrongdoing as part of the agreement. The company will pay the funds over a 10-year period to support youth mental health and online safety programs. A portion of the settlement is contingent on competitors like TikTok and YouTube adopting similar safety measures.