Meta has agreed to pay $16.7 billion to settle a federal lawsuit with a group of U.S. state attorneys general over claims that it downplayed the mental health harms Facebook and Instagram cause to children and teenagers. CNBC reported the development on Aug. 26.
Case was brought by 29 states, with California set for a large share
The lawsuit was filed by 29 states. California Attorney General Rob Bonta led the case alongside the attorneys general of Colorado, New Jersey, and Kentucky.
At the center of the complaint were allegations that Meta misled the public and minimized the psychological harm that Facebook and Instagram inflicted on children and adolescents. According to the California attorney general’s office, California could receive about $1.5 billion to $2.1 billion if the settlement wins formal court approval.
Settlement also requires product changes
The deal goes beyond financial compensation. Meta is required to make a series of product changes, including limits on daily usage time, nighttime access blocks, more parental control tools, and stricter age-verification standards.
The report said the $16.7 billion figure is unusually large for a settlement of this kind in the technology sector. The settlement was disclosed on Aug. 26, after Instagram head Adam Mosseri testified in California.
Focus returns to platform responsibility for minors
For social platforms that have faced sustained pressure over child safety and regulation, the settlement represents a major expense and puts the question of how much responsibility platforms should carry for underage users back in front of policymakers and the public.