Two days into a precedent-setting trial in which the tech giant was accused of designing addictive platforms, Meta has agreed to a mammoth $17 billion settlement.
In addition to the financial penalties — just a portion of the potential $200 billion payout from multiple lawsuits filed against the company — Meta has also committed to making platform changes intended to limit teens’ time online. Such changes include one-hour daily limits, screen time features like night mode, and stronger age assurance measures.
The case was brought forth by 29 state attorneys general and represented claims from 47 states, the District of Columbia, and U.S. territories as part of a federal multidistrict litigation (MDL). Meta will pay $12 billion to the 52 state attorneys general over 10 years, adding an additionsl $5 billion if other defendants, including Snap, TikTok, and YouTube, also agree to the settlement.
“I’m pleased to announce that Meta has reached an agreement with a bipartisan group of state attorneys general from around the country on a new set of rules governing teens’ use of social media,” wrote Meta chief legal officer C.J. Mahoney. “The framework we’ve negotiated will empower parents to easily manage how their children access our platforms. 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.”
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The trial was only the latest of a wave of litigation against the social media giant, including a recent standoff with New Mexico Attorney General Raúl Torrez. Last month, Meta was ordered to pay $567 million to fund youth mental health services for teens harmed by Meta products, following a history-making guilty verdict that resulted in a $375 million payout for violating consumer protection laws.
In another instance, a teen plaintiff dropped their case against Meta after reaching settlement deals with Snapchat, TikTok, and YouTube. Competitor platforms are also weathering multiple individual and state-directed lawsuits over claims that their products are exacerbating the youth mental health crisis and stoking screen time addiction.
Several leaders at these companies, including Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri, have been directly named in the lawsuit for their roles in allegedly ignoring concerns about the effects of their products.
“We congratulate the state AGs for this historic settlement, a major step toward holding Meta accountable for the harm its platforms have caused young people,” wrote co-lead plaintiffs’ counsel Lexi Hazam and settlement counsel Chris Seeger, who represent plaintiffs in school district and personal injury suits, in a statement following news of the settlement. “Thousands of young people and public school districts still have claims pending in the MDL against Meta, as well as TikTok, Snap and YouTube, and we stand ready to continue that fight. We will not rest until every one of these plaintiffs sees justice for the harms caused by all of the defendants’ platforms.”
