Meta Agrees to Up to $18 Billion Settlement With 52 Attorneys General Over Teen Social Media Harms

Meta has agreed to a proposed settlement of up to $18 billion with a bipartisan group of 52 attorneys general. The case centers on claims that Facebook and Instagram were intentionally designed to encourage compulsive use among children and teenagers.

The settlement, court approval for which is still required, is the result of a lawsuit filed in 2023 by California Attorney General Rob Bonta and other state attorneys general.

If the agreement is approved, Meta will be required to introduce new restrictions for users who are under 18; this will involve a default daily usage limit of two hours which only parents will be able to disable. Approximately $12.7 billion of the payment will go to the participating states.

Meta's Teen Safety Allegations and New Facebook and Instagram Restrictions

The 2023 lawsuit alleged that Meta had developed features which encouraged young people to use its services compulsively and also said that Meta misled its users, their families, and the public regarding the risks of its platforms.

The attorneys general also claimed that Meta unlawfully collected and used data relating to children under the age of 13, in breach of federal and state laws, such as the Children's Online Privacy Protection Act, California's False Advertising Law, and California's Unfair Competition Law.

The agreement mandates that Meta introduce a number of restrictions for users under 18 on Facebook and Instagram. One of these is a daily usage limit of two hours by default, which can only be disabled by parents. Should YouTube and TikTok also agree to similar rules, the limit would be reduced to one hour.

Meta will similarly set the default so that teenagers cannot use its apps between midnight and 6 a.m. Most notifications will be silenced between 10 p.m. and 7 a.m. as well as during school hours, although parents have the option of altering these settings. Some of the restrictions do not apply to direct messages and certain security or safety alerts.

Other requirements are to hide like and reaction counts for teenagers, ban cosmetic surgery filters, provide a non-personalised feed option, improve the tools for parental supervision, and add more age-verification technology in order to identify users under 18 and remove those children who are under 13.

An independent auditor will keep an eye on Meta's compliance. The company won't be permitted to make any false or misleading statements regarding its safety features. Most of the new protections have to remain in place for ten years. The agreement also establishes an independent research foundation which is concerned with teen well-being and social media use.

Meta's $18 Billion Settlement Payments and Remaining Approval Questions

Meta states that the agreement includes payments of about $18 billion over a period of ten years, with the participating states anticipated to receive approximately $12.7 billion.

A payment of another $5.3 billion will be made only upon YouTube and TikTok adopting similar measures, such as daily one-hour limits, nighttime restrictions, and age-assurance requirements, and each of them making a matching payment.

Meta stated that the agreement is intended to promote widespread acceptance within the industry so that teenagers get consistent protection in the apps they use most, such as YouTube and TikTok; and that certain provisions will be strengthened if the industry peers adopt this new standard.

California is expected to receive between $1.5 billion and $2.1 billion. According to Attorney General Bonta's office, the proposed settlement earmarks the money for preventing or addressing mental health or other harms to young Californians linked to The Legislature and the Governor will be responsible for making the final decision regarding the spending. Meta anticipates legal expenses of about $10 billion as a result of the agreement in the third quarter of 2026.d quarter of 2026.

The settlement has still to receive approval from the court and is therefore not final. The additional payment of $5.3 billion will depend on whether YouTube and TikTok agree to similar changes and make corresponding payments, although this has not yet been decided.

The state Legislature and the Governor will determine how California's portion is spent. The settlement settles the claims without Meta specifying its liability, and this matter relates to child safety and mental health.

Parents who want to control the way their teenagers use social media can use the parental control features offered by the various platforms, and anyone who is worried about a young person's well-being should contact a qualified professional or a reliable individual for support.

Thank you for being a Ghacks reader. The post appeared first on gHacks.