Meta Agrees to Massive Settlement and Platform Overhauls in US Youth Addiction Lawsuit

Instagram head Adam Mosseri, centre, testified in a United States court on Monday, August 24. Meta Platforms has reached an agreement to resolve a lawsuit alleging that the company intentionally designed Facebook and Instagram to addict children, deceived consumers regarding safety measures, and improperly gathered personal data from minors.

On Wednesday, the social media giant committed to paying up to $16.68bn to settle claims brought forward by a coalition of 29 US states. The trial, which commenced on August 18, was originally projected to span six weeks. Headquartered in Silicon Valley in California, Meta has additionally agreed to implement nationwide modifications across Facebook and Instagram.

Key adjustments include enforcing a mandatory two-hour daily usage limit for users under the age of 18, which can only be disabled by a parent, alongside nighttime usage blocks. According to the California State Attorney General’s Office, the Mark Zuckerberg-led enterprise will also be required to actively detect and remove children under 13 from the platform.

While the settlement still awaits formal court approval, Meta continues to deny any liability or wrongdoing. The corporation previously faced potential penalties reaching up to $1.4 trillion, though the coalition of states pursued a figure closer to $200bn. This resolution follows a defeat in a similar landmark legal battle in New Mexico, where juries ordered Meta to pay $375m in March and an additional $567m in August. Following the announcement, Meta’s stock experienced a slight decline, dropping 0.1 percent on Wall Street during early trading.