Meta Platforms has agreed to pay up to $16.68 billion to settle litigation brought by all U.S. states and territories over claims that its social media platforms harmed children. The settlement, announced Wednesday, includes provisions requiring Meta to implement default daily time limits and nighttime blocks for teenage users.
The agreement follows a wave of lawsuits alleging that Meta, along with Google’s YouTube, TikTok parent ByteDance, and Snap Inc., designed platforms to maximize engagement among young users, contributing to mental health issues such as depression, anxiety, and body-image concerns. The companies have consistently denied wrongdoing, arguing that Section 230 of the Communications Decency Act shields them from liability for user-generated content and that they have taken steps to enhance safety for younger users.
A federal court trial in California, involving attorneys general from Colorado, California, Kentucky, and New Jersey, began on August 12. The trial addresses claims that Meta intentionally designed its platforms to addict young users and misled consumers about safety measures. Additionally, 29 states have alleged that Meta illegally collected and used children’s data. The lawsuit follows a March ruling in New Mexico, where a jury ordered Meta to pay $375 million in civil penalties for failing to protect young users from sexual exploitation on Instagram, Facebook, and WhatsApp. A judge later ruled that Meta created a public nuisance and ordered an additional $567 million payment while mandating youth-safety measures. Meta has stated it will appeal both rulings.
More than 1,000 school districts across the U.S. have filed lawsuits seeking compensation for costs incurred addressing the impact of social media on students. A Kentucky school district was selected as the first to go to trial in June, but the proceeding was canceled after settlements were reached. Public records indicated the district was set to receive $27 million.
Over 3,300 individual lawsuits have been consolidated in Los Angeles state court, with a smaller group in federal court. The first bellwether trial, involving a young woman alleging social media addiction led to depression and anxiety, concluded in March with a jury finding Meta and Google negligent. The jury awarded $4.2 million to the plaintiff against Meta and $1.8 million against Google. Both companies have indicated plans to appeal. A second bellwether trial scheduled for July was canceled after the plaintiff settled with TikTok, Snap, and Google, and dropped claims against Meta days before the trial date.
Three additional bellwether trials are scheduled to proceed in California state court this autumn. TikTok has tentatively agreed to settle those cases, while claims against Meta, Google, and Snap remain outstanding.
