Meta settles teen safety case for $16.7B

Meta Platforms agreed to pay up to $16.7 billion to resolve a landmark lawsuit brought by 29 U.S. states alleging that its platforms Meta Platforms and Meta Platforms — Instagram were deliberately designed to addict young users, mislead the public about risks, and unlawfully collect data from children under 13. The settlement, filed in federal court in Oakland, United States — California, also requires Meta to implement sweeping new safeguards for teen users, including automatic nighttime blocks, default daily usage caps, restrictions on disabling safety settings without parental consent, enhanced age verification, and appointment of an independent auditor. The agreement, signed by 51 states and territories, does not constitute an admission of liability. It still requires court approval, which Judge Yvonne Gonzalez Rogers indicated she expects to grant. The settlement resolves the multi-state trial but does not cover thousands of personal injury claims and school district lawsuits. Meta also agreed to pay additional amounts for other privacy claims and legal fees, and to pay United States — Texas $1 billion separately. Some payments are contingent on other platforms like Google — YouTube, ByteDance — TikTok Shop, and Snap adopting similar changes. The settlement follows a Mexico case where Meta was ordered to pay $567 million into an abatement fund and $375 million in civil fines. Meta shares fluctuated on the news, initially rising then falling slightly.