Meta has agreed to pay up to $18 billion over ten years to settle nationwide U.S. lawsuits accusing Facebook and Instagram of designing addictive features that harm youth mental health. Approved by U.S. District Judge Yvonne Gonzalez Rogers, the deal ends a major federal trial while establishing strict new restrictions for teen accounts, despite Meta denying wrongdoing.
Key Terms of the Agreement
- Daily & Nightly Caps: Teenagers' daily use on Facebook and Instagram will be restricted to two hours per day, with an automatic block enforced from midnight to 6:00 AM without explicit parental consent.
- School Hours Pause: Most push notifications will be muted for teen users between 8:00 AM and 3:00 PM.
- Financial Terms: Meta will pay a guaranteed $12.7 billion to 47 states, Washington D.C., and U.S. territories, alongside $459 million to settle separate Cambridge Analytica privacy claims.
- Competitor Clause: An additional $5 billion payout is contingent on whether rivals like TikTok, Snapchat, and YouTube implement matching teen safeguards.
What Remains the Same & Exceptions
The settlement leaves Meta's core recommendation algorithms and targeted advertising intact, nor does it force content removals for issues like body image concerns.
While the deal covers most states, Florida opted out to pursue its own trial, and New Mexico continues separate legal actions that recently yielded over $900 million in penalties against the company.
Source: Reuters
