Meta reaches $16.68B settlement over social media harms to children

Meta Platforms agreed to pay at least $16.68 billion to settle claims from dozens of US states accusing the company of knowingly designing Facebook and Instagram to hook children and teenagers. The settlement, announced on August 26, could climb as high as $18 billion depending on how related cases with other companies resolve. Meta’s stock rose approximately 4% in premarket trading after the announcement. The settlement covers claims from 29 states in a federal case, with reports indicating as many as 48 to 51 states were involved in the broader set of accusations. At its core, the litigation alleged that Meta violated the Children’s Online Privacy Protection Act (COPPA) by improperly collecting personal data from minors while misleading the public about the safety risks of its platforms. Beyond writing a very large check, Meta agreed to implement a suite of new protections for users under 18. Daily usage will be capped at two hours, with mandatory pauses built in. Nighttime usage blocks will run from midnight to 6 a.m. for minors. Enhanced age verification measures and expanded parental controls are also part of the deal. The base payment will be spread over a decade, with potent...