Settlement resolves allegations Meta designed platforms to addict children and violated privacy laws without admitting wrongdoing.
Meta will pay up to $16.68 billion to settle claims from 29 states alleging the company engineered Facebook and Instagram to be addictive to children. The agreement also requires Meta to implement stricter usage controls for teenagers and enhance parental oversight tools.
The lawsuit, led by California and three other states, accused Meta of violating state consumer protection laws and the federal Children’s Online Privacy Protection Act. Claims included unlawfully gathering minors’ data without parental consent and using it to train AI models.
Meta stock rose approximately 4.4% in premarket trading following the settlement announcement. The company denied wrongdoing as part of the agreement.