The proposed settlement, contained in a court filing on Wednesday, August 26, also requires Meta to make a series of changes to its platforms, including introducing daily usage limits and “nighttime blocks” designed to restrict children’s access to the apps before bedtime.
The company will also implement enhanced age-assurance measures aimed at preventing underage children from using Facebook and Instagram, while providing additional tools to help parents and guardians protect their children online.
The settlement, described as a “consent judgement”, remains subject to court approval.
By reaching the agreement, Meta has avoided a trial that was regarded as an unprecedented challenge to the company’s business model.
The case is among thousands of lawsuits filed in California state and federal courts accusing the social media company of contributing to a mental health crisis among teenagers.
During proceedings in a related federal case, former Meta safety researcher Arturo Béjar testified that the company’s approach to child safety could not be trusted.
“You just cannot trust Mark Zuckerberg with kids,” Béjar said, while accusing Meta CEO Mark Zuckerberg of misleading the public about the company’s efforts to protect young users.
“I felt that he created a false and misleading impression of Facebook’s commitment to young people,” Béjar added, claiming he had discussed safety concerns with Zuckerberg at least 100 times during his time at Meta.
The coalition of state attorneys general accused Meta, whose primary revenue comes from digital advertising, of violating federal law by collecting children’s data without parental consent.
They also alleged that features such as Facebook’s “like” button and recommendation algorithms were intentionally designed to encourage addictive use and had contributed to anxiety, depression, self-harm and suicide among teenagers.
California, Colorado, Kentucky and New Jersey, which led the case, further accused Meta of misleading the public about the potential safety risks associated with children using its platforms.
Before the trial, Meta argued that the states were seeking as much as $1.4 trillion in damages, describing the figure as “outlandish” and disproportionate to the claims.
However, lawyers representing the states maintained that about $200 billion would be a more realistic potential award if they prevailed at trial, accusing Meta of promoting the larger figure for “shock value”.
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