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Meta has agreed to roll out new safety restrictions for teen accounts on Instagram and Facebook within six months, as part of an $18 billion settlement reached with 48 states. The agreement follows scrutiny over how the platforms have handled minors' safety and mental health concerns.
Meta has agreed to an $18 billion settlement with 52 attorneys general representing 29 U.S. states over allegations it designed Instagram and Facebook to hook young users. The company admits no wrongdoing but commits to detailed platform changes for minors, with the payout spread across a decade, softening its financial impact given Meta's $200 billion-plus annual revenue.
Reuters reports that Meta developed an internal restructuring effort, codenamed Project OT, that explored replacing much of the daily work of thousands of employees with AI systems overseen by small human teams. The plan, reportedly set in motion by CEO Mark Zuckerberg, called for two rounds of layoffs; the first occurred in May, but Meta scrapped the second round. Meta confirmed the scenario-planning exercise took place but said not every scenario was implemented, noting thousands of employees were instead redeployed to new priority teams.
Meta reached a proposed settlement with a coalition of state attorneys general over lawsuits alleging harm to young users, avoiding a federal trial in Northern California. The deal, approved by Judge Yvonne Gonzalez Rogers, includes payments of up to $16.7 billion over a decade and new teen-focused features like forced time limits, notification blocks, and a chronological feed option.
Meta reached a settlement of nearly $18 billion with almost all US states over claims it designed Facebook and Instagram to foster compulsive use among children and hid mental health risks. The deal, still pending court approval, requires Meta to impose a default two-hour daily time limit for teens, a midnight-to-6am usage block, and a school-hours notification mute, while Texas separately secured $1 billion outside the main $16.7 billion pact.
Meta has reached a $16.7 billion settlement with 47 U.S. states, the District of Columbia, and several territories over allegations tied to its addictive user experience design. As part of the agreement, Meta committed to making specific changes to features that regulators say were built to keep users, particularly minors, engaged for longer periods.
Meta has agreed to pay as much as $17.1 billion and change how Instagram and Facebook operate, settling claims from 47 states, D.C. and U.S. territories that its platforms were built to addict and harm children. About $12 billion is due upfront, with the rest contingent on Snap, TikTok and YouTube accepting similar penalties and reforms.
Meta has settled a multistate lawsuit accusing it of engineering Instagram and Facebook features—like infinite scroll and push notifications—to hook children, agreeing to pay a guaranteed $12.1 billion over ten years plus up to $5 billion more if TikTok and YouTube adopt similar payments and rules. The deal covers 47 states, DC and several territories, ending a trial in Oakland before Mark Zuckerberg was set to testify; Texas, Florida and New Mexico settled separately or already won judgments. Teen accounts will now face a default 2-hour daily combined limit on Instagram and Facebook, adjustable only by parents.
Reuters reports Meta spent 2024 developing 'Project OT,' an internal restructuring effort meant to reorganize the company around AI agents overseen by small human 'pods,' with some teams facing headcount cuts of up to 60%. Mark Zuckerberg reportedly shelved or paused a planned second wave of layoffs under the plan, which would have followed the company's earlier 10% workforce reduction this year. Meta confirmed a second plan existed but described the harsher cuts as scenarios under consideration rather than finalized decisions.
Meta has agreed to pay roughly $18 billion to resolve claims from 52 state attorneys general that its platforms harmed teen mental health, without admitting wrongdoing. As part of the deal, it will roll out default teen protections including a two-hour daily usage cap, a nighttime mode that disables feeds and Reels from midnight to 6 a.m., and muted notifications during school hours, while still allowing direct messaging.
Jim Cramer said Meta's $18 billion settlement with attorneys general over youth social media addiction claims is a favorable outcome for the company, ending a federal trial that could have exposed Meta to $200 billion in fines. Under the deal with 48 states, D.C., and three territories, Meta agreed to daily time limits, better parental controls, age-verification tools, and fewer notifications during school hours for young users.
Meta has agreed to pay $17 billion and implement new child-safety measures on Facebook and Instagram to resolve a major legal fight over teen social media addiction. The deal, announced by state attorneys general, settles claims brought by 47 states and averts a continuation of the trial.