GoKawiilMeta and a coalition of state attorneys general have settled a major federal case centering on allegations that the social media giant misrepresented the extent of child-related mental health harms caused by apps like Facebook and Instagram.
The settlement was revealed in a court filing released Wednesday that details several requirements Meta must make to its apps as part of a proposed "consent judgement."
Those changes include daily usage limits and "nighttime blocks" for teenagers that use the company's apps like Facebook and Instagram, "enhanced age assurance measures" that would prevent children from using the apps, and the creation of additional tools for parents and guardians.
As part of the settlement, Meta agreed to pay $16.7 billion. The state of California could receive $1.5 billion to $2.1 billion if the court officially approves the settlement, according to an announcement by California AG Rob Bonta. Texas was not part of the group settlement.
"Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families," Bonta said in a statement. "Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months."
"Each Party waives all rights to appeal this Final Judgment," the filing states.
Shares of the social media giant popped during premarket trading after the news broke, but sank lower after the open.